June 29, 2021
Toronto, Ontario – June 29, 2021 – 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.
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.
- 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.”