Construction Activities Completed At The Juanicipio

VANCOUVER - MAG Silver Corp. has received communication from Fresnillo Plc, the operator of the Juanicipio Project, that all construction activities related to final tie-in to the electrical grid have been completed and all systems are ready to be energized. Prior to making the final tie-in to the electrical grid, as a precautionary measure to ensure uninterrupted service to the surrounding area, the state-owned electricity regulator, CFE (Comision Federal de Electricidad), have requested additional testing to verify compatibility between new and updated substation equipment installed by Juanicipio and existing older CFE infrastructure. Specialized start-up protocols and operations controls may also need to be implemented during initial mill start-up to prevent local power fluctuations.

The Fresnillo project team indicates that power for final commissioning and start of operations should be available by the end of October, and that production ramp up will commence in Q4 of this year. Fresnillo further advise that stoping, underground development and material stockpiling at Juanicipio will continue uninterrupted with Fresnillo continuing to make available unused plant capacity at its Saucito and Fresnillo operations.