Reno, Nevada – Magellan Gold Corporation (OTCQB: MAGE) (“Magellan”or “the Company), today provided an update on its El Dorado Gold-Silver Mine and its SDA Mill located in Nayarit State, Mexico. In March, the Company gained the support of the local permitting officials. It anticipates the new federal administration will favor the permitting of El Dorado, including both environmental and explosives permits, allowing the mine’s economic impact to enhance the local community. Magellan anticipates receiving both of these key permits later in 2019 and then could be in a position to move forward with mine development. El Dorado lies 50 kilometers south of the Company’s SDA Mill. Magellan plans to truck the ore from El Dorado to the SDA Mill for processing.
“We have placed a high priority on achieving production at El Dorado”, said Pierce Carson, Magellan’s CEO. “In addition to progress on permitting, we also have initiated work on mine design, project economics and formulation of a development schedule and budget. The drilled resource has an attractive grade approximating 7.0 grams gold per tonne and appears to be sufficient to support an underground mining operation for several years at a mining rate of 100 tons per day. At current metal prices, revenues are anticipated to be on the order of $7.0 million annually.”
As pre-production efforts continue at El Dorado, this week the Company launched a regional program with a senior Mexican geologist to locate other sources of ore to feed the SDA Mill. The objective is to utilize the mill to generate revenue and defray holding costs until El Dorado reaches production. As previously reported, the SDA Mill conducted a bulk test of third-party ore to determine the viability of entering into a long-term processing agreement. Although the mill performed well, the potential customer experienced difficulty in supplying ore on a consistent basis and the program was discontinued. In Q2 2019 the Company anticipates receiving proceeds from the sale of concentrates produced in the bulk test.
About Magellan Gold Corporation
Magellan Gold Corporation (OTCQB: MAGE) is a US public enterprise focused on the exploration and development of precious metals. In November 2017 Magellan completed the purchase of the SDA Mill in the State of Nayarit, Mexico, and in August 2018 announced acquisition of the nearby El Dorado Gold-Silver Project. Magellan also owns an advanced silver exploration project located in Arizona.
The SDA Mill is a fully operational flotation plant that also includes a precious metals leach circuit and associated assets, licenses and agreements. The mill has a ten-year operating history, processing ore at a rate of 100 tons per day. Historically its operation has been based on sales of flotation concentrates to smelters, and payment for precious metals content. The mill lies within the rich Sierra Madre Occidental mineralized belt, which historically has yielded millions of ounces of precious metals and offers multiple high-grade gold and silver epithermal vein opportunities.
The El Dorado Gold-Silver Project consists of a 50 hectare mining concession located 50 kilometers south of the SDA Mill. El Dorado is situated within a district of epithermal vein systems from which historic mining produced high grades. Drilling in 2010-2011 identified gold-silver resources on two veins that hold promise for underground mining. Following completion of permitting and procurement of financing, the Company intends to commence mining at a production rate of 100 tons per day and to truck the ore to the SDA Mill for processing.
The Silver District Project in southwest Arizona comprises over 2,000 acres covering the heart of the historic Silver District. The property contains a near-surface historical drilled resource of 16 million ounces of silver and exhibits exploration promise for significant expansion.
To learn more about Magellan Gold Corporation, visit www.magellangoldcorp.com.
The United States Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can legally extract or produce. Under SEC Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report reserves. Currently we have not delineated “reserves” on any of our properties. We cannot be certain that any deposits at our properties will ever be confirmed or converted into SEC Industry Guide 7 compliant “reserves.” Investors are cautioned not to assume that all or any part of any “resource” estimates will ever be confirmed or converted into reserves or that they can be economically or legally extracted.
Forward Looking Statements
This release contains “forward-looking statements.” Such statements are based on good faith assumptions that Magellan Gold Corporation believes are reasonable but which are subject to a wide range of uncertainties and business risks that could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Factors that could cause actual results to differ from those anticipated are discussed in Magellan Gold Corporation’s periodic filings with the Securities and Exchange Commission.
Magellan Gold Corporation
Pierce Carson: (505) 463-9223
John Power: (707) 884-3766 Peter Nesveda (INT IR): +61 4 1235 7375