MAG Silver Corp. (TSX: MAG) has reported its production results from the Juanicipio plant, a key asset in its joint venture with Fresnillo plc, for the third quarter (Q3) of 2024.
The Juanicipio plant, a 56%-44% joint venture between Fresnillo and MAG Silver, processed 332,290 tonnes of ore during Q3, continuing its steady production pace from previous quarters. This marks the third consecutive quarter where the plant has processed 100% of its ore onsite, following the successful ramp-up of the Juanicipio processing facility.
Preliminary estimates indicate that the plant produced 4.9 million ounces of silver and 10,801 ounces of gold. The average silver head grade for the quarter was 481 grams per tonne (g/t), which slightly decreased from the second quarter’s 498 g/t but remained significantly higher than the year-to-date average of 485 g/t.
The plant also showed remarkable consistency in its gold grade, with a 1.32 g/t average—an increase of 10% from Q2.
Despite a slight 2% dip in silver production compared to Q2, Juanicipio has outperformed year-over-year, with silver production increasing by 2.2% from the same period in 2023. Year-to-date, silver production reached 14.3 million ounces, a 16.3% rise over 2023. Similarly, gold production for the year reached nearly 30,000 ounces, marking a 14.7% year-over-year increase.
One of the key drivers of Juanicipio’s success has been its enhanced metal recovery rates. MAG Silver attributed this to ongoing circuit optimizations and operational improvements at the plant. Recovery rates for silver, gold, lead, and zinc have consistently improved, bolstering the overall output. Lead and zinc production, critical by-products of the silver and gold extraction process, also saw substantial gains over the past year.
Lead production in Q3 was up 7% from Q2, while zinc output declined by 11%. However, both metals showed impressive year-over-year growth, with lead production increasing by 25.9% and zinc by a substantial 31.9% when compared to Q3 2023.
Year-to-date lead production has surged by 53% compared to the first nine months of 2023, while zinc production soared by 69.4%.
The company reiterated that silver grades are likely to hit the upper end of its 2024 guidance range of 420 g/t to 460 g/t.
MAG Silver will release its comprehensive financial and operational results for Q3 on November 8, 2024, providing deeper insights into the plant’s financial performance and future outlook.
MAG Silver last traded at $24.63 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a
