MAG Juanicipio Underground Development Program Approved

MAG Silver Corp. (TSX:MAG) announced that the Minera Juanicipio S.A. de C.V. Joint Venture with Fresnillo plc has approved budget og US$25 million for mine permits and underground development.

As quoted in the press release:

The proposed program covers mine permitting, surface preparation and the commencement of the first 2,500 metres of underground decline development. The proposed work plan is based on recommendations provided to the Juanicipio Joint Venture by AMC Mining Consultants (Canada) Ltd. in their recently filed NI 43-101 Updated Preliminary Economic Assessment (See Press Release of June 14, 2012 and SEDAR) which outlined a development program for the Valdecañas, Desprendido and Juanicipio veins identified to date on the Juanicipio property. The development program will be managed by Fresnillo, as operators of the Joint Venture. The previously approved 2012 exploration program primarily targeted on finding other veins continues as planned.

Dan MacInnis, President and CEO of MAG Silver, commented:

We are very pleased to be working with our Joint Venture partner, Fresnillo, in realizing the underground development recommendations from our recently completed Updated Preliminary Economic Assessment (“UPEA”). The Joint Venture Board has now put the project on the priority fast track towards breaking ground in very early 2013. The UPEA confirms that Juanicipio is an extraordinary silver deposit with such robust economic margins that moving into an underground development stage is the next logical step.

Click here to read the full press release.