The San Francisco Gold Mine of Magna Rises Again

Source: Bob Moriarty for Streetwise Reports 06/29/2020

Bob Moriarty of 321gold discusses why he believes this new company can succeed with this gold mine while its predecessor could not.

Yesterday I promised I would be boring so here it is. We are in a depression. The Fed is doing the opposite of the right thing. They are destroying the currency. Their stupidity will take down the stock market as well as the bond market and leave most of the 99% broken. We will see the banks close. We will have hyperinflation.

You can still protect yourself and it’s not by buying Hertz shares on RobbingTheHood. I promised I would be writing about low cost high potential resource stocks.

Magna Gold Corp. (MGR:TSX.V; MGLQF:OTCQB) is a newly formed company headed by Arturo Bonillas. He has done a deal with Alio, the new company name for what was Timmins Gold, former operator of the San Francisco Gold Mine in Sonora, Mexico.

Timmins put the mine back into production but got a little carried away with drilling and trying to advance the mine. They managed to spend all the profit on exploration. Arturo Bonillas managed the mine and can solve the real issues created by prior management. Under the agreement for Magna to take over the mine, Timmins will receive about 18% of the stock. In addition there were legal issues with former contractors who weren’t paid. Those issues have been sorted.

The mine has and can make money. Magna has about $10 million in cash with an M&I 43-101 of 1.484 million ounces of gold. The company is leaching now and expects to be stacking ore in a little over a month. In a recent press release the company announced production of 2,350 ounces of gold in May at a cash cost of $1,121 an ounce USD.

The San Francisco Mine could have been profitable for Timmins except for some poor operational decisions. The mine is now in the hands of someone who knows it better than anyone. Arturo Bonillas knows both the problems and how to solve them.

Magna plans on restarting the San Francisco mine and getting to stable low cost production. First year production should be about 70,000 ounces moving to 100,000 ounces in a year. Management has plans for expansion and picking up new projects with an objective of annual production of 200,000 ounces gold with a 5 million ounce resource by 2023. It can be done and they will have a far higher market cap when they achieve that.

I have bought shares in the open market. Magna is an advertiser and naturally that makes me biased. Do your own due diligence.

Magna Gold
MGR-V $1.16 (Jun 29, 2020)
MGLQF-OTCQB 84.5 million shares
Magna Gold website.

Bob Moriarty
President: 321gold

Bob Moriarty founded, with his late wife, Barbara Moriarty, more than 16 years ago. They later added to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.

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1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Magna Gold. Magna Gold is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
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( Companies Mentioned: MGR:TSX.V; MGLQF:OTCQB,

SOURCE: The Gold Report – Streetwise Exclusive Articles Full Text – Read entire story here.