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Technical Report
Juanicipio Mineral Resource and Mineral Reserves
NI 43-101 Technical Report
MAG Silver Corp.
Zacatecas, Mexico

In accordance with the requirements of National Instrument 43-101 “Standards of Disclosure for
Mineral Projects” of the Canadian Securities Administrators

Qualified Persons:
P. Salmenmaki, P.Eng.
R. Chesher, FAusIMM (CPMET)
M. Molavi, P.Eng.
J. M. Shannon, P.Geo.
C. Stewart, P.Geo.
G. Dominguez, P.E.

AMC Project 0723032

Effective date: 4 March 2024
Report date: 27 March 2024

Unearth a smarter way

Juanicipio Mineral Resource and Mineral Reserves NI 43-101 Technical Report
MAG Silver Corp. 0723032

1 Summary
1.1 Introduction
This Technical Report (Report) on the Juanicipio Property (Property) has been prepared by AMC
Mining Consultants (Canada) Ltd. (AMC) of Vancouver, Canada on behalf of MAG Silver Corp (MAG
Silver) and is reporting updated Mineral Resource estimates and a statement of Mineral Reserve
estimates for the first time. The Report has been prepared in accordance with the requirements of
National Instrument 43-101 (NI 43-101) “Standards of Disclosure for Mineral Projects” of the
Canadian Securities Administrators (CSA) for lodgement on CSA’s System for Electronic Document
Analysis and Retrieval (SEDAR).

MAG Silver holds a 44 percent (%) interest in Minera Juanicipio, the Mexican incorporated joint
venture (JV) company that owns (100%) of the Property. Fresnillo plc (Fresnillo) owns 56% of
Minera Juanicipio and is the project operator. The Property is located in Zacatecas State, Mexico.
Internal feasibility-level studies completed in 2018 (2018 study work) on behalf of Minera Juanicipio
were used to advance the project to construction in April 2019. Underground production of
mineralized development material commenced in the third quarter of 2020 and commercial
production was declared in mid-2023. Mine operations are still in a ramp-up stage. Nameplate
processing capacity of 4,000 tonnes per day (tpd) was achieved in Q3 2023, with mine ore
production averaging about 3,700 tpd in the latter part of the year (approximately 1.3 million tonnes
per annum (Mtpa)). Optimization and efficiency improvements are to be worked on in 2024.

Indicated and Measured Mineral Resource estimates are reported for the Valdecañas vein, which
constitutes the major part of the Valdecañas vein system. Inferred Mineral Resource estimates are
reported for the Valdecañas, Ramal 1, Venadas, and Anticipada parts of the Valdecañas system,
and for the Juanicipio vein. Mineral Reserve estimates are reported for the first time and are based
on the Measured and Indicated Mineral Resources.

Mineral Resource estimates are current as of 31 May 2023 and were prepared by Fresnillo; they
have been reviewed by Mr J. M. Shannon, an independent consultant, who takes Qualified Person
(QP) responsibility for those estimates. Mineral Reserve estimates are current as of 31 May 2023
and were also prepared by Fresnillo; they have been reviewed by Mr P. Salmenmaki, of AMC, who
takes QP responsibility for those estimates. The Report has an effective date of 4 March 2024.

The Report provides an update to the Preliminary Economic Assessment (PEA) which was reported
in the “MAG Silver Juanicipio NI 43-101 Technical Report, Amended and Restated, Zacatecas State,
Mexico”, (2017 AMC Technical Report). This was prepared by AMC for MAG Silver, with an effective
date 21 October 2017, and a revised date 19 January 2018.

The monetary values shown in the Report are in US dollars ($) unless stated otherwise.

1.2 Location
The Juanicipio Property is situated about 6 kilometres (km) to the south-west of the city of Fresnillo,
which is located about 60 km north-west of the state capital, Zacatecas City. Zacatecas City has a
population of approximately 140,000 and is located about 550 km north-west of Mexico City.
Zacatecas City is serviced by daily flights from Mexico City. Surface rights to the part of the Property
where Mineral Resources have been identified are held by Minera Juanicipio.

1.3 Geology and mineralization

The Juanicipio deposit comprises two significant silver-gold epithermal vein systems: the Valdecañas
vein system and the Juanicipio vein. The Valdecañas vein system includes the Valdecañas vein itself
and four structures named Ramal 1, Venadas, Pre-Anticipada, and Anticipada. The Juanicipio vein

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is located about 1,100 metres (m) south of the Valdecañas vein. Both systems strike east-southeast
with an average dip of about 58 degrees (°) south-west. The more recently discovered vertical vein
Venadas crosses the Valdecañas vein perpendicularly. The Valdecañas vein hosts most of the Mineral
Resources currently estimated on the Property.

The Valdecañas vein system has undergone multiple mineralizing events as suggested by various
stages of brecciation and quartz sealing, local rhythmic microcrystalline quartz-pyrargyrite-
acanthite banding, and open-space cocks-comb textures and vuggy silica. The vein system exhibits
the characteristic metal zoning of the principal veins in the Fresnillo district where high grade silver
with lower grade lead and zinc transitions to higher grade lead and zinc with less silver with
increasing depth.

1.4 Exploration and drilling

Most exploration work on the Property has consisted of drilling, both from surface and underground,
and underground channel sampling, which has been carried out since 2020. Limited soil sampling
programs were carried out until 2017 and exploration to that point was focused on the Valdecañas
area. A few additional exploration targets were identified and are discussed in Section 7.
Approximately 5% of the concessions have been explored or drilled.

Fresnillo, the operator of Minera Juanicipio, commenced a surface mapping and detailed sampling
program in 2016 to assist with identifying additional structures hosting mineralization on the
Property. This program incorporated hyperspectral analyses of surface and drill core coupled with
the collection of 255 rock samples from outcrops exhibiting deformation / veining and alteration.
The results of this program have helped improve the conceptual model of epithermal mineralization
in the Fresnillo district (Figure 8.1). The results were also used to create a detailed structural and
hyperspectral map (Figure 9.1). The dashed white line in Figure 9.1 shows the location of the
schematic section in Figure 8.1.

In 2003 and 2004, MAG Silver drilled nine core drillholes totaling 7,346 m. From August 2005 until
May 2023, MAG Silver and Fresnillo, on behalf of the joint venture, have drilled a total of 499 core
drillholes totaling 380,738 m on the Property (Table 10.1). Most of the drilling targeted the
Valdecañas vein system. 4,537 channels totaling 4,677 m has been collected since October 2019.

Drilling has been commonly collared using HQ (64 millimetres (mm) core diameter) equipment,
reducing to NQ (48 mm core diameter) and BQ (37 mm core diameter) as necessary. The current
drilling contractor, Devico, has been using wedges or cement plugs every 30 m to give a deviation
up to 9°. Diamond drilling has been carried out using Boart Longyear LF-90 and Atlas Copco CS-14
and CS-3001 drill rigs.

Overall drillhole spacing varies from 70 m to 100 m along strike and 50 m to 100 m down dip in the
plane of mineralization. Core recovery is generally good except in extremely fractured near-surface
rock, argillite, or wider fault structures.

1.5 Mineral Resource estimates

The Mineral Resources for the Juanicipio deposit have been prepared by Mr Gerardo Elly Merino
Angel, Resource Geologist of Fresnillo Operations S.A. Mr John Morton Shannon, P.Geo. reviewed
the methodologies and data used to prepare the resource estimates and is satisfied that they comply
with reasonable industry practice. Mr John Morton Shannon takes responsibility for these estimates.

This estimate is dated 31 May 2023 and supersedes the previous estimate outlined in the 2017 AMC
Technical Report. The previous estimate had an effective date of 21 October 2017, and included
drilling up to December 2016.

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The data used in the current estimate includes results of all drilling carried out on the Property up
to 31 May 2023. Depletion by mining is also up to that date. The database consists of 488 surface
and underground diamond drillholes and 972 channel samples.

Mineralization is hosted in six veins within the two major vein systems. Each of the veins has been
wireframed separately. Estimates were also done separately, resulting in six block models.

Leapfrog Geo was used to construct the geological domains and to prepare assay data for
geostatistical analysis. Leapfrog EDGE version 4.0.5 was used for geostatistical analysis and
variography. Datamine RM was used to construct the block model, estimate metal grades, and
report out Mineral Resources. Grade interpolation for Au, Ag, Pb, Zn, and Fe were carried out using
Ordinary Kriging (OK) for the Valdecañas, Ramal 1, Anticipada, Pre-Anticipada, and Juanicipio veins.
For the Venadas vein inverse distance cubed (ID3) was chosen as the interpolation method. The
bulk density was estimated into the block model using ID3 for all veins.

The current estimate is summarized in Table 1.1 and expanded in Table 14.16.

