MAG Silver Reports 2013 Annual Results

MAG Silver Reports 2013 Annual Results 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/01/14 -- 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, 2013. For complete details of
the annual financial statements and related Management's Discussion
and Analysis, please see the Company's filings on SEDAR
( or on EDGAR ( All amounts herein are
reported in United States dollars unless otherwise specified. 
At December 31, 2013, the Company had working capital of $25,970,215
(compared to $40,492,095 at December 31, 2012), including cash of
$25,050,948 (compared to $40,621,158 at December 31, 2012). The
Company currently has sufficient working capital to maintain all of
its properties and currently planned programs extending beyond the
next 12 months. The primary use of cash during the year ended
December 31, 2013 was on the Juanicipio property, where the Company
expended on its own account and through advances to Minera
Juanicipio, S.A. de C.V. ("Minera Juanicipio") $5,166,251 (December
31, 2012: $4,577,611). The Company also incurred other exploration
and evaluation expenditures on its other properties totaling
$4,563,343 (December 31, 2012: $11,981,221).   
The Company's net loss for the year ended December 31, 2013 amounted
to $29,371,353 (or $0.49 per share) as compared to $12,314,322 (or
$0.22 per share) in 2012. The increased net loss in 2013 is primarily
due to the write off of non-core exploration and evaluation costs
during the year ended December 31, 2013 of $16,998,885 (December 31,
2012: 3,364,479). With the desire to focus on and preserve cash for
its core projects, the Lagartos claims totaling $12,642,486 were
written off (including $8,576,602 in the three months ended December
31, 2013), along with the 100% owned Lorena and Nuevo Mundo claims
totaling $2,719,689, and the Mojina earn in option agreement was
terminated and $1,636,710 written off.   
During the year ended December 31, 2013, the Company also recorded
$3,014,711 (December 31, 2012: $3,409,001) of share based payment
expense (a non-cash item) relating to stock options both granted and
vesting to employees and consultants in the period. The fair value of
all share-based payment compensation is estimated using the
Black-Scholes-Merton option valuation model.  
In addition, during the year ended December 31, 2013, the Company
recorded a non-cash deferred tax expense of $4,234,722 (December 31,
2012: tax recovery of $840,052) related to the Cinco de Mayo,
Batopilas, Guigui, and Salamandra exploration projects. The Mexican
government enacted a tax reform on December 11, 2013, and introduced
a 7.5% mining royalty effective January 1, 2014. As a result, the
Company recorded a deferred tax expense relating to the initial
recognition impact of the mining royalty. The deferred tax expense is
a non-cash item, and will only be realized once these exploration
properties are developed and in production. The Company also recorded
its 44% share of the equivalent deferred tax expense applicable to
Minera Juanicipio as an Equity Pick Up from Associate, amounting to
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. 
Project Updates 
At Minera Juanicipio, the proposed 2014 development budget is $11.4
million (MAG's 44% share is $5 million), and is designated primarily
for the ramp advancement and some detailed engineering. Subsequent to
year end, in mid-March, the contractor hired by Fresnillo to
construct the ramp decline on behalf of Minera Juanicipio received
its full explosives permit from the Mexican Ministry of Defense.
Development of the Juanicipio ramp decline is now advancing with
conventional drill and blast cycles as well as with the continuous
miner. In addition to the Juanicipio development, exploration work is
also planned to seek new veins and trace structures and veins in
neighbouring parts of the district onto the Minera Juanicipio joint
venture ground. The proposed 2014 exploration budget for Minera
Juanicipio is US$3.6 million (MAG's 44% share is US$1.6 million). 
No active exploration is currently being undertaken on the Cinco de
Mayo property, as the Company remains in the process of negotiating a
renewed surface access agreement with the local Ejido. The overall
timeline to successful resolution and renewed surface access is not
determinable at this time, and will depend upon various factors
including but not limited to: the ability of the Company to arrive at
a settlement agreement that would be fully supported by the majority
of the Ejido; and, the ability of the Ejido to conduct a properly
constituted Assembly meeting, with quorum, and favourable outcome.  
At Salamadra, where the Company has an option to earn up to 70% of
property, the system remains open in all directions and the drilling
program is currently operating with two diamond drill rigs. The
Company continues to delineate the system, while fleshing out the
best intercepts from the initial drill program. 
About MAG Silver Corp. (  
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.  
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 and
MAG Silver Corp.
Michael J. Curlook
VP Investor Relations and Communications
(604) 630-1399 or Toll free: (866) 630-1399
(604) 681-0894 (FAX)
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