Regarding Juanicipio, its flagship joint venture project in Mexico with operator Fresnillo, initial production began there in August 2020 with the development material processed through Fresnillo's nearby plant. During the quarter, on a 100% basis, 42,476 tons were processed. Q3/20 sales of metals produced amounted to 394,000 ounces of silver, 610 ounces of gold, 138 tonnes of lead and 174 tonnes of zinc.
MAG reported that construction of the Juanicipio plant continues. The foundations are now laid and curing, and the steel components are ready for installation. Completed underground development now stands at 32 kilometers with preparation of the first production stope done. Despite COVID-19, Juanicipio remains on schedule for plant commissioning in mid-2021.
Also at Juanicipio, drilling was resumed after the Mexican government lifted the pandemic-related restrictions, and the 2020 drill program will be completed this year.
"We are very pleased with the progress at Juanicipio. The metallurgical response of the mineralization is correlating well with our expectations. We will start optimizing flotation parameters over the next two quarters, which will significantly de-risk the Juanicipio plant start-up," MAG President and CEO George Paspalas said in the release.
With respect to other assets, MAG announced in Q3/20 its Deer Trail earn-in project, a silver-rich deposit in Utah, noting surface drilling over 6,500 meters is to commence there in November 2020.
Also during Q3/20, the company established an at-the-market equity program and through it subsequently grossed US$50 million from the sale of about 3 million common shares as of Sept. 30, 2020.
At that time, MAG had US$136 million in cash and cash equivalents, and Minera Juanicipio had US$14 million of cash on hand on a 100% basis.
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