Table 1.1 Juanicipio Mineral Resources at 31 May 2023

Quantity Grade Contained metal
Cut-off
Resource category Tonnes Au Ag Pb Zn Au Ag Pb Zn
grade
(kt) (g/t) (g/t) (%) (%) (koz) (koz) (kt) (kt)
Measured 1,441 2.19 780 1.42 2.70 102 36,130 20 39
Indicated 15,555 1.83 266 3.03 5.56 916 133,039 472 865
209 g/t Ag Eq
Measured & Indicated 16,996 1.86 310 2.89 5.32 1,017 169,169 492 904
Inferred 14,051 1.06 236 2.41 6.12 480 106,676 339 860
Notes:
• CIM Definition Standards (2014) were used for reporting.
• Mineral Resources are reported inclusive of Mineral Reserves.
• Mineral Resources are reported at or above a cut-off grade of 209 grams per tonne (g/t) silver equivalent (AgEq),
equivalent to $96.9 net smelter return (NSR). While a 3 m minimum width is applied and blocks above the cut-off
grade are largely contiguous mineable shapes have not been defined, which may result in the tonnes of underground
Mineral Resources being slightly exaggerated.
• Mineral Resources are reported at values based on metal price assumptions, metallurgical recovery assumptions,
mining costs, processing costs, general and administrative (G&A) costs, and variable smelting and transportation
costs.
• Metal price assumptions considered for the calculation of metal equivalent values are gold (US$1,450.00/oz), silver
(US$20.00/oz), lead (US$0.90/lb), and zinc (US$1.15/lb).
• Assumed metal recoveries of 75.84%, 87.06%, 86.33% and 74.48% for Au, Ag, Pb, and Zn, respectively and on NSR
factors of US$30.71/g Au, US$0.46/g Ag, US$15.01/% Pb and US$11.36/% Zn.
• Mineral Resources are reported on a 100% basis. The MAG share is 44%.
• Totals may not compute exactly due to rounding.
• The Mineral Resources were estimated by Fresnillo. Mr John Morton Shannon, P.Geo. (EGBC #32865), has reviewed
the Mineral Resources and takes QP responsibility.
Source: AMC based on Fresnillo data, 2023.

The QP is not aware of any known environmental, permitting, legal, title, taxation, socioeconomic,
marketing, political, or other similar factors that could materially affect the stated Mineral Resource
estimates. This part of Mexico is regarded as a good jurisdiction to operate in, with a solid framework
addressing the factors mentioned above.

Fresnillo has been working in the region for decades and operates an additional two major mining
operations at Fresnillo and Saucito. It is aware of any local aspects of operating in the district.

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1.6 Mineral Reserves

The Mineral Reserve statement for the Juanicipio mine is provided in Table 1.2. Mineral Reserve
estimates are based on a cut-off value that considers mining, processing, and general and
administration costs, with a variable trucking cost for each mining block. The variable component
of the operating cost is generally a small fraction of the overall cost and Mineral Reserves are largely
reported above a value of $150/t ore for cut and fill stopes and $122/t ore for longhole stopes.
Some marginal ore that may lie on the fringes of other stopes that require development is included
at a variable marginal cost that is generally above $121 for cut-and-fill and $93 for longhole stopes.
Mineral Reserves are based on Measured and Indicated Mineral Resources only. Mineral Reserves
(100% basis) are reported as of 31 May 2023, as shown in Table 1.2.

Table 1.2 Summary of Mineral Reserves as of 31 May 2023

Quantity Grade Contained metal
Cut-off
Reserve category Tonnes Au Ag Pb Zn Au Ag Pb Zn
grade
(kt) (g/t) (g/t) (%) (%) (koz) (koz) (kt) (kt)
Proven 735 1.48 545 1.05 1.99 35 12,865 8 15
277 g/t
Probable 14,622 1.59 233 2.72 4.94 746 109,357 398 722
AgEq
Proven and Probable 15,356 1.58 248 2.64 4.80 781 122,221 406 736
Notes:
• CIM Definition Standards (2014) were used for reporting.
• All figures rounded to reflect the relative accuracy of the estimates. Mineral Reserves are reported at a cut-off value
based on metal price assumptions, metallurgical recovery assumptions, mining costs, processing costs, G&A costs,
sustaining capital costs, and variable trucking costs.
• NSR values are calculated as:
⎯ NSR = 30.71*Au+0.46*Ag+15.01*Pb+11.36*Zn. Units Au (g/t), Ag (g/t), Pb (%), Zn (%).
⎯ NSR factors are based on metal prices of $1,450/oz Au, $20.00/oz Ag, $0.90/lb Pb, and $1.15/lb Zn and
estimated recoveries of 75.84% Au, 87.06% Ag, 86.33% Pb, and 74.48% Zn.
⎯ Payable metal assumptions for Au are 95% for lead concentrates, and 65% for zinc concentrate; for Ag: 95%
for lead concentrates, and 70% for zinc concentrate. Lead 95% payable and zinc 85% payable.
⎯ The all-inclusive operating costs for longhole stopes and cut-and-fill stopes are $122/tonne and $150/tonne
respectively (277 g/t AgEq based on weighted average for mining method). The marginal stope cut-off value
is generally above $121/t for cut-and-fill and $93/t for longhole stopes.
⎯ Projected stope hangingwall (HW) and footwall (FW) dilution (ELOS) was included in the stope optimization
process. The dilution thickness for stope hangingwall and footwall varies by mining method.
⎯ Additional operational mucking dilution of 0.5 m for longhole and cut-and-fill stopes is applied to the Mineral
Reserve calculation. An extra endwall dilution for longhole stopes is assumed as 0.50 m.
⎯ Mining recovery factors are 95% for longhole stopes and 98% for cut-and-fill stopes. Mining recovery factor
for ore drive development is 99%. Mining recovery factor for both sill pillars and rib pillars is 0%.
⎯ Exchange rate of 19 Mexican Pesos (MXP) to US$1.
⎯ The Mineral Reserves were estimated by Fresnillo. Mr Paul Salmenmaki P.Eng. (EGBC #40227), has reviewed
the estimates and accepts QP responsibility for them.
• Totals may not compute exactly due to rounding.
• Note reported on a 100% basis and MAG Silver owns 44% of Minera Juanicipio.
Source: AMC / Fresnillo, 2023.

1.7 Geotechnical considerations

1.7.1 Rock mass characterization
The rock mass at Juanicipio was divided into four geotechnical domains based on lithology domains,
including:
• Tertiary volcanics – This domain overlies host sediments across most of the mine site.
• Cretaceous sediments - This domain is overlain by tertiary volcanics across most of the
mine site and the host rock of the mineralization, comprising predominantly sandstone, shale,
interbedded shale – sandstone, and green lava.

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• Ore veins – Juanicipio comprises two major vein systems, namely the Valdecañas vein system
and the Juanicipio vein system. Both systems strike east-southeast with an average dip of 58°
to south-west. the Valdecañas vein is the principal vein structure and consists of three zones,
with variable thicknesses (2 m to 30 m).
• Faults - There are three major steep-dipping faults identified with two intersecting the
Valdecañas vein. These faults are not expected to have a significant impact on large-scale
stability but affect ground conditions locally given their spatial orientations.

Both Bieniawski’s RMR89 (Rock Mass Rating) and Barton’s Q system have been used for the rock
mass classification for Juanicipio. In development and stoping operation to date, encountered
ground conditions have been largely aligned with those projected from the 2018 study work
geotechnical assessment. In terms of RMR89, rock qualities in the volcanic domain vary considerably
from ‘Very Poor’ to ‘Good’, which is largely associated from weathering and alteration. The fault
zones are generally ‘Poor’ to ‘Fair’. Rock qualities of the sedimentary and vein domains are typically
‘Fair’ to ‘Good’, with some ‘Very Poor’ to ‘Poor’ ground being encountered in the vicinity of faults or
shale.

1.7.2 Open stope stability

The open stope stability assessment in the 2018 study work indicated that:
• Stope wall stability would be influenced by rock mass conditions and vein dips. For typically
‘Fair’ rock mass conditions, stope hangingwalls at dips of 65° would be stable without support
for the proposed stope dimensions (20 m long by 20 m high), while stope hangingwalls at dips
of 45° to 55° were projected to be marginally stable without support. The equivalent linear
overbreak slough (ELOS) was anticipated to range from 0.5 m to 0.8 m for dipping angles
decreasing from 65° to 45°.
• Cable bolt support for wider stope spans (more than 6 m) and / or reduced effective strike
lengths (thus to reduce the hydraulic radii of stope walls) was recognized as potentially being
required to improve stope stability and control the overbreak and level of dilution for poorer
ground conditions.

In stoping operations to date, stope design criteria have been adjusted to account for differences in
ground conditions including adverse fault structures and unfavourable bedding planes of shale
encountered. Figure 1.1 presents the current geotechnical guideline of stoping and backfilling for
different rock mass conditions.

