The boards of joint venture (JV) partners Fresnillo and MAG Silver have approved the development of the Juanicipio silver and gold project, in Mexico, with construction set to begin immediately.
The project, which will require $395-million in capital expenditure, is expected to produce 11.7-million ounces a year of silver and 43 500 oz/y of gold, over 12 years.
The Juanicipio development is expected to create about 2 750 jobs during construction and 1 720 jobs once at full production.
Fresnillo said on Thursday that discussions with contractors were advanced and that orders for long lead-time equipment delivery had been placed. All principal permits and licensing have also been obtained.
Construction of the mine was expected by late 2020, subject to finalising detailed engineering and securing remaining permits.
Fresnillo CEO Octavio Alvidrez commented the approval of Juanicipio reflected the JV partners confidence in the long-term outlook for mining in Mexico.
Fresnillo will be the operator of Juanicipio and holds a 56% majority stake in the JV, with MAG Silver owning the remaining 44%.