TORONTO, July 14, 2021 /CNW/ - Magna Gold Corp.
(TSXV: MGR) (OTCQB: MGLQF) ("Magna" or the
"Company"), is pleased to report June
2021 production of 5,398 oz gold ("Au") a record to
date. Additionally, the strip ratio for the month of June was 2.9,
another record for the company. Q2 2021 gold production was 11,713
ounces at its San Francisco Mine in Sonora, Mexico. Gold sold during the quarter
was 11,777 ounces at an average realized gold price of $1,752 per ounce (1). With 21,498
ounces of gold produced through the second quarter and achievement
of full-scale commercial production on June
1, 2021, the Company reiterates full year gold production
guidance of 55,000 to 65,000 ounces.
TABLE 1: Q2 2021 OPERATIONAL HIGHLIGHTS
|
Three months
ended
|
|
Change
|
Change %
|
|
Jun-21
|
Mar-21
|
|
Jun-21
|
Mar-21
|
MINING
|
|
|
|
|
|
Ore mined (dry
kt)
|
1,231
|
619
|
|
612
|
99%
|
Ore mined grade (g/t
Au)
|
0.43
|
0.34
|
|
0.09
|
27%
|
Waste mined
(kt)
|
4,880
|
5,195
|
|
(315)
|
(6%)
|
Total mined
(kt)
|
6,111
|
5,814
|
|
297
|
5%
|
Strip
ratio
|
3.96
|
8.40
|
|
(4.43)
|
(53%)
|
Avg. total mined
(t/d)
|
67,153
|
64,597
|
|
2,555
|
4%
|
|
|
|
|
|
|
CRUSHING AND
PROCESSING
|
|
|
|
|
|
Ore processed (kt) -
From open pit
|
1,221
|
611
|
|
610
|
100%
|
Ore processed grade
(g/t Au) - From open pit
|
0.44
|
0.32
|
|
0.11
|
35%
|
Ore processed (kt) -
All sources
|
1,347
|
744
|
|
603
|
81%
|
Ore processed grade
(g/t Au) - All sources
|
0.49
|
0.51
|
|
(0.02)
|
(4%)
|
Gold placed on pads
(ozs) - All sources
|
21,094
|
12,177
|
|
8,917
|
73%
|
|
|
|
|
|
|
PRODUCTION
|
|
|
|
|
|
Gold ounces produced
(ozs)
|
11,713
|
9,785
|
|
1,928
|
20%
|
Silver ounces
produced (ozs)
|
7,742
|
8,093
|
|
(351)
|
(4%)
|
Gold ounces sold
(ozs)
|
11,777
|
8,430
|
|
3,347
|
40%
|
Silver ounces sold
(ozs)
|
8,422
|
6,961
|
|
1,461
|
21%
|
|
|
|
|
|
|
Realized gold price
(USD)
|
1,752
|
1,796
|
|
(44)
|
(2%)
|
Magna Gold plans to release its full second quarter 2021
financial and operational results on or around August 30, 2021. Gold grades mined, gold grades
processed, and gold recoveries will be reported with the quarterly
results.
Arturo Bonillas, President &
CEO of Magna Gold, stated:
"The end of Q2 marked a major milestone for the Magna Gold team.
We achieved commercial production on schedule and had our highest
production total in the month of June. We are seeing production
ramp up every day and look to end the year producing ~7,500 oz Au
per month. Figure 1 demonstrates just how far we have come as our
strip ratio has been brought down to near life of mine averages and
our production continues to steeply trend upwards."
"Magna Gold is in a phase of rapid expansion and advancement of
our assets. Having said that our commitment to health and safety
remains a priority, this evidenced by our unblemished ~3.5M man
hours without a lost time incident. We look to continue our
dedication to best practices as we are well on our way to become a
mid tier producer."
(1) Realized gold price for Q2 2021 includes gains
and losses on derivatives.
About Magna Gold Corp
Magna is a Mexico focused gold/silver production company
focused on acquiring, exploring, developing and operating quality
precious metals properties in Mexico. It is committed to advancing its 100%
owned flagship San Francisco Mine and other highly prospective
mineral properties located in Sonora and in Chihuahua. The primary strength
of the Company is the team of highly experienced mining
professionals with a proven track record of developing properties
in Mexico from discovery to
production. Magna employs community members and services in its
operations.
Based on the NI-43-101 technical report dated August 8, 2020, San
Francisco operations are estimated to have measured and
indicated resources of 99,700,000 tonnes @ 0.446g/t Au containing
1,430,000 ounces of gold, and inferred resources of 11,374,000
tonnes @ 0.446 g/t containing 171,000 ounces of gold. The total
proven and probable reserves is 47,629,000 tonnes @ 0.495 g/t Au
containing 758,000 ounces of gold. Mineral resources are inclusive
of mineral reserves. Mineral resources that are not mineral
reserves do not have demonstrated economic viability.
ON BEHALF OF THE BOARD OF DIRECTORS
Arturo Bonillas
President and CEO
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Qualified Person
James
Baughman (P. Geo.), Consulting Geologist and a Qualified
Person as defined by NI 43-101, has approved the scientific and
technical information in this news release.
Cautionary Statements
This News Release includes certain "forward-looking
statements" which are not comprised of historical facts.
Forward-looking statements include estimates and statements that
describe the Company's future plans, objectives or goals, including
words to the effect that the Company or management expects a stated
condition or result to occur. Forward-looking statements may be
identified by such terms as "believes", "anticipates", "expects",
"estimates", "may", "could", "would", "will", or "plans". Since
forward-looking statements are based on assumptions and address
future events and conditions, by their very nature they involve
inherent risks and uncertainties. Although these statements are
based on information currently available to the Company, the
Company provides no assurance that actual results will meet
management's expectations. Risks, uncertainties and other factors
involved with forward-looking information could cause actual
events, results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward-looking
information. Forward-looking information in this news release
includes, but is not limited to, the Company's objectives, goals or
future plans, exploration results, potential mineralization
(including estimates of measured and indicated resources, inferred
resources and probable reserves), exploration and mine development
plans, production (including gold production expectations and
guidance and expectations of becoming a mid-tier producer),
processing and mining expectations (including statements regarding
expansion and advancement of assets) and strip ratio trends and
expectations . Factors that could cause actual results to differ
materially from such forward-looking information include, but are
not limited to failure to identify mineral resources, failure to
convert estimated mineral resources to reserves, the inability to
complete a feasibility study which recommends a production
decision, the preliminary nature of metallurgical test results,
delays in obtaining or failures to obtain required governmental,
environmental or other project approvals, political risks,
uncertainties relating to the availability and costs of financing
needed in the future, changes in equity markets, inflation, changes
in exchange rates, fluctuations in commodity prices, delays in the
development of projects, capital, operating and reclamation costs
varying significantly from estimates and the other risks involved
in the mineral exploration and development industry,
risks related to the effects of COVID-19 on the
Company; and those risks set out in the Company's public
documents filed on SEDAR. Although the Company believes that the
assumptions and factors used in preparing the forward-looking
information in this news release are reasonable, undue reliance
should not be placed on such information, which only applies as of
the date of this news release, and no assurance can be given that
such events will occur in the disclosed time frames or at all. The
Company disclaims any intention or obligation to update or revise
any forward-looking information, whether as a result of new
information, future events or otherwise, other than as required by
law.
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SOURCE Magna Gold Corp.