MAG Silver Corp. (TSX NYSE American: MAG) ("MAG", or the "Company") is pleased to announce it has filed on SEDAR, the Juanicipio Mineral Resource and Mineral Reserves NI 43-101 Technical Report (the " 2024 Technical Report " or the " Report ") for the Juanicipio Mine (44% MAG, 56% Fresnillo plc, the mine operator) located in the state of Zacatecas, Mexico. The Report was prepared in accordance with the requirements of National Instrument 43-101 Standards of Disclosure for Mineral Projects (" NI 43-101 "). The Report was prepared by AMC Mining Consultants (Canada) Ltd. (" AMC ") of Vancouver, with assistance from Knight Piésold and Co. (" KP "), both independent consultants, on behalf of MAG. This Report provides an update to the "MAG Silver Juanicipio NI 43-101 Technical Report, Amended and Restated, Zacatecas State, Mexico" 2017 Technical Report by AMC. Mineral Resource and Mineral Reserve estimates are current as of May 31, 2023. The Report has an effective date of March 4, 2024.The monetary values shown in the Report are in US dollars ($) and on a 100% basis unless stated otherwise.
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Galena Appoints Neville Gardiner To The Board
GALENA MINING LTD. ("Galena" or the "Company") (ASX: G1A) announces the appointment of Mr Neville Gardiner as Non-Executive Director as the Company continues to develop and construct the Abra base Metals Mine in Western Australia.
Mr Gardiner has over 30 years' experience advising boards on mergers and acquisitions, equity and debt capital markets, transaction structuring, capital allocation and complex commercial arrangements. His career achievements include senior executive leadership roles in Deloitte, Torridon Partners, Bank of America Merrill Lynch, and Macquarie Bank.
Mr Gardiner's experience included five years as Head of the Australian Natural Resources Team at Bank of America Merrill Lynch and nine years with Macquarie Bank including responsibility for its Western Australian Corporate Finance business and its Australian Oil and Gas Advisory business. Mr Gardiner has a very strong experience and knowledge base associated with the resources sector in Australia that will be extremely beneficial to the ongoing growth of Galena.
Read the full article here.
Galena Mining
Overview
Galena Mining Limited (ASX:G1A, Galena) owns 60 percent of the Abra base metals mine located in the Gascoyne region of Western Australia - home to one of the largest lead and silver deposits in the world, set to produce the highest-grade, cleanest lead concentrate available globally. The company is capitalizing on its Tier 1 asset in a Tier 1 jurisdiction, strengthened by and leveraging partnerships with Japan's largest zinc and lead smelter, as well as with one of the top base metals trading firms in the world.
The company also owns 100 percent of the Jillawarra Project, which covers 76 kilometers of strike extension directly to the west of Abra. The Jillawarra Project contains several large-scale analogous exploration targets including the Woodlands Complex, Quartzite Well and Copper Chert areas.
Galena's major partnerships include Toho Zinc (TSE:5707), Japan's largest zinc and lead smelter, and IXM SA, one of the world's top three base metals trading firms. Toho provided AU$90 million project equity and has a long-term offtake agreement to purchase 40 percent of Abra's production; while IXM has entered into a 10-year take-or-pay offtake contract to purchase the remaining 60 percent.
The company's management team brings decades of experience in the mining and base metals industry and has a proven track record of success throughout all stages of exploration, from development to production.
In November 2020, Galena put in place US$110 million in finalized debt facilities arranged by Taurus Funds Management. The facilities include a US$100-million project finance facility plus a US$10-million cost overrun facility.
The project finance facility consists of a 69-month term loan primarily to fund capital expenditures for the development of Abra. Key terms include:
- Fixed interest of 8 percent per annum on drawn amounts, payable quarterly in arrears.
- 1.125 percent net smelter return royalty.
- No mandatory hedging.
- Early repayment allowed without penalty.
- 15 quarterly repayments commencing on 31 December 2023.
The cost overrun facility is a loan to finance identified cost overruns on the project in capital expenditure and working capital. Fixed interest of 10 percent per annum applies to amounts drawn under the cost overrun facility.
The Taurus debt facilities have been fully drawn and are secured against Abra Project assets and over the shares that each of Galena and Toho own in Abra.
Company Highlights
- Positioned to realize value for shareholders:
- Abra mine construction completed in December 2022, on time and on budget.
- First in-specification concentrate shipment achieved in March 2023.
- Abra is one of the largest and cleanest lead-silver deposits in the world (high-grade, high-value concentrate 1/10th typical deleterious elements).
- Exciting exploration ground and known copper-gold mineralisation below the Abra lead-silver deposit.
- JV between Galena (60 percent) and Japan's largest zinc and lead smelter Toho Zinc (40 percent) underpins long mine life (10+ years) in an exciting new mineral province in Western Australia.
- Galena has a 10-year offtake agreement with IXM, one of the world’s largest base metals traders.
- Annual steady-state guidance:
- Mill throughput of more than 1.3 million tonnes per annum (Mtpa), producing +90,000 tonnes per annum lead and +550,000 ounces per annum silver.
- Annual average lead C1 direct cash cost of US$0.55 to US$0.65/lb.
- Annual average EBITDA (earnings before interest, taxes, depreciation, and amortization) of AU$90 million to $100 million.
- The Abra mine is located in the Gascoyne Region of Western Australia, home to one of the largest undeveloped lead deposits in the world and the highest-grade lead concentrate available, globally.
- The Abra mine carries a JORC mineral resource estimate (July 2023) of 16.2 million tons (Mt) at 7.3 percent lead and 19 grams per ton (g/t) silver in the indicated category, and 16.9 Mt at 6.9 percent lead and 15 g/t silver in the inferred category.
- Abra has been named the world's lowest-cost primary lead mine by Wood Mackenzie, a leading mining research and consultancy group.
- US$110 million of project financing debt facilities from leading mining-specialist lending fund Taurus Funds Management.
- Galena's management team brings decades of experience in the mining and base metals industry and has a proven track record of success throughout all stages of exploration, from development to production.
Key Projects
Abra Mine
The Abra Mine is a 60:40 joint venture between Galena and Japanese lead producer Toho Zinc. It is a globally significant lead-silver project located in the Gascoyne region of Western Australia, between the towns of Newman and Meekatharra approximately 110 kilometers from the DeGrussa copper mine owned by Sandfire Resources (ASX:SFR).
Abra Mine Site Location
The Abra mine carries a total JORC mineral resource estimate published in July 2023 of 33.4 Mt at 7.1 percent lead and 17 g/t silver (5 percent Pb cut-off grade), which includes 0.3 Mt at 7.3 percent lead and 32 g/t silver in the measured category; 16.2 Mt at 7.3 percent lead and 19 g/t silver in the indicated category; and 16.9 Mt at 6.9 percent lead and 15 g/t silver in the inferred category.
All permits for the Abra project have been obtained from the appropriate Western Australian regulatory bodies. The project is also subject to an existing land use and heritage agreement with the Jidi Jidi Aboriginal Corporation. The Abra property is well-serviced by public roads and highways, and all the necessary infrastructure has been developed to transport lead-sulphide concentrates to the Port of Geraldton, Abra's primary export port.
Abra Processing Plant
A final investment decision to complete the Abra Project was made in June 2021 and construction was completed in December 2022, on time and on budget. Several important milestones were achieved in the March 2023 quarter, including the commissioning of the processing plant, first ore fed into the plant and first concentrate produced in January 2023.
The processing plant achieved in-specification concentrate production from the commencement of concentrate production and during the 2023 calendar year, 967,622 tons of ore was processed and 61,800 tons of lead concentrate was produced.
The company is currently undertaking detailed technical work to develop an updated production plan for 2024 production targets and guidance.