Figure 1.1 Geomechanical guideline for stoping and backfilling

Source: Juanicipio, 2024.

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Six metre long single strand Ø16 mm cable bolts on a 3 m (longitudinal) by 3.5 m (radial) staggered
pattern have been installed in the back of stopes as required; 8 m long cable bolts with the same
space pattern have been installed at the intersections of stope backs and access drives.

Cavity Monitoring System (CMS) surveying has indicated that footwall ELOS is typically less than
0.4 m, and the hangingwall ELOS is typically within the range of 0.5 m to 1.2 m. Excessive
hangingwall overbreak up to 3 - 3.5 m has been encountered in Poor rock mass conditions or due
to the adverse bedding planes of shale.

1.7.3 Ground support requirements

The geotechnical support design for Juanicipio underground mining developed during the 2018 study
work has been adjusted based on site specific experience. Table 1.3 presents the current primary
ground support requirement based on RMR89.

Table 1.3 Ground support requirements for primary support.

Support class (SC) Primary support Notes
2.4 m long fully grouted rebar (Ø16 mm) on a 1.2 m x 1.2 m
spacing, extending to 1 m (2 m for development in ore vein)
SC 1: RMR > 60
above sill.
Good to Very Good
50 mm thick shotcrete (No shotcrete is required in vein
zone)
2.4 m long fully grouted rebar (Ø16 mm) on a 1.2 m x 1.2 m
SC 2: RMR 41 – 60
spacing, extending to 2 m above sill.
Fair
50 mm thick shotcrete
2.4 m long fully grouted rebar (Ø16 mm) on a 1.2 m x 1.2 m Need for light frame (reinforced
SC 3: RMR 21 – 40
spacing, extending to 2 m above sill. rib), rigid frame (steel sets),
Poor
100 mm thick shotcrete installed in 2 layers, full coverage and cable bolt support will be
2.4 m long fully grouted rebar (Ø16 mm) on a 1.2 m x 1.2 m assessed by site geotechnical
SC 4: RMR 0 – 20 personnel based on actual
spacing, extending to 1 m (above sill.
Very Poor ground conditions.
100 mm thick shotcrete installed in 2 layers, full coverage.

Secondary support, such as cable bolts, are designed for large spans in intersections, stope backs,
and chambers if the primary support is inadequate. Cable bolt design (lengths and bolting pattern)
may vary due to local conditions (excavation dimensions, structures orientations and rock mass
qualities) and is assessed on a case-by-case basis.

Spiling is also used at Juanicipio for drifting through Poor ground to prevent unravelling causing
overbreak or large instabilities, and limit overbreak due to adverse structures. As required, 12 m
long Ø20 mm cement grouted steel bars have been used as spiles and installed above excavation
profiles on a 0.5 m spacing prior to development.

1.8 Mining concept

Previous studies considered longhole open stoping (LHOS) with waste rockfill as the preferred
mining method; however, in the wider stopes that have been identified at deeper levels, cemented
rock fill is planned to be utilized where more than one longitudinal pass is required. Some cut and
fill stoping is planned in the upper areas where the ore is thin or ground conditions are deemed
‘Poor’. The steady state production throughput is planned to be approximately 4,000 tpd.

Mineable Shape Optimizer (MSO) has been used to generate stope shapes of mineralization
projected to be economically viable. The stopes have then been checked to remove any outlying
stopes that would not be economic when the cost of access development is included. Utilizing the
selected stopes, the mine design has been updated to allow for changes in the Mineral Resource
while maintaining the same underground infrastructure and ventilation strategy as proposed in the

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2018 study work. As-built wireframes of the latest development were also provided and included in
the mine design. Any mined-out development or stopes were flagged in the model as part of the
Mineral Reserve estimation process.

The mine access is via twin declines to the top of the mineralization, with a third (conveyor) decline
that is located near the process plant in the Linares valley. The twin main declines access the
orebody before splitting into three internal ramp systems that access the ore on a 20 m sub-level
spacing, with central accesses to the vein as well as footwall drives to the extents of the
mineralization to allow placement of rock fill. Stopes 20 m high (floor to floor) are designed to be
mined from the extents back to the central access (retreat) with rock fill placed within 20 m of the
retreating face.

The three internal ramps used to access the ore are shown in a projection in Figure 1.2. Waste
accesses are developed in the footwall to provide access for backfill directly off the main ramp
systems east and west along strike.

Figure 1.2 Access development composite plan layout (over three production levels)

Note: Projection and not to scale.

Source: Fresnillo, 2023.

Truck haulage is currently used for transporting ore and waste from the mine workings to surface.
It is planned to purchase and install a conveyor in the conveyor ramp from 2024 to 2025 as the
primary life-of-mine (LOM) method for transporting ore to the process plant. Until the conveyor is
installed and fully operational, ore is continuing to be trucked to surface.

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Once the conveyor is in place, ore will be trucked to an ore pass feeding the underground crusher,
which is located on 1950 RL, from where it will be transferred to surface via the conveyor (base at
1940 RL). The decline portal for the conveyor is near the processing plant location in the Linares
valley.

All waste not placed directly in stopes has been planned to be trucked to surface via the twin main
access declines, where it will be stockpiled and later used for backfilling stopes as they are mined
out.

The ventilation system for Juanicipio is designed as a ‘pull’ system, with primary exhaust fans
located on surface at the top of each of the two primary exhaust raises. The crusher and tipple are
planned to be ducted to an exhaust raise and through to surface. The conveyor decline is planned
to exhaust both to the conveyor portal and to the crusher exhaust raise. This ensures that the
conveyor decline is ventilated independently. Fresh air is delivered into the mine from the two main
declines as well as fresh air raises from surface. Fresh air is distributed underground through the
declines as well as internal fresh air raises. Internal return air raises carried with the production
ramps connect to a dedicated exhaust airway and the return air raises to surface. The Juanicipio
mine design includes an underground workshop at 1850 RL with fuel bay, and an underground
magazine at 1920 RL. As such, some fresh air will be supplied to these areas, with the exhaust from
each location reporting to a dedicated return air raise.

Figure 1.3 is an illustration of the mine as a whole, showing the as-built development, the conveyor
route to surface, and the twin decline access ramps.

Figure 1.3 Overall mine layout

Note: Not to scale.

Source: AMC, 2024.

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During pre-production all mobile equipment for development was supplied by a contractor. Since
production has begun, stoping has been undertaken by the owner while all development has
remained with contractors. An estimate of the mobile equipment fleet requirements was developed
based on meeting the demands of the development and production schedule.

Equipment has been selected based on projected productivities, but also considering the practical
travel distances between mining zones. As the time to travel from one zone to another could be
significant, the planned fleet size for the major pieces of development and production equipment
has been based on most pieces being dedicated to a single mining zone. The haul truck fleet sizes,
however, have been based on projected ore and waste tonnages as well as the haulage distances
to each destination.

Development and production cycle times were evaluated to assist in the determination of the overall
mining fleet. A typical development cycle analysis included consideration of jumbo drilling, face
charging, mucking, scaling, and bolting, as well as intersection cable bolting, scaling, and
shotcreting as required. A typical production cycle analysis consisted of longhole drilling, stope
charging, mucking, and backfilling.

Labour requirements are based on an operating schedule of two, 12-hour shifts per day, 350 days
per year. This is reduced to approximately 17.0 effective working hours per day after considering
travel time, lunch breaks, pre-shift meetings, and other miscellaneous breaks. The workforce
estimates have been largely based on operating experience to date and on a productivity analysis
of underground activities and the physical requirements of the mine schedule. The underground
workforce, as well as geology and survey, is made up of three rotations working a 10-days on and
5-days off schedule. Other technical support staff, mining supervisors and general and
administration employees operate on a 5-day per week working schedule. The underground crew
numbers are based on the equipment requirements to complete the work as planned. Additional
personnel are included to cover absenteeism.

Personnel numbers will fluctuate over time to some extent as per the development and production
schedule requirements. Peak total for the mine at full production is estimated to be 1569, with a
maximum number on site during the day shift.

1.9 Mineral processing

The Juanicipio processing plant commenced operation in March 2023. Prior to that date, Juanicipio
ore was largely processed at the neighbouring Saucito plant.

The Juanicipio plant has a nominal capacity of 4,000 tpd and consists of a comminution circuit with
primary crushing and a semi-autogenous grinding mill and ball mill, followed by sequential flotation
to produce a silver-rich lead concentrate, then a zinc concentrate, and then a gold-silver-bearing
pyrite concentrate. Ultimately, ore crushing will be at an underground crusher, with delivery to the
mill stockpile via a conveying system that will exit the mine at the portal adjacent to the mill.

