MAG Silver Reports 2Q22 Results

Canada’s MAG Silver reported promising production results for 2Q22. In addition, the corporation announced it anticipates its new electrical system to be finalized during the next weeks. MAG’s partly-owned Juanicipio project continues to reach its expected production levels.

The Juanicipio project is located in Zacatecas and is owned for 56 percent by Fresnillo and 44 percent by MAG Silver. It consists of two main vein systems: Valdecañas and Juanicipio vein, which are prolific epithermal silver and gold structures.

The companies concluded the construction of the Juanicipio gold-silver project with a US$440 million CAPEX. Fresnillo and MAG Silver expect to produce 11.7Moz/y of silver and 43,500oz/y of gold.

In a press release, the Canadian company reported production of 2,372,140oz of silver and 5,609oz of gold for the 2Q22 at Juanicipio. From this figure, 1,043,742oz of silver and 2,486oz of gold were attributable to MAG’s 44 percent interest.

Moreover, during 2Q22, the company processed 154,069t of mineralized material from both underground development and initial stope material at an average head of 567g/t of silver.

“We are delighted with the progress reported by the Fresnillo team on the electricity shutdowns that pave the way for the final tie-in to the power grid. Commissioning of the new electrical system is expected over the next few weeks followed by the commissioning of the grinding mills. The rest of the process plant has been fully commissioned and awaits the energizing of the mills. Target ramp-up from 85 to 90 percent of nameplate capacity by year-end remains within reach,” said George Paspalas, President and CEO, MAG Silver.

The company reported that it saw progress regarding the required power system shutdowns to enable the final tie-in of the Juanicipio substation to the national power grid. It expects to start the electrical commissioning of the plant in the coming weeks.

MAG Silver said that mineralized material from Juanicipio continues to be processed at the nearby Fresnillo-owned Saucito and Fresnillo beneficiation plants. Sixty percent of the tones processed in Q2 were processed at Saucito.

“With over 100,000 tons of material stockpiled and continued advancement of underground development, the operations team are well positioned to deliver the first concentrates produced from the Juanicipio facility in 2H22,” added Paspalas. The company will release its full financial and operational results on August 15.