Jillawarra Project
Exploration and growth associated with the 100 percent Galena-owned Jillawarra Project covers a highly prospective elongated tenement package covering approximately 76 kilometers of continuous strike length and 508 square kilometers directly to the west of Abra.
The Jillawarra Project hosts many base metals prospects which have had limited shallow exploration work completed since the 1970s by various companies. The bulk of the exploration work was completed by Amoco, Geopeko, Apex Minerals and Abra Mining Limited. The work completed to date has identified several base metals, manganese and gold prospects, of which the Woodlands Complex, Quartzite Well, Manganese Range, Copper Chert, TP and 46-40 were subject to early-stage exploration. Most of the drilling completed within the Jillawarra Project investigated the first 100 to 200-meter depth which, based on recent knowledge of Abra, may not have reached the depths required.
The main prospective corridor within the Jillawarra Project lies within the margins of the Quartzite Well – Lyons River Fault zones which extend east-west along the entire tenement package. Also, the contact between the dolomitic sediments of Irregully Formation and the lower sedimentary unit, polymictic conglomerate, of the Kiangi Creek Formation represents an important marker for the occurrence of base metal mineralisation as seen at Abra.
The Woodlands Complex is an Australian scaled geophysical anomaly which represents a significant target area with the anomaly being 12 kilometers long and 10 kilometers wide. Limited work and technical evaluation have occurred at Woodlands which presents a great opportunity for Galena in the years to come. Ongoing geophysical and exploration drilling will occur concurrently with the development of Abra. The knowledge and understanding of Abra due to its development will provide a significant exploration advantage at Jillawarra.
Management Team
Tony James – Managing Director and CEO
Tony James is a mining engineer with over 30 years’ mine operating and project development experience predominantly in Western Australia. He also has previous experience at managing director level of three ASX-listed companies with two of those companies successfully guided through a merger and takeover process benefiting the shareholders. He has a strong mine operating background (examples being the Kanowna Belle gold mine and the Black Swan nickel mine) and a strong feasibility study / mine development background (examples being the Pillara zinc/lead mine and the Trident/Higginsville gold mine).
Adrian Byass – Non-executive Chairman
Adrian Byass has more than 25 years of experience in the mining industry both in listed and unlisted entities globally. He has served as non-executive and executive director of various listed and unlisted mining entities, which have successfully transitioned to production in bulk, precious and specialty metals around the world. He currently serves on the boards of ASX gold, base metals and lithium companies.
Neville Gardiner – Non-executive Director
Neville Gardiner has over 30 years of experience advising boards on mergers and acquisitions,
equity and debt capital markets, transaction structuring, capital allocation and complex
commercial arrangements. His career achievements include senior executive leadership
roles in Deloitte, Torridon Partners, and at Bank of America Merrill Lynch, where he spent five years as the head of its Australian Natural Resources Team. He also spent nine years with Macquarie Bank, where he had responsibility for its Western Australian Corporate Finance business and its Australian Oil and Gas Advisory business. He has a very strong experience and knowledge base associated with the resources sector in Australia.
Stewart Howe – Non-executive Director
Stewart Howe has more than 40 years of experience in the global resource industry including 18 years in mining. He was chief development officer at Zinifex, one of the world’s largest miners and smelters of lead and zinc. He led the spin-off of Zinifex’s smelters to create Nyrstar NV, and restarted the development of the Dugald River mine.
Craig Barnes – Chief Financial Officer
Craig Barnes has over 25 years of experience in senior finance and financial management within the mining industry and previously the financial services industry. He has considerable experience in project financing, mergers and acquisitions, joint ventures, treasury and implementation of accounting controls and systems.
Before joining Galena, he held the position of CFO of Paladin Energy for more than five years and was part of the team that successfully completed the company's capital restructuring in 2018. Prior to that, he was the chief financial officer of DRDGOLD (NYSE and JSE:DRD) and its affiliated subsidiaries for more than seven years.
Aida Tabakovic – Company Secretary
Aida Tabakovic has over 11 years of experience in the accounting profession, which includes financial accounting reporting, company secretarial services, ASX and ASIC compliance requirements. She has been involved in listing several junior exploration companies on the ASX and is currently company secretary for numerous ASX-listed companies
Abra Construction At 97% Complete – First Ore Stockpiled For January Processing
GALENA MINING LTD. (“Galena” or the “Company”) (ASX: G1A) is pleased to announce that the construction progress at its Abra Base Metals Mine (“Abra” or the “Project”) has reached 97% complete as of 30 November 2022. Processing plant commissioning is progressing quickly with practical completion now expected in December 2022. Ore currently being mined from underground is being stockpiled in readiness for processing to begin in January 2023. Concentrate production will commence January 2023.
Managing Director, Tony James commented, “Record underground development in November with delivery of the first 9,000t of ore to the ROM pad along with successful plant commissioning to date puts Abra on the verge of a quick transition into production. Recruitment and other operational readiness activities are well advanced in preparation for January production”.
Figure 1 – First material being tipped into the crusher during commissioning (Photo 26 November).
Figure 2 – Crushing and screening plant commissioning (Photo 26 November).
The following link will show a short video of the Abra crusher commissioning. https://youtube.com/shorts/iSG58MiW_3o
Update on Abra Project progress
Overall progress continues as planned, with first concentrate production expected in Q1 CY2023, following ore commissioning in January 2023. Practical completion of the processing plant is now expected ahead of schedule in December 2022. The processing plant engineering, procurement and construction has reached 99% complete. Piping and electrical works have made significant progress and at the end of November were 96% and 92% complete, respectively. Mechanical items installation is almost complete at 99%.
In November, the first material was crushed and screened as part of the staged commissioning process. The crushing plant ran at design capacity and all commissioning milestones were successfully achieved. Dry commissioning also progressed in most areas of the plant including water and air services, tailings and concentrate thickening, grinding and reagents. Dry commissioning of the remaining areas will be completed in December. Water commissioning commenced in the tailings and concentrate thickening areas of the plant and the remaining areas are expected to be wet commissioned by the end of December. The remaining commissioning schedule is unchanged from the last update and is shown below in Table 1.
Click here for the full ASX Release
This article includes content from Galena Mining, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Abra Construction At 92% Complete – Reaches First Ore Underground
Managing Director, Tony James commented, “Reaching first ore underground is extremely rewarding for everyone involved in the project. To see for the first time what we have predicted and interpreted as the Abra orebody delivers a significant step forward for the project. Record development metres in October has taken the mine to the ore and we continue to establish key underground infrastructure with the completion of the 6m diameter surface rise that will be the primary return airway.”
Update on Abra Project progress
Overall progress continues to remain in line for Project completion, with first commercial production expected in Q1 CY2023. The processing plant engineering, procurement and construction has reached 97% complete. Structural steel has been completed in October and mechanical installations are at 96% complete. Piping at 80% and electrical at 71% complete continue to progress quickly.
Pacific Energy’s Hybrid 10MW LNG/solar power station completed full integration with the solar power supply, dry commissioning of the crushing and screening areas was completed in early November and first rock crushing is scheduled for late November. Grinding section dry and wet commissioning will commence in the second half of November and is planned for completion by mid-December. The remaining commissioning schedule is unchanged from the last update and is shown below in Table 1.
Mine decline development continued during October. A total of 311m was developed with the decline reaching 1,284mRL. October represents the highest individual development month since the first cut was fired in the portal in October 2021. The decline location is 266m vertically below the surface and is 29m vertically below the original top of the orebody (1313mRL). Underground drilling has now identified mineralisation as high as 1330mRL which is currently being reviewed for potential extraction. The 1300mRL ore access drive reached first ore in early November (See ASX announcement 14 November 2022).
The 1290mRL horizon is a significant work area for development as underground infrastructure for pumping, ventilation, second means of egress and power are all distributed from this level outwards into the development network. All this infrastructure is currently being established and will result in an increased focus on lateral development and lower decline development in the short term.
