Precious Metals Co. Boosts Production at Mexican Gold Mine

In a January 26 analysis observe, M Companions Analysis suggested that Magna Gold Corp. (MGR:TSX.V; MGLQF:OTCQB), introduced manufacturing outcomes from its San Francisco gold mining operation in Sonora, Mexico.

The report from M Companions acknowledged that in This fall/21, Magna Gold produced a complete of 15.5 Koz Au, which was considerably larger than M Companions’ estimates for 10.2 Koz Au. Equally, for FY/21 Magna succeeded in producing 56.1 Koz Au, which M Companions stated beat its earlier estimates of 40.8 Koz Au.

The analyst suggested that Magna Gold has been profitable in aggressively turning across the operations on the San Francisco mine and that M Companions expects this superior efficiency to proceed in 2022.

The report identified that Magna has elevated its FY/22 manufacturing steerage to between 65-75 Koz Au, which M Companions famous can also be effectively above its prior forecasts for 60 Koz Au.

Magna reported that its money prices in This fall/21 had been $1,123/oz. M Companions acknowledged that the quantity exceeded its estimates for $894/oz, however that it expects that the prices will lower nearer to its projections for $1,084/oz.

It’s anticipated that Magna Gold will proceed to optimize its operations on the San Francisco property. The analyst talked about {that a} useful resource replace and maybe a daring and bold up to date mine plan is predicted in Q2/22.

M Companions acknowledged that the up to date mine plan will name for rising annual manufacturing to round 100 Koz Au and reaching as excessive as 200 Koz Au per yr by 2024. These beneficial properties in manufacturing are predicated on the corporate’s potential to increase the lifetime of the mine and obtain a sizeable useful resource replace.

The corporate is presently conducting a 30,000m drill program on the San Francisco mine, The main target of this system is centered round each infill and enlargement drilling to transform and improve the Inferred useful resource to Measured and Indicated.

The analyst defined that MGR offered an operational replace for its Margarita Silver venture. Section certainly one of exploration drilling has been accomplished on the property and useful resource definition is predicted to be completed in mid-February. The Firm reported that preliminary outcomes look very promising and that it’s going to launch assay outcomes when a whole set is accessible.

M Companions commented that, “MGR stays on observe to launch the maiden useful resource estimate adopted intently by the Preliminary Financial Evaluation (PEA) by the top of Q1/22.”

The report from M Companions listed that there a number of vital near-term catalysts that would affect the corporate throughout 2022. These embrace the PEA for the Margarita Silver venture anticipated in Q1/22 and the San Francisco Mine useful resource replace & mine plan, which is estimated to be prepared in Q2/22. As well as, the corporate will proceed to obtain further assay outcomes from ongoing drilling operations. All these elements mixed bode effectively for potential M&A alternatives.

Magna Gold Corp. is producer of silver and different treasured metals. The agency is predicated in Canada and is primarily engaged in buying, exploring, growing and working mining property in Mexico. The corporate’s San Francisco gold property is in Sonora, Mexico.

M Companions suggested that Magna Gold’s San Francisco mine has a internet asset worth (NAV) of $156M or $1.71/share.

When mixed with the possession curiosity within the Margarita Silver, Mercedes and MGR’s different property the whole worth of all the corporate’s property is estimated at $184M or $2.02/share. After adjusting for a 0.70x venture NAV, different changes and forex conversion, M Companions Analysis arrived at its goal worth of CA$1.70/share.

M Companions Analysis acknowledged it’s sustaining its “Purchase” score and 12-month goal worth of CA$1.70/share for Magna Gold Corp.

Magna Gold Corp. shares commerce on the TSX Enterprise Alternate underneath the image “MGR” and final closed for buying and selling at CA$0.70 on Thursday, January 27, 2022. The corporate’s shares additionally commerce underneath the ticker image “MGLQF” on the OTCQB market.


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Disclosures for M Companions, Magna Gold Corp., Jan. 26, 2022
The particulars contained herein had been obtained from sources which we imagine to be dependable however usually are not assured by us and could also be incomplete. The opinions expressed are primarily based upon our evaluation and interpretation of those particulars and are to not be construed as a solicitation or supply to purchase or promote the securities talked about herein. Disclosure codes are utilized in accordance with Coverage 3400 of IIROC.

Description of Potential Disclosure Codes

1. M Companions or its associates collectively beneficially personal 1% or extra of any class of fairness securities of the corporate which is the topic of the analysis report.
2. The analyst or any affiliate of the analyst liable for the report or public remark maintain shares within the firm.
3. M Companions or a director or officer of M Companions or any analyst offered providers to the corporate for remuneration apart from regular funding advisory or commerce execution providers inside the previous 12 months, (could search compensation for funding banking providers from the corporate herein inside the subsequent 3 months).
4. The director, officer, worker or analysis analyst is an officer, director or worker of the corporate, or serves in an advisory capability to the corporate.
5. The analyst has seen the fabric operations of the corporate. We outline materials operations as an issuer’s company head workplace and its important manufacturing facility or a satellite tv for pc facility that’s consultant of the corporate’s operations.
6. M Companions offered funding banking providers for the corporate throughout the 12 months previous the publication of the analysis report
7. The analyst making ready the report obtained compensation primarily based upon M Companions funding banking revenues for this issuer

All closing analysis stories and morning outlooks are disseminated to institutional purchasers of M Companions concurrently in digital type. Arduous copies will probably be disseminated to any consumer that has requested to be on the distribution listing of M Companions. Replica of this report in entire or partially with out permission is prohibited.

Analysis Analysts
The Analysis Analyst(s) who put together this report certify that their respective report precisely displays his/her private opinion and that no a part of his/her compensation was, is, or will probably be immediately or not directly associated to the precise suggestions or views as to the securities or corporations. M Companions compensates its analysis analysts from quite a lot of sources and analysis analysts could or could not obtain compensation primarily based upon M Companions funding banking income.


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