MAG Silver Announces First Production From Juanicipio
October 21 2020 - 12:55PM
MAG Silver Corp. (TSX / NYSE American:
MAG) (“MAG” or “MAG Silver”) is pleased to announce that,
as planned, development material from the Juanicipio Project (56% /
44% joint venture between Fresnillo plc (“Fresnillo”) and MAG)
commenced processing at the Fresnillo beneficiation plant during
the quarter ended September 30, 2020. As reported by the operator
Fresnillo, 42,476 tonnes were processed during the quarter, with
total production of 394 thousand silver ounces, 610 gold ounces,
138 tonnes of lead and 174 tonnes of zinc (attributable to MAG:
173.4 thousand ounces of silver, 268.4 ounces of gold, 60.7 tonnes
of lead and 76.6 tonnes of zinc).
This first development material was processed
through the nearby Fresnillo processing plant (100% owned by
Fresnillo) with the lead (silver rich) and zinc concentrates
treated at market terms under off-take agreements with Met-Mex
Peñoles, S.A. De C.V. in Torreón, Mexico. The revenue from this
production, net of processing and treatment costs, will be used by
the joint venture to offset cash requirements of the initial
project capital.
“This first production from Juanicipio is a
major milestone for the Company” said George Paspalas, MAG
Silver’s President and CEO. “The successful processing of
development material not only provides cash flow to offset capex,
but further de-risks the project as it heads toward commercial
production. We are looking forward to the first production stope
coming online in Q4 2020, and our potential to continue to produce
cash whilst we complete the process plant construction.”
Fresnillo expects to process an average of
16,000 tonnes per month of mineralized material from the joint
venture through its processing facility to mid-2021, at which time
the Juanicipio beneficiation plant is scheduled for
commissioning.
Development continues on site and the final
preparation of the first production stope was concluded during the
third quarter. Also during the quarter, progress was achieved on
the construction of the Juanicipio processing plant (see photos at
https://magsilver.com/projects/photo-gallery/#photo-gallery).
Qualified Person: Dr. Peter
Megaw, Ph.D., C.P.G., has acted as the Qualified Person as defined
in National Instrument 43-101 for this disclosure and supervised
the preparation of the technical information in this release. Dr.
Megaw has a Ph.D. in geology and more than 38 years of relevant
experience focused on Carbonate Replacement Deposits worldwide. He
is a Certified Professional Geologist (CPG 10227) by the American
Institute of Professional Geologists and an Arizona Registered
Geologist (ARG 21613). Dr. Megaw is not independent as he is Chief
Exploration Officer and a Shareholder of MAG.
About MAG Silver Corp.
MAG Silver Corp. is a Canadian advanced stage
development and exploration company focused on becoming a top-tier
primary silver mining company, by exploring and advancing
high-grade, district scale, silver-dominant projects in the
Americas. Its principal focus and asset is the Juanicipio Project
(44%), being developed in a joint venture with Fresnillo (56%). The
Juanicipio Project is located in the Fresnillo Silver Trend in
Mexico, the world's premier silver mining camp. The Juanicipio
Joint Venture is currently constructing and developing the surface
and underground infrastructure on the property to support a 4,000
tonnes per day mining operation, with the operational expertise of
Fresnillo, the project operator. As well, an expanded exploration
program is in place at Juanicipio on multiple highly prospective
targets.
Neither the Toronto Stock Exchange nor the NYSE
American 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; the use of the net
proceeds from the private placement is subject to change; 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 MAG Silver’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 www.sedar.com and www.sec.govLEI:
254900LGL904N7F3EL14
For further information on behalf of MAG Silver Corp.
Contact Michael J. Curlook, VP Investor Relations and Communications
Phone: (604) 630-1399
Website: www.magsilver.com
Toll Free: (866) 630-1399
Email: info@magsilver.com
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