Investors cheered positive news from Mag Silver (TSX, NYSE American: MAG) after the company released an updated mineral resource estimate for its Juanicipio silver-gold-zinc-lead mine in Zacatecas, Mexico. The news sent Mag Silver’s share price up 9% by the opening bell on Thursday.
The updated report, compared to a 2017 assessment, indicates a substantial increase of 33% in measured and indicated resources at the Juanicipio mine. The mine now boasts 17 million tonnes of mineral resources, with grades of 310 grams per tonne (g/t) silver, 1.86 g/t gold, 2.89% lead, and 5.32% zinc.
Significantly, the update also included the Juanicipio mine’s first-ever mineral reserve estimate. This estimate sits at a promising 15.4 million tonnes of proven and probable reserves, with grades of 248 g/t silver, 1.58 g/t gold, 2.64% lead, and 4.80% zinc.
In addition to mining, an exploration program is in place at Juanicipio targeting multiple highly prospective targets, the company said.
Production Underway with Exploration Efforts Continuing
The Juanicipio mine transitioned into commercial production in June 2023 and has already delivered positive results. For the 2023 calendar year, the mine yielded a significant 16.8 million ounces of silver and 36,700 ounces of gold, calculated on a 100% owned basis.
Looking ahead, Mag Silver isn’t resting on its laurels. The company is actively pursuing an exploration program at Juanicipio, targeting several highly prospective areas for further resource development. Additionally, the vast 7,679-hectare property surrounding the mine remains largely unexplored, offering significant potential for new mineral discoveries.
“In addition to near-mine exploration potential, the overall 7,679-hectare Juanicipio property remains largely unexplored with high potential for the discovery of new mineralization,” it said in a press release.
Joint Venture with Industry Leader Positions Mine for Success
The Juanicipio mine is situated within the renowned Fresnillo silver trend of Mexico. It’s an underground mine co-owned by MAG Silver, which holds a 44% stake, and Fresnillo plc, the world’s largest primary silver producer. Fresnillo plc acts as the mine operator, leveraging its vast experience in the industry.
Mag Silver’s strong performance on the stock market reflects the positive outlook for the Juanicipio mine. With a substantial resource base, ongoing exploration efforts, and a successful partnership with a mining industry leader, the Juanicipio mine appears well-positioned for continued production and future growth.
Source: Mining.com
