Magna Gold Corp. is pleased to announce its preliminary operating results for the three months ended March 31, 2021.
The operational ramp-up at the San Francisco mine has been progressing well. Production levels have benefited from the accelerated stripping program, which has increased productivity and efficiency at the mine. As a result, Q1 2021 has shown progressive month-to-month growth in gold production with 3,085 ounces in January, 2,670 ounces in February and 4,030 ounces in March. Magna continues to see growth in production post Q1 2021 and anticipates the mine will return to full scale commercial production by June 2021, starting H2 at a production run rate of over 6,000 ounces per month and exiting the year with over 7,500 ounces per month, resulting in meaningful growth to sustained free cash flow generation. Magna reiterates that it remains on track to achieve its 2021 production guidance of 55,000 to 65,000 ounces of gold.
Key operating highlights:
Summary of Q1 2021 Operating Results
Three Months |
Three Months |
Change |
Change |
|
MINING |
||||
Ore mined (dry kt) |
619 |
427 |
192 |
45% |
Ore mined grade (g/t Au) |
0.34 |
0.30 |
0.04 |
13% |
Waste mined (kt) |
5,195 |
2,954 |
2,241 |
76% |
Total mined (kt) |
5,814 |
3,381 |
2,433 |
72% |
Strip ratio |
8.40 |
6.92 |
1.48 |
21% |
Avg. total mined (t/d) |
64,597 |
36,746 |
27,851 |
76% |
CRUSHING AND PROCESSING |
||||
Ore processed (kt) – From open pit |
611 |
416 |
195 |
47% |
Ore processed grade (g/t Au) – From open pit |
0.32 |
0.25 |
0.07 |
28% |
Ore processed (kt) – All sources |
744 |
746 |
(2) |
(0%) |
Ore processed grade (g/t Au) – All sources |
0.51 |
0.39 |
0.12 |
31% |
Gold placed on pad (ozs) – All sources |
12,177 |
9,411 |
2,766 |
29% |
PRODUCTION |
||||
Gold ounces produced (ozs) |
9,785 |
7,485 |
2,300 |
31% |
Silver ounces produced (ozs) |
8,093 |
4,609 |
3,484 |
76% |
Gold ounces sold (ozs) |
8,430 |
7,827 |
603 |
8% |
Silver ounces sold (ozs) |
6,961 |
3,756 |
3,205 |
85% |
Mr. Arturo Bonillas, President & CEO of Magna commented, “We are extremely proud of our progress at San Francisco – our team has made considerable progress during ramp-up and we are well on our way to establishing San Francisco as a stable free cash flow generator. The evident turnaround of the San Francisco Mine, considered by many as an impossible task one year ago, shows our team’s resourcefulness and commitment to executing our mission to become a profitable precious metal producer. In addition to achieving commercial production at San Francisco in the coming months, we will remain focused on realizing further operational efficiencies, expanding mineral reserves and resources and seeking growth opportunities externally and within our significant pipeline of projects.”
The Company intends to provide an update to its ongoing drill program in Q3, which is already showing a positive potential impact to current internal 2021 and 2022 gold production expectations.
Qualified Person
James Baughman (P. Geo.), Consulting Geologist and a Qualified Person as defined by National Instrument 43-101 – Standard of Disclosure for Mineral Projects, has approved scientific and technical information in this news release.
About Magna Gold Corp.
Magna is a mineral exploration company focused on acquiring, exploring, developing and operating quality precious metals properties in Mexico. 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 on budget and on time.
Magna is a Mexico focused gold/silver exploration company that is committed to advancing its 100% owned highly prospective mineral properties located in Sonora and in Chihuahua. The Company’s shares trade on the TSXV under the trading symbol “MGR” and OTCQB under the trading symbol “MGLQF”. Magna employs community members and services in its operations.
ON BEHALF OF THE BOARD OF DIRECTORS
Arturo Bonillas
President and CEO