MAG Silver reports that the Juanicipio project had a transformational quarter in 2Q23, achieving a 134% increase in silver production compared to 1Q23. The company explained that the increase was due to the entry into commercial production of the mine and the increase in the milling rate.
On June 1, 2023, MAG Silver, together with operator Fresnillo, achieved commercial production at the Juanicipio project. With this achievement, the company processed 377,018t of minerals, at a silver grade of 498g/t. In 2Q23, the project produced 5.275Moz of silver, 10,639oz of gold, 3,402t of lead and 5,418t of zinc.
During 2Q23, the Juanicipio mill increased its capacity to 85%. The company noted that as higher grade mill feed was introduced into the Juanicipio circuit, silver recovery rates and concentrate grades improved. MAG Silver added that it expects capacity to continue to increase during 3Q23 to full capacity.
“Q2 was a quarter of delivery. We are very encouraged with the steady progress of mining and milling performance at Juanicipio throughout the ramp-up period. The substantial increase in silver production coupled with the forecast of reaching design capacity by Q3 affirms MAG’s position as a top-tier silver producer. We remain deeply committed to a focus on robust cash flow generation and delivering a superior return on invested capital,” said George Paspalas, MAG Silver’s President and CEO.
MAG Silver owns 44% of the Juanicipio project located in Zacatecas, while 56% is owned by Fresnillo. The development consists of two main vein systems: Valdecañas and Juanicipio, both prolific epithermal silver and gold structures. At the beginning of this year, the companies announced that they expected the project to produce 11.7Moz/y of silver and 43,500oz/y of gold.
Previously, MAG Silver explained that the main challenge for Juanicipio was CFE’s six-month delay in connecting the project to the grid. However, Fresnillo explained that the project’s production forecast in 2023 will not be affected despite the delays.