MAG Silver Corp
First incorporated in 1999 under the name Mega Capital Investments, Inc., in 2003, MAG Silver Corp.
(“MAG”) changed its name to its present heading. The Vancouver based company is a primary exploration company with some development interests in Mexico. The company is listed under the symbol MVG on the New York Stock Exchange Amex and under the symbol MAG on the Toronto Stock Exchange. The mining company
is a mid-tier producer.
More than 100 square miles of prospective Mexican mining sites, located in a region often referred to as the Mexican Silver Belt, which extends from Guanajuato and Zacatecas to Chihuahua, are wholly-owned by MAG. The company holds 44 percent interest of Minera Juanicipio S.A. de C.V (“Minera”), which itself holds and operates the Juanicipio property, located in the Fresnillo District, Mexico. The other 56 percent of the Minera joint venture are held by Fresnillo Plc
, which is the present operator of the joint venture. Fresnillo Plc is also an insider to MAG Silver Corp by means of its ownership of 19.8 percent of MAG. In the late 2008, Fresnillo (LSE: FRES) announced its intentions to acquire control over MAG. Several months later, in June 2009, the London Stock Exchange-listed company withdrew its hostile bid. It is interesting to note that MAG’s defensive stance against the Fresnillo take-over was a choice to speed-up its own 2009 explorations program. The main idea was to add value for the shareholders from within its portfolio of exploration properties. As a result, the exploration program for the full 2009 was completed in just 6 months, starting in the beginning of the same year. Mineral resource estimates, as of March 4, 2009, account for the following total contained metals at the Juanicipio joint venture: 83 million ounces of silver, 210,000 ounces of gold, 269 million pounds of zinc and 155 million pounds of lead.
Cinco de Mayo property is another wholly-owned property of MAG Silver Corp. The mining site is located in north-central Chihuahua. Generally speaking, the property is a 5,000 hectare Carbonate Replacement Deposit (CRD) prospect. Early exploration of the site shows that the property has much in common (in terms of geological and mineralogical characteristics) with the largest CRDs in Mexico. They are explored and developed in Mexico for over 400 years. Now, mining companies have focused their attention on CRDs again, due to several attractive characteristics of CRDs such as: potential for large tonnage and high grade of silver
; greater environmental friendliness because of the limestone mitigation of oxidation, and the potential base metal benefits. Cinco de Mayo is one of the three 100 percent owned CRDs’ that MAG Silver Corp explores at present.
Copyright © SilverShares.net 2015 All rights reserved.