This decision comes after several years of ongoing
exploration and development at the site.
The boards of MAG Silver Corp. (MAG:TSX; MAG:NYSE.MKT) and joint
venture (JV) partner Fresnillo, as well as the shareholders of the JV entity
itself, Minera Juanicipio, all approved advancement of their Juanicipio
project in Zacatecas, Mexico, MAG announced in a news release. MAG owns 44% of the project, and Fresnillo,
which will be the operator, holds the remaining 56%.
"The joint approval of the project is a landmark milestone for the
Juanicipio JV," MAG CEO George Paspalas said in the release.
"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," Paspalas added.
Fresnillo CEO Octavio Alvidrez also commented in the release: "The
decision to approve Juanicipio reflects the extensive work the JV partners
have done to derisk the project to meet stringent development criteria. This
decision to invest demonstrates our confidence in the long-term outlook for
mining in Mexico."
Construction at Juanicipio, which should create about 2,750 jobs, is to
start immediately and is estimated to be completed in late 2020. Once in
production, Juanicipio will create1,720 jobs.
The mine, in its initial 12-year life, is expected to produce an average
of 11.7 million ounces of silver and 43,500 ounces of gold per year. Capex
required before the mine is operating is about CA$395 million.
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