Mag Silver shares surge on Juanicipio mine’s mineral resource update

Shares of MAG Silver (TSX, NYSE American: MAG) rose on Thursday following the release of a new mineral resource estimate for the Juanicipio silver-gold-zinc-lead mine, situated in the state of Zacatecas, Mexico.

Compared to the 2017 preliminary economic assessment (PEA), the updated report indicates a 33% growth in measured and indicated resources, reaching 17 million tonnes at grades of 310 grams per tonne (g/t) silver, 1.86 g/t gold, 2.89% lead and 5.32% zinc.

Also being reported was the mine’s first mineral reserve estimate, totalling 15.4 million tonnes proven and probable at grades of 248 g/t silver, 1.58 g/t gold, 2.64% lead and 4.80% zinc.

Juanicipio transitioned into commercial production in June 2023. For the calendar year, the mine yielded 16.8 million oz. of silver plus 36,700 oz. of gold, calculated on a 100% owned basis.

In addition to mining, an exploration program is in place at Juanicipio targeting multiple highly prospective targets.

“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,” MAG Silver stated in a press release.

Nestled in the heart of the Fresnillo silver trend of Mexico, the underground mine is jointly owned by MAG, holding a 44% stake, and Fresnillo plc, the world’s largest primary silver producer and its operator, who controls the majority 56%.

Shares of MAG Silver rose 9% by 9 a.m. EDT. The company has a market capitalization of C$1.3 billion ($960 million).