The separate lead, zinc, and pyrite concentrates are thickened, filtered, and stockpiled. Lead and
zinc concentrates are stored in separate concentrate storage areas with capacity for seven days of
operation. The shipment of concentrates is carried out from Monday to Saturday using a front-end
loader and specialized concentrate trucks, which transport the concentrates directly to a smelter or
to a port or rail system for onward shipment.

Pyrite concentrates are similarly stored, with a first successful concentrate shipment recently
achieved. The QP notes that the process to produce pyrite concentrates has been in an optimization
phase.

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Total plant feed for the plant operating period from March to December 2023 was 956,914 t.
Average grades for the period were 1.28 g/t Au, 489 g/t Ag, 1.20% Pb, 2.14% Zn, and 6.23% Fe.
Average planned grades from Juanicipio mining for the period were 1.21 g/t Au, 434 g/t Ag,
1.10% Pb, and 1.99% Zn.

Gold, silver, lead, and zinc recoveries averaged 69.4%, 87.6%, 89.9%, and 90.5%, respectively,
for the March to December 2023 period, compared to planned values of 75.8%, 87.1%, 86.3%, and
74.5%, respectively.

Commissioning and ramp-up have generally gone well, with the plant achieving designed
throughput and designed silver, lead and zinc recoveries and concentrate grades. Gold recovery has
improved as ramp-up and circuit optimization have progressed, with 71.4% being achieved in
December 2023. The QP notes that, as of February 2024, the Knelson centrifugal concentrator to
recover some of the gravity recoverable gold and silver early in the process flow is functioning, with
full implementation imminent. The QP also acknowledges the continuing testing and process
development being conducted by the plant’s operators to improve all processing aspects, including
for gold recovery, and recommends continuation of the program.

Average mill recoveries of payable metal used to estimate revenue in the financial model are
summarized in Table 1.4.

Table 1.4 Mill recoveries

Gold Silver Lead Zinc
Mill recovery 78.0% 83.8% 87.0% 72.1%

1.10 Project infrastructure

A 6.5 km access road, mostly over hilly terrain, accesses the main declines portal site from the mill,
with the plant site being connected to the main highway by a 1.4 km road. Both the 1.4 km two-lane
sealed road, which is suitable for use by heavy vehicles, and the access road to the main portals
area are fully constructed and in operation.

Power is currently supplied to a main substation at the processing site via a 115 kilovolts (kV)
overhead power line connected to the state-owned power grid. From the mill, a 13.2 kV power line
has been extended to the conveyor drive, with a similar line to the main mine portals location.
Fibre-optic cable has been installed from the mill control room to the underground mine via the
conveyor decline and via the mine overland power line, which extends past the entrance to the
conveyor decline and out to the underground mine main portal area. The fibre-optic cable fed into
the underground mine from two locations provides some redundancy and greater communications
reliability.

With completion of a Reverse Osmosis plant in 2023 and optimizing the consumption of treated
municipal wastewater, all process water requirements are satisfied through the exclusive use of
treated wastewater, thus eliminating any freshwater requirements from third parties. There are two
additional wastewater treatment plants on site to reuse service water for dust control and irrigation
of green spaces on the property. Potable water is purchased from local providers as required.

Detailed design of the tailings storage facility (TSF) for the project was undertaken by Knight
Piésold. It is estimated that the Juanicipio processing plant will produce approximately 12.2 million
tonnes (Mt) of tailings for surface storage over the anticipated mine life of approximately 13 years.
Mill tailings will be discharged to a TSF which has a total volume capacity of approximately 8.5 Mt
as currently designed. It is envisaged that the remaining required tailings storage will come from
potential deepening of the Cell 2 basin (currently being pursued), a future expansion to the TSF
through construction of an adjacent cell, and / or from a vertical raise of the dam.

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The TSF is designed for two construction and operational phases. Stage 1 will be constructed to a
crest elevation of 2,217 m above mean sea level (amsl) and will have a maximum height of
approximately 33 m. Stage 1 consists of two adjacent cells, Cell 1 to the west and Cell 2 to the
east, that share an intermediate berm between the two. When the facility is at its ultimate
configuration, Stage 2, the maximum height of the dam will be approximately 38 m, with a crest
elevation of 2,222 m amsl. The Stage 1 dam may be considered a starter dam, encircling three
sides of the geomembrane-lined tailings storage basin; the fourth side of the facility is created by
the natural hillside slope. Only the outer dam will be raised during Stage 2 construction, thus the
intermediate berm between Cells 1 and 2 will be covered with tailings during Stage 2 operations.
For both the Stage 1 and Stage 2 configurations, the upstream and downstream slopes of the dam
are designed to 2.5:1.0 H:V, with a crest width of 10 m.

The Juanicipio TSF features a homogeneous dam (i.e., non-zoned) founded upon native materials.
Following site stripping, foundation preparation consists of removing all unsuitable soil strata (i.e.,
loose, caliche-rich) until reaching a competent layer as determined by site engineers. The dam
contains a basal drainage system, consisting of a blanket drain built below the downstream portion
of the dam to control potential seepage. Seepage that reaches the blanket drain is conveyed to
collection drains along the outer perimeter of the dam, and then discharged into geomembrane-lined
collection ponds. Seepage collected in the ponds is recirculated to the TSF, to the processing plant,
or, as permitted by geochemical testing and regulations, discharged directly into the downstream
environment.

Surface water management at the TSF is facilitated primarily by two non-contact diversion channels,
one along the east side of the dam and the other along the south end and west sides of the facility.
The channels are verified to accommodate run-on from the 1,000-year storm event as required by
Comisión Nacional de Agua (CONAGUA). The east diversion channel is concrete-lined and the
south / west channel is geotextile and riprap lined to deter erosion. Both channels feature energy
dissipators at their termini prior to flow discharging into the downstream native environment. The
TSF does not contain an operational spillway as it has been designed to store rainfall and run-on
associated with the 72-hour probable maximum precipitation (PMP).

1.11 Underground infrastructure

The ore handling system is based around a nominal 4,000 tpd production capacity, approximately
equivalent to 216 tonnes per hour (tph) over a 24-hour period, based on a capacity factor of 1.3.
This allows for excess capacity in the ore handling system relative to any potential disconnection
between the mine and mill. Ore is currently trucked to surface and then to the mill stockpile. Once
the conveyor system to surface is in operation, ore transport from various mining levels will be by
truck haulage to the crusher on 1950 RL. The crushed material will then be placed on a load-out
belt that feeds the first of two sequential underground conveyors that bring the material to surface.
At surface, a third conveyor delivers the material to an 8,000 tonne capacity stockpile that is
adjacent to the mill.

Later in the mine life, an internal shaft (winze) may be considered to allow hoisting of crushed ore
from the loading pocket on 1300 RL up to the loading bin on 1950 RL. From there, the ore would
be conveyed out of the mine via the existing conveyor system. An alternative arrangement using
vertical conveyors is also being evaluated. Access to the top of the proposed winze or vertical
conveyor is already developed. The selected hoisting facility would accommodate the production
capacity of 1.4 Mtpa, with spare capacity built-in.

Development waste is either hauled to surface by trucks via the twin access declines or placed
directly into stopes as backfill. All waste hauled to surface to date is stored near the current portal
and has been largely used for construction material. As mining progresses, additional waste required

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for subsequent backfilling is planned to be delivered down a waste pass driven as close to the
deposit as practicable, and then distributed to the stopes.

Separate explosives magazines have been developed for detonators and high explosives (ANFO and
packaged emulsion explosives). The primary explosives magazine has a concrete floor and is fitted
with an overhead manual lifting system for handling bulk ANFO explosive. The explosives magazines
are located on 1920 RL.

Although the main maintenance workshop is located on surface, all major scheduled planned
maintenance and rebuilds will take place in the underground workshop. The underground workshop
is located on 1850 Level and has multiple service bays with overhead cranes. The workshop is also
being fitted with lunchroom, workstations, communications room, and emergency facilities.

Mobile electrical compressors supply compressed air for the underground operations and primary
equipment such as longhole drills have their own mobile compressors. The main compressor is
located near the No 2 fan on surface above the portals of the twin declines. Air supply to the
underground workshop is from this compressor via the main decline.

Refuge station chambers with 30-person capacity are used for emergencies; these chambers are
portable for flexibility of location at the most appropriate areas of the mine.

The groundwater inflow into the mine was estimated using pre-drilling ahead of ramp development.
SRK conducted the groundwater studies and provided the predrilling program. There are two
temporary pump stations already in operation that together can handle 2,500 gallons per minute
(gpm). The main pump station on 1850 Level has three pumps installed with a fourth available on
stand-by. The current capacity is 5,000 gpm. A second permanent pump station is planned for
1650 Level that will pump to the 1850 Level station. A further main pump station is planned for the
bottom of the mine (1250 Level) with a capacity of 2,500 gpm. It is estimated that the current and
planned pump stations should provide sufficient capacity for the life of the mine.

