MAG Silver Corp. announces the company’s unaudited financial results for the three months ended March 31, 2018.
MAG Silver Corp. (TSX:MAG) announced the company’s unaudited financial results for the three months ended March 31, 2018.
Highlights are as follows:
2018 FIRST QUARTER HIGHLIGHTS
- A National Instrument 43-101 amended and restated technical report documenting the updated Minera Juanicipio Mineral Resource and associated preliminary economic assessment (the “2017 PEA”) was filed on SEDAR in January 2018.
- Low AISC of US$5.02 an ounce of silver over an initial 19 years of mine-life;
- Process plant ramp up to a throughput rate of 1.4 million tonnes/year (4,000 tpd);
- Payable production of 183 million ounces of silver over life of mine, and on a silver equivalent basis 352 million ounces;
- Base case pre-tax IRR 64.5 percent; after tax IRR 44.5 percent;
- Base case pre-tax net present value (“NPV”) at a 5 percent discount rate of US$1.86 billion; after tax NPV of US$1.14 billion;
- Initial capital costs on 100 percent basis as of January 1, 2018 of US$360 million (“M”) (MAG’s 44 percent US$158.4 million);
- Accelerated early silver flow gives less than a 2-year payback from plant startup.Base Case highlights (Juanicipio project 100 percent basis) as follows:
- Underground work on the project has intensified resulting in the highest development rate to date achieved in the quarter ended March 31, 2018.
- Advanced draft of an independent feasibility study prepared by AMC currently under review by both partners and completion expected in the 2nd quarter of 2018.
- Formal Minera Juanicipio and respective Joint Venture partner Board approvals expected upon completion of the feasibility study.
- Exploration drilling now utilizing directional drilling to infill and expand the Deep zone (assays pending).
- Company is well funded with cash and cash equivalents totaling US$152,692 as at March 31, 2018.
George Paspalas, president and CEO, commented:
he Juanicipio project progresses well, with development rates increasing significantly last year and continuing into 2018. With the advanced draft joint venture feasibility study in hand, we look forward to its finalization and formal project approval. On the exploration front, the use of directional drilling is proving to be very beneficial with target accuracy improving at depth as we infill and expand the Deep zone, while other ‘greenfield’ exploration targets have been identified, together with Fresnillo, on the joint venture property.