Resource World Magazine

26 www.resourceworld.com o c t o b e r / n o v e m b e r 2 0 1 5 b r o k e r ' s p i c k s A l f S t e w a r t MAG Silver Corp. [MAG:-TSX; MVG-NYSE MKT] is a develop- ment-stage mining company focused on advancing and exploring district scale projects located within the Mexican Silver Belt with a mission to become one of the premier companies in the silver mining industry. Currently, MAG is developing the underground mine decline towards the high-grade Valdecañas and Juanicipio silver vein discoveries in Zacatecas State, all within the joint venture between MAG Silver (44%) and Fresnillo PLC (56%) referred to as the Juanicipio JV. In addition, MAG is conducting ongoing exploration at the Juanicipio Project, and the Salamandra property earn-in, while concurrently negotiating surface access to its 100%-owned Cinco de Mayo property in Chihuahua State. Exploration Results -- Widest intercepts to date extend high- grade Valdecañas Vein to depth At the Juanicipio Joint Venture property, four new exploration step-out holes were completed in 2015. These holes targeted approximately 100 metres below the existing Deep Zone indicated and inferred resources. The four holes were drilled on 150-metre centres over a strike length of approximately 500 metres below the en echelon (closely-spaced, parallel or sub parallel, overlap- ping or step-like minor structural features) overlap zone between the East and West Valdecañas Veins and include the three widest and deepest intercepts to date on the property. The best drilling intercept was: 405 g/t (11.8 oz/t) silver – capped; 2.7 g/t gold – capped, 3.2% lead, 4.1% zinc, 0.37% copper, over 34.35 metres (true width of 26.45 m,) including: 919 g/t (26.8 oz/t) silver – capped; 4.94 g/t gold – capped, 5.25% lead, 4.87% zinc, 0.62% copper over 13.25 m (true width of 10.20 m). This new zone appears to be the extension of the southwest- dipping Valdecañas Vein system and it remains open to depth along the entire strike length within the Joint Venture boundary. These intercepts widen progressively up to 32.09 metres (true widths) towards the east in the central portion of the property, significantly extending the widening Deep Zone to depth. Development Progress -- The ramp continues towards the Valdecañas Vein The Juanicipio Project is estimated to cost US $302 million of which MAG Silver's share is US $132 million. MAG has US $81 million in cash and no debt as of September 2015. Production is projected to commence in 2018. The Juanicipio JV development work is currently focused on continued ramp advancement and associated underground mining infrastructure, as well as on some metallurgical and geo- technical studies. To date, the entry portal, surface explosives magazines, surface offices and associated infrastructure have been completed, and the ramp decline is advancing exclusively with drilling and blasting (previously a tunneling machine was used). The decline development has now reached consistently bet- ter rock quality. As a result, the ramp development has seen a sustained improvement in the advance rate, which is now approximating the levels envisioned in the 2012 AMC Mining Consultants PEA (115 metres per month). In addition to the ramp advance, two ventilation raises have been bored and brought into service, the mechanical shop and multi-use buildings have been completed, electrical lines and substations have been installed and road-widening is substantially complete, with culverts in all major drainages. In summary, MAG Silver is a well financed company with a world-class, high-grade silver deposit currently being developed in Mexico. The company has demonstrated that the deposit con- tinues to improve at depth. If you are looking for a high quality silver mining company to invest in during this bear market in commodities, you might want to consider MAG Silver. The com- pany is well on its way to becoming one of the premier companies in the silver industry. n This article expresses the opinions of author, and not necessarily those of Raymond James Ltd. Statistics and factual data and other infor- mation are from sources RJL believes to be reliable but their accuracy cannot be guaranteed. As an investment in MAG Silver is not suitable for all investors, a recommendation would only be made after a per- sonal review of an individual's financial objectives. Raymond James Ltd., member – Canadian Investor Protection Fund MAG Silver: major Mexican exploration and development Underground development at the Juanicipio Project, an joint venture between MAG Silver and Fresnillo in Zacatecas State, Mexico. Photo courtesy MAG Silver Corp.

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