Click here for the full ASX Release
This article includes content from Galena Mining, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Abra Mine Reaches Ore
Managing Director, Tony James commented, “Reaching first ore underground delivers another significant step in bringing the Abra project on-line. The first cut in the portal was taken in October 2021, and now 2,949m later and 250m below surface we have reached the orebody. Special acknowledgement needs to be given to Byrnecut and the Abra mining team for achieving this milestone, and everyone involved should be very proud of what they have achieved. It’s also important to acknowledge Pacific Energy and the Abra project team for the faultless commissioning of the power station and completing the full integration of the solar system”.
First ore heading underground has been reached on the 1300mRL access drive. Project to date (PTD) underground development to this point in time was 2,949m and first ore is 250m below the surface. Figure 2 below shows the mine development completed to the end of October 2022. The second underground development Jumbo has commenced at Abra in line with multiple headings being established and underground development is expected to increase accordingly. Underground grade control drilling continues and the 6m diameter return airway shaft drilling has been completed in November through to the surface.
On 20 October, the site changed over to mains power station with the commissioning of the Pacific Energy hybrid 10MW gas/solar/BESS power station. On the 10 November the system was fully integrated with the successful integration of the 6MW solar panels. The mine and general site infrastructure is running on mains power and plant commissioning to date includes the energisation of the crushing/screening sections.
Click here for the full ASX Release
This article includes content from Galena Mining, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Galena Mining Activities Report For Quarter Ended 30 September 2022
GALENA MINING LTD. (“Galena” or the “Company”) (ASX: G1A) reports on its activities for the quarter ended 30 September 2022 (the “Quarter”), primarily focused on construction of its 60%- owned Abra Base Metals Mine (“Abra” or the “Project”) located in the Gascoyne region of Western Australia.
Highlights
- Abra Project 87% complete at end of the Quarter (14% of construction works completed during the Quarter). Project focus remains on underground access to the orebody and completion of the processing plant and remaining surface infrastructure.
- Underground development achieved 771m advance during the Quarter remaining on schedule with the decline reaching 1,300mRL. The decline is 13m below the top of the orebody and 250m below the surface.
- Overall processing plant construction has reached 93% complete. Plant engineering and drafting work is 100% complete and site construction work is 90% complete.
- All key overseas supplied equipment has arrived on site.
- Completed oversubscribed placement to raise A$17.2M.
- US$25M final debt drawdown was completed under the Taurus Debt Facilities.
- Cash balance at Quarter-end A$60.5M.
ABRA BASE METALS MINE (60%-OWNED)
Abra comprises a granted Mining Lease, M52/0776 and surrounding Exploration Licence E52/1455, together with several co-located General Purpose and Miscellaneous Leases. The Project is 100% owned by Abra Mining Pty Limited (“AMPL” the Abra Project joint-venture entity), which in turn is 60% owned by Galena, with the remainder owned by Toho Zinc Co., Ltd. (“Toho”) of Japan.
Abra is fully permitted and under construction. First production of its high-value, high-grade lead- silver concentrate is currently scheduled for the first quarter of 2023 calendar-year.
Click here for the full ASX Release
This article includes content from Galena Mining, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
MAG Silver Announces Robust Updated Technical Report for Juanicipio
MAG Silver Comments on Technical Report Highlights:
- Robust economics; after tax NPV 5% of $1.2 billion – The Report reflects the strength of Juanicipio's economics over an initial 13-year life of mine (" LOM ") generating an annual average free cashflow of over $130 million (" M ") at pricing of $22/oz silver and $1,750/oz gold. Payable production is 93 million ounces (" Moz ") of silver, 557 thousand ounces (" koz ") of gold, 719 million pounds (" Mlbs ") of lead and 991 Mlbs of Zinc.
- 33% growth in Mineral Resources (from 2017 PEA) with high potential to increase – Substantial growth in Measured and Indicated (" M&I ") Mineral Resources to 17.0 million tonnes (" Mt ") at grades of 310 grams per tonne (" g/t ") silver, 1.86 g/t gold, 2.89% lead and 5.32% zinc. Extensive near-term upside potential is highlighted with 16% growth in Inferred Mineral Resources of 14.1 Mt at grades of 236 g/t silver, 1.06 g/t gold, 2.41% lead and 6.12% zinc, most of which are in Valdecañas and its splays, which largely remain open.
- Inaugural Mineral Reserve estimate significantly increases economic confidence – 15.4Mt of Proven and Probable Mineral Reserves at grades of 248 g/t silver, 1.58 g/t gold, 2.64% lead and 4.80% zinc (628 g/t silver equivalent (" AgEq ") providing a strong foundation for the highly derisked initial 13-year LOM specifically in the first years where silver grades are high.
- Simplified and robust underground production plan – Based on actual production achieved (to May 31, 2023) part way through ramp-up maintaining a conservative approach to production at an annual average of approximately 1.3 million tonnes per annum (" Mtpa "). Stoping is largely (>90%) from longhole with some cut and fill (
- Efficient mine plan and milling complex in action – Juanicipio has demonstrated consistent improvement in mining and milling performance over the ramp up period coupled with improving metal recovery. Grounded in real-world production data this establishes a springboard for further optimization efforts.
- Exploration upside – In addition to near mine exploration potential, the overall 7,679 Ha Juanicipio property remains largely unexplored with high potential for discovery of new mineralization. Of the remaining 95% of the property outside of the mine area, only the Los Tajos and Mesa Grande areas have had initial drill testing. Drilling in both these areas has proven the geological foundation for discovery including lithologies, alteration and geochemical signatures and the interception of narrow high-level mineralized epithermal veins. Triunfo, 10 km south of the mine, a vast area displaying strong evidence for silica cap, not unlike that of Valdecañas, is also a high priority target. With strategic drilling plans in place, the Company aims to unlock additional value from the extensive land holdings.
"The 2024 Technical Report reaffirms Juanicipio as a generational and premier silver mining asset. Bringing Juanicipio online in 2023 was the culmination of a series of successes since the discovery of Valdecañas in 2005. With the Report reflecting the mine's startup phase, our focus now shifts to optimizing operations as Juanicipio enters steady-state. We are strategically positioned for sustained success with a robust production profile, compelling economics and significant exploration potential. In the short term, we anticipate resource conversion to prolong high-grade silver production and mine life. Looking ahead, this district scale project remains 95% unexplored with multiple potentially high impact targets identified ," said George Paspalas, President and CEO of MAG. "Juanicipio remains well positioned for enduring success and a cornerstone of MAG's strategy as we continue to maximise its value and foster Company growth."
Table 1: 2024 Technical Report key economic assumptions and results
Juanicipio deposit | Unit | 2023 LOM evaluation |
Total ore | kt | 15,356 |
Gold grade 1 | g/t | 1.58 |
Silver grade 1 | g/t | 248 |
Lead grade 1 | % | 2.64 |
Zinc grade 1 | % | 4.80 |
Gold recovery 1 | % | 84.4 |
Silver recovery 1 | % | 86.6 |
Lead recovery 1 | % | 86.8 |
Zinc recovery 1 | % | 72.3 |
Gold price | $/oz | 1,750 |
Silver price | $/oz | 22.00 |
Lead price | $/lb | 1.00 |
Zinc price | $/lb | 1.15 |
Gross revenue | $M | 4,879 |
Selling costs 2 | $M | 773 |
Management fee | $M | 158 |
Capital costs | $M | 453 |
Operating costs (total) 3 | $M | 1,318 |
Operating costs (total) 3 | $/t | 85.85 |
Cumulative pre-tax net cash flow 4 | $M | 2,116 |
Cumulative post-tax net cash flow 4 | $M | 1,570 |
Pre-tax NPV @ 5% discount rate 5 | $M | 1,656 |
Post-tax NPV @ 5% discount rate 5 | $M | 1,224 |
Notes:
- Numbers may not compute exactly due to rounding.
