Currently viewing Global edition

MAG Silver acquires Utah project

MAG Silver has announced the acquisition of the silver-rich Deer Trail carbonate replacement deposit (CRD) in Piute County in Utah, USA which includes patented and unpatented claims totalling about 5,600 hectares encompassing the historic Deer Trail mine and the adjoining Alunite Ridge area.
MAG Silver acquires Utah project MAG Silver acquires Utah project MAG Silver acquires Utah project MAG Silver acquires Utah project MAG Silver acquires Utah project

Juanicipio in Zacatecas, Mexico

Staff reporter

This is the first time since the early 1980s that these properties have been consolidated, allowing MAG to apply an integrated district-scale exploration approach based on the continuum of mineralisation styles from CRD through skarn to porphyry copper-molybdenum shown by many related systems worldwide. This model suggests that the high-grade silver, gold, lead, zinc and copper CRD sulphides of the Deer Trail mine are linked by kilometres of continuous mineralisation to a porphyry copper-molybdenum centre lying near Alunite Ridge.

"Deer Trail has been on my exploration radar since 1982, as it displays the most important characteristics of a large porphyry-related CRD system. Consolidating the property lets us apply our integrated exploration model and apply new technology to the search for the entire suite of mineralization styles that we expect to occur on the property," said chief exploration officer Dr Peter Megaw.

Phase 1 exploration is focusing on following the silver-rich Deer Trail mine CRD mineralisation to depth using a combination of historical and new data reinforced by an underground seismic survey planned for late September. Initial drill pads are permitted with a 6,500m drilling programme planned for early October.

The acquisition marks a second front for MAG, which is widely known for the Juanicipio joint venture development project with Fresnillo in Zacatecas, Mexico which is due to start production before year end.

MAG can earn a 100% interest in Deer Trail with the vendors retaining a 2% net smelter return royalty. MAG must make a total of $30 million in escalating annual expenditures and $2 million in royalty payments over 10 years, which commenced in December 2018.

Shares in MAG Silver are trading at C$20.88, valuing the company at $1.9 billion.