MAG Silver Reports Second Quarter Financial Results

VANCOUVER, British Columbia, Aug. 12, 2020 (GLOBE NEWSWIRE) -- MAG Silver Corp. (TSX / NYSE American: MAG) (“MAG” or the “Company”) announces the Company’s unaudited financial results for the three and six months ended June 30, 2020.  For details of the unaudited condensed interim consolidated financial statements and Management's Discussion and Analysis for the three and six months ended June 30, 2020, please see the Company’s filings on SEDAR (www.sedar.com) or on EDGAR (www.sec.gov). 

All amounts herein are reported in $000s of United States dollars (“US$”) unless otherwise specified.

HIGHLIGHTS – JUNE 30, 2020 & EVENTS SUBSEQUENT TO THE QUARTER END

• Mexican Government national COVID-19 Order announced in April resulting in a temporary suspension through May 30, 2020 of surface exploration and construction work at the Juanicipio Project and reduced underground operations.
   
• Phased Juanicipio Project restart commenced June 1, 2020 with the overall development timetable unchanged, according to the operator Fresnillo plc (“Fresnillo”):
  • Underground mine production expected to commence soon, ahead of schedule with anticipated processing of 16,000 tonnes per month of mineralized material through the Fresnillo plant until the Juanicipio plant is commissioned;
    • 8,858 tonnes of mineralized material successfully processed at the Fresnillo plant on a test basis in early August 2020;
  • Juanicipio plant expected to commence commissioning in mid-2021 and reach 85% of its 4,000 tonnes per day(“tpd”) nameplate capacity by year end 2021.
  • Production ramp-up anticipated to be sooner than previous guidance, due to the de-risking of Juanicipio’s metallurgical performance by virtue of campaign processing the mineralized material through the Fresnillo plant; and,
    • Estimated initial capital of $440,000 (on a 100% basis) as of January 1, 2018, will be reduced by:
      • Development expenditures incurred since then to June 30, 2020 of approximately $172,695 (the Company therefore estimates approximately $267,305 of remaining initial capital on a 100% basis as at June 30, 2020);
      • Existing cash held in Minera Juanicipio as at June 30, 2020 ($35,337); and,
      • Expected cashflow generated from mineralized material being processed through the Fresnillo plant up until the Juanicipio plan is commissioned in mid-2021.   

• Detailed engineering is near completion and earthmoving and foundation construction for the 4,000 tpd beneficiation plant is advancing well.