MAG Silver Corp. reported production from the Juanicipio Project (56% /44% Fresnillo plc (Fresnillo) and MAG, respectively) for the first quarter (Q1) ending March 31, 2023. March 2023 marked a significant achievement for Juanicipio as it produced and sold its first commercial lead and zinc concentrates.

In addition to the initiation of feed to the Juanicipio mill, surplus mineralized material continues to be processed through the nearby Saucito and Fresnillo beneficiation plants (100% owned by Fresnillo) delivering incremental operating cash flows. Feed to the Juanicipio mill was predominantly from low grade stockpiles that were designated for commissioning. As reported to MAG by the project operator Fresnillo, 222,023 tonnes of mineralized material from underground stopes and low grade stockpiles were processed during the three months ended March 31, 2023 at an average silver head grade of 363 grams per tonne (g/t).

Total Juanicipio production for first quarter based on provisional estimates before offtake agreement adjustments, totaled 2,249 thousand silver ounces and 6,047 gold ounces. MAG expects to release its full financial and operational results on May 10, 2023. Roughly 30% of the tonnes processed in First Quarter were processed at the Juanicipio beneficiation plant, which, considering consistent mill feed only commenced in late February 2023, represents a notable performance.

The focus now shifts to steady state operations, attaining the 4,000 tonnes per day (tpd) nameplate and achieving commercial production. During March 2023, milling rates were around 60% of design, yielding an average of 2,476 tpd with rates occasionally reaching up to 3,900 tpd. Performance over the last 3 weeks has improved with the comminution circuit consistently delivering rates of 3,700 tpd as well as a decrease in unplanned stoppages.

As the plant approaches design capacity, higher grade mill feed has been introduced with a commensurate improvement in silver recovery rates and concentrate grades.