- Exchange rate MXP19:US$1. Metal prices: gold - $1750/oz; silver 22/oz; lead - $1.00/lb; zinc - $1.15/lb.
1 Life-of-mine (LOM) average recoveries to concentrates.
2 Selling costs include penalties, treatment, transportation, and refining costs.
3 Includes mine operating costs, milling, and mine G&A.
4 Undiscounted from 1 June 2023. Cash flow after employee profit sharing benefit (PTU).
5 Discounted from 1 June 2023. Depreciation expenses of $453M (for the remaining project and sustaining capital), and sunk costs of $840M (prior to 31 May 2023) are recognized in the tax calculations.
Mineral Resource Estimates
M&I Mineral Resource estimates (Table 2) are reported for the Valdecañas Vein, which constitutes the majority of the identified mineralized material. Inferred Mineral Resource estimates (Table 2) are reported for the balance of the Valdecañas Vein, as well as its hangingwall and footwall splays (Ramal 1, Anticipada and Pre-Anticipada), the orthogonal Venadas Vein, and for the Juanicipio Vein where the first discovery was made. This estimate is dated May 31, 2023 and supersedes the previous estimate outlined in the 2017 AMC Technical Report.
The new estimates show a significant increase of tonnage, contained metal and most importantly confidence in both M&I of 33%, including what has been mined to May 31, 2023, and for the first time includes Measured Resources. Likewise, expansion and infill drilling since the last Technical Report has also increased Inferred Mineral Resources by 16% with the majority of that coming from the East and West Dilatant Zones (see press release dated August 5, 2021) and the growing hangingwall Anticipada Vein.
Table 2: Juanicipio Mineral Resources at 31 May 2023 (100% basis)
Resource category | Cut-off grade | Quantity | Grade | Contained metal | ||||||
Tonnes (kt) | Au (g/t) | Ag (g/t) | Pb (%) | Zn (%) | Au (koz) | Ag (koz) | Pb (kt) | Zn (kt) | ||
Measured | 209 g/t Ag Eq | 1,441 | 2.19 | 780 | 1.42 | 2.70 | 102 | 36,130 | 20 | 39 |
Indicated | 15,555 | 1.83 | 266 | 3.03 | 5.56 | 916 | 133,039 | 472 | 865 | |
Measured & Indicated | 16,996 | 1.86 | 310 | 2.89 | 5.32 | 1,017 | 169,169 | 492 | 904 | |
Inferred | 14,051 | 1.06 | 236 | 2.41 | 6.12 | 480 | 106,676 | 339 | 860 |
Notes:
- CIM Definition Standards (2014) were used for reporting.
- Mineral Resources are reported inclusive of Mineral Reserves.
- Mineral Resources are reported at or above a cut-off grade of 209 grams per tonne (g/t) silver equivalent (AgEq), equivalent to $96.9 NSR. While a 3 m minimum width is applied and blocks above the cut-off grade are largely contiguous mineable shapes have not been defined, which may result in the tonnes of underground Mineral Resources being slightly exaggerated.
- Mineral Resources are reported at values based on metal price assumptions, metallurgical recovery assumptions, mining costs, processing costs, general and administrative (G&A) costs, and variable smelting and transportation costs.
- Metal price assumptions considered for the calculation of metal equivalent values are gold (US$1,450.00/oz), silver (US$20.00/oz), lead (US$0.90/lb), and zinc (US$1.15/lb).
- Assumed metal recoveries of 75.84%, 87.06%, 86.33% and 74.48% for Au, Ag, Pb, and Zn, respectively and on NSR factors of US$30.71/g Au, US$0.46/g Ag, US$15.01/% Pb and US$11.36/% Zn.
- Mineral Resources are reported on a 100% basis. The MAG share is 44%.
- Totals may not compute exactly due to rounding.
- The Mineral Resources were estimated by Fresnillo. Mr John Morton Shannon, P.Geo. (EGBC #32865), has reviewed the Mineral Resources and takes QP responsibility.
Source: AMC based on Fresnillo data, 2023.
Mineral Reserve Estimates
Table 3 shows the reported inaugural Mineral Reserve estimate for the Juanicipio Mine and forms the basis for the initial 13-year mine life plan outlined in the Technical Report and highlighted in this release. The Reserves of Proven and Probable incorporate Measured and Indicated Resources respectively and apply a cut-off value that considers mining, processing, and general and administration costs, with a variable trucking cost for each mining block. Mineral Reserves are largely reported above a value of $122/t ore for longhole stopes which represents >90% of the mine plan and $150/t ore for cut and fill stopes.
Table 3: Summary of Mineral Reserves as of 31 May 2023 (100% basis)
Reserve category | Cut-off grade | Quantity | Grade | Contained metal | ||||||
Tonnes (kt) | Au (g/t) | Ag (g/t) | Pb (%) | Zn (%) | Au (koz) | Ag (koz) | Pb (kt) | Zn (kt) | ||
Proven | 277 g/t AgEq | 735 | 1.48 | 545 | 1.05 | 1.99 | 35 | 12,865 | 8 | 15 |
Probable | 14,622 | 1.59 | 233 | 2.72 | 4.94 | 746 | 109,357 | 398 | 722 | |
Proven and Probable | 15,356 | 1.58 | 248 | 2.64 | 4.80 | 781 | 122,221 | 406 | 736 |
Notes:
- CIM Definition Standards (2014) were used for reporting.
- All figures rounded to reflect the relative accuracy of the estimates. Mineral Reserves are reported at a cut-off value based on metal price assumptions, metallurgical recovery assumptions, mining costs, processing costs, G&A costs, sustaining capital costs, and variable trucking costs.
- NSR values are calculated as:
- NSR = 30.71*Au+0.46*Ag+15.01*Pb+11.36*Zn. Units Au (g/t), Ag (g/t), Pb (%), Zn (%).
- NSR factors are based on metal prices of $1,450/oz Au, $20.00/oz Ag, $0.90/lb Pb, and $1.15/lb Zn and estimated recoveries of 75.84% Au, 87.06% Ag, 86.33% Pb, and 74.48% Zn.
- Payable metal assumptions for Au are 95% for lead concentrates, and 65% for zinc concentrate; for Ag: 95% for lead concentrates, and 70% for zinc concentrate. Lead 95% payable and zinc 85% payable.
- The all-inclusive operating costs for longhole stopes and cut-and-fill stopes are $122/tonne and $150/tonne respectively (277 g/t AgEq based on weighted average for mining method). The marginal stope cut-off value is generally above $121/t for cut-and-fill and $93/t for longhole stopes.
- Projected stope hangingwall and footwall dilution (ELOS) was included in the stope optimization process. The dilution thickness for stope hangingwall and footwall varies by mining method.
- Additional operational mucking dilution of 0.5 m for longhole and cut-and-fill stopes is applied to the Mineral Reserve calculation. An extra endwall dilution for longhole stopes is assumed as 0.50 m.
- Mining recovery factors are 95% for longhole stopes and 98% for cut-and-fill stopes. Mining recovery factor for ore drive development is 99%. Mining recovery factor for both sill pillars and rib pillars is 0%.
- Exchange rate of 19 MXP to US$1.
- The Mineral Reserves were estimated by Fresnillo. Mr Paul Salmenmaki P.Eng. (EGBC #40227), has reviewed the estimates and accepts QP responsibility for them.
- Totals may not compute exactly due to rounding.
- Note reported on a 100% basis and MAG Silver owns 44% of Minera Juanicipio.
Source: AMC / Fresnillo, 2023.
