NM ARTICLE MAG Silver generates pre-production cash-flow at Juanicipio 2021-01-27
Mining News
MAG Silver generates pre-production cash-flow at Juanicipio
Vladimir Basov Wednesday January 27, 2021 14:40
Kitco News
Share this article:
 |
|---|
(Kitco News) - MAG Silver (TSX / NYSE: MAG) today reported fourth-quarter and full-year 2020 production of development material from the Juanicipio project in Mexico, which is a 56% / 44% joint venture between Fresnillo and MAG Silver.
According to the company’s statement, 30,397 tonnes of development material were processed during the quarter ended December 31, 2020, with total production for the quarter on a 100% basis of 230 thousand silver ounces and 443 gold ounces.
Combined with the 42,476 tonnes of mineralized material processed last August and September, production in 2020 on a 100% basis totaled 623 thousand silver ounces and 1,053 gold ounces.
The development material is being 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. MAG Silver said that the revenue from this production, net of processing and treatment charges, will be used by the joint venture to offset initial project capital cash requirements.
The company noted that the commissioning of the Juanicipio processing plant is now expected in Q4 2021, a few months later than previously reported as some infrastructure contracts have been delayed due to Covid-19.
“We’ve now successfully milled close to 73,000 tonnes of development material at the Fresnillo plant since early August of 2020 generating cash-flow to help offset capex and gaining valuable metallurgical understanding at the same time,” said President and CEO George Paspalas. “This processing will continue through the end of 2021 and will further de-risk the project as it heads into commercial production,” added Paspalas.
MAG Silver is a Canadian 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 partnership with Fresnillo (56%).
For Kitco News