The overall plan for handling groundwater is an advanced dewatering strategy that will largely
depend on accessing the lower levels of the mine well ahead of stope production. This early
development approach provides a means for installing a series of dewatering holes and sumps that
will dewater sections of the mine prior to production mining. The risk of flooding will be partially
mitigated by this early development strategy and by the provision of spare pumping capacity.

In 2023, the majority of Juanicipio process and operational water requirements was sourced from
dewatering underground workings, with the water used primarily for mine development and dust
control. Juanicipio also purchased potable well water from third parties for mine development and
domestic use.

1.12 Environmental, permitting, and social aspects

Environmental investigations included baseline assessments and initial studies required under
Mexican Environmental Laws, inclusive of a Regional Environmental Impact Statement (MIA-R).

The mine is in a region that hosts several significant mining operations where the community is
accustomed to mining activities. The QP is not aware of any environmental permitting or licensing
requirements to which the Property has been or will be subject other than the normal mine
permitting and licensing requirements as set forth by the Mexican Government.

Fresnillo, on behalf of Minera Juanicipio, has confirmed that the project does not have any
environmental obligations or liabilities identified to date.

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Key permits and licenses for the project are in place and Fresnillo has indicated that all the land
included in the design and operation of the Juanicipio mine has been purchased. There is no further
expected requirement in this regard.

Climate change aspects were not specifically addressed in the Mineral Reserve estimation, but the
QP considers that, for Juanicipio, any impacts would not have a material effect.

1.13 Project development and production schedule

Underground production of mineralized development material at Juanicipio commenced in the third
quarter of 2020 and commercial production was declared in mid-2023. Mine operations are still in
a ramp-up stage.

Nameplate processing capacity of 4,000 tpd was achieved in Q3 2023, with mine ore production
averaging about 3,700 tpd in the latter part of the year (approximately 1.3 Mtpa). Optimization and
efficiency improvements are to be worked on in 2024.

The productivity assumptions used for scheduling are shown in Table 1.5.

Table 1.5 Productivity assumptions

Activity Unit Value
Ramp development rate m/month 90
Lateral development rate m/month 50
Vertical development and surface raises m/month 200
Stope production (longhole stopes) t/day/stope 850
Stope production (cut and fill stopes) t/day/stope 850
Backfill t/day/stope 350
Source: Fresnillo, 2023.

All scheduling is carried out using Enhanced Production Scheduling (EPS) software. During the EPS
scheduling, additional dilution ranging from 1% to 5% for mucking and other sources, as well as
mining recovery factors are applied (95% for longhole stoping and 98% for cut and fill). Stopes are
then checked for economic viability (above cut-off) and any uneconomic stopes removed from the
mine plan and Mineral Reserve estimate.

The EPS production schedule is summarized in Table 1.6. The schedule provides a sequence of
mining events that are driven by defined constraints. The QP notes that, for the Juanicipio Economic
Analysis, the EPS schedule has been adjusted to include actual values for 2023. The QP also notes
that, for the LOM total values, there are only minor and non-material differences between those in
the Ore Reserve estimate and those in the production schedule.

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Table 1.6 EPS production schedule by year

Description 2023 2024 2025 2026 2027 2028 2029
Ore tonnes (t) 360 1,285 1,303 1,294 1,300 1,318 1,297
Au (g/t) 1.26 1.45 1.50 1.59 1.53 1.93 1.65
Ag (g/t) 620 403 373 300 287 198 155
Pb (%) 1.62 1.44 1.57 2.18 3.09 3.46 3.03
Zn (%) 3.27 2.76 2.70 3.71 5.10 6.15 5.39
Fe (%) 6.67 6.46 6.77 7.33 6.88 6.54 6.76
Description 2030 2031 2032 2033 2034 2035 Total
Ore tonnes (t) 1,308 1,309 1,308 1,302 1,272 702 15,356
Au (g/t) 1.61 1.66 1.61 1.51 1.37 1.72 1.58
Ag (g/t) 198 169 200 245 135 172 248
Pb (%) 2.97 2.65 2.82 3.13 2.72 3.11 2.64
Zn (%) 4.89 5.20 4.92 5.75 5.87 6.15 4.80
Fe (%) 6.65 6.56 6.58 6.10 5.39 6.38 6.54
Source: Fresnillo, 2023.

1.14 Project capital costs

AMC completed a capital cost estimate as part of the 2018 study work. Since then, Fresnillo has
advanced the project through detailed engineering, project construction, and initial mine
development and stoping leading to achievement of commercial production in mid-2023. Internal
estimates for the remaining Juanicipio capital, inclusive of sustaining capital and as of 31 May 2023,
total $453M. A summary of projected capital costs is shown in Table 1.7.

Table 1.7 Summary of projected capital costs

Area Total ($M)
Total remaining project capital costs 40
Total sustaining capital costs 413
Total LOM capital 453
Note: Numbers may not compute exactly due to rounding.

1.15 Site operating costs

The operating costs used for the evaluation of project economics are based on actual operating
costs and benchmark costs for similar operations in the area. Average LOM operating costs from
the latest cost model for the 2023 Mineral Reserves are summarized as follows:
• Mining - $63.32/t ore
• Processing - $12.15/t ore
• General and Administration- $10.38/t ore
• Total operating cost - $85.85/t ore

For cut-off purposes, the average cut-off values used were $122/t for longhole stopes and $150/t
for cut-and-fill stopes to also cover the LOM sustaining capital costs for mining, processing, and
G&A; and the operating management fee (totaling $36/t). Similarly, marginal cut-off values
generally above $93/t for longhole stopes and $121/t for cut-and-fill stopes were used.

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1.16 Offsite costs (concentrate transport, treatment, and refining costs)

Market contracts are in place for the Juanicipio ore. Lead and zinc treatment charges of $198/dry
metric tonne (dmt) concentrate and $320/dmt concentrate, respectively, are applied. Freight costs
are $37/wet metric tonne (wmt) and $36/wmt for the lead and zinc concentrate, respectively.
Refinery costs of $17/oz for gold and $1/oz for silver are also incorporated into the NSR calculations.

A first delivery of pyrite concentrate to an overseas buyer was recently achieved. The terms for that
shipment included payment for 50% of the final silver and gold content in the concentrate. The
same terms have been assumed for the economic assessment in the Technical Report.

1.17 Taxes
The tax provisions include a conventional profit-based tax using the 30% corporate tax rate
currently in effect. A 7.5% special mining duty is applied on earnings after allowable expenses and
before taxes, and a 0.5% gross revenue royalty is applied on all gold and silver revenues.

1.18 Projected sales

Project economics have been assessed using the following metal prices, which were selected after
discussion with Fresnillo and MAG Silver representatives and referencing current market and recent
historical prices, values used in other recent mineral projects reporting on SEDAR, and forecasts in
the public domain:
• Silver price = $22.00/oz
• Gold price = $1,750/oz
• Lead price = $1.00/lb
• Zinc price = $1.15/lb

Existing terms of current concentrate sale agreements have been assumed for the economic
assessment. For the purposes of this report, it is assumed that all lead, zinc, and pyrite concentrates
over the LOM are transported to Torreón, Mexico for smelting.

1.19 Economic analysis

All dollar values are considered constant and are in US dollars ($) unless otherwise stated. The cost
estimate was prepared with a base date of Year 1 (2023) and use constant Year 1 dollars (no
inflation). For net present value (NPV) estimation, all costs and revenues are discounted at 5% from
the base date. An exchange rate of MXP19:US$1, a corporate tax rate of 30%, special mining duty
of 7.5%, and 0.5% gross gold and silver revenue royalty have been assumed.

To facilitate assessment of economic viability, production physicals from the EPS schedule as of
31 May 2023 were uploaded into a simplified economic model. The start date for the economic
analysis is 1 June 2023, with all discounted metrics reflecting that start date. For simplicity, the
period June to December of 2023 is treated as a full year when applying discounting. The economic
model includes current estimates for LOM capital and operating costs. 2023 ore production and
operating cost values in the economic model are ‘Actuals’ from June to December as indicated by
Minera Juanicipio monthly reports. The results of the analysis show that the project continues to
maintain positive and robust economics.

Table 1.8 provides a summary of the key inputs and results of the economic analysis. Over a 13-year
operating life, the mine is projected to generate approximately $1,656M pre-tax NPV and $1,224M
post-tax NPV at 5% discount rate.

