MAG Silver Reports 2012 Annual Results and Personnel Changes

MAG Silver Reports 2012 Annual Results and Personnel Changes 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 04/01/13 -- MAG Silver
Corp. (TSX:MAG)(NYSE MKT:MVG)(NYSE Amex:MVG) ("MAG" or the "Company")
announces the Company's audited consolidated financial results for
the year ended December 31, 2012. For complete details of the annual
financial statements and related Management's Discussion and
Analysis, please see the Company's filings on SEDAR (www.sedar.com)
or on EDGAR (www.sec.gov). All amounts herein are reported in United
States dollars unless otherwise specified. 
2012 FINANCIAL PERFORMANCE  
At December 31, 2012, the Company had working capital of $40,492,095
(December 31, 2011: $25,779,667), including cash on hand of
$40,621,158 (December 31, 2011: $26,217,409). The primary use of cash
during the year ended December 31, 2012 was for exploration and
evaluation expenditures in Mexico totaling $11,981,221 (December 31,
2011: $9,014,714). The Company also advanced to Minera Juanicipio,
S.A. de C.V. ("Minera Juanicipio") and expended on its own account a
further $4,577,611 (December 31, 2011: $2,583,367) for work conducted
on the Juanicipio property.  
The Company's net loss amounted to $12,109,761 (or $0.22 per share)
for the year ended December 31, 2012 as compared to $8,250,743 (or
$0.15 per share) in 2011. The increased net loss in 2012 is due to
increased exploration and evaluation cost write-downs (Esperanza -
$2,468,379 and a claim under the Lagartos properties - $896,099,
compared to $531,515 in 2011 for the San Ramone property) and costs
incurred in 2012 dealing and negotiating with a dissident group of
MAG shareholders. The 2011 comparable loss was also reduced by the
receipt of a $1.86 million arbitration award recognized as income in
the prior year.  
Shareholders may receive, upon request and free of charge, a hard
copy of the Audited Financial Statements. The Company's 40-F has also
been filed with the United States Securities and Exchange Commission. 
Juanicipio Project 
An updated Preliminary Economic Assessment for the Juanicipio
Project, commissioned by Minera Juanicipio and carried out by AMC
Mining Consultants (Canada) Ltd. (the "AMC Study") was announced on
June 14, 2012 and filed on SEDAR on July 16, 2012 (see press release
dated June 14, 2012). With the completion of the AMC Study, MAG and
Fresnillo Plc ("Fresnillo") now have a framework on which the Minera
Juanicipio Technical Committee can build upon for the continued
advancement of the project. On August 15, 2012, the Company announced
that Minera Juanicipio had approved an 18 month mine permitting and
underground development budget of $25 million. The majority of this
budget has been rolled over into 2013 and the early part of 2014
because of development permitting delays resulting from the Mexican
government changeover late in 2012. The budgeted program covers mine
permitting, surface preparation and the commencement of the first
2,500 metres of underground decline development. 
A hydrogeology (water management) study has been commenced. A
geotechnical study has been completed with the assistance of Penoles'
(a related party of Fresnillo) Geotechnical & Construction Group,
which has included a visit to the nearby Fresnillo Saucito operation
in order to analyze rock quality in anticipation of stope preparation
and development at Juanicipio. As well, a division of Penoles (CIDT)
has been contracted to run the recommended metallurgical tests, with
almost 254 kilograms of ore bearing material collected systematically
along the deposit for metallurgical studies to be carried out.
Originally expected in the first quarter of 2013, the operator
Fresnillo now reports that it expects the underground decline ground
breaking to commence in the second quarter of 2013. Five different
contractors from North and South America have been asked to tender
for the decline construction and a decision is pending. 
Currently, there are a total of 11 drills operating on the property
in various work categories from exploration to water studies with two
more coming in for infill drilling at Valdecanas. 
