MAG Silver Reports Fourth Quarter Production From Juanicipio
January 27 2021 - 11:58AM
MAG Silver Corp. (TSX / NYSE American: MAG) (“MAG”
or “MAG Silver”) is pleased to report fourth quarter production of
development material from the Juanicipio Project (56% / 44% joint
venture between Fresnillo plc (“Fresnillo”) and MAG Silver). As
reported to MAG by the project operator Fresnillo, 30,397 tonnes of
development material were processed during the quarter ended
December 31, 2020, with total production for the quarter on a 100%
basis of 230 thousand silver ounces and 443 gold ounces
(attributable to MAG: 101 thousand ounces of silver and 195 ounces
of gold). Combined with the 42,476 tonnes of mineralized material
processed last August and September, production in 2020 on a 100%
basis totaled 623 thousand silver ounces and 1,053 gold ounces
(attributable to MAG: 274 thousand ounces of silver and 463 ounces
of gold). The associated lead and zinc production will be reported
with MAG’s year end filings.
The development material is being processed
through the nearby Fresnillo processing plant (100% owned by
Fresnillo) with the lead (silver rich) and zinc concentrates
treated at market terms under off-take agreements with Met-Mex
Peñoles, S.A. de C.V. in Torreón, Mexico. The revenue from this
production, net of processing and treatment charges, will be used
by the joint venture to offset initial project capital cash
requirements.
Fresnillo also reports that commissioning of the
Juanicipio processing plant is now expected to commence in Q4-2021,
a few months later than previously reported as some infrastructure
contracts have been delayed due to Covid-19, and related to
Covid-19 preventive measures implemented at site. Until the
Juanicipio plant is commissioned in Q4-2021, Fresnillo continues to
expect it will process 16,000 tonnes per month of mineralized
material from the joint venture through its facility.
“We’ve now successfully milled close to 73,000
tonnes of development material at the Fresnillo plant since early
August of 2020 generating cash-flow to help offset capex and
gaining valuable metallurgical understanding at the same time” said
George Paspalas, MAG Silver’s President and CEO. “This
processing will continue through the end of 2021 and will further
de-risk the project as it heads into commercial production.”
Project development and construction of the
Juanicipio processing plant continues at site, with construction
photos available at
https://magsilver.com/projects/photo-gallery/#photo-gallery.
Qualified Person: Dr. Peter
Megaw, Ph.D., C.P.G., has acted as the Qualified Person as defined
in National Instrument 43-101 for this disclosure and supervised
the preparation of the technical information in this release. Dr.
Megaw has a Ph.D. in geology and more than 38 years of relevant
experience focused on ore deposit exploration worldwide. He is a
Certified Professional Geologist (CPG 10227) by the American
Institute of Professional Geologists and an Arizona Registered
Geologist (ARG 21613). Dr. Megaw is not independent as he is Chief
Exploration Officer and a Shareholder of MAG.
About MAG Silver Corp.
(www.magsilver.com)
MAG Silver Corp. (MAG: TSX / NYSE A) is a
Canadian development and exploration 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. Its principal focus and asset is the Juanicipio Project
(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 the
Joint Venture is currently constructing and developing the surface
and underground infrastructure on the property to support a 4,000
tonnes per day mining operation. Initial underground production was
achieved in Q3-2020. As well, MAG has an expanded exploration
program in place, targeting multiple highly prospective targets
both at the Juanicipio Joint Venture and at the Deer Trail 100%
earn-in project in Utah.
On behalf of the Board ofMAG SILVER
CORP.
"George Paspalas"
President, CEO and Director
Neither the Toronto Stock Exchange nor the NYSE
American has 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, 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 LEI:
254900LGL904N7F3EL14
For further information on behalf of MAG Silver Corp.
Contact Michael J. Curlook, VP Investor Relations and Communications
Phone: (604) 630-1399
Toll Free: (866) 630-1399
Website: www.magsilver.com
Email: info@magsilver.com
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