Magna Gold Corp (fka MGLQF)

[Bobwins]

Good news. Magna would be on track to become a 90K producer if they can produce 7500 oz/month as they are guiding for Q4 exit rate. Still way undervalued. Mine/mill is paid for. How many 90K producers can say that. Grade is low but mine produced profitably at that grade for many years when it was Timmins Gold.




Magna Gold Achieves Full-Scale Commercial Production at San Francisco on Schedule
Tue, June 29, 2021, 4:00 AM

MGLQF
+7.96%
TORONTO, June 29, 2021 /PRNewswire/ - Magna Gold Corp. (TSXV: MGR), (OTCQB: MGLQF) ("Magna" or the "Company") is pleased to announce it has achieved full-scale and steady state commercial production at its 100% owned flagship San Francisco Mine, located in Sonora, Mexico. Commercial production was achieved on schedule on June 1, 2021, as outlined in the Company's press release dated April 13, 2021. Furthermore, the Company is on track to achieve and reiterates its earlier stated 2021 guidance of 55,000 – 65,000 oz of gold ("Au") production.

Magna Gold Corp. logo (CNW Group/Magna Gold Corp.)
Magna Gold Corp. logo (CNW Group/Magna Gold Corp.)
In the first half of the year, the Company completed the necessary pre-stripping and substantially lowered the mine strip ratio from ~8:1 to ~3:1, which is continuing to trend downwards towards the life of mine ("LOM") average of 2.5:1. Moving forward, the Company anticipates further decreases to the strip ratio and increased recovery rates which will lead to cost improvements.

At San Francisco, the Company anticipates a production run rate of ~6,000 Au oz/month in Q3 and looks to exit the year at a run rate of ~7,500 Au oz/month.

Highlights

Completed all necessary pre-stripping to achieve 2.9:1 strip ratio at full-scale commercial operations, which is expected to trend downwards through LOM.

Completed construction of new leach pads and began stacking fresh ore at a steady-state rate of 900 metric tons per hour.

Optimized grind size and leach kinetics improving recovery rates to ~70% with further improvements anticipated over the LOM.

Continues commitment to health and safety, achieving over 3.5 million man-hours without a lost-time incident.

Arturo Bonillas, President and CEO of Magna stated: "We are all extremely proud of the Magna team for achieving this tremendous milestone on schedule. Achieving full-scale commercial production in such a short period of time is a testament to the hard work and quality of our Mexico-based operations team and as a company, we have demonstrated our ability to execute on all our target deliverables. Production numbers are trending upwards month-to-month, and we anticipate exiting the year producing ~7,500 Au oz/month. We are continuing our systematic exploration efforts as we look to grow the Company into a mid-tier producer."

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.

As of August 8, 2020 (NI 43-101 F1 Technical Report Pre-feasibility study for the San Francisco Gold Project), 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