Looking ahead, we are still focused on optimizing production and advancing with our key capital investments, said the executive director of the mining company.
Mag Silver Corp. reported the production of Juan Mornus (56% / 44% Fresnillo PLC (“Fresnillo”) and MAG, respectively) for the first quarter (“T1”) ended on March 31, 2025. JUAN PREPARE delivered an exceptional operational performance, a recovery of record silver and a solid production in all metals, consolidating its status as a world -class silver operation.
- Constant grinding yield: The Juan Mornsa plant maintained a constant grinding yield with 337 thousand tons (“KT”) of processed mineral in the first quarter, in line with the levels of 2024.
- Consistently strong head law: the silver head law averaged 430 grams per ton (“g/t”) during the quarter, reaching the upper end of the law guide by 2025, which reflects the high quality nature of the deposit and the Juan Mornus operations.
- Silver record recovery: Thanks to the metallurgical improvements implemented in 2024, Juan House achieved a 96 % silver recovery record rate in the first quarter.
- Solid production: the preliminary production of the first quarter included 4.5 million ounces of silver and 10,198 ounces of gold. The publication of complete financial and operational results is expected on May 12, 2025.
“We are very satisfied with the excellent start of Juan Main in 2025,” said George Paspalas, president and executive director of Mag Silver. “The solid laws of mine and record recovery have laid the foundations for a 2025 solid. Facing the future, we are still focused on optimizing production and advancing with our key capital investments, such as the expansion of the tailings dam and the development of underground infrastructure, to maintain and improve our production. We are well positioned to comply with the production forecasts by 2025 and continue generating a solid profitability for our shareholders ”.
Prominent aspects of production (100%base):
Orientation for 2025
According to Fresnillo, by 2025, the production of silver in Juan Matar is expected to be between 14.7 and 16.7 million ounces, with a paid silver production of between 13.1 and 14.9 million ounces. This estimate is based on a production rate of 4,000 tons per day of operation with a silver head of between 380 and 430 g/t. The golden head is expected to be between 1.2 and 1.4 g/t.
The cost forecast reflects continuous effort of optimization and sustainable capital investments, with a cash cost and a total maintenance cost planned between $ 1.00 and $ 1.00 and between $ 6.00 and $ 8.00 per ounce of silver sold, respectively. Sustainable capital expenses for 2025 are estimated between $ 70 and $ 80 million, with key investments that include:
- Expansion of the tailings dam to provide approximately six years of deposition capacity.
- Development of underground workshops, electrical infrastructure and pumping and ventilation systems to support the development and continuous operations of the mine.
Expansive capital expenses for 2025 are estimated between $ 22 and $ 28 million and are related to the installation of the underground transport system, whose commissioning is expected by the end of 2026, thus supporting expanded extraction rates, providing greater efficiency and reductions in extraction costs.
The guidance of the company for Juan Morns for 2025 is provided in the following table:
