MAG Silver Corp. (MAG.TO; NYSEAMEX:MVG) has announced a first resource estimate at their Mexican Cinco de Mayo silver-lead-zinc project. We are positively surprised, as MAG Silver now has 52.7M ounces of silver and in excess of 2.5 billion pounds of lead and zinc. These by-products can help to keep the cash cost relatively low, as the 9.3% ZnPb content has a rock value of approximately $170/tonne.
Cinco de Mayo is shaping up to be a good second iron in the fire and is a good second project after the joint venture with Fresnillo Plc (LON:FRES) on the Juanicipio-project which contains almost 200M ounces of silver.
Disclosure: The author holds no position. Please see our disclaimer for current positions.
