BMO Messe Highlights: MAG Silver
Bottom Line: George Paspalas, President & CEO, and Dr. Peter Megaw, Chief Exploration Officer, presented at the 2017 BMO Global Metals & Mining Conference. Key Points
• MAG highlighted recent exploration results and the development progress at the Juanicipio JV property (44% MAG/56% Fresnillo).
• At Juanicipio, the company highlighted its latest exploration results expanding the Valdecañas Deep zone, the dilatant zone, and defining the discovered Anticipada vein. The JV expects to incorporate recent exploration results into a resource update to be released in 2017E.
• The company also outlined the implications of increased vein thicknesses and greater base metal (copper) content discovered at depth, which requires further economic valuation and analysis to determine the prudent way to unlock this future value.
• MAG reiterated that the ramp reached the uppermost contact of the Valdecañas vein last December and the development team is working to establish access to the footwall zone in 2018 for operational ramp-up to commence production by H1/2019.
• Year-end 2016 resources (Ind. & Inf.) were recorded at 248Moz silver and 1.4Moz gold and the JV is planning to complete an additional 20,000m of exploration drilling in 2017.
• At Cinco de Mayo, the company is working towards regaining surface access. Management hopes that the recently elected Governor will provide a new opportunity to open discussions.
•The company exited Q3/16 well positioned to meet the remaining $118M in JV capex requirements with $140M cash in cash and no debt.