Many might think that all the large silver and gold deposits about the world have been found. Fortunately for junior miners this is far from the truth. An investor that can find a development stage miner that has struck a vein is one that will profit in the not too distant future.
Mag Silver Corp., a development stage silver mining company, works to discover, develop and exploit silver mining claims primarily in the Mexican silver mining belt. The company currently controls 100% of the Cinco de Mayo and Lagartos properties and a 44% share of the Juanicipio property.
High grade defines the primary products under development at the company’s sites. Drilling also suggests that other associated minerals, such as Moly and gold, hold these same high quality characteristics. As the company completes its preliminary studies, it feels that a 2.5 year pay-back schedule is possible. Perhaps the largest benefit in this regard is the location of its primary sites. Infrastructure has already been put in place by others and distance to head structures (or processing) is about ten miles. This will make getting the property’s 36.5M oz and 46M inferred oz. of silver to processing easy.
As of the end of 2009 the company had a cash position of approximately $29 million. It has established a relationship with the RBC and expects operations to begin fairly soon. End of year numbers indicated a loss as a result of start-up costs and currency exchange rate deviations. This result, however, is to be expected from a development stage company. From all appearances, Mag Silver is sitting on a hot vein of silver, gold, lead and Moly and most definitely deserves a look.