"The evident turnaround of the San Francisco mine, considered by many as an impossible task one year ago, shows our team's resourcefulness and commitment to executing our mission to become a profitable precious metal producer," president and CEO Arturo Bonillas said.

The explorer had acquired the past-producing mine in Sonora state in May 2020.

Preliminary production figures of 9,785oz of gold and 8,093oz of silver for the March quarter were a 31% and 76% improvement respectively on the previous period.

The company said ongoing operational improvements were realised from "addressing the deficiencies of the past", including leach solution imbalances which affected costs and gold recoveries, as well as extensive repair and refurbishment of the plant and equipment.

Magna reiterated it was on track to achieve 2021 production guidance of 55,000-65,000oz.

"In addition to achieving commercial production at San Francisco in the coming months, we will remain focused on realising further operational efficiencies, expanding mineral reserves and resources and seeking growth opportunities externally and within our significant pipeline of projects," Bonillas said.

Magna recently acquired the Margarita silver project in Chihuahua, where field work was set to start this quarter ahead of infill drilling in the fourth quarter.

Eric Sprott was a lead investor in a C$7 million placement a year ago priced at 41c per share.

The company reported having a cash balance of US$7.2 million at year-end.

Its shares (TSXV: MGR) closed up 3.2% yesterday to C96c, capitalising it about $86 million (US$68 million).