Benzinga | Jul 28, 2021 09:04AM EDT

MAG Silver Reports Q2 2021 Juanicipio Underground Mine Production

MAG Silver Corp. (NYSE:MAG) ("MAG" or "MAG Silver") is pleased to report 2021 second quarter production of underground 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, 44,435 tonnes of development material were processed during the quarter ended June 30, 2021. Total Juanicipio production for the quarter based on provisional estimates before offtake agreement adjustments, totaled 434,885 silver ounces and 787 gold ounces (MAG's attributable 44% interest: 191,349 ounces of silver and 346 ounces of gold). The associated lead and zinc production will be reported with MAG's second quarter filings.



Mineralized development material from the Juanicipio Project is being processed through the nearby Fresnillo beneficiation plant (100% owned by Fresnillo) with the lead (silver rich) and zinc concentrates treated at market terms under off-take agreements with Met-Mex Pe?oles, S.A. de C.V. in Torre?n, Mexico. The revenue from this production, net of processing and treatment charges, is being used by the joint venture to offset initial project capital cash requirements.

"We are very pleased with the progress of the Juanicipio plant as we now enter the last stages of construction and would like to draw your attention to the regularly updated construction photos at www.magsilver.com where the impressive work done by Fresnillo can be viewed," said George Paspalas, MAG Silver's President and CEO. "The metallurgical results from the ongoing processing of mineralized development materials through the Fresnillo plant continue to de-risk the commissioning and ramp-up stage of the Juanicipio plant later this year, as well as providing a nice side-stream cash injection."

Construction of the Juanicipio processing plant continues to make good progress, with the mechanical installation of the flotation cells and filters completed in the quarter ended June 30, 2021. According to the operator, Fresnillo, the plant remains on schedule to commence commissioning in Q4 2021. Mineralized development material will continue to be batch processed on commercial terms at a targeted rate of 16,000 tonnes per month at the Fresnillo plant until the Juanicipio plant is commissioned.

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.