Fresnillo JV Approves Construction of Juanicipio Project
April 11 2019 - 2:53AM
Dow Jones News
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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