Day: February 22, 2019

Magellan Gold Corporation, a U.S. based mining and exploration enterprise focused on silver and gold, today announced it has completed a bulk test of mineralized material supplied and delivered by a private third-party to the Company’s SDA Mill at Acaponeta, Nayarit State, Mexico. As announced December 17, 2018, the purpose of the test was to determine the viability of entering into a long-term processing agreement. Test processing of an initial bulk sample of approximately 600 tons was carried out. The potential customer was pleased with the mill’s performance. However, the customer experienced difficulty in supplying ore on a consistent basis and is assessing plans for going forward. Meanwhile the Company will continue to search for other toll milling customers.

Tahuehueto underground development along the major mineralized structure (see Figure 1), El Perdido, has now been extended approximately 150 meters along strike to the north-east from the Level 12 access decline. The first 60 meters of this development was designed to prepare reserves identified by previous drilling for mining, however, the development drift is being extended in continuous mineralization beyond known reserves/resources and to date has exposed approximately an additional 100 meters of continuous mineralization beyond the know n drilling.