Current Mine Plan
The mine is accessed via twin declines in the Sierra Valdecañas and a (conveyor) decline near the process plant in the Linares valley to the top of the mineralization. The declines split into three internal footwall ramp systems that access the ore on a 20 m sub-level spacing, with central accesses and footwall drives to the mineralization. Level to level stopes floor to floor are mined from the extents inwards to the central access (retreat) with rock fill placed within 20 m of the retreating face. Truck haulage is currently used for transporting ore and waste, however the installation of a conveyor in the conveyor ramp in 2024 to 2025 has been approved and will become the primary method for transporting ore from underground to the process plant.
All scheduling is carried out using Enhanced Production Scheduling (" EPS ") software. During EPS scheduling, additional dilution ranging from 1% to 5% for mucking and other sources, as well as mining recovery factors of 95% for longhole stoping and 98% for cut and fill. The schedule (Table 4) uses development advance rates in main ramps and lateral drifting in ore of 90 m/month and 50 m/month respectively. Nameplate ore processing capacity of 4,000 tpd was achieved in Q3 2023, averaging about 3,700 tpd in the latter part of the 2023 (approximately 1.3 Mtpa). Optimization and efficiency improvements in underground productivity, equipment utilisation and mining methods are in progress. Mine operations are currently in a ramp-up stage.
Table 4: Mine production schedule by year
Description | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 |
Ore tonnes (t) | 360 | 1,285 | 1,303 | 1,294 | 1,300 | 1,318 | 1,297 |
Au (g/t) | 1.26 | 1.45 | 1.50 | 1.59 | 1.53 | 1.93 | 1.65 |
Ag (g/t) | 620 | 403 | 373 | 300 | 287 | 198 | 155 |
Pb (%) | 1.62 | 1.44 | 1.57 | 2.18 | 3.09 | 3.46 | 3.03 |
Zn (%) | 3.27 | 2.76 | 2.70 | 3.71 | 5.10 | 6.15 | 5.39 |
Fe (%) | 6.67 | 6.46 | 6.77 | 7.33 | 6.88 | 6.54 | 6.76 |
Description | 2030 | 2031 | 2032 | 2033 | 2034 | 2035 | Total |
Ore tonnes (t) | 1,308 | 1,309 | 1,308 | 1,302 | 1,272 | 702 | 15,356 |
Au (g/t) | 1.61 | 1.66 | 1.61 | 1.51 | 1.37 | 1.72 | 1.58 |
Ag (g/t) | 198 | 169 | 200 | 245 | 135 | 172 | 248 |
Pb (%) | 2.97 | 2.65 | 2.82 | 3.13 | 2.72 | 3.11 | 2.64 |
Zn (%) | 4.89 | 5.20 | 4.92 | 5.75 | 5.87 | 6.15 | 4.80 |
Fe (%) | 6.65 | 6.56 | 6.58 | 6.10 | 5.39 | 6.38 | 6.54 |
Source: Fresnillo, 2023.
Process Plant
The Juanicipio plant was designed with a nominal capacity of 4,000 tpd and consists of a comminution circuit with primary crushing and a semi-autogenous grinding mill and ball mill, followed by sequential flotation to produce a silver-rich lead, zinc and gold-silver-bearing pyrite concentrates. Operations commenced in March 2023, with commercial production declared in June 2023 and nameplate processing achieved in September 2023.
Commissioning and ramp-up have gone well, with the plant achieving designed throughput in line with expectations. Silver, lead and zinc recovery and concentrate grades are and continue to improve with time and optimisation efforts. January 2024 recoveries were 90.0%, 74.0%, 89.5% and 78.5% for silver, gold, lead and zinc respectively. Gold recovery has improved as ramp-up and circuit optimizations, including the February startup of the Knelson concentrator, have progressed. Continual testing and process optimisation is ongoing to maximize recovery and concentrate grades.
Table 5: Average mill recoveries used to estimate production in the financial model
Gold | Silver | Lead | Zinc | |||||
Mill recovery | 84.4% | 86.6% | 86.8% | 72.3% |
Project infrastructure
A 6.5 km access road, mostly over hilly terrain, accesses the main declines portal site from the mill, with the plant site being connected to the main highway by a 1.4 km road. Both the 1.4 km two lane sealed road, which is suitable for use by heavy vehicles, and the access road to the main portals area are fully constructed and in operation.
Power is currently supplied to a main substation at the processing site via a 115 kilovolt (" kV ") overhead power line connected to the state-owned power grid. From the mill, a 13.2 kV power line has been extended to the conveyor drive, with a similar line to the main mine portals location.
With completion of a Reverse Osmosis plant in 2023 and optimizing the consumption of treated municipal wastewater, all process water requirements are satisfied through the exclusive use of treated wastewater. Potable water is purchased from local providers as required.
Detailed design of the tailings storage facility (" TSF ") for the project was undertaken by Knight Piésold. It is estimated that the Juanicipio processing plant will produce approximately 12.2 Mt of tailings for surface storage over the anticipated initial mine life of approximately 13 years. Mill tailings will be discharged to a TSF which has a total volume capacity of approximately 8.5 Mt as currently designed. It is envisaged that the remaining required tailings storage will come from potential deepening of the Cell 2 basin (currently being pursued), a future expansion to the TSF through construction of an adjacent cell, and / or from a vertical raise of the dam. The Qualified Person (" QP ") understands that all permitting documentation for construction of Cell 2 has been submitted and is expected to be approved in Q1 2024.
Truck haulage is currently used for transporting ore and waste from the mine workings to surface. Development waste is either hauled to surface by trucks via the twin access declines or placed directly into stopes as backfill. Once the conveyor system to surface is in operation, ore transport from various mining levels will be by truck haulage to the crusher on 1950 relative level (" RL "). The crushed material will then be placed on a load-out belt that feeds the first of two sequential underground conveyors that bring the material to surface. At surface, a third conveyor delivers the material to an 8,000 t capacity stockpile that is adjacent to the mill.
Although the main maintenance workshop is located on surface, all major scheduled planned maintenance and rebuilds will take place in the underground workshop. The underground workshop is located on 1850 Level and has multiple service bays with overhead cranes.
There are two temporary pump stations already in operation that together can handle 2,500 gallons per minute (" gpm "). The main pump station on 1850 Level has three pumps installed with a fourth available on stand-by. The current capacity is 5,000 gpm. A second permanent pump station is planned for 1650 Level that will pump to the 1850 Level station. A further main pump station is planned for the bottom of the mine (1250 Level) with a capacity of 2,500 gpm. It is estimated that the current and planned pump stations should provide sufficient capacity for the life of the mine.
The overall plan for handling groundwater is an advanced dewatering strategy that will largely depend on accessing the lower levels of the mine well ahead of stope production. This early development approach provides a means for installing a series of dewatering holes and sumps that will dewater sections of the mine prior to production mining. In 2023, the majority of Juanicipio process and operational water requirements was sourced from dewatering underground workings, with the water used primarily for mine development and dust control. Juanicipio also purchased potable well water from third parties for mine development and domestic use.
Environmental and permitting
Environmental investigations included baseline assessments and initial studies required under Mexican Environmental Laws, inclusive of a Regional Environmental Impact Statement (MIA-R) are up to date. Fresnillo, on behalf of Minera Juanicipio, has confirmed that the project does not have any environmental obligations or liabilities identified to date.
Key permits and licenses for the project are in place and Fresnillo has indicated that all the land included in the design and operation of the Juanicipio Mine has been purchased.
Operating costs and capital costs
The operating costs used for the evaluation of project economics are based on actual operating costs and benchmark costs for similar operations in the area. Average LOM operating costs from the latest cost model for the 2023 Mineral Reserves are summarized as follows:
- Mining - $63.32/t ore
- Processing - $12.15/t ore
- General and Administration- $10.38/t ore
- Total operating cost - $85.85/t ore
For cut-off purposes, the average cut-off values used were $122/t for longhole stopes and $150/t for cut-and-fill stopes to also cover the LOM sustaining capital costs for mining, processing, and G&A; and the operating management fee (totalling $36/t).
