MAG Silver Reports Solid 1Q22

MAG Silver has provided a positive update on its Juanicipio project and its production volume during 1Q22. In addition, the company highlighted that the start-up of the mill is on track to be delivered in 2H22. Therefore, the Juanicipio processing plant is expected to significantly increase its capacity soon.

The Juanicipio Project, of which Fresnillo owns 56 percent and MAG Silver 44 percent, processed 113,950 tonnes of mineralized materials during the October-December period in 2021. The amount is significant, as it represents 45 percent of all tons processed during the year. The total material processed last year was 251,907 tonnes, resulting in 3.2Moz of silver and 6,557oz of gold.

In a press release, the company announced that during 1Q22, 145,484 tonnes of mineralized material were processed, at an average head grade of 597g/t of silver. Likewise, MAG reported that the total production of Juanicipio stood at 2.4Moz of silver and 5,837oz of gold. Since the project is shared with Fresnillo, MAG explained that the value attributable to the company amounts to 1,056,000oz of silver and 2,568oz of gold.

In addition, the company explained that until the project's processing plant is commissioned, the mineralized material is being processed through the Fresnillo and Saucito plants. During this 1Q22, 46 percent of the ore was processed at the Fresnillo plant, while 54 percent of the tons was processed at the Saucito plant. At the latter plant, the flowsheet is most similar to that at the Juanicipio plant, so these results are expected to provide more valuable metallurgical benefits.

Furthermore, the company explained that although the construction of the Juanicipio plant was delivered on time in 4Q21, its mill commissioning will be done in 2Q22. The plant’s operation was delayed for six months because CFE could connect it the grid on time.  According to Fresnillo, the grid tie-in remains on schedule for 2H22, which is expected to increase the project's processing plant from 85 to 90 percent capacity by the end of 2022.

"We are very pleased that Fresnillo reports good progress to get regulatory approval for the power grid connection by mid-year. Furthermore, it is very heartening to see the grade and tons the mine is delivering, particularly given that the majority of the mill feed is still coming from development headings. This augurs well for the geological model and full stope production in the future. Given the tonnage and good grades, the project has been self-funding this year with no additional capital injections required,” said George Paspalas, President and CEO, MAG Silver.