Magna Gold Achieves Full-Scale Industrial Manufacturing at San Francisco on Schedule

TORONTO, June 29, 2021 / PRNewswire / – Magna Gold Corp. (TSXV: MGR), (OTCQB: MGLQF) (“Magna” or the “Company”) is pleased to announce that it has achieved full and stable commercial production in its 100% -owned flagship San Francisco Mine, located in Sonora, Mexico. Commercial production started on schedule June 1, 2021, as stated in the company’s press release dated April 13, 2021. In addition, the company is on track to meet and repeat its previous 2021 forecast of 55,000 to 65,000 ounces of gold (“Au”) production for 2021.

During the first half of the year, the Company completed the required clearance and significantly reduced the mine extraction ratio from ~ 8: 1 to ~ 3: 1, which is further declining in the direction of the Mine Life (“LOM”). Average 2.5: 1. For the future, the company expects a further decrease in the spoil share and higher recovery rates, which will lead to cost improvements.

At the San Francisco, the company expects a production rate of ~ 6,000 ounces Au / month in the third quarter and intends to end the year with a production rate of ~ 7,500 ounces Au / month.

Highlights

• Completed all necessary pre-stripping to achieve a 2.9: 1 strip ratio in full commercial operation, which LOM is expected to trend downward.
• Complete the construction of new leach pads and start stacking fresh ore at a constant rate of 900 tons per hour.
• Optimized grind size and leaching kinetics improve recovery rates to ~ 70%, with further improvements over the LOM expected.
• Remains committed to health and safety, working over 3.5 million hours with no incidents of downtime.

Arturo Bonillas, President and CEO of Magna, stated, “We are all very proud of the Magna team for reaching this tremendous milestone on schedule. Reaching commercial volume production in such a short period of time is testament to the hard work and quality of ours Mexico-based operations team and as a company we have demonstrated our ability to deliver on all of our objectives. The production numbers are trending up from month to month and we expect to end the year with a production of approximately 7,500 ounces Au / month. We are continuing our systematic exploration efforts to develop the company into a medium-sized producer. “

About Magna Gold Corp
Magna is a Mexico focused gold / silver manufacturing company specializing in the acquisition, exploration, development and operation of high quality precious metal properties in Mexico. It is committed to maintaining its 100% owned flagship mine in San Francisco and other highly prospective mineral properties in Sonora and in Chihuahua. The company’s main strength is its team of highly experienced mining professionals with a proven track record in developing concession areas in Mexico from discovery to production. Magna employs community members and services in its operations.

From August 8, 2020 (NI 43-101 F1 Technical Report Pre-Feasibility Study for the San Francisco Gold Project), San Francisco has measured and indicated resources of 99,700,000 tonnes grading 0.446 g / t Au grading 1,430,000 ounces of gold and inferred resources of 11,374 .000 tons grading 0.446 g / t grading 171,000 ounces gold. The total proven and probable reserves are 47,629,000 tonnes grading 0.495 g / t Au grading 758,000 ounces of gold. Mineral resources are inclusive of mineral reserves. Mineral resources that are not mineral reserves have not demonstrated economic viability.

ON BEHALF OF THE BOARD OF DIRECTORS

Arturo Bonillas

President and CEO

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

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

Warning notices

This press release contains certain “forward-looking statements” that are not based on historical facts. Forward-looking statements include estimates and statements that describe the company’s future plans, goals, or objectives, including words that indicate that the company or management expects a certain condition or result to occur. Forward-looking statements can be identified by terms such as “believes,” “anticipates,” “expects,” “estimates,” “may,” “could,” “would,” “will,” or “plans”. Because forward-looking statements are based on assumptions and relate to future events and conditions, they by their nature involve inherent risks and uncertainties. Although these statements are based on information currently available to the company, the company makes no representation that actual results will meet management’s expectations. Risks, uncertainties and other factors associated with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied in such forward-looking information. Forward-looking information in this press release includes, but is not limited to, the Company’s goals, objectives, or future plans, statements, exploration results, potential mineralization, exploration and mine development plans, production guidelines and production estimates, extraction ratio trends, expected recovery and production rates, and processing and mining 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 into reserves, the inability to complete a feasibility study to recommend a production decision , the preliminary nature of metallurgical test results, delays in obtaining or not obtaining the required regulatory, environmental or other project approvals, political risks, uncertainties about the availability and costs of future funding needed, changes in stock markets, inflation, changes in exchange rates, fluctuations commodity prices, project development delays, capital, operating and recovery costs that differ materially from estimates, and the other risks associated with mineral exploration n and development industries, risks related to the impact of COVID-19 on the business; and the risks set out in the company’s public filings on file with SEDAR. While the company believes that the assumptions and factors used in preparing the forward-looking information in this press release are reasonable, undue reliance should be placed on such information, which speaks only as of the date of this press release, and no assurance can be given that such events will occur in the specified time periods 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 for any other reason, except as required by law.

SOURCE Magna Gold Corp.

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