MAG president and CEO George Paspalas said Juanicipio (MAG: 44%; Fresnillo 56%) "continues to be the gift that keeps on giving", referring to the project's exploration upside.
"Discovering two new mineralised veins readily accessible from the underground workings we have been developing over the last five years, once again demonstrates Juanicipio's exceptional mineral endowment," he said.
"We are pleased with the progress we are making with our JV partner Fresnillo, finalising construction and operating agreements, and look forward to commencing the process plant construction in the near term."
MAG said 36% of the underground development was completed in 2018, detailed engineering continued for the internal shaft and other mine infrastructure, mill-site preparation was in progress and lead and zinc off-take agreements were being prepared.
Juanicipio is expected to produce an average annual 18.5 million ounces silver-equivalent over an initial 19-year mine life at an all-in sustaining cost of US$5.02/oz silver.
Meanwhile, MAG said it was continuing to work on regaining surface access to its Cinco de Mayo property in Chihuahua state, where it has been unable to negotiate a renewed surface access agreement with the local Ejido.
The debt-free company said it remained well-funded, with cash and equivalents of $130 million at the end of December, and would seek other high grade, district scale opportunities.
Its shares have ranged from C$8.10-$15.59 over the past year. They closed down 7.15% yesterday to $13.25, to capitalise MAG at $1.13 billion.