Cinco de Mayo 
The Company incurred exploration and evaluation costs in 2012 of
$8,329,879 (2011: $6,271,072) at Cinco de Mayo and drilled
approximately 33,067 metres (2011: 25,716 metres). Overall, the 2012
drilling demonstrated that mineralization is continuous from the Jose
Manto through the Bridge Zone to Cinco Ridge, which is now
collectively referred to as the "Upper Manto." In mid-June 2012,
exploration hole CM12-431 drilled deep beneath the overlap zone
between the Bridge Zone and the Jose Manto, cut four significant
sulphide intervals within a 300 metre wide skarn and marble zone (see
press release dated July 18, 2012). The largest and deepest interval
was 61 metres of high-grade massive sulphides that lies behind (to
the southwest of) the structures that host the Upper Manto
mineralization. This is an entirely new mineralization zone named the
"Pegaso Zone" which shows all of the hallmarks of being a near-source
part of the Carbonate Replacement Deposit system that MAG has been
systematically seeking at Cinco de Mayo.  
On October 3, 2012, MAG announced that Roscoe Postle Associates Inc.
had completed the first independent mineral resource estimate for the
Upper Manto zone. Inferred Mineral Resources are estimated to be
12.45 million tonnes at 132 g/t (3.9 opt) silver, 0.24 g/t gold,
2.86% lead, and 6.47% zinc (9.33% lead plus zinc) (see press release
dated October 3, 2012). 
In the fourth quarter of 2012, the Company was in the process of
renewing ordinary course surface access permissions with the Ejido
Benito Juarez (the "Ejido") as the final component in the application
for its Soil Use Change Permits. However, on November 17, 2012 at
what the Company believes was an illegally constituted meeting, the
Ejido voted to expel MAG from its Cinco de Mayo property. Several
Ejido members challenged the meeting on the grounds that proper
notice was not given, key signatures required to properly call the
meeting were fraudulent, and that the vote taken at the meeting was
fraught with irregularities. A court hearing was held on February 6,
2013 in Chihuahua where the ejiditarios calling for the meeting to be
declared illegal presented their evidence. The opponents who had
organized the illegal meeting failed to appear in court on time and
their testimony was dismissed by the judge. The judge ordered the
Ejido administration to provide original documents for the meeting,
which to date they have failed to provide. It is expected to take the
judge one to two months to write his decision on the legality of the
meeting once he has settled the original documents questions.  
MAG remains highly confident that the meeting and the illegal
resolutions will be nullified, at which time, the Company will ask
government officials to oversee a new assembly meeting of the Ejido
to ensure that the necessary procedural and governance rules are
respected and the vote is properly conducted. Although there is no
certainty that a new vote would produce a favourable outcome for the
Company, MAG believes that the opposition group and its supporters do
not represent the will of the majority of the 421 voting members of
the Ejido. Further exploration and drilling at Cinco de Mayo will
resume only upon obtaining a Soil Use Change Permit, drill permits
and a surface access agreement with the Ejido. MAG believes that it
has the support of a majority of the members of the Ejido and that
the requisite authorizations to complete its submission for the Soil
use Change Permit will be obtained in due course, and that access
will be negotiated and resolved on a permanent basis with the Ejido.  
PERSONNEL CHANGES 
Effective March 15, 2013, Mr. Gordon Neal, VP of Corporate
Development, resigned from the Company for personal reasons. Mr. Neal
joined MAG in 2005, and has been an integral part of the Company's
growth and success. The Company would like to thank Mr. Neal for his
significant contribution over the years and for his dedicated years
of service, and wishes him continued success in his future
endeavours. Mr. Neal has agreed to be available to the Company on a
consulting basis through a transitional period. Effective March 4,
2013, the Company appointed Mr. Michael Curlook as Vice President,
Investor Relations and Communications. Mr. Curlook recently held the
position of Head of Investor Relations and Communications for Great
Basin Gold Ltd and was previously Manager of Investor Relations for
Farallon Mining/Hunter Dickinson Inc. As an incentive to join MAG,
Mr. Curlook was granted 100,000 inducement stock options with a term
of 5 years and an exercise price of C$9.61, vesting 1/3 immediately,
1/3 after 12 months and 1/3 after 24 months. The Inducement Award
Agreement for these stock options parallels the terms and conditions
of the Company's Stock Option Plan. 
The Company also announces, that Mr. Michael Petrina, VP of
Operations has tendered his resignation effective mid-April, to
accept a new position based in Ontario. Mr. Petrina has been
instrumental in overseeing the AMC Study for Minera Juanicipio, and
has agreed to be available to the Company as a consultant during a
transitional period. The Company thanks Mr. Petrina for his efforts
and contributions, and wishes him well in his future endeavours. 
