MAG Silver Reports First Quarter Financial Results

MAG Silver Reports First Quarter Financial Results 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/15/13 -- MAG
Silver Corp. (TSX:MAG)(NYSE MKT:MVG) ("MAG" or the "Company")
announces the Company's unaudited financial results for the three
months ended March 31, 2013. For complete details of the first
quarter unaudited Condensed Interim Consolidated 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. 
At March 31, 2013, the Company had working capital of $37,917,231
including cash of $37,790,974. The primary use of cash during the
three months ended March 31, 2013 was for exploration and evaluation
expenditures totaling $1,559,977 and an additional $77,536 for
project oversight expenditures on the Juanicipio property. Accounts
receivable at March 31, 2013 totaled $752,732 and was comprised
primarily of value added taxes repayable to the Company by the
Government of Mexico. Current liabilities at September 30, 2012
amounted to $1,222,865 and are attributable to accrued exploration
expenditures and legal, audit, and other administrative expenses.  
The Company's net loss for the three months ended March 31, 2013
amounted to $1,658,073 (March 31, 2012: $754,371). The prior period's
loss included a deferred tax recovery of $840,052 which did not apply
this quarter. For the three months ended March 31, 2013 management
and consulting fees increased to $616,890 (March 31, 2012: $390,398)
primarily due to recruitment and placement fees and to an additional
director compared to the prior year. The foreign exchange gain of
$548,271 (March 31, 2012: $53,582) was a result of holding US$ in MAG
corporately while the US$ strengthened against the C$. During the
quarter ended March 31, 2013, the Company recorded $636,600 (March
31, 2012: $375,856) of share based payment expense (a non cash item)
relating to stock options both granted and vesting to employees in
the period. The Company also recognized a further impairment of
$175,944 (March 31, 2012: Nil) on certain marketable securities held
where the decrease in value was determined to be prolonged and
significant.  
Juanicipio Project 
Based on a National Instrument 43-101 compliant Updated Preliminary
Economic Assessment entitled "Minera Juanicipio Property, Zacatecas
State, Mexico, Technical Report for Minera Juanicipio S.A de C.V",
authored by AMC Mining Consultants (Canada) Ltd. (the "AMC Study"),
filed on SEDAR on July 16, 2012, Minera Juanicipio has approved an 18
month mine permitting and underground development budget of $25.4
million (the "Initial Development Budget"). To December 31, 2012, a
total of $1.3 million of the Initial Development Budget had been
incurred, with the remaining $24.1 million now designated for 2013
and early 2014. Fresnillo plc ("Fresnillo"), the operator is in the
process of preparing a revised timeline for the remaining work which
is expected to be completed by early to mid-2014. 
The Mexican environmental authorities now require an "Estudio Tecnico
Justificativo" or a Technical Justification Study to be approved
prior to commencing ramp construction. The required documents have
been filed with the Ministry of Environment and Natural Resources,
and Fresnillo reports that it expects the underground decline ground
breaking to commence late in the second quarter of 2013. Five
different contractors from North and South America have been asked to
tender for the decline construction and proposals are currently being
reviewed with a decision still pending. 
The AMC Study indicated a project development and production schedule
of approximately 3.5 years, specifically: "Following satisfactory
completion of further studies, and subject to the application and
grant of the necessary permits and licenses, it is estimated that it
will take approximately three and a half years to develop the project
from the start of the box cut and portal to mill startup." Although
Minera Juanicipio has not formally made a 'production decision,'
Fresnillo, the operator, is reporting publically that Juanicipio will
be in production in 2017. The Company believes this timeline is
consistent with that laid out it the AMC Study. 
Cinco de Mayo 
In the three months ended March 31, 2013, the Company incurred
exploration and evaluation costs of $746,989 (2012: $1,956,914) on
its 100% owned Cinco de Mayo property. The principal focus of work
was in preparation for negotiations for renewed surface access and
surface rights purchase with the Ejido Benito Juarez (the "Ejido").
Further drilling on the Cinco de Mayo property can only resume upon
obtaining the Soil Use Change Permit (which requires a surface access
agreement with the local Ejido) and drill permits. Activities in the
first quarter included meetings with Chihuahua State and Mexican
Federal authorities and Community Public Relations and legal advisors
in Mexico. The process was protracted due to the political transition
period as the new party and Presidency assumed operation of the
Mexican government. The Company believes the Ejido access issue is a
temporary delay and is working to resolve the issue on a permanent
basis with the Ejido, with the expectation of resuming drilling on
the property late in 2013.  
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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