Fresnillo plc and MAG Silver Corp. confirm that their silver / gold
Juanicipio project, held through Minera Juanicipio, has received
approval from their respective Boards as well as from the Minera
Juanicipio shareholders.
Juanicipio Project
Highlights
- Fresnillo plc will be the operator of Juanicipio and holds a
56% majority stake in the Joint Venture, with partner MAG Silver
Corp. owning the remaining 44%.
- Construction to begin immediately with completion expected late
2020, subject to finalizing detailed engineering and securing
remaining permits.
- Total average annual anticipated production of 11.7 moz silver,
43.5 koz gold, with an initial life of mine of 12 years.
- Considerable further exploration opportunities in license area
with potential to scale-up operations in future.
- Estimated pre-operative capex of US$395m as of 1st January
2018, which does not reflect expenditures incurred since that date.
- Juanicipio development expected to create approximately 2,750
jobs during construction and 1,720 jobs once at full
production.
The Juanicipio site is located within the
Fresnillo mining district. Exploration and development at this site
has been on-going for several years, de-risking the asset and
ensuring full evaluation of its potential. Discussions with
contractors are advanced and orders for long lead-time equipment
delivery have been placed. All principal permits and licensing have
been obtained. Construction is expected to commence immediately
with completion expected late 2020 subject to finalizing detailed
engineering and securing remaining permits, in line with the
project timetable.
At full capacity, Juanicipio is expected to
produce on average 11.7 moz of silver and 43.5 koz of gold per
year, with robust economics underpinning the project.
Octavio Alvídrez, Chief Executive
Officer of Fresnillo plc, said:
“The decision to approve Juanicipio reflects the
extensive work the JV partners have done to de-risk the project to
meet stringent development criteria. This decision to invest
demonstrates our confidence in the long-term outlook for mining in
Mexico. The new mine will create significant employment and
highlights our commitment to sustainable growth for the benefit of
all stakeholders.”
George Paspalas, Chief Executive Officer
of MAG Silver, said:
“The joint approval of the project is a landmark
milestone for the Juanicipio Joint Venture. We are fortunate to
have Fresnillo plc, with over 130 years of experience in the area,
managing the construction and operations of Juanicipio. Their
insightful experience has resulted in a very efficient upsizing
development opportunity for the Joint Venture, which is greatly
appreciated by the Board and Management of MAG Silver. We look
forward to working together with our partner to realize further
value from the joint venture.”
The information contained within this
announcement is deemed by Fresnillo plc to constitute inside
information as stipulated under the Market Abuse Regulation (EU)
No. 596/2014. Upon the publication of this announcement, this
inside information is now considered to be in the public domain.
The person making the notification is Carlos Ortiz Mena, Head of
Legal, Fresnillo plc. The time of the notification is 7:00 am UK
time.
-Ends-
For further information, please visit
Fresnillo’s website www.fresnilloplc.com or MAG Silver’s website
www.magsilver.com or contact:
Fresnillo
plc London Office
Gabriela Mayor, Head of Investor RelationsPatrick Chambers |
Tel: +44 (0)20 7399
2470 |
Mexico City Office Ana
Belem Zárate |
Tel: +52 55 52 79
3206 |
|
|
Powerscourt Peter Ogden or |
Tel: +44 (0)20 7250
1446 |
|
|
MAG Silver
Corp. Michael J. Curlook, VP
Investor Relations and Communicationsmcurlook@magsilver.com |
Tel: +1 (604)
630-1399 |
About Fresnillo plc
Fresnillo plc is the world's largest primary
silver producer and Mexico's largest gold producer, listed on the
London and Mexican Stock Exchanges under the symbol FRES.
Fresnillo plc has seven operating mines, all of
them in Mexico - Fresnillo, Saucito, Ciénega (including the San
Ramón satellite mine), Herradura, Soledad-Dipolos1, Noche Buena and
San Julián (Phase I and II), two development projects - the Pyrites
Plant at Fresnillo and Juanicipio, and three advanced exploration
projects – Orisyvo, Las Casas Rosario & Cluster Cebollitas and
Centauro Deep, as well as a number of other long term exploration
prospects.
Fresnillo plc has mining concessions and
exploration projects in Mexico, Peru and Chile.
Fresnillo plc has a strong and long tradition of
exploring, mining, a proven track record of mine development,
reserve replacement, and production costs in the lowest quartile of
the cost curve for silver.
Fresnillo plc's goal is to maintain the Group's
position as the world's largest primary silver company and Mexico’s
largest gold producer.
1 Operations at Soledad-Dipolos are currently
suspended.
About MAG Silver Corp.
MAG Silver Corp. is a Canadian exploration and
development 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. Our principal
focus and asset is the Juanicipio Property (44%), being developed
in a Joint Venture partnership with Fresnillo Plc (56%). Juanicipio
is located in the Fresnillo Silver Trend in Mexico, the world's
premier silver mining camp and we are currently developing the
surface and underground infrastructure on the property to support a
4,000 tonnes per day mining operation with the operational
expertise of our JV partner, Fresnillo plc. As well, we have an
aggressive exploration program in place targeting multiple highly
prospective targets across the property. In addition, we continue
to work on regaining surface access to our 100% owned Cinco de Mayo
property in Mexico while we seek other high grade, district scale
opportunities.
Qualified Person:
The scientific and technical information
contained in this press release for the Juanicipio Project has been
approved by Gary Methven, P. Eng. an employee of AMC Mining
Consultants (Canada) Ltd. who is independent of both Fresnillo plc
and MAG Silver Corp. By virtue of his education and relevant
experience Mr. Methven is a "Qualified Person" for the purpose of
National Instrument 43-101. Mr. Methven, has read and
approved the content of this press release.
Fresnillo plc Forward Looking
Statements
Information contained in this announcement may
include 'forward-looking statements'. All statements other than
statements of historical facts included herein, including, without
limitation, those regarding the Fresnillo Group's intentions,
beliefs or current expectations concerning, amongst other things,
the Fresnillo Group's results of operations, financial position,
liquidity, prospects, growth, strategies and the silver and gold
industries are forward-looking statements. Such forward-looking
statements involve risk and uncertainty because they relate to
future events and circumstances. Forward-looking statements are not
guarantees of future performance and the actual results of the
Fresnillo Group's operations, financial position and liquidity, and
the development of the markets and the industry in which the
Fresnillo Group operates, may differ materially from those
described in, or suggested by, the forward-looking statements
contained in this document. In addition, even if the results of
operations, financial position and liquidity, and the development
of the markets and the industry in which the Fresnillo Group
operates are consistent with the forward-looking statements
contained in this document, those results or developments may not
be indicative of results or developments in subsequent periods. A
number of factors could cause results and developments to differ
materially from those expressed or implied by the forward-looking
statements including, without limitation, general economic and
business conditions, industry trends, competition, commodity
prices, changes in regulation, currency fluctuations (including the
US dollar and Mexican Peso exchanges rates), the Fresnillo Group's
ability to recover its reserves or develop new reserves, including
its ability to convert its resources into reserves and its mineral
potential into resources or reserves, changes in its business
strategy and political and economic uncertainty.
LEI: 549300JXWH1UV5J0XV81
MAG Silver Corp. Forward Looking
Statements
Neither the Toronto Stock Exchange nor the NYSE
American have 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, the date of construction commencement and completion, the
estimated capital costs and the expected job creation, 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, 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 Company'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.gov/searchedgar/companysearch.html
LEI: 254900LGL904N7F3EL14
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