Fresnillo and MAG Silver Corp’s Juanicipio silver-gold-lead-zinc project, in Mexico, has reached a major milestone, with development material from the project being processed at the Fresnillo beneficiation plant during the September quarter.
The joint venture, owned 56% by Fresnillo and 44% by MAG, saw 42,476 t processed during the quarter, with total production of 394,000 oz of silver, 610 oz of gold, 138 t of lead and 174 t of zinc, Fresnillo reported.
This first development material was processed through the nearby Fresnillo processing plant (100% owned by Fresnillo) with the lead (silver-rich) and zinc concentrates treated at market terms under offtake agreements with Met-Mex Peñoles, SA De CV in Torreón, Mexico, MAG said. The revenue from this production, net of processing and treatment costs, will be used by the joint venture to offset cash requirements of the initial project capital, according to MAG.
“This first production from Juanicipio is a major milestone for the company,” George Paspalas, MAG Silver’s President and CEO, said. “The successful processing of development material not only provides cash flow to offset capex, but further de-risks the project as it heads toward commercial production. We are looking forward to the first production stope coming online in Q4 (December quarter) 2020, and our potential to continue to produce cash whilst we complete the process plant construction.”
Fresnillo expects to process an average of 16,000 t/mth of mineralised material from the joint venture through its processing facility to mid-2021, at which time the Juanicipio beneficiation plant is scheduled for commissioning.
Development continues on site and the final preparation of the first production stope was concluded during the September quarter. Also during the quarter, progress was achieved on the construction of the Juanicipio processing plant.