Fresnillo has advanced the project through detailed engineering, project construction, and initial mine development and stoping leading to achievement of commercial production in mid-2023. Internal estimates for the remaining Juanicipio capital, inclusive of sustaining capital and as of 31 May 2023, total $453M.
The key aspects of the remaining project and LOM sustaining capital cost estimate ($413M) includes lateral and vertical development as well as project capital requirements ($40M) for remaining surface and underground infrastructure items (e.g. underground to surface conveyor system, tailings facility, etc.).
Economics
Using the referenced production projections and cost estimates, Juanicipio has a post-tax NPV 5% of $1,224M (pre-tax $1,656M). Project economics are shown to be most sensitive to silver price and silver grade, followed by operating costs.
Qualified Persons: All scientific or technical information in this press release including assay results referred to, and mineral resource and mineral reserve estimates, if applicable, is based upon information prepared by or under the supervision of the following:
- P. Salmenmaki, P.Eng.
- R. Chesher, FAusIMM (CPMET)
- M. Molavi, P.Eng.
- J. M. Shannon, P.Geo.
- C. Stewart, P.Geo.
all of AMC, and: - G. Dominguez, P.E., independent consultant of KP.
All are "Qualified Persons" for purposes of NI 43-101.
About MAG Silver Corp.
MAG Silver Corp. is a growth-oriented Canadian exploration company focused on advancing high-grade, district scale precious metals projects in the Americas. MAG is emerging as a top-tier primary silver mining company through its (44%) joint venture interest in the 4,000 tpd Juanicipio Mine, operated by Fresnillo plc (56%). The mine is located in the Fresnillo Silver Trend in Mexico, the world's premier silver mining camp, where in addition to underground mine production and processing of high-grade mineralised material, an expanded exploration program is in place targeting multiple highly prospective targets. MAG is also executing multi-phase exploration programs at the 100% earn-in Deer Trail Project in Utah and the 100% owned Larder Project, located in the historically prolific Abitibi region of Canada.
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.
Cautionary Note to United States Investors
Unless otherwise indicated, technical disclosure included herein, including the use of the terms "Mineral Resources" and "Mineral Reserves" and all Mineral Resource and Mineral Reserve estimates contained in such technical disclosure has been prepared in accordance with the requirements of NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum (the " CIM ") – CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the " CIM Definition Standards "). NI 43-101 is an instrument developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects.
Canadian standards, including NI 43-101, differ significantly from the disclosure requirements of the U.S. Securities and Exchange Commission (" SEC ") under subpart 1300 of Regulation S-K (the " SEC Modernization Rules "). The Company is not required to provide disclosure on its mineral properties under the SEC Modernization Rules and provides disclosure under NI 43-101 and the CIM Definition Standards. Accordingly, information contained in this press release may differ significantly from the information that would be disclosed had the Company prepared the Mineral Resource or Mineral Reserve estimates under the standards adopted under the SEC Modernization Rules.
Cautionary Note to Investors Concerning Estimates of Mineral Resources
"Inferred Mineral Resources" are Mineral Resources for which quantity and grade or quality are estimated based on limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. "Inferred Mineral Resources" are based on limited information and have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility, although it is reasonably expected that the majority of "Inferred Mineral Resources" could be upgraded to "Indicated Mineral Resources" with continued exploration. Under Canadian rules, estimates of Inferred Mineral Resources are considered too speculative geologically to have the economic considerations applied to them to enable them to be categorized as Mineral Resources and, accordingly, may not form the basis of feasibility or pre-feasibility studies, or economic studies except for a Preliminary Economic Assessment as defined under NI 43-101. Indicated and Inferred Mineral Resources that are not Mineral Resources do not have demonstrated economic viability.
Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this release, including any information relating to MAG's future oriented financial information, are "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and United States securities legislation (collectively herein referred as "forward-looking statements"), including the "safe harbour" provisions of provincial securities legislation, the U.S. Private Securities Litigation Reform Act of 1995, Section 21E of the U.S. Securities Exchange Act of 1934, as amended and Section 27A of the U.S. Securities Act. Such forward-looking statements include, but are not limited to:
- statements that address achieving the nameplate 4,000 tpd milling rate at Juanicipio;
- statements that address our expectations regarding exploration and drilling;
- statements regarding production expectations and nameplate;
- statements regarding the additional information from future drill programs;
- estimated future exploration and development operations and corresponding expenditures and other expenses for specific operations;
- the Company's expectations regarding the tailings storage facility at Juanicipio;
- the Company's estimation of tailings production and waste;
- the expected capital, sustaining capital and working capital requirements at Juanicipio;
- the anticipated operations of the processing plant at Juanicipio and the related impacts on production for the current financial year;
- expected upside from additional exploration;
- expectations relating to permits and license; and
- other future events or developments.
When used in this release, any statements that express or involve discussions with respect to predictions, beliefs, plans, projections, objectives, assumptions or future events of performance (often but not always using words or phrases such as "anticipate", "believe", "estimate", "expect", "intend", "plan", "strategy", "goals", "objectives", "project", "potential" or variations thereof or stating that certain actions, events, or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions), as they relate to the Company or management, are intended to identify forward-looking statements. Such statements reflect the Company's current views with respect to future events and are subject to certain known and unknown risks, uncertainties and assumptions.
Forward-looking statements are necessarily based upon estimates and assumptions, which are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company's control and many of which, regarding future business decisions, are subject to change. Assumptions underlying the Company's expectations regarding forward-looking statements contained in this release include, among others: MAG's ability to carry on its various exploration and development activities including project development timelines, the timely receipt of required approvals and permits, the price of the minerals produced, the costs of operating, exploration and development expenditures, the impact on operations of changes to the Mexican tax and legal regimes, MAG's ability to obtain adequate financing, outbreaks or threat of an outbreak of a virus or other contagions or epidemic disease will be adequately responded to locally, nationally, regionally and internationally.
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. These forward-looking statements involve known and unknown risks, uncertainties and many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements including amongst others: estimates of Mineral Resources and Mineral Reserves being based on interpretation and assumptions which are inherently imprecise; no guarantee that licenses and permits required to conduct business will be obtained, which may result in an impairment or loss in the Company's mineral properties; rights to use the surface of the Company's mineral properties are not guaranteed; the properties in which the Company has an interest are located primarily in Mexico; economic and political instability may affect the Company's business; community relations may affect the Company's business, including its interest in Juanicipio; adequate funding may not be available, resulting in the possible loss or dilution of the Company's interests in its properties; substantial expenditures are required for commercial operations and if financing for such expenditures is not available on acceptable terms, the Company may not be able to justify commercial operations; uncertainties and risks relating to the operation of the Juanicipio Mine; the Company's capital and operating costs, production schedules and economic returns are based on certain assumptions which may prove to be inaccurate; Juanicipio capital requirements contemplated in the 2024 Technical Report are subject to volatility and uncertainty; Mineral projects, such as Juanicipio, are uncertain and it is possible that actual capital and operating costs and economic returns will differ significantly from those estimated for project production; the Juanicipio Mine plan and design and the financial results may not be consistent with the 2024 Technical Report; the continued operation of Juanicipio may be adversely impacted by a lack of access to a skilled workforce; labour risks; the continued operation of Juanicipio may be adversely impacted by lack of access and availability of infrastructure, power and water, and other matters; risks related to the Company's decision to participate in the development, exploration, processing and production of the Juanicipio Mine; the Company may encounter certain transportation and refining risks that could have a negative impact on its operations; the Company's mineral properties are subject to title risk and any challenge to the title to any of such properties may have a negative impact on the Company; risks related to potential Indigenous rights claims made against the Company's mineral properties and the complex nature of such claims; title opinions provide no guarantee of title and any challenge to the title to any properties may have may have a negative impact on the Company; title to the properties in which the Company has an interest that are not registered in the name of the Company may result in potential title disputes having a negative impact on the Company; the Company being a minority shareholder and non-operator of Juanicipio and therefore is dependent on, and subject to, the decisions of the majority shareholder and operator of Juanicipio; the Company holds its Juanicipio interest through a minority shareholding in the Juanicipio Entities and therefore may be adversely impacted by disputes amongst the shareholders; risks related to the highly competitive nature of the mineral exploration industry; tailings storage facility / permit risks; risks related to natural disasters; the Company may face equipment shortages, access restrictions and a lack of infrastructure; the Company is dependent on its key personnel, none of whom are insured by the Company; foreign currency fluctuations and inflationary pressures may have a negative impact on the Company's financial position and results; risks related to amendments to the Federal Mining Law; the Company's activities within Mexico are subject to extensive laws and regulations governed by Mexican regulators; as well as those risks more particularly described under the heading "Risk Factors" in the Company's Annual Information Form dated March 27, 2023 available under the Company's profile on SEDAR+ at www.sedarplus.ca .
Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. The Company's forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made and, other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements if circumstances or management's beliefs, expectations or opinions should change. For the reasons set forth above, investors should not attribute undue certainty to or place undue reliance on 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.sedarplus.ca and www.sec.gov .
LEI: 254900LGL904N7F3EL14
For further information on behalf of MAG Silver Corp. Contact Michael J. Curlook, Vice President, Investor Relations and Communications Phone: (604) 630-1399 Toll Free: (866) 630-1399 Email: info@magsilver.com
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First Majestic Announces Commencement of Bullion Sales from First Mint
First Majestic Silver Corp. (NYSE: AG) (TSX: FR) (FSE: FMV) (the "Company" or "First Majestic") is pleased to announce the completed commissioning and commencement of bullion sales from its 100% owned and operated minting facility, First Mint, LLC ("First Mint"). Located in the State of Nevada, United States, First Mint vertically integrates a manufacturing plant for investment-grade fine silver bullion into the First Majestic portfolio.
In line with First Majestic's commitment to environmental and community stewardship, First Mint operates state-of-the-art machines that require less electricity and do not release gas emissions compared to traditional minting processes. The eco-friendly and high efficiency production line allows the mint to produce over 10% of the Company's current silver production coming from the Mexican operations. Plans are currently underway to expand the operation by adding additional equipment and personnel as required.
The inaugural production run of bullion bars will be commemorated and sold as collectibles, complete with certificates of authenticity and exclusive packaging. These limited edition "First Strike" products will include 1,000 one-kilogram bars, 2,500 ten-ounce bars, and 5,000 five-ounce bars. As production ramps up, investors can expect the mint to provide a steady supply of cast bars and one-ounce silver rounds, with additional capacity to service third party projects. Additionally, First Majestic products will remain available for sale alongside First Mint branded items. Investors are encouraged to visit www.firstmint.com to enjoy a refreshed and streamlined shopping experience.
The mint is currently seeking ISO 9001 certification, allowing for its silver to be Individual Retirement Account ("IRA") eligible. Along with this certification comes a quality commitment: First Mint will fully guarantee the weight, purity, and content of its bullion products.
Lastly, the Shareholder Benefits program will continue. Shareholders with at least 100 shares of First Majestic qualify for savings of $0.50 per ounce from our posted price.
For more information about First Mint, contact us at info@firstmint.com.
ABOUT THE COMPANY
First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and the United States. The Company presently owns and operates the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine and the La Encantada Silver Mine, as well as a portfolio of development and exploration assets, including the Jerritt Canyon Gold Mine located in northeastern Nevada.
First Majestic is proud to offer a portion of its silver production for sale to the public. Bars, ingots, coins and medallions are available for purchase online at www.firstmint.com, at some of the lowest premiums available.
FOR FURTHER INFORMATION contact info@firstmajestic.com, visit our website at www.firstmajestic.com or call our toll-free number: 1.866.529.2807.
FIRST MAJESTIC SILVER CORP.
"signed"
Keith Neumeyer, President & CEO
Cautionary Note Regarding Forward Looking Statements
This news release contains "forward‐looking information" and "forward-looking statements" under applicable Canadian and United States securities laws (collectively, "forward‐looking statements"). These statements relate to future events or the Company's future performance, business prospects or opportunities that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management made in light of management's experience and perception of historical trends, current conditions and expected future developments. Forward-looking statements in this news release include, but are not limited to, statements with respect to: (i) the Company's plans to expand the operations at First Mint through additional equipment and personnel; (ii) sales by First Mint of the inaugural production run of bullion bars; (iii) the supply of cast bars and silver rounds as production increases at First Mint; (iv) third party projects undertaken by First Mint; and (v) timing for First Mint to receive ISO 9001:2015 certification.
Actual results may vary from forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to materially differ from those expressed or implied by such forward-looking statements, including but not limited to: the duration and effects of the coronavirus and COVID-19, and any other pandemics or epidemics on our operations and workforce, and the effects on global economies and society; general economic conditions including inflation risks; actual results of exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; commodity prices; variations in ore reserves, grade or recovery rates; actual performance of plant, equipment or processes relative to specifications and expectations; accidents; labour relations; relations with local communities; changes in national or local governments; changes in applicable legislation or application thereof; delays in obtaining approvals or financing or in the completion of development or construction activities; exchange rate fluctuations; requirements for additional capital; government regulation; environmental risks; reclamation expenses; outcomes of pending litigation; limitations on insurance coverage as well as those factors discussed in the section entitled "Description of the Business - Risk Factors" in the Company's most recent Annual Information Form for the year ended December 31, 2022 filed with the Canadian securities regulatory authorities under the Company's SEDAR+ profile at www.sedarplus.ca, and in the Company's Annual Report on Form 40-F for the year ended December 31, 2022 filed with the United States Securities and Exchange Commission on EDGAR at www.sec.gov/edgar. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
The Company believes that the expectations reflected in these forward‐looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward‐looking statements included herein should not be unduly relied upon. These statements speak only as of the date hereof. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/203038
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Silvercorp Offer for OreCorp Lapsed
Trading Symbol:
TSX: SVM
NYSE AMERICAN: SVM
Silvercorp Metals Inc. (" Silvercorp " or the " Company ") (TSX: SVM) (NYSE American: SVM) announced today that, further to its off-market takeover bid (the " Offer ") for all of the ordinary shares in OreCorp Limited (" OreCorp ") (ASX:ORR), Silvercorp did not satisfy the 50.1% minimum acceptance condition prior to the close of the Offer on March 22, 2024 and elected not to exercise its "right to match" a competing offer for OreCorp. Silvercorp will remain entitled to payment of a break fee of approximately AUD$2.8 million in certain circumstances, as set out in the BID.
Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc with a long history of profitability and growth potential. The Company's strategy is to create shareholder value by 1) focusing on generating free cashflow from long life mines; 2) organic growth through extensive drilling for discovery; 3) ongoing merger and acquisition efforts to unlock value; and 4) long term commitment to responsible mining and ESG. For more information, please visit our website at www.silvercorpmetals.com .
For further information
Silvercorp Metals Inc.
Lon Shaver
President
Phone: (604) 669-9397
Toll Free 1(888) 224-1881
Email: investor@silvercorp.ca
Website: www.silvercorpmetals.com
CAUTIONARY DISCLAIMER - FORWARD-LOOKING STATEMENTS
Certain of the statements and information in this news release constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian and US securities laws (collectively, "forward-looking statements"). Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "is expected", "anticipates", "believes", "plans", "projects", "estimates", "assumes", "intends", "strategies", "targets", "goals", "forecasts", "objectives", "budgets", "schedules", "potential" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.
