Magna Gold Corp. holds a 99.9% interest in Minera Magna. Minera Magna holds a 99.9% interest in Molimentales.
Molimentales owns a 100% interest in the San Francisco Project and the surrounding mineral concessions.
March 3, 2023 Magna Gold Corp. has filed a Notice of Intention to Make a Proposal (the "NOI") under the Bankruptcy and Insolvency Act (Canada) which will provide creditor protection while the Company seeks to restructure its affairs. KSV Restructuring Inc. was appointed as proposal trustee under the NOI to monitor Magna Gold's operations and restructuring.
The initial ruling in connection with the Insolvency Application was issued by the Concurso Court on March 3, 2023 and certain pre-emptive protections were granted in favour of Molimentales including, inter alia, a suspension of all enforcement proceedings against the assets or rights of Molimentales.
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Summary:
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 important metal produced in the Sierra Madre province is copper, with the Cananea porphyry copper deposit being the most well-known. Gold and silver projects are next in importance and are hosted mainly in sedimentary rocks and brecciated volcanic domes.
At the San Francisco Project, gold occurs principally as free gold and occasionally as electrum. Gold is found, in decreasing abundance, with goethite after pyrite, with pyrite and, to a much lesser extent, with quartz, galena and petzite (Ag3AuTe2). Although it is clear that the gold was deposited at the same time as the sulphides, the paragenetic relationships are not well understood. There is the possibility that some secondary remobilization may have occurred as evidenced by minor amounts of gold occurring in irregular forms along with or on top of drusy quartz (Prenn, 1995).
The gold occurs in a granitic gneiss and the presence of pyrite (or goethite after pyrite) may be an indication of gold. Stockwork quartz veinlets, some with tourmaline, also exist in the mineralized zone. However, the presence of quartz, even with tourmaline, is not necessarily an indication of the presence of gold. Quartz veinlets with tourmaline but without gold mineralization were found hundreds of metres away from the San Francisco deposit. Alvarez (in Prenn, 1995) suggested that some tourmaline was part of the mineralizing system, but could be distinguished from the tourmaline found elsewhere.
DEPOSIT TYPES
At the San Francisco Project, Alio was targeting large volume, low-grade disseminated gold deposits contained within leucocratic granite, granite-gneiss and gneiss and schist horizons. Leucocratic granite and gneiss are the main rocks hosting the gold mineralization.
The gold mineralization occurs in a series of west-northwest to east-northeast trending quartztourmaline veins and veinlets that lie sub-parallel to the local lithology and foliation trends, dipping to the southwest, within the more brittle rocks such as the leucocratic granite and more felsic lithologies within the Precambrian sequence. Extensive studies of the veins and alteration describe the mineralization as mesothermal/orogenic in style, but with a potential link to magmatic fluids and an intrusive source (Calmus et al., 1992; Luna and Gastelum, 1992; Perez Segura, 1992; Perezsegura et al., 1996; Perez Segura, 2008; Albinson, 1997; Poulsen and Mortensen, 2008).
Micon has conducted a number of discussions with Alio personnel during its prior site visits to the mine and in Hermosillo and notes that the exploration programs at the San Francisco Project were planned and executed on the basis of the deposit models discussed above. Micon has also observed the various stages of the drilling programs during a number of site visits at the San Francisco Project since 2005 and notes that those programs were always been conducted according to the deposit model which has been proposed for the Project.
Production
Production and Cost statistics for the 2022 year are available for the nine-month period ending on September 30, 2022. Magna Gold will not to incur any further expenses related to filings and disclosures in connection with the Insolvency Application, according to the Initial Order.
Production statistics for the 2020 year are calculated and provided by the two companies - Alio gold inc.(old owner) and Magna Gold Corp.(new owner).
| Commodity | Units | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|
Gold
|
oz
| .... | .... | .... | 36,461 | 53,990 | 83,558 | 100,322 | 93,353 |
|
Silver
|
oz
| .... | .... | .... | 16,672 | 24,774 | 38,911 | 56,326 | 52,047 |
All production numbers are expressed as metal in doré.