Magna Gold Corp. (TSX-V: MGR) (OTCQB: MGLQF) is pleased to announce that, further to its announcement on September 30, 2019, it has entered into an exploration and option to purchase agreement dated January 06, 2020, with Ricardo Estanislao Carranza Leon, Maria del Rosario Mendivil Bejarano and Ernesto Villaescusa Cordova, individuals resident in the Sonora State of Mexico, pursuant to which the Corporation has acquired the option to acquire a 100% undivided interest of two mining claims located in the municipality of Trincheras, Sonora, Mexico, for a five-year period. The transaction is an Exempt Transaction under the policies of the TSX Venture Exchange and consequently, approval of the Exchange is not required.
The Project consists of two contiguous claims covering an aggregate area of approximately 2,806 hectares located approximately 240 kilometers north-west along the Federal Highway 16 from the state capital, Hermosillo (Figure 1).
Figure 1. Project location within the Sonora Mojave Mega Shear
In consideration of the grant of the Option, Magna will (i) pay to the Concessionaires an aggregate of USD$1,680,000 plus VAT of 16%, paid in installments commencing on the effective date of the Agreement and ending on the 60th month from the Effective Date; and (ii) issue to the Concessionaires a 1.5% net smelter returns, capped at USD$1,500,000 and subject to the right of the Corporation to acquire all 1.5 percentage points of the NSR at a price of USD$500,000 per half percentage point, at any time.
San Judas Project
The project is located at the southern end of the Caborca Orogenic Gold Belt or Sonora Mojave Mega Shear, a trend known to host multiple 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 there 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 (GoldGroup Mining Inc.) and El Chanate (Alamos Gold Inc). Historic estimates of the combined gold reserves and resources identified within the trend to date total in excess of 10 million ounces (Izaguirre et al., 2017), which is based on prior data and reports obtained and prepared by previous operators (Figure 2).
Figure 2. San Judas project location
San Judas is an early stage exploration project hosting structurally controlled mineralization within lithologies similar in age to the La Herradura and San Francisco gold mines. The project is underlain by a basement composed of a Precambrian aged igneous-metamorphic sequence including granite, gneiss, pegmatites and schists. Augen gneiss is locally present and is likely derived from pegmatitic granitic protolith. The entire sequence is affected by multiple deformations and the emplacement of intrusions such as leucocratic granites and andesitic dikes.
Structural and lithological interpretation of available data suggest the mineralized structures, characterized by gold-bearing quartz veins and mineralized quartz-sericite altered hanging-wall rocks extend under the surface. Magna is currently carrying out a comprehensive surface exploration program including geological and structural mapping, trenching and reconnaissance sampling in conjunction with a surface geophysical program to define targets in anticipation of a maiden drilling campaign.
James Baughman (P. Geo.), Consulting Geologist and a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for mineral Projects, has approved the applicable contents of this news release.
About Magna Gold Corp
Magna Gold Corp is a mineral exploration company focused on acquiring, exploring and developing quality precious metals properties in Mexico. Primary strength of the Corporation is the team of highly experienced mining professionals with a proven track record of developing properties in Mexico from discovery to production on budget and on time.Magna takes social license seriously and employ local community members and services in its operations.
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