About MAG Silver Corp. (www.magsilver.com)  
MAG is focused on district scale projects located within the Mexican
Silver Belt. Our mission is to become one of the premier companies in
the silver mining industry. MAG is conducting ongoing exploration of
its portfolio of 100% owned properties in Mexico including a silver,
lead and zinc discovery and a moly-gold discovery at its 100% owned
Cinco de Mayo property in Chihuahua State. MAG and Fresnillo plc are
jointly developing the Valdecanas Vein and delineating the
Desprendido and Juanicipio discoveries on the Juanicipio Joint
Venture in Zacatecas State. MAG is based in Vancouver, British
Columbia, Canada. Its common shares trade on the TSX under the symbol
MAG and on the NYSE MKT under the symbol MVG. 
On behalf of the Board of  
MAG SILVER CORP. 
Larry Taddei, Chief Financial Officer 
This release includes certain statements that may be deemed to be
"forward-looking statements" within the meaning of the US Private
Securities Litigation Reform Act of 1995. All statements in this
release, other than statements of historical facts are forward
looking statements, including statements that address future mineral
production, reserve potential, exploration drilling, exploitation
activities and events or developments. Forward-looking statements are
often, but not always, identified by the use of words such as "seek",
"anticipate", "plan", "continue", "estimate", "expect", "may",
"will", "project", "predict", "potential", "targeting", "intend",
"could", "might", "should", "believe" and similar expressions. These
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ materially
from those anticipated in such forward-looking statements. Although
MAG believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance and actual results or
developments may differ materially from those in the forward-looking
statements. Factors that could cause actual results to differ
materially from those in forward-looking statements include, but are
not limited to, changes in commodities prices, changes in mineral
production performance, exploitation and exploration successes,
continued availability of capital and financing, and general
economic, market or business conditions, political risk, currency
risk and capital cost inflation. In addition, forward-looking
statements are subject to various risks, including that data is
incomplete and considerable additional work will be required to
complete further evaluation, including but not limited to drilling,
engineering and socio-economic studies and investment. The reader is
referred to the Company's filings with the SEC and Canadian
securities regulators for disclosure regarding these and other risk
factors. There is no certainty that any forward looking statement
will come to pass and investors should not place undue reliance upon
forward-looking statements.  
Cautionary Note to Investors Concerning Estimates of Indicated
Resources 
This press release uses the term "Indicated Resources". MAG advises
investors that although this term is recognized and required by
Canadian regulations (under National Instrument 43-101 - Standards of
Disclosure for Mineral Projects), the U.S. Securities and Exchange
Commission does not recognize this term. Investors are cautioned not
to assume that any part or all of mineral deposits in this category
will ever be converted into reserves. 
Cautionary Note to Investors Concerning Estimates of Inferred
Resources 
This press release uses the term "Inferred Resources". MAG advises
investors that although this term is recognized and required by
Canadian regulations (under National Instrument 43-101-Standards of
Disclosure for Mineral Projects), the U.S. Securities and Exchange
Commission does not recognize this term. Investors are cautioned not
to assume that any part or all of the mineral deposits in this
category will ever be converted into reserves. In addition, "Inferred
Resources" have a great amount of uncertainty as to their existence,
and economic and legal feasibility. It cannot be assumed that all or
any part of an Inferred Mineral Resource will ever be upgraded to a
higher category. Under Canadian rules, estimates of Inferred Mineral
Resources may not form the basis of feasibility or pre-feasibility
studies, or economic studies except for Preliminary Assessment as
defined under Canadian National Instrument 43-101. Investors are
cautioned not to assume that part or all of an Inferred Resource
exists, or is economically or legally mineable. 
Please Note: 
Investors are urged to consider closely the disclosures in MAG's
annual and quarterly reports and other public filings, accessible
through the Internet at www.sedar.com and
www.sec.gov/edgar/searchedgar/companysearch.html.     
Neither the Toronto Stock Exchange nor the NYSE-Amex has reviewed or
accepted responsibility for the accuracy or adequacy of this press
release, which has been prepared by management. 
Contacts:
MAG Silver Corp.
Michael J. Curlook
VP Investor Relations and Communications
(604) 630-1399 or Toll free: (866) 630-1399
(604) 681-0894 (FAX)
info@magsilver.com
www.magsilver.com
 
 
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