MAG closed on a CDN $5.75 Qualifying Transaction and IPO and was re-listed on April 22, 2003. Three district-scale projects are on its' plate. Two that will see drilling in 2003 and a third slated for initial drilling in 2004.
Operates in Mexico through 100% owned subsidiary Minera Los Lagartos S.A. de C.V.
Juanicipio, Zacatecas. Pursuant to an agreement dated July 18, 2002, as amended Dec. 19, 2002, between Lagartos and Martin Bernardo Sutti Courtade, Lagartos was granted an option to acquire a 100-per-cent interest in the Juanicipio property located in the Fresnillo district, Zacatecas, Mexico. To exercise the option, Lagartos must drill a minimum of 3,500 metres on the property by July 18, 2003, MAG has subsequently acquired 100% interest in the properties free and clear of any royalties.
MAG entered into a contract to drill its Juanicipio Project with Major Drilling de Mexico, S.A. de C.V., the Mexican subsidiary of Major Drilling Group International, Inc. Drilling is scheduled to commence under the contract on May 6, 2003. MAG has already begun the work of road and drill pad preparation on the first drill sites. The initial program in planned for 3,500 meters drilling. The drilling will test the identified targets along strike from the structures currently in production and undergoing advanced exploration in the Fresnillo District, the largest producing silver mine in the world. Juanicipio lies 5 km from the head frame of Industrias Penoles' Fresnillo Mine, which currently produces 12% of the world's silver from high grade (23oz/T Ag plus up to 0.1oz/T Au) veins. Overall district production since 1560 is around 1 billion ounces of silver, with roughly 400 million ounces of that production coming since 1976 when the high-grade veins currently being mined were discovered. MAG's Juanicipio targets consist of a series of structures that are parallel to, and aligned with, major veins of the district. Six principal structures, that show strong geological, geochemical and geophysical resemblance to the producing veins, have been identified and permitted for immediate drilling.
Drilling commenced and intercepts in the first two holes confirmed the extension of Fresnillo-style mineralization at depth along strike from the known veins presently in production by Penoles to the east.
Press Release 07Jul03
Press Release 25Apr03Don Fippi Property, Batopilas District, Chihuahua. Pursuant to an agreement dated Nov. 18, 2002, between the company, Lagartos and Minera Bugambilias S.A. de C.V. Lagartos was granted an option to acquire a 100-per-cent interest in the Don Fippi property located in the Batopilas, Chihuahua district of Mexico. To exercise the option, Lagartos must pay to Bugambilias property payments totalling $550,000 (U.S.) plus VAT over a period of 48 months, incur expenditures on the property of at least $4-million (U.S.) over a period of 60 months, and issue to Bugambilias up to 2.1 million shares of the company (100,000 shares on closing, and commencing eight months from closing, one share for each U.S. dollar expended by Lagartos on the property, for up to two million shares). Lagartos has also agreed to pay Bugambilias a 4.5-per-cent NSR.
Low level aerial photographs were flown over the entire district in early July prior to the rainy season
Press Release 07Jul03
Guigui Property, Santa Eulalia District, Chihuahua. Pursuant to an agreement dated Nov. 18, 2002, between the company, Lagartos and Minera Coralillo S.A. de C.V. Lagartos was granted an option to acquire a 100-per-cent interest in the Guigui property located in the Santa Eulalia, Chihuahua district of Mexico. To exercise the option, Lagartos must pay to Coralillo property payments totaling $550,000 (U.S.) plus VAT over a period of 48 months, incur expenditures on the property of at least $2.5-million over a period of 48 months and issue to Coralillo up to 2.1 million shares of the company (100,000 shares on closing, and commencing eight months from closing, one share for each U.S. dollar expended by Lagartos on the property, for up to two million shares). Lagartos has also agreed to pay Coralillo a 2.5-per-cent NSR.Geologic mapping presently underway
Press Release 07Jul03
Don Jose/Cinco de Mayo, Chihuahua. This area is located about 50km NW of Ejido Benito Juarez. Regionally, the Cinco de Mayo Property lies directly along the same major deep crustal break that underlies the largest CRD/skarn systems in Chihuahua: including, Santa Eulalia, Naica, Bismark, and San Pedro Corralitos. In detail, both geologically and geochemically, Cinco de Mayo has great similarity to the distal portions of Santa Eulalia, and the exploration target would be to trace this distal mineralization back towards its source. Geochemical and structural work accomplished to date indicate that this source lies beneath Cinco de Mayo and extends to the east under alluvium-mantled shales. PEMEX data and our outcrop reconnaissance indicate that this alluvium/shale cover is very thin and that a very thick section of favorable carbonate host rocks lies beneath. Exploration work will be largely blind and will necessitate using geochemical and geophysical techniques to trace mineralization beneath this cover. Given the regional location of Cinco de Mayo and the nature of exposed distal mineralization, the potential for finding a large blind CRD system appears excellent. Review and compilation of the geologic characteristics of the CRD prospects of Chihuahua gathered over a 15 year period by IMDEX-CASCABEL revealed several features that are shared by the most important deposits of the state (and elsewhere) and are unlike those seen in the small Chihuahuan CRD deposits, or the deposits of eastern Chihuahua that have MVT affinities (Megaw and others, 1988, Megaw and others, 1996). An interesting fallout from this compilation and cogitation was the recognition that the seemingly unimportant Cinco de Mayo Prospect (CdM) has most of the features associated with the larger deposits, indicating that it may be an important exploration target of district scale. The reinterpretation was adequate justification for filing the Don Jose Claims over the area east of CdM, and subsequent work has strengthened our opinion of the target.
