TORONTO - Magna Gold Corp. (TSXV: MGR, OTCQB: MGLQF) ('Magna' or the 'Company') is pleased to provide the following letter to all shareholders from the Chief Executive Officer.
About Magna Gold Corp.
The San Francisco Mine commenced operations in 2010 and has produced over 820,000 ounces of gold. The San Francisco Mine is situated in the north central portion of the state of Sonora, Mexico, approximately 150 kilometers (km) north of the state capital city of Hermosillo and 120 km south of the United States/Mexico border city of Nogales along Highway 15 (Pan American highway). The project is comprised of two previously mined open pits (San Francisco and La Chicharra), together with heap leach processing facilities, and associated infrastructure located close to the San Francisco pit. The San Francisco Project is a gold occurrence with trace to small amounts of other metallic minerals. The gold occurs in granitic gneiss and the deposit contains principally free gold and occasionally electrum. The mineralogy, the possibility of associated tourmaline, the style of mineralization and fluid inclusion studies suggest that the San Francisco deposits may be of mesothermal origin. The San Francisco deposits are roughly tabular with multiple phases of gold mineralization. The deposits strike 60 to 65 west, dip to the northeast, range in thickness from 4 to 50 metres (m), extend over 1,500 m along strike and are open ended. Another deposit, the La Chicharra zone, was mined as a separate pit.
In addition to surface operations Magna is developing an underground operation at the San Francisco Mine. Surface operations were restarted in Q3 2020 and are moving towards full production in 2021.
Margarita Silver Project
Margarita is located in the Satevo Municipality in Chihuahua state, approximately 120km SW of the Chihuahua City, and 110km NNW of the historic Parral Mining district. The property has year-round unrestricted access provided by a good network of Federal-State highways and well maintained dirt & ranch roads. Mineralization at Margarita property is hosted in a series of parallel, steeply dipping, northwest-trending epithermal veins, and silicified fault breccias, some of them known for 1.7 km along strike. The veins show classical banded epithermal quartz textures with an apparent thickness of between 1 and 5m and the fault breccia zones can reach thickness up to 12m. Work at Margarita includes surface sampling and mapping, drilled 5097m in 35 holes. Two mineralization styles have been identified: high-grade discrete fault-filling veins with grades normally >250 g/t AgEq and widths between 1 and 10m, showing traditional crustiform and colloform textures and wider intervals with lower grades (40 to 180 g/t AgEq) characterized by stockwork zones, silicified breccias and silicification in rhyolites.
La Pima Silver Project
The La Pima project is located 25 km in a straight-line NW of the San Francisco Mine. Access to the area is from the town of Santa Ana through Highway No. 2 at Km 13. The mineralization in the area is related to a series of hydrothermal breccia zones with siliceous-hematite matrix locally with carbonates and barite, hosted in several parallel structures with a NW and NE strike, which at the same time form mantle-like bodies with lenticular shapes that develop in the contact zone with limestone structures related to NE 50-degree structures. Evidence of Ag mineralization (Ba-Ca-Ag-Pb-Zn breccia) has been found along more than 2.5 km in length, mainly on the middle stratification fossiliferous limestone strands located in the basal part of the calcareous unit.
IP geophysics data collected by Zonge in August confirms surface sampling and mapping work on the property.
Mercedes Gold/Silver Project
Mercedes is an exploration property prospective for structurally controlled high sulphidation type epithermal gold-silver mineralization. The property is located within the Sierra Madre Occidental province, a historically productive, regionally extensive Tertiary volcanic field which stretches from the United States /Mexico border to central Mexico. Mercedes is located toward the western edge of the province and is predominantly underlain by intrusive rocks, granodiorite-monzonite plutonic rocks and quartz feldspar porphyry dykes and stocks exposed by erosion of intermediate and felsic volcanics packages of the Lower and Upper Volcanic sequences. The thick volcanic sequences are characteristic of the region and form much of the Sierra Madre Occidental.
Outcrop in key areas of the property are strongly altered, brecciated intrusives and some propylitically altered volcanics. Zoned assemblages of silica, phyllic, argillic and distal propylitic alteration are recognized. The main prospect area 'La Lamosa' is a prominent, highly oxidized red ridge, visible from the highway. Gold and silver are target commodities sought at Mercedes and the property exhibits textures and alteration consistent with high sulphidation epithermal mineralization.
