Magna Gold Reports Q3 2021 Production Results - Quarterly Production of 19,102 oz Gold

Rhea-AI Summary

Magna Gold Corp. (OTCQB: MGLQF) reported Q3 2021 gold production of 19,102 ounces from its San Francisco Mine in Sonora, Mexico, marking a 63% increase quarter over quarter. The estimated cash cost was $1,134 per ounce. Gold sold during the quarter totaled 18,276 ounces at an average price of $1,776 per ounce. The company maintains its full-year production guidance of 55,000 to 65,000 ounces. Magna has also mobilized exploration teams at the Margarita Silver Project, with plans to release a resource estimate by Q1 2022.

Positive

• Q3 2021 gold production reached 19,102 ounces, a 63% increase from the previous quarter.
• Gold sold during the quarter was 18,276 ounces at an average price of $1,776 per ounce.
• Full-year production guidance maintained at 55,000 to 65,000 ounces.
• Exploration teams mobilized for the Margarita Silver Project, with a maiden resource estimate expected by Q1 2022.

Negative

• Silver production decreased to 7,115 ounces, an 8% decline compared to the previous quarter.
• Ore processed grade from all sources fell to 0.45 g/t Au, down 7% from the previous quarter.

TORONTO, Oct. 14, 2021 /PRNewswire/ - Magna Gold Corp. (TSXV: MGR) (OTCQB: MGLQF) ("Magna" or the "Company"), is pleased to report Q3 2021 production of 19,102 oz gold at an estimated cash cost of $1,134, from its San Francisco Mine in Sonora, Mexico. This represents a quarter over quarter production increase of 63%. Additionally, the strip ratio during the quarter was 2.62 which continues to trend towards the life of mine average of 2.5. Gold sold during the quarter was 18,276 ounces at an average realized gold price of $1,776 per ounce ⁽¹⁾. The Company has produced 40,600 ounces of gold through the third quarter, its first complete quarter operating at full-scale commercial production. The Company reiterates full year gold production guidance of 55,000 to 65,000 ounces.

TABLE 1: Q3 2021 OPERATIONAL HIGHLIGHTS

	Three months ended			Change	Change %
	Sep-21	Jun-21
MINING
Ore mined (dry kt)	1,725	1,231		494	40%
Ore mined grade (g/t Au)	0.46	0.43		0.03	8%
Waste mined (kt)	4,522	4,880		(358)	(7%)
Total mined (kt)	6,247	6,111		136	2%
Strip ratio	2.62	3.96		(1.34)	(34%)
Avg. total mined (t/d)	67,907	67,153		754	1%
CRUSHING AND PROCESSING
Ore processed (kt) - From open pit	1,754	1,221		533	44%
Ore processed grade (g/t Au) - From open pit	0.45	0.44		0.01	3%
Ore processed (kt) - All sources	1,759	1,347		412	31%
Ore processed grade (g/t Au) - All sources	0.45	0.49		(0.04)	(7%)
Gold placed on pads (ozs) - All sources	25,663	21,094		4,569	22%
PRODUCTION
Gold ounces produced (ozs)	19,102	11,713		7,389	63%
Silver ounces produced (ozs)	7,115	7,742		(627)	(8%)
Gold ounces sold (ozs)	18,276	11,777		6,499	55%
Silver ounces sold (ozs)	8,061	8,422		(361)	4%
Realized gold price (USD)	1,776	1,783		(7)	(0.4%)

Magna plans to release its full third quarter 2021 financial and operational results on or around November 29, 2021. Operating metrics will be reported with the quarterly results.

Arturo Bonillas, President & CEO of Magna, stated:

"I am beyond pleased with all the progress the team has made. During the month of August 2021, the San Francisco Mine produced ~7,000 oz of gold. Having been involved with the mine since its inception, I can confirm that August 2021 ranks amongst the best months in the history of the mine. Q3 2021 was the first full quarter of commercial production since Magna acquired the mine and the team continues to optimize and improve operations daily. As production continues to ramp up, we look to exit the year with monthly production of >7,000 oz/month."

(1)	Realized gold price for Q3 2021 includes gains and losses on derivatives.

Margarita Silver Project

Magna has obtained all necessary exploration permits to advance the project. Exploration teams have been mobilized to site and the previously announced drill campaign is well underway. The Company is currently on schedule to release a maiden resource estimate and PEA by the end of Q1 2022.

Other Corporate Updates

The Company would also like to report that it has received final TSX approval for its previously announced debentures. Subsequent to the quarter Magna also fulfilled its financial obligations to Argonaut Gold Ltd. (TSX:AR) by remitting its final payment on October 6, 2021.

About Magna Gold Corp
Magna is a Mexico focused gold/silver production company engaged in 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.

Based on the NI-43-101 technical report "Pre-Feasibility study for the San Francisco Gold Project, Sonora, Mexico" prepared by Micon, dated August 8, 2020, 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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Qualified Person

James Baughman (P. Geo.), Consulting Geologist and a Qualified Person as defined by NI 43-101, has approved the scientific and technical information in this news release.

Cautionary Statements

This News Release includes certain "forward-looking statements" which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plans". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes, but is not limited to, the Company's objectives, goals or future plans, exploration results, potential mineralization (including estimates of measured and indicated resources, inferred resources and probable reserves), exploration and mine development plans, production (including gold production expectations and guidance and expectations of becoming a mid-tier producer), processing and mining expectations (including statements regarding expansion and advancement of assets) and strip ratio trends and expectations. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital, operating and reclamation costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, risks related to the effects of COVID-19 on the Company; and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

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SOURCE Magna Gold Corp.

FAQ

What were the gold production results for Magna Gold in Q3 2021?

Magna Gold produced 19,102 ounces of gold in Q3 2021, a 63% increase from the previous quarter.

What is the estimated cash cost per ounce of gold for Magna Gold in Q3 2021?

The estimated cash cost was $1,134 per ounce for Q3 2021.

What is Magna Gold's full-year production guidance for 2021?

Magna Gold maintains its full-year production guidance of 55,000 to 65,000 ounces.

What activities are ongoing at the Margarita Silver Project?

Exploration teams have been mobilized and a maiden resource estimate is expected by Q1 2022.

How did silver production change for Magna Gold in Q3 2021?

Silver production decreased to 7,115 ounces, an 8% decline from the previous quarter.