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Table 1.8 Key inputs and results of economic analysis

Juanicipio deposit Unit 2023 LOM evaluation
Total ore kt 15,356
Gold grade 1
g/t 1.58
Silver grade1 g/t 248
Lead grade 1
% 2.64
Zinc grade1 % 4.80
Gold recovery 1
% 84.4
Silver recovery1 % 86.6
Lead recovery1 % 86.8
Zinc recovery 1
% 72.3
Gold price $/oz 1,750
Silver price $/oz 22.00
Lead price $/lb 1.00
Zinc price $/lb 1.15
Gross revenue $M 4,879
Selling costs2 $M 773
Management fee $M 158
Capital costs $M 453
Operating costs (total) 3
$M 1,318
Operating costs (total)3 $/t 85.85
Cumulative pre-tax net cash flow 4
$M 2,116
Cumulative post-tax net cash flow4 $M 1,570
Pre-tax NPV @ 5% discount rate5 $M 1,656
Post-tax NPV @ 5% discount rate 5
$M 1,224
Notes:
• Numbers may not compute exactly due to rounding.
• Exchange rate MXP19:US$1. Metal prices: gold - $1,750/oz; silver 22/oz; lead - $1.00/lb; zinc - $1.15/lb.
1
LOM average recoveries to concentrates.
2
Selling costs include penalties, treatment, transportation, and refining costs.
3
Includes mine operating costs, milling, and mine G&A.
4
Undiscounted from 1 June 2023. Cash flow after employee profit sharing benefit (PTU).
5
Discounted from 1 June 2023. Depreciation expenses of $453M (for the remaining project and sustaining capital), and sunk
costs of $840M (prior to 31 May 2023) are recognized in the tax calculations.

1.20 Interpretations, conclusions, and recommendations

1.20.1 Drilling
In the opinion of the QP, the drilling strategy and procedures used by Fresnillo on the Juanicipio
Property conform to generally accepted industry best practices and are suitable for this deposit. The
drilling information is sufficiently reliable, and the drilling pattern is sufficiently dense to interpret
with confidence the geometry and the boundaries of silver, gold, zinc, and lead mineralization in
the Valdecañas vein system and the Juanicipio vein. All diamond drillcore sampling has been
conducted by appropriately qualified personnel under the direct supervision of appropriately
qualified geologists.

The QP is not aware of any drilling, sampling, or recovery factors that could materially impact the
accuracy and reliability of diamond drilling results from the Valdecañas vein system or the Juanicipio
vein.

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1.20.2 Sample preparation, analyses, and security - QAQC recommendations

Fresnillo has recently implemented a Quality Assurance and Quality Control (QAQC) program that
combines key elements to monitor accuracy, precision, and sample contamination during sample
preparation and analysis. The QP makes the following recommendations for future QAQC programs:
• General QAQC
⎯ Increase insertion rates for all QAQC sample types as necessary to meet industry
standards and develop a procedure to ensure that QAQC samples are included in each
batch of samples submitted to the laboratory.
⎯ Create a standard operating procedure (SOP) that outlines the actions to be taken for
QAQC failures.
⎯ Establish a ‘table of failures’ that documents warnings, failures, and remedial actions
taken for all QAQC sample types.
• Standard reference materials
⎯ Insert additional SRMs to cover a wider range of grades. For each economic metal, the
QP recommends the use of SRMs with values at the approximate cut-off grade of the
deposit, at the approximate expected grade of the deposit, and at a higher grade. The
current suite of SRMs used at Juanicipio do not cover the approximate expected Au, Ag,
or Zn grades, and an SRM with a Zn grade higher than the approximate expected grade
of the deposit is not used. Additional SRMs should be used that cover these values.
⎯ Plot SRM data over time to check for potential bias and instrumental drift.
⎯ Review SRM results using control charts as well as on a batch-by-batch basis. Re-assay
sample batches where the SRM value is greater than three standard deviations from the
expected value declared on the assay certificate. Investigate sample batches containing
consecutive SRMs with results outside of two standard deviations of the expected value.
⎯ Ensure that insertion rates for SRM samples meet industry standards (5 –6%).
• Blank samples
⎯ Establish a protocol for the remedial action to be taken to address sample batches with
failed blanks.
⎯ Adjust sampling procedures so that blank samples are included immediately after visible
high-grade mineralization.
⎯ Consider adding coarse blank material to the QAQC sample suite. This would allow for
better monitoring of contamination during sample preparation.
⎯ Consider inserting blank material that is certified for Ag, Pb, and Zn. Contamination is
currently only monitored for Au, but it is important to monitor contamination for all
analytes given their high grades.
⎯ Consider reducing the blank failure limit to 2x lower limit of detection (LLD).
• Duplicate samples
⎯ Develop a procedure that allows for selection of the majority of duplicate samples from
visibly mineralized zones that are likely to exceed 15x LLD.
⎯ Request detail on the pulp sub-sampling process to understand possible sampling errors.
⎯ Submit duplicate samples in the surface diamond drill sample stream. All QAQC sample
types should be submitted for all sample streams to ensure that the data can be properly
assessed.
• Umpire samples
⎯ Include SRM and pulp blank samples with umpire sample submissions. Ensure that these
SRM and blank samples are identified as umpire QAQC samples in the database so that
they can be reviewed independently of other SRMs and blanks.

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⎯ Submit umpire samples in the mine diamond drill sample stream.

⎯ All QAQC sample types should be submitted for all sample streams to ensure that the
data can be properly assessed.

1.20.3 Sample preparation, analyses, and security - Conclusions

The QP considers sample preparation and analytical and security protocols employed by Fresnillo to
be acceptable. The QP has reviewed the QAQC procedures used by Fresnillo including certified
reference materials, blank, duplicate and umpire data and has made some recommendations. The
QP does not consider these to have a material impact on the Mineral Resource estimate and
considers the assay database to be adequate for Mineral Resource estimation.

1.20.4 Data verification

The QPs consider the assay database to be acceptable for Mineral Resource estimation.

1.20.5 Mineral Resources interpretation and conclusions

Six veins have been estimated. All are classified as Inferred except for portions of the Valdecañas
vein, which have been classified as Measured and Indicated. The development of the underground
operation with dense drilling and underground sampling has enabled the classification of Measured
Resources on this vein for the first time. Measured material consists of 8.5% of the Measured and
Indicated material on this vein.

Since the last Mineral Resource reported by MAG Silver 2018, Measured and Indicated tonnes have
increased by 32.5%. Average LOM silver grades have decreased by 27.4% and average gold grades
have decreased by 11.4%; average lead and zinc grades have increased by 37.0% and 44.6%
respectively. This reflects additional drilling in the lower, more base-metal-rich part of the deposit.

Inferred tonnes increased by 15.8%. In the Inferred category, silver grades have increased by
1.7%, lead grades have decreased by 2.0% and zinc grades have increased by 30.8%. The gold
grades decreased in the Inferred Resource by 26.4%.

In regard to the management of the current Mineral Resource, reconciliation from the resource
model to the short-term model and to what is actually produced is recommended to be pursued
further.

1.20.6 Mineral Resource estimate recommendations

• Use estimation parameters that ensure a minimum of two samples and two drillholes inform
each block for the Venadas and Juanicipio veins.
• Evaluate and document the effect of the inclusion of channel samples on the grade estimates.
• Carry out reconciliation between production and local estimates.
• Assess method to more clearly demonstrate reasonable prospects for eventual economic
extraction.
• To give greater certainty to the plan, carry out in-fill drilling prior to the delimitation of the
production stopes and, as far as possible, achieve a distance between holes of 35 to 50 m.
• Ensure that geology is incorporated in any detailed short-term modelling and delineation.
• Continue drilling to depth in the Valdecañas veins.
• Continue drilling from the upper part of the Ramal 1 development to confirm vein continuity.

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These items would be budgeted as part of the mine operating costs.

Recommended exploration work is shown below in Table 1.9, along with estimated costs. The work
is to be carried out by two groups: Operations and Exploration.

Table 1.9 Proposed program and cost estimate

Activity Proposed program Metres Cost (US$)
Underground Drilling Operational division 33,000 3,017,000
Other Expenses 104,000
Assay 564,000
Other 174,000
Surface Drilling Exploration division 17,000 3,548,000
Other expenses 666,000
Assay 186,000
Total 50,000 8,258,000
Note: Totals may not compute exactly due to rounding.

1.20.7 Mineral Reserve estimate interpretations, conclusions, and recommendations

Mineral Reserves are reported at an NSR cut-off value of $122 for longhole stoping and $150 for
cut and fill. Mineral Reserves are based only on Measured or Indicated Resources. The total Proven
and the Probable Mineral Reserves are:
• 15.36 Mt at average grades of 1.58 g/t Au, 248 g/t Ag, 2.64% Pb, and 4.80% Zn.

Relevant dilution and mining recovery factors have been applied in the estimation of Mineral
Reserves.

The QP considers that the Reserves for Minera Juanicipio as stated herein are consistent with
industry standards and are suitable for public reporting purposes.

