Issue link: http://resourceworld.uberflip.com/i/229125
MAG SILVER CORP. [MAG-TSX] NPV (5% Discount)............ $1.233 billion IRR (Post-Tax)..................................43% Payback Period..............................2 years Cash Costs (Ag)......................... ($0.03/oz) Capital Costs (Initial)............. $302 million Capital Costs (Sustaining LOM).$267 million Shares Outstanding.................60,141,718 Note: Figures based on US $23.39/oz silver, US $1,257/oz gold, US $0.95/lb lead &US $0.91/lb zinc. MAG Silver Corp. is a two-asset company; the Juanicipio Joint Venture and the Cinco de Mayo Project, along with additional exploration properties in Mexico at various stages. These include Salamandra, Batopilas, Lagartos and Guigui. However, it is the Juanicipio Project in Zacatecas State that has been the subject of an economic analysis. MAG Silver has a 44% interest in Juanicipio with the world's largest primary silver producer; Fresnillo plc holds the remaining 56% interest. An updated Preliminary Economic Assessment for the Juanicipio Project was carried out by AMC Mining Consultants (Canada) Ltd. At a 100 g/t silver cut-off, indicated resources stand at 5.7 million tonnes grading 702 g/t silver, 1.9 g/t gold, 2.2% lead and 4.2% zinc (128 million oz silver). Inferred resources are 4.3 million tonnes of 513 g/t silver, 1.4 g/t gold, 1.6% lead and 3.0% zinc (71 million oz silver). Mining and processing 13.3 million tonnes averaging 416 g/t silver, 1.3 g/t gold, 1.4% lead and 2.7% zinc would provide a 14.8-year mine life. Life-of-mine payable production would be 153 million oz silver, 430,000 oz gold, 361 million lbs lead and 584 million lbs zinc. Annual payable silver production averages 10.3 million ounces at a total cash cost of (negative) ($0.03) per ounce silver, net of by-product credits. MAG's 44% annual share of payable silver ounces is 4.5 million ounces. Fresnillo has begun underground development which follows a year of engineering, hydrological and environmental studies in support of required permits, all of which are in hand. DECEMBER/JANUARY 2014 RW December 2013.indd 23 www.resourceworld.com 23 12/11/2013 6:11 PM