MAG MAG Silver Corp

By Oliver Griffin

Fresnillo PLC (FRES.LN) said Thursday that it and MAG Silver Corp. (MAG.T) have approved their joint venture development of the gold-silver Juanicipio project in Mexico.

Precious metals miner Fresnillo, which is based in Mexico, will be the operator of Juanicipio and will hold a 56% majority stake in the joint-venture project.

Construction of the project will begin immediately and is expected to be completed in late 2020. At full capacity the mine is expected to produce 11.7 million ounces of silver and 43,500 ounces of gold per year.

Fresnillo Chief Executive Octavio Alvidrez said: "This decision to invest demonstrates our confidence in the long-term outlook for mining in Mexico."

The company also reported its first-quarter production for 2019, with declines of 15% and 9% in silver and gold respectively.

Silver production in the three months ended March 31 fell to 13.1 million ounces, from 15.4 million ounces in the year-earlier period. Gold production fell to 211,110 ounces, from 231,458 ounces in the first quarter of 2018.

Mr. Alvidrez said the fall in output was expected but added that results were slightly weaker than anticipated. However, the company continued to back its full-year guidance. The company also said construction of the Pyrites plant at the Fresnillo district remains on track and on budget, with commissioning expected in the second half of 2020.

Write to Oliver Griffin at oliver.griffin@dowjones.com; @OliGGriffin

(END) Dow Jones Newswires

April 11, 2019 02:38 ET (06:38 GMT)

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