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'Juanicipio Drill Results Confirm Significant Resource Expansion Potential'
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The findings from the 2020 drill program at MAG Silver's joint venture project are reviewed in a PI Financial report.

In an Aug. 5 research note, PI Financial analyst Chris Thompson reported MAG Silver Corp. (MAG:TSX; MAG:NYSE American) just announced 2020 infill and expansion drill results from Juanicipio that "confirm the significant resource expansion potential."

The analyst added, "Many of the reported intervals improve significantly upon these grades, which, combined with the increased drilling density achieved by the program, provides additional confidence for value accretion beyond our modeled assumptions."

Thompson presented and interpreted the findings from the Valdecañas vein's Bonanza and Deep zones, the two areas comprising PI Financial's modeled operating scenario, as well as its hanging wall.

As for the Bonanza zone, where precommercial mining is taking place, infill drilling results showed "impressive grades over significant widths," Thompson noted, which are higher than what PI Financial modeled for the zone.

For instance, grades in one highlight intercept, 3.1 meters (3.1m) long, were 3,584 grams per tonne (3,584 g/t) silver, 5.7 g/t gold, 1.1% lead/zinc, or combined, 4,027 g/t Ag eq. In another, 5.2m long, they were 1,356 g/t silver, 3.3 g/t gold, 0.4% lead/zinc, amounting to 1,605 g/t Ag eq. Drilling in Bonanza also better defined the Valdecañas vein's upper limits.

Regarding the Deep zone, Thompson wrote, the results indicate the resource there can be expanded materially at depth. They also "support our thesis of the Deep zone enabling increased mining rates, offsetting modeled precious metals grade declines later in the mine life." The grades in these new results indicate PI Financial can extend its modeled Deep zone mine life and boost the grade from its current 4.5 years and 467 g/t Ag eq, respectively.  

One notable high-grade intercept from the Deep zone is 21m of 357 g/t silver, 0.9 g/t gold and 4.7% lead/zinc, or 566 g/t Ag eq. This includes 6.1m of 1,023 g/t silver, 1.6 g/t gold and 3.9% lead/zinc, or together, 1,251 g/t Ag eq.

Veins in the hanging wall of the Valdecañas vein, an area beyond the current mine plan, returned some promising intercepts. For example, the Anticipada vein showed 0.9m of 13.9 g/t gold, and the Pre-Anticipada vein demonstrated 0.7m of 10.5 g/t gold. These results provide "optionality for future growth," Thompson wrote.

PI Financial has a Buy rating and a CA$29.50 per share target price on MAG silver, the stock of which is currently at about CA$24.38 per share.


1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Mag Silver Corp. Click here for important disclosures about sponsor fees. 
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Mag Silver Corp., a company mentioned in this article.

Disclosures from PI Financial Corp., MAG Silver, Aug. 5, 2021

We, Justin Stevens and Chris Thompson, hereby certify that all of the views expressed in this report accurately reflect our personal views about the subject securities or issuers. We also certify that no part of our compensation was, is, or will be, directly or indirectly related to the specific recommendations or views expressed in this report. We are the research analysts primarily responsible for preparing this report.

PI Financial Corp. and its affiliates’ holdings in the subject company’s securities, in aggregate exceeds 1% of each company’s issued and
outstanding securities.

The analyst(s) responsible for the report or recommendation on the subject company, a member of the research analyst’s household, and associate
of the research analyst, or any individual directly involved in the preparation of this report, have a financial interest in, or exercises investment
discretion or control over, securities issued by the following companies.

PI Financial Corp. and/or its affiliates have received compensation for investment banking services for the subject company over the preceding 12-
month period.

PI Financial Corp. and/or its affiliates expect to receive or intend to seek compensation for investment banking services from the subject company.

PI Financial Corp. and/or its affiliates have managed or co-managed a public offering of securities for the subject company in the past 12 months.

The following director(s), officer(s) or employee(s) of PI Financial Corp. is a director of the subject company in which PI provides research coverage.

A member of the research analyst’s household serves as an officer, director or advisory board member of the subject company.

PI Financial Corp. and/or its affiliates make a market in the securities of the subject company.

Company has partially funded previous analyst visits to its projects.

PI Financial Corp.’s policies and procedures regarding dissemination of research, stock rating and target price changes can be reviewed on our corporate

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