Indicated mineral resources have been estimated to be 1.854 billion tonnes at 204.9g/t Ag and inferred mineral resources of 0.454 million tonnes at 153.4g/t Ag above a 75g/t Ag cut-off grade, Magna said.

It includes indicated resources of 12.22 million ounces of Ag and inferred resources of 2.24 million oz Ag.

"We have unlocked tremendous value through the drill bit and there is great potential for significant resource growth in the near term," Bonillas said.

"Our exploration programme defined a high-grade resource and discovered several parallel structures. We look to add the newly discovered structures in our next resource update and anticipate material increase in the mineral inventory," he added.

The estimate was delivered on time and budget and the company is on track to release a preliminary economic assessment in the coming months and make a construction decision before the end of 2022, Bonillas said.

Meanwhile, the same day of the release of the estimate, Magna's share price fell 13% day on day to close the April 21 trading session on the Toronto Stock Venture Exchange at C$0.63 (US$0.50). Magna's market capitalisation stood at C$56.74 million.

The April 21 quote is the lowest close the stock has seen since May 2020. Its highest close was recorded August 11 at C$1.65.