High sulphidation epithermal deposits can be vein hosted or disseminated and are often high tonnage and low grade. Local examples include Alamos Gold Inc.'s Mulatos Deposit and Agnico Eagle Mines Limited's La India Project roughly 40km NE of Mercedes.
San Judas Gold Project
The San Judas project is located at the southern end of the Caborca Orogenic Gold Belt or Sonora Mojave Mega Shear, a trend known to host several orogenic gold-bearing deposits within an area extending from north-western Mexico into the southwestern United States measuring more than 600 km long and 60 to 80 km wide. Of the deposits within the Caborca Orogenic Gold Belt are a number of large open pit heap leach gold operations such as La Herradura, Soledad-Dipolos and Nochebuena (Fresnillo PLC), San Francisco mine (Alio Gold Inc.), Cerro Colorado (Gold Group), El Chanate (Alamos Gold Inc.) and La Choya (Hecla Mining Company). The combined gold reserves and resources identified within the trend to date total in excess of 20 million ounces of gold.
The oldest rocks within the property are a package of metamorphic rocks which include banded quartz-feldspathic gneiss and augen gneiss, granite, and green schist. All metamorphic rocks exhibit foliation which generally varies in strike direction from between 330-degree to North and dips to the southwest generally at 45-degree at Santa Lucia and Cueva de Lion. The strike direction at San Martin is generally North/South with sub vertical dips. Quartz veins generally follow foliation and strike of the metamorphic rocks.
The metamorphic rocks are intruded by a Tertiary igneous package, which includes granite with visible feldspar and quartz, and is porphyritic in texture. It appears that the granite was emplaced along low angle shear zones in the system.
Los Muertos Gold/Silver Project
The Los Muertos project is in the Sonora-Mojave Megashear tectonic zone which runs approximately 700km northwesterly from Los Muertos to near Palm Springs, California. The Sonora-Mojave Megashear contains numerous silver-gold deposits, including Magna's producing San Francisco mine located 300km northwest of Los Muertos. The nearest current producer is Argonaut Gold Inc.'s La Colorada silver-gold mine, located 30km northwest of Magna's Los Muertos project.
The regional geological drivers of silver-gold mineralization in the southern part of the Megashear are well established. Precambrian basement rocks form an eroded undersurface which is overlain by Ordovician, Permian, and Triassic sedimentary rocks. Importantly, the district contains complex hydrothermal signatures related to Cretaceous plutonic activity, later higher-level plutonic events, and finally, the development of a pervasive, mineralized mid-Tertiary vein system.
The La Colorada Gold District, which includes the Los Muertos area, is defined by hundreds of low sulphidation epithermal-vein type historic silver-gold deposits and showings which remain largely unexplored. Vein clusters at Los Muertos share a common orientation with the four main zones at the La Colorada mine, between 045-degree and 090-degree. Government geological maps indicate that the Los Muertos project's immediate area is characterized by extreme silicification, hematization and argillic alteration, suggesting the potential for both extensive silver-gold veins systems, and coincident, pervasive disseminated mineralization in the host sedimentary and volcanic rocks.
Magna Gold Corp. is a Canadian gold company engaged in operations, development, exploration and acquisitions in Mexico. Its primary asset is the producing San Francisco gold mine in Sonora, Mexico and exploration stage projects include San Judas, La Pima and Mercedes.
The Company's shares trade on the TSXV under the trading symbol 'MGR' and OTCQB under the trading symbol 'MGLQF'. Magna is well integrated into its nearby communities, employs local residents and uses local services when possible.
Contact:
Arturo Bonillas
Tel: 647.259.1790
Email: abonillas@magnagoldcorp.com
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, production guidance from the San Francisco Mine, 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 'plan'. 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, information about the Company's objectives, goals or future plans, the production and sale of gold or other resources, production decisions, anticipated production costs, cash flow and profitability. 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, inability to fulfill the duty to accommodate First Nations and other indigenous peoples, 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 and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, 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.
MAGNA GOLD CORP. 
