UPDATES ON DEVELOPMENT OF PROPERTIES IN MOROCCO & FINANCING; DRILLING TO START AT ZGOUNDER

Montreal, Quebec, August 23, 2012 – Maya Gold & Silver Inc. (TSXV: MYA) is pleased to issue a mid-year summary of its 2012 exploration and development works at its Morocco properties, as well as an update on financing.

The Company has been active in developing its flagship project, the Zgounder Silver Mine. Maya has completed the overhaul of the access road leading to the mine. The mine site has been cleaned up and level 2000 (the main gallery) has been re-opened.  In addition, the Company has restored and upgraded the mine’s camp which will shortly accommodate up to 160 employees. Finally, Maya has recruited key personnel for the project.

Exploration at Zgounder in 2012

-          Maya has consulted a variety of historical reports, maps and core logs which allowed to build-up an extensive geochemical and geological database for the project.

-          One aspect of the exploration program concerns the validation of the historical silver assays, both on drill core and underground galleries wall faces.  A preliminary validation has been carried out on selected mineralized drill core as well as adits wall faces. The new silver concentrations obtained from the ancient cores are quite similar to the historical assay values, whereas the adits chip samples revealed values that are two to 15 times higher than historical concentrations.

-          Maya has implemented a mapping program of the surface geology within and around the mine site.  Based on field observations, silver mineralization is structurally controlled by NNE and EW-oriented shear zone, hosted in a sedimentary sequence.

-          Maya has also commissioned a detailed structural study and 3D geological modelling of the Zgounder Mine. This combined approach will provide a better understanding of the chronology of deformation, the geological structural control of mineralization and its economic potential.

-          In June 2012, the Company mandated ACA Howe International Limited (“ACA Howe”), a leading mining consulting group, to produce an independent mineral resources estimate on the Zgounder Silver Mine. Maya will soon set up a drill rig at the Zgounder Mine to fulfill ACA Howe requisite mandate to include the Northern Zone in its resources estimate.

-          On August 10, 2012, Maya filed a NI43-101 Technical Report to support historical mineral resources (see news release dated August 10, 2012). This report was prepared by Michel Boily, PhD., P.Geo of Geon Ltd. and an Independent Qualified Person under NI 43-101 standards. Report has been filed on SEDAR (www.sedar.com) and could be linked to the newly refurbished website (www.mayagoldsilver.com).

Exploration of Permit 233263

The Permit 233263 exploration area (16km2) is located in the Proterozoic Saghro “boutonnière” of Morocco’s Sub-Atlas Range about 260 kilometres east of Marrakech and just five kilometres south of the world class Imiter Silver Mine. The autumn 2012 exploration program on permit 233263 will include trench sampling of the Au-Ag-Pb-Zn-mineralized NNE-oriented breccia zone located on strike to Imiter Silver Mine. Previous assay results from eight rock samples revealed moderate concentrations of precious metals: Ag=1 to 27 g/t and Au=0.021 to 2.78 g/t. Three high Pb (1.18 to 2.76 wt. %) and Zn (0.83 to 1.80 wt. %) values were reported. One of the breccia extends for at least 700 metres and varies in width from 1-2 to 10 metres. This program will also include geological mapping to provide a comprehensive geological model for future drill hole targets generation.

Amizmiz & Azegour

A compilation of earlier exploration works were completed on the Amizmiz or Azegour properties over the past six months.

Update on CAD$ 7,500,000 Private Placement

Further to its news release dated June 19, 2012, Maya announced that it is pursuing its previously announced non-brokered private placement of up to 30,000,000 units (the “Units”) at a price of CAD$ 0.25 per Unit for aggregate gross proceeds to Maya of up to CAD$ 7,500,000 (the “Private Placement”). Maya expects to close the Private Placement following the summer break and will issue a further news release at such time. The subscriptions for Units include, as previously announced on July 12, 2012, a subscription by Praetorian Resources Limited for 5,000,000 Units for total proceeds to Maya of CAD$ 1,250,000. Such subscription by Praetorian added to the share exchange that occurred between Maya and Praetorian, also announced on July 12, 2012, and pursuant to which Maya issued and exchanged 7,000,000 common shares of the share capital of Maya at a deemed issue price of CAD$ 0.25 per share (total aggregate deemed value of CAD$ 1,750,000) in exchange for ordinary shares and subscription shares of Praetorian, will represent a total investment of CAD$ 3,000,000 by Praetorian in the share capital of Maya.

Further details on the Private Placement can be found in Maya’s press release dated June 19, 2012, a copy of which is available under Maya’s SEDAR profile at www.sedar.com.

The technical content of this news release has been reviewed by François Goulet-Lessard, MSc., P.Geo from Goulex Inc, and by Michel Boily, PhD., P.Geo from Geon Ltd, both independent Qualified Persons under N 43-101 standards.

 

ABOUT MAYA

Maya Gold & Silver Inc. is a Canadian listed mining corporation focused on the exploration and development of gold and silver deposits in Morocco. The Corporation’s shares trade on the TSX Venture Exchange under the symbol “MYA”.

For further information on Maya visit www.mayagoldsilver.com or contact:

Maya Gold & Silver Inc.:

Guy Goulet
President and Chief Executive Officer
T: 450-435-0700 ext. 204
ggoulet@mayagoldsilver.com
 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking statements

This release may contain forward-looking statements including management’s assessments of future plans and operations, and expectations of future production. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, the risks associated with the mining and exploration industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production and the uncertainty of the availability of capital). The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.




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