Mag Silver Corp. (TSE:MAG)(NYSE MKT:MVG) shares rallied on Wednesday in line with other precious metals producers after the company announced that it has received the full explosives permit to construct the the ramp decline at its joint venture Juanicipio project in Mexico.
The company told investors that development of the Juanicipio ramp decline is now being advanced with conventional drill and blast cycles.
Up to this point, all decline advancement had been accomplished only with a continuous miner, and the rate of advance slowed at times when zones of harder rock were encountered, Mag said.
With the explosives permit in hand, and the addition of conventional drill and blast cycles, the advance rate should improve substantially, the company noted in its statement.
“Having access to a full explosives permit is a big step forward for the joint venture and greatly enhances the ability to advance the decline ramp,” said Mag Silver‘s president and CEO, George Paspalas.
Currently, Mag is advancing the underground decline towards the high grade Valdecañas Silver vein and delineating the Desprendido and Juanicipio discoveries in Zacatecas State, all part of a joint venture that is owned 44% by Mag, and 56% by Fresnillo plc.
In addition, Mag is also negotiating surface access to further delineate its 100% owned Cinco de Mayo property in Chihuahua state, where two new silver, lead, zinc discoveries are opening up further growth opportunities.
Shares of Mag added more than 4% on Wednesday, to C$9.19. The gains were in line with the broader precious metals market, as gold prices surged to a 19-week high.