In regard to the Mineral Reserves, the following recommendations are made:

• Consider streamlining the cut-off grade (COG) definition process. The QP considers the
estimation process for COG that uses a variable trucking cost component to be relatively
complex, without making a material difference.
• Mining operations are ramping up to full production. It is recommended that full
acknowledgement be given to actual costs for steady-state operations going forward.
• Recognizing that the mine is now milling ore through the Juanicipio plant, it is recommended
that process recoveries specific to plant steady-state operation are well recorded and are used
in future Mineral Reserve estimation.

1.20.8 Mining interpretation, conclusions, and recommendations

• The mine is accessed by two main declines and a conveyor decline. Procurement and
installation of the conveyor in the decline will occur in 2024 to 2025.
• Mechanized longhole stoping with waste backfill has been selected as the main mining method.
Some cut and fill stopes are planned for thinner veins or Poor ground conditions.
• Trade-off studies have identified that conveying the ore directly to the process plant from
underground is economically and operationally advantageous compared to other
arrangements.

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• Evaluation of the production rate and scheduling indicates that the deposit supports a plan of
approximately 4,000 tpd.
• All waste will be tipped directly into stopes or trucked to surface. There will be a deficit in the
amount of waste required for backfilling estimated to be 4.2 Mt. It is assumed that additional
waste will be mined from a small surface pit and dropped down a waste pass for distribution
to the stopes.
• Approximately 15.4 Mt of ore is projected to be mined and processed over the currently
envisaged mine life of 13 years.
• Initial development and all development over the mine life has been or will be completed by
contractors. All stoping operations will be completed by the owner - this includes all waste
rock filling.
• Blasting will be undertaken primarily with ANFO and non-electric detonators. In conditions
that are wet, package emulsion explosives will be utilized.
• The ventilation system for Juanicipio is designed as a ‘pull’ system with primary exhaust fans
located on surface at the top of each primary exhaust raise.
• With the infrastructure airflow and leakage and balancing allowances the total airflow
determination based on the projected diesel fleet size is 550 m 3/s, whilst currently, 491 m³/s
is being circulated.
• The mine is using modern trackless mobile equipment for the development and stoping
operations.
• The peak number of personnel is projected to be 1,569, inclusive of a peak number for
contactor employees projected to be 1,056. Labour requirements are based on an operating
schedule of two, 12-hour shifts per day, 360 days per year.
• The underground workforce, as well as geology and survey, is made up of three rotations
working a 10-days on (5-day shifts and 5-night shifts) and 5-days off rotation. Other technical
support staff, mining supervisors and general and administration employees work a 5-day per
week schedule.
• An underground waste materials balance study is recommended to further assess options for
the backfill deficit.
• A backfill study is recommended to further assess options for pillar recovery and tailings
disposal.
• As the planned strategy for ventilation of the conveyor and crusher has recently changed, a
review is recommended to confirm the overall ventilation strategy for the medium to long
term.

1.20.9 Geotechnical
In regard to geotechnical aspects, the following recommendations are made:
• Conduct stope reconciliation and identify the root cause of overbreak and underbreak and
optimize future stoping design criteria.
• Focus on drilling and blasting practices to minimize the blasting effects of overbreak and
dilution.
⎯ Optimize drill and blasting design, particularly for Poor ground and adverse structures.
⎯ Develop and implement a robust QAQC procedure to improve drilling accuracy and
blasting quality.
⎯ Improvements to drilling and blasting with stand-off of approximately 1.0 m from the.
CMS fill shape will reduce the blast damage dilution and increase the stability of the
exposed fill.

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• Before assessing stability of future raises and required support, specific geotechnical drilling
should be undertaken along the centreline of the selected sites and a thorough analysis of
rock mass and discontinuity properties should be made. A detailed core logging program would
be an integral part of each raise assessment.
• Ground improvement options should be considered for raise stability, as required.
• Update Ground Control Management Plan (GCMP) to reflect the current ground control
practices at Juanicipio. All key aspects of lithology, structures (major and minor), geotechnical
model, rock mass characterization, geotechnical design criteria for ground support and stope
design, monitoring and QAQC should be included in the GCMP.
• Optimize ground support and improve ground support design particularly for Poor ground.
⎯ Consider replacing mesh and plain shotcrete with fibrecrete to increase productivity and
cost reduction.
⎯ Improve configurations for reinforced rib shotcrete (light frame) and spiling.

1.20.10 Infrastructure interpretation, conclusions, and recommendations

• A 6.5 km access road, mostly over hilly terrain, accesses the underground main declines portal
area from the mill, with the plant site being connected to the main highway by a 1.4 km road.
• Power supply is to a main substation at the plant site via a 115 kV overhead power line from
a pre-existing power line located to the north of the Property.
• Service water is generated at site by reverse osmosis process. Raw sewage water is treated
on site prior to use.
• Potable water is purchased from local providers as required.
• All mill tailings will be discharged to the TSF, which has a total projected volume of
approximately 8.5 Mt in its ultimate configuration. Stage 1 – Cell 1 of the TSF is currently in
operation with limited remaining capacity. Stage 1 – Cell 2 of the structure is partially
constructed and will be finished when the necessary permit is obtained. During the period in
which Cell 1 is at maximum storage capacity and Cell 2 construction has not been finished,
tailings from the Juanicipio processing plant will be pumped to the neighbouring mine TSF.
Stage 2 will be constructed following the construction of Stage 1 – Cell 2, providing additional
storage capacity via a downstream raise of the dam. The remaining estimated requirement
for an additional 3.7 Mt of tailings storage will come from an expansion to the TSF via a vertical
raise or an additional cell.
• Dewatering will be via two main pump stations capable of handling 5,000 gpm. Drilling ahead
of the advancing ramps has indicated no major water bearing structures. It is estimated that
this should be sufficient capacity for the life of the mine.
• The risk of flooding will be partially mitigated by this early development strategy and by the
provision of spare pumping capacity.
• Mobile compressors supply compressed air for underground operations, and primary
equipment, such as longhole drills, have their own mobile compressors. The main compressor
is located near the No 2 fan on surface above the main portal area and twin declines.

The QP considers that current infrastructure and plans for future additions and adjustments are
appropriate to support the Juanicipio Mineral Reserves and their extraction.

In regard to infrastructure, the following recommendations are made:

• Consider opportunities to optimize the materials handling system for deeper ore with an aim
of reducing operating costs.
• Continue with advanced dewatering of the orebody to reduce the amount of heat introduced
to the mine workings from ingress of hot groundwater.

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• Consider all options for necessary expansion of TSF capacity, with work to be completed in a
timeframe that matches tailings disposal requirements.

1.20.11 Mineral processing interpretations, conclusions, and recommendations

AMC visited Juanicipio in February 2024 and conducted an inspection of the Juanicipio plant. The
facility was observed to be clean, well maintained and being operated in a safe and orderly manner.
A site-wide maintenance record-keeping, planning and execution system utilizing industry standard
software is fully implemented.

The designed throughput rate for the Juanicipio plant is 4,000 tpd. Daily averages increased during
the commissioning and ramping up of the new plant and have demonstrated achievement of
designed performance.

Total gold recovery (before payables adjustment) averaged 69.4% for March to December 2023
compared to the planned value of 75.8%. However, recoveries have improved as ramp-up and
optimization of plant circuits have progressed, with gold recovery (inclusive latterly of some gravity
gold) in December 2023 averaging 71.4% (silver at 89.0%, lead at 93.5%, zinc at 94.9%).

Total recoveries for March to December 2023 (before payables adjustment) for silver, lead and zinc
exceeded plan:
• Silver recovery averaged 87.6% compared to the planned value of 87.1%.
• Lead recovery averaged 89.9% compared to the planned value of 86.3%.
• Zinc recovery averaged 90.5% compared to the planned value of 74.5%.

Excluding the start-up month of March 2023, lead content of lead concentrate exceeded the planned
value of 33.75% and ranged from 38% to 52%. Zinc content was generally in the planned range
from 4.84% Zn to 12.0% Zn and ranged from 7% to 14%.

Excluding the start-up month of March 2023, zinc content of zinc concentrate exceeded the planned
value of 49.71% and ranged from 49% to 53%. Lead content generally met the planned limit of
1.31%.

Commissioning and ramp-up have generally gone well, with the plant achieving designed
throughput and designed silver, lead and zinc recoveries and concentrate grades. AMC
acknowledges the continuing testing and process development being conducted by the plant’s
operators to improve all processing aspects, including for gold recovery, and recommends
continuation of the program.

The pyrite circuit has initially been in an optimization phase, with delivery to, and acceptance of a
first pyrite concentrate shipment by, an off-shore purchaser recently achieved.