Actual results may vary from forward-looking statements. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, statements regarding the break fee, global economic and social impact of COVID-19; fluctuating commodity prices; calculation of resources, reserves and mineralization and precious and base metal recovery; interpretations and assumptions of mineral resource and mineral reserve estimates; exploration and development programs; feasibility and engineering reports; permits and licences; title to properties; property interests; joint venture partners; acquisition of commercially mineable mineral rights; financing; recent market events and conditions; economic factors affecting the Company; timing, estimated amount, capital and operating expenditures and economic returns of future production; integration of future acquisitions into the Company's existing operations; competition; operations and political conditions; regulatory environment in China and Canada ; environmental risks; foreign exchange rate fluctuations; insurance; risks and hazards of mining operations; key personnel; conflicts of interest; dependence on management; internal control over financial reporting; and bringing actions and enforcing judgments under U.S. securities laws.
This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Company's Annual Information Form under the heading "Risk Factors" and in the Company's Annual Report on Form 40-F, and in the Company's other filings with Canadian and U.S. securities regulators. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Accordingly, readers should not place undue reliance on forward-looking statements.
The Company's forward-looking statements are based on the assumptions, beliefs, expectations and opinions of management as of the date of this news release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements if circumstances or management's assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements. Assumptions may prove to be incorrect and actual results may differ materially from those anticipated. Consequently, guidance cannot be guaranteed. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.
Additional information related to the Company, including Silvercorp's Annual Information Form, can be obtained under the Company's profile on SEDAR+ at www.sedarplus.ca , on EDGAR at www.sec.gov , and on the Company's website at www.silvercorpmetals.com .
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SOURCE Silvercorp Metals Inc
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/March2024/25/c0671.html
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MAG Silver Provides Notice of Updated Juanicipio Technical Report
MAG Silver Corp. (TSX NYSE American: MAG) (" MAG ", or the "Company ") announces that it will release results from its updated Juanicipio Technical Report (the " Report ") on Wednesday, March 27, 2024. A conference call will be held to discuss the results of the Report on Wednesday, March 27, 2024 at 8:15 a.m. Eastern Time.
Conference call dial-in numbers:
Canada / USA toll-free: | +1-800-319-4610 |
International: | +1-604-638-5340 |
A live webcast will also be available at:
http://services.choruscall.ca/links/magsilver202403.html
About MAG Silver Corp.
MAG Silver Corp. is a growth-oriented Canadian exploration company focused on advancing high-grade, district scale precious metals projects in the Americas. MAG Silver is emerging as a top-tier primary silver mining company through its (44%) joint venture interest in the 4,000 tonnes per day (tpd) Juanicipio Mine, operated by Fresnillo plc (56%). The mine is located in the Fresnillo Silver Trend in Mexico, the world's premier silver mining camp, where in addition to underground mine production and processing of high-grade mineralized material, an expanded exploration program is in place targeting multiple highly prospective targets. MAG Silver is also executing multi-phase exploration programs at the Deer Trail 100% earn-in Project in Utah and the 100% owned Larder Project, located in the historically prolific Abitibi region of Canada.
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 or "forward-looking information" within the meaning of applicable Canadian securities legislation (collectively, " forward-looking statements "). All statements in this release, other than statements of historical facts are forward looking statements, including statements regarding the expected release date of the updated Juanicipio Technical Report. 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 the forward-looking statements identified herein include, but are not limited to, risks related to the control of Juanicipio cashflows and operations through a joint venture in which the Company is a non-operator; there being no guarantee of the surface rights for the Juanicipio property or in the Company's ability to obtain and maintain all necessary licences and permits that may be required to carry out its business activities at the Juanicipio Mine; risks related to maintaining a positive relationship with the communities in which the Company operates; risks related to the Company's decision to participate in the processing and production of the Juanicipio Mine; risks related to the limited operating history at Juanicipio; geotechnical risks associated with the operation of the Juanicipio Mine and related civil structures; labour risks; changes in applicable laws; risks to title, challenge to title or potential title disputes at Juanicipio; continued availability of capital and financing; and general economic, market or business conditions; political risk; currency risk; capital cost inflation and those other risks disclosed in MAG Silver's filings with the Securities Exchange Commission and Canadian securities regulators. All forward-looking statements contained herein are made as at the date hereof and MAG Silver undertakes no obligation to update the forward-looking statements contained herein. 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.sedarplus.ca and www.sec.gov .
For further information on behalf of MAG Silver Corp. Contact Michael J. Curlook, Vice President, Investor Relations and Communications Phone: (604) 630-1399 Toll Free: (866) 630-1399 Email: info@magsilver.com
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Fortuna to present at the Gold Forum Europe 2024 in Zürich, Switzerland
Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) is pleased to announce that it will be attending Gold Forum Europe 2024 which is being held at the Park Hyatt in Zürich, Switzerland, from April 8 to 10, 2024.
Jorge A. Ganoza, President, Chief Executive Officer, and co-founder of Fortuna, will be presenting on Tuesday, April 9 at 2:30 p.m. Central European Time in Ballroom 3.
About Gold Forum Europe
Gold Forum Europe is Europe's only independent investment event serving the precious metals sector. The Gold Forum offers an unparalleled representation of private and publicly traded precious metal equities spanning all stages of production, development, and exploration.
About Fortuna Silver Mines Inc.
Fortuna Silver Mines Inc. is a Canadian precious metals mining company with five operating mines in Argentina, Burkina Faso, Côte d'Ivoire, Mexico, and Peru. Sustainability is integral to all our operations and relationships. We produce gold and silver and generate shared value over the long-term for our stakeholders through efficient production, environmental protection, and social responsibility. For more information, please visit our website .
Carlos Baca
Vice President, Investor Relations
Fortuna Silver Mines Inc.
Investor Relations:
Carlos Baca | info@fortunasilver.com | www.fortunasilver.com | X | LinkedIn | YouTube
http://ml.globenewswire.com/Resource/Download/ace8ef79-52ac-43a4-ad19-10ad01efa552
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Peter Krauth: Silver's Time Will Come, Why Price Hasn't Moved (Yet)
Peter Krauth, editor of Silver Stock Investor, provided his latest thoughts on the silver market, honing in on his theory for why the metal's price hasn't risen in the face of substantial deficits for the last several years.
Speaking at the Prospectors & Developers Association of Canada (PDAC) convention, he acknowledged investors' frustration with the metal's price — despite four years of consecutive supply shortfalls, it has largely gone sideways.
"You've got three aspects to this," Krauth explained. "You've got industrial ... supply — this goes to users that make solar panels, that do electronics, all sorts of things like that. You've got the investment side of it, so people who are actually buying physical coins and silver. And then you've got sort of this area where, when there is oversupply in a given year, that gets shunted into the inventories of things like the futures exchanges, exchange-traded funds (ETFs), for example."
Continuing, he said silver is being drained out of these inventories, which he referred to as secondary inventories.
"Here's my take," Krauth said. "I believe that you have numerous industrial consumers buying long futures contracts and/or buying silver ETFs, and then asking for delivery. When the futures contracts mature, they can stand for delivery."
He noted that the registered silver — metal that is available for delivery — has declined by about 70 percent over the last three or four years. And in his view, it won't be too long before there's no more of this silver out there.
"If I had to guess, I would say maybe a year, 18 months, two years max," Krauth said on the sidelines of the event. "At some point, there will be no more secondary silver available — someone's going to stand for delivery on a futures contract, and they will be told, 'Sorry, we can't deliver, we're going to have to ... pay you out cash.'"
He believes that's when the the entire sector will finally "wake up in a big way."
Watch the interview above for more from Krauth on silver supply, demand, prices and stocks. You can also click here for the Investing News Network's full PDAC playlist on YouTube.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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