MAG Silver Reports Second Quarter Financial Results

MAG Silver Reports Second Quarter Financial Results 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/15/13 -- MAG
Silver Corp. (TSX:MAG) (NYSE MKT:MVG) ("MAG" or the "Company")
announces the Company's unaudited financial results for the three and
six months ended June 30, 2013. For complete details of the second
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 June 30, 2013, the Company had working capital of $33,874,230,
including cash of $33,402,419. The primary use of cash during the six
months ended June 30, 2013 was for exploration and evaluation
expenditures totaling $2,515,625 (June 30, 2012: $5,790,815) and the
Company also expended on its own account and through advances to
Minera Juanicipio $1,301,947 (June 30, 2012: $2,378,138) on the
Juanicipio property. Subsequent to June 30, 2013, the Company
advanced $3.74 million to Minera Juanicipio, representing its 44%
share of an $8.5 million cash call to fund exploration activities and
initial ramp development, through October 2013. The Company currently
has sufficient working capital to maintain all of its properties and
currently planned programs extending beyond the next 12 months.  
The Company's net loss for the three and six months ended June 30,
2013 amounted to $10,220,693 and $11,878,766 respectively (June 30,
2012: $1,803,362 and $2,557,733 respectively). The net loss as
compared to prior periods, increased primarily as a result of the
write-off of non-core assets. Given the prevailing market conditions
and the desire to focus on and preserve cash for its core projects,
management has determined that the some of the Company's non-core
assets should be abandoned, and exploration and evaluation assets
totaling $8,422,283 were written off in the quarter ended June 30,
2013 (June 30, 2012: Nil). Portions of the Lagartos Properties,
specifically the "Lagartos NW" and "Lagartos V" claims, totaling
$4,065,884 were written off, along with the 100% owned Lorena and
Nuevo Mundo claims totaling $2,719,689, and their respective
concessions were not renewed subsequent to the quarter end. The
Mojina option earn in agreement was also terminated subsequent to the
quarter end and its associated exploration and evaluation costs
totaling $1,636,710 were written off. During the three and six months
ended June 30, 2013, the Company also recorded share based payment
expense (a non cash item) of $1,278,548 and $1,915,148 respectively
(June 30, 2012: $496,449 and $872,305 respectively) relating to stock
options both granted and vesting to employees during the period.  
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 had approved an 18
month mine permitting and underground development budget of $25.4
million (the "Initial Development Budget"). This program covers mine
permitting, surface preparation and the commencement of the first
2,500 metres of underground decline development, as well as 35,000
metres of infill drilling at 75 metre centres along the Valdecanas
Vein. 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 ($13.1 million) and the first half of
2014 ($11 million). To July 31, 2013, a total 24,628 metres were
drilled in 33 holes and a further 8,167 metres drilled in nine holes
of geotechnical/metallurgical drilling, resulting in a total of 42
holes and 32,785 metres drilled to July 31, 2013. The results to date
have been as expected showing the typical metal zoning of
Fresnillo-style veins in the district.  
The development program is being managed by Fresnillo plc
("Fresnillo") as operators of the Joint Venture, and they had
previously reported that they expected the underground decline ground
breaking to commence late in the second quarter of 2013. However, due
to development permitting delays resulting from the recent Mexican
government changeover, it now expects the underground decline ground
breaking to commence in late August or early September, 2013. Five
different contractors from North and South America had been asked to
tender for the decline construction, and after review of the
proposals, the contract has been awarded. 
Cinco de Mayo 
In the three and six months ended June 30, 2013, the Company incurred
exploration and evaluation costs of $566,508 and $1,313,497
respectively (2012: $4,033,817 and $5,990,731 respectively). No
drilling has been undertaken in 2013 as the Company is currently
trying to negotiate a renewed surface access agreement with the local
Ejido. The principal focus of work has been in preparation for these
negotiations and has included meetings with Chihuahua State and
Mexican Federal authorities and Community Public Relations and legal
advisors in Mexico. This process was protracted due to the political
transition period as the new party and Presidency assumed operation
of the Mexican government, coupled with Municipal elections held in
July 2013. The Company maintains the Ejido access issue is a
temporary delay and is working to resolve the issue on a permanent
basis with the Ejido. However, once the surface access permission is
renewed and obtained, the permit approval process may still take up
to 3 months to process. The Company had expected the resumption of
drilling on the property late in 2013, but with protracted political
transition periods (both federally and municipally), it is now
expected drilling will resume in the first half of 2014. The Company
has also initiated preliminary metallurgical testing on assay bulk
rejects in anticipation of a Preliminary Economic Assessment ("PEA")
based on the Upper Manto resource.  
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 
Neither the Toronto Stock Exchange nor the NYSE MKT has reviewed or
accepted responsibility for the accuracy or adequacy of this press
release, which has been prepared by management.  
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.
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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