PROPERTY GEOLOGY
The San Francisco property lies in a portion of the Mojave-Sonora megashear belt characterized by the presence of Precambrian to Tertiary age rocks represented by different grades of deformation and metamorphism as evidenced in the field by imbricate tectonic laminates. The rocks principally involved in the process of deformation and associated with the gold mineralization in the region are of Precambrian, Jurassic and Cretaceous age.

The metamorphic rocks are intruded by a Tertiary igneous package, which includes leucocratic granite with visible feldspar and quartz, and is porphyritic to gneissic in texture. It appears that the granite was emplaced along low angle northwest-southeast shear zones in the system which developed between an older gabbro and the metamorphic sequence. This is the reason that in some places the granite bodies appear as stratiform lenses that vary in width from centimetres to more than 40 m and are subparallel to the foliation. It is seen, however, that the emplacement of leucocratic granite also favours the N30°W fault system, causing the granite to take an elongated form, principally in direction N60°W, but with extensions along the N30°W system.

MINERALIZATION
The San Francisco property is located within the Sierra Madre Occidental metallogenic province which extends along western Mexico from the state of Sonora, south to the state of Jalisco. In the state of Sonora, the most import ........

Mining at the San Francisco and La Chicharra pits is conducted by a contractor, using open pit mining methods. At the San Francisco pit, a small underground mine was exploited during the second half of 2020 in order to accelerate cash flow by targeting some higher-grade mineralization in the block model.

Magna has now started to process ore from the low-grade stockpiles as well from the La Chicharra pit and plans to initiate underground mining from the higher grade lenses in the southwall of the San Francisco pit, as well as resuming open pit mining in portions of the San Francisco pit.

Magna will also establish its own stockpile for the lower grade material (but above the cut-off grade) being mined. This lower grade material can be processed later in the mine life, used to top up the crushing capacity from time to time or left to be processed at the end of the mine life.

Mine Plans and Activities
Production from the La Chicharra deposit recommenced in June, 2020. The San Francisco and La Chicharra pits are planned to be mined at the same time. Magna is also processing the remainder of Alio’s low-grade stockpile. The La Chicharra pit is located 1,000 m west of the San Francisco pit.

All mining activities are being conducted by the contractor, Peal Mexico, S.A. de C.V. (Peal Mexico), of Navojoa, Mexico. The contractor is obliged to supply and maintain the appropriate principal and auxiliary mining equipment and personnel requ ........

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