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Magna touts rapid progress as it achieves production at San Francisco

On a glum day for gold equities, Mexico-focused Magna Gold made a gain as it announced it had achieved commercial production on schedule on June 1 at its San Francisco mine in Sonora.
Magna touts rapid progress as it achieves production at San Francisco Magna touts rapid progress as it achieves production at San Francisco Magna touts rapid progress as it achieves production at San Francisco Magna touts rapid progress as it achieves production at San Francisco Magna touts rapid progress as it achieves production at San Francisco

Magna Gold is breathing new life into the San Francisco mine in Mexico

Ngaire McDiarmid

Reporter

Magna had said in April it was on track to achieve what some had described as an impossible turnaround at the past-producing project.

It had acquired San Francisco from Alio Gold in 2020 and said its team had developed, built and successfully operated the mine for Alio's predecessor Timmins Gold.

"Achieving full-scale commercial production in such a short period of time is a testament to the hard work and quality of our Mexico-based operations team and as a company, we have demonstrated our ability to execute on all our target deliverables," president and CEO Arturo Bonillas said.

He reitereated Magna's 2021 guidance of 55,000-65,000oz of gold.

The company secured C$10 million from founding and strategic shareholder Delbrook Capital Advisors in May, to fund exploration on some of its "most interesting" exploration gold and silver properties acquired in the past year in Sonora and Chihuahua.

"We are continuing our systematic exploration efforts as we look to grow the company into a mid-tier producer," Bonillas said yesterday.

Magna shares (TSXV: MGR) closed up 4.8% to 88c but remain near a one-year low.

The company is capitalised at $78.7 million (US$63.5 million).