Electrical Connection to the National Power Grid Complete
and Energized with Full Load Commissioning Underway
Vancouver, B.C. MAG Silver Corp. (TSX / NYSE American: MAG) (“MAG”, or the “Company”) reports that it has received confirmation from Fresnillo Plc (“Fresnillo”), the operator of the Juanicipio Project (the “Project” or “Juanicipio”), that final testing of the downstream power distribution and control systems at the Project is now complete. The entire system has now been energized and Juanicipio has been connected to the national power grid.
We have been advised that this concludes the additional testing requested by the state-owned power company, CFE (Comisión Federal de Electricidad), to verify compatibility between new and updated substation equipment installed by Fresnillo on behalf of Fresnillo and MAG Silver as part of the Project, and existing older CFE infrastructure.
“Connection to the power grid is a long-awaited milestone for the Juanicipio Project, our stakeholders and shareholders alike, and we are thankful for the understanding and patience as the final steps to connect the plant to the national power grid were concluded,” said George Paspalas, MAG’s President and CEO. “We now turn to working with Fresnillo to maximize value generation from Juanicipio as we head into ramp-up and full-scale operations with Juanicipio graduating into a Tier-1 silver producer.”
Commissioning of the Project, initially with low-grade stockpiles is envisioned. As previously reported, plant components post the comminution circuit were commissioned on auxiliary power allowing for a rapid ramp-up with Fresnillo advising an objective of reaching full nameplate capacity in the second quarter of 2023. Once commissioning is concluded, high-grade mineralized material will be processed at the Juanicipio plant and, to the extent mining rates allow, will continue to be processed at the nearby Saucito and Fresnillo operations.
About MAG Silver Corp. (www.magsilver.com)
MAG Silver Corp. is a growth-oriented Canadian development and exploration company focused on becoming a top-tier primary silver mining company by exploring and advancing high-grade, district scale, precious metals projects in the Americas. Its principal focus and asset is the Juanicipio Project (44%), being developed with Fresnillo Plc (56%), the operator. The project is located in the Fresnillo Silver Trend in Mexico, the world's premier silver mining camp, where the operator is currently advancing underground mine development and commissioning a 4,000 tonnes per day processing plant. Underground mine production of mineralized development material commenced in Q3 2020, and an expanded exploration program is in place targeting multiple highly prospective targets at Juanicipio. MAG is also executing multi-phase exploration programs at the Deer Trail 100% earn-in Project in Utah and the recently acquired Larder Project, located in the historically prolific Abitibi region of Canada.