1.20.12 TSF interpretations, conclusions, and recommendations

Detailed design of the TSF for the project has been undertaken by Knight Piésold. It is estimated
that the Juanicipio processing plant will produce approximately 12.2 Mt of tailings for surface storage
over an anticipated mine life of approximately 13 years. Mill tailings will be discharged to the TSF,
which has a total volume capacity of approximately 8.5 Mt, as currently designed. The remaining
required tailings storage will come from potential deepening of the Cell 2 basin, a future expansion
to the TSF through construction of an adjacent cell, and / or a vertical raise of the dam.

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The TSF is designed for two construction and operational phases, denoted Stages 1 and 2. Stage 1
will be constructed to a crest elevation of 2,217 m amsl and will have a maximum height of
approximately 33 m. When the facility is at its ultimate configuration, Stage 2, the maximum height
of the dam will be approximately 38 m, with a crest elevation of 2,222 m amsl. The Stage 1 dam
may be considered a starter dam, encircling three sides of the geomembrane-lined tailings storage
basin; the fourth side of the facility is created by the natural hillside slope. The final facility will be
completed via a 5-m downstream raise of the Stage 1 dam, known as Stage 2. For both the Stage
1 and Stage 2 configurations, the upstream and downstream slopes of the dam are designed to
2.5:1.0 H:V with a crest width of 10 m.

The Juanicipio TSF features a homogeneous dam (i.e., non-zoned) founded upon native materials.
Following site stripping, foundation preparation consists of removing all unsuitable soil strata (i.e.,
loose, caliche-rich) until reaching a competent layer as determined by site engineers. The dam
contains a basal drainage system, consisting of a blanket drain built below the downstream portion
of the dam to control potential seepage. Seepage that reaches the blanket drain is conveyed to
collection drains along the outer perimeter of the dam, and then discharged into geomembrane-lined
collection ponds. Seepage collected in the ponds is recirculated to the TSF, to the processing plant,
or, as permitted by geochemical testing and regulations, discharged directly into the downstream
environment.

Surface water management at the TSF is facilitated primarily by two non-contact diversion channels,
one along the east side of the dam and the other along the south end and west sides of the facility.
The channels are verified to accommodate run-on from the 1,000-year storm event as required by
CONAGUA. The east diversion channel is concrete-lined and the south / west channel is geotextile
and riprap lined to deter erosion. Both channels feature energy dissipators at their termini prior to
flow discharging into the downstream native environment. The TSF does not contain an operational
spillway as it has been designed to store rainfall and run-on associated with the 72-hour PMP.

In regard to the TSF, the following interpretations, conclusions, and recommendations are provided:
• Commitment is required for a TSF design expansion or new TSF facility for disposal of the
projected 3.7 Mt of tailings additional to the current TSF capacity.
• Site investigation work completed in 2023 indicated that the excavation of the Cell 2 tailings
basin could be deepened to provide additional tailings storage and produce sufficient fill for
the Stage 2 raise of the TSF. Conceptual engineering of the deepened Cell 2 basin by Knight
Piésold suggests that more than a year of additional tailings storage could be added to the
TSF. The QP notes that detailed engineering of the Cell 2 basin deepening has been authorized
by Minera Juanicipio.
• Cell 2 tailings basin deepening will only partially alleviate the requirement for additional TSF
sufficient storage capacity to meet the life of mine tailings production. It is envisaged that the
remaining required tailings storage will come from an expansion to the existing Juanicipio TSF
through construction of an adjacent cell and / or from an additional raise of the dam. The QP
recommends timely investigation, design, and planning for these options.

1.20.13 Economics interpretation, conclusions, and recommendations

The economic assessment indicates strong economic viability for the Juanicipio Project. Over a
13-year operating life, the mine is projected to generate approximately $1,656M pre-tax NPV and
$1,224M post-tax NPV at 5% discount rate. Operating costs used for the economic evaluation are
based on actual operating costs and benchmark costs for similar operations in the area. Total
remaining capital expenditure is estimated at $453M.

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The QP has reviewed the overall economics for Juanicipio and provides the following related
recommendations:
• Maintain focus on achieving steady-state operations as soon as practicable to achieve full
financial and operational benefit.
• Complete construction of the planned conventional conveyor as soon as practicable to
minimize operating costs and assist in maintaining production and mill feed targets.
• Re-evaluate the usage of vertical conveyors or other viable materials handling options as the
mine goes deeper.
• Further drilling and investigation work aimed at upgrading Inferred Mineral Resources is
recommended to consolidate the design basis for the project and, in particular, plans for long
term ore handling.

1.20.14 Risks
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There
is a degree of uncertainty attributable to the estimation of Mineral Resources. There are considerable
Mineral Reserves estimated based on the Measured and Indicated Resources available, which
substantially reduces the risk. However, until Mineral Resources are actually mined and processed,
the quantity of mineralization and grades must be considered as estimates only. Any material
change in quantity of resources, mineralization, or grade may affect the economic viability of the
project.

Increasing operating costs may lead to a reduction in the economically viable Mineral Reserves and
could, therefore, affect overall project economics. Careful attention to cost containment and
optimization should be considered during operations.

Ground control and appropriate ground support regimes must always be at the forefront of the mine
operating and management focus, and particularly in Poor ground areas and / or where faults are
anticipated to be encountered.

1.20.15 Opportunities for further consideration currently excluded from project scope
Potential opportunities for the project include:
• Inferred Mineral Resources have the potential to be converted to Indicated Mineral Resources
through additional exploration work, some of which can be converted through near-term infill
drilling.
• Significant exploration potential exists within a large land package and a number of high
priority drill targets.
• The Valdecañas vein system is largely open at depth.
• The Juanicipio vein is open to the west and to depth for further exploration.

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Contents
1 Summary ..............................................................................................................ii
1.1 Introduction ...................................................................................................ii
1.2 Location ....................................................................................................ii
1.3 Geology and mineralization ..............................................................................ii
1.4 Exploration and drilling ................................................................................... iii
1.5 Mineral Resource estimates ............................................................................. iii
1.6 Mineral Reserves ........................................................................................... v
1.7 Geotechnical considerations ............................................................................ v
1.7.1 Rock mass characterization ............................................................. v
1.7.2 Open stope stability ....................................................................... vi
1.7.3 Ground support requirements ......................................................... vii
1.8 Mining concept ............................................................................................. vii
1.9 Mineral processing ......................................................................................... x
1.10 Project infrastructure ..................................................................................... xi
1.11 Underground infrastructure ............................................................................ xii
1.12 Environmental, permitting, and social aspects ................................................. xiii
1.13 Project development and production schedule ................................................. xiv
1.14 Project capital costs ...................................................................................... xv
1.15 Site operating costs ...................................................................................... xv
1.16 Offsite costs (concentrate transport, treatment, and refining costs) ................... xvi
1.17 Taxes ................................................................................................. xvi
1.18 Projected sales ............................................................................................ xvi
1.19 Economic analysis ........................................................................................ xvi
1.20 Interpretations, conclusions, and recommendations ........................................ xvii
1.20.1 Drilling ...................................................................................... xvii
1.20.2 Sample preparation, analyses, and security - QAQC recommendationsxviii
1.20.3 Sample preparation, analyses, and security - Conclusions ................. xix
1.20.4 Data verification .......................................................................... xix
1.20.5 Mineral Resources interpretation and conclusions ............................. xix
1.20.6 Mineral Resource estimate recommendations .................................. xix
1.20.7 Mineral Reserve estimate interpretations, conclusions, and
recommendations ......................................................................... xx
1.20.8 Mining interpretation, conclusions, and recommendations .................. xx
1.20.9 Geotechnical ............................................................................... xxi
1.20.10 Infrastructure interpretation, conclusions, and recommendations ...... xxii
1.20.11 Mineral processing interpretations, conclusions, and recommendationsxxiii
1.20.12 TSF interpretations, conclusions, and recommendations ...................xxiii
1.20.13 Economics interpretation, conclusions, and recommendations.......... xxiv
1.20.14 Risks ......................................................................................... xxv
1.20.15 Opportunities for further consideration currently excluded from project
scope ........................................................................................ xxv
2 Introduction .........................................................................................................39
2.1 Purpose ..................................................................................................39
2.2 Terms of reference ........................................................................................39
2.3 Qualification of authors ..................................................................................40
2.4 Sources of information ..................................................................................40
2.5 Units of measure and currency .......................................................................41
3 Reliance on other experts ......................................................................................42
4 Property description and location ............................................................................43
4.1 Land tenure .................................................................................................43

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4.2 Royalties and taxes .......................................................................................43

5 Accessibility, climate, local resources, infrastructure, and physiography ......................46
5.1 Accessibility .................................................................................................46
5.2 Climate ..................................................................................................46
5.3 Local resources ............................................................................................46
5.4 Infrastructure ...............................................................................................46
5.5 Physiography ...............................................................................................46
6 History ................................................................................................................47
6.1 Previous ownership .......................................................................................47
6.2 Exploration history ........................................................................................47
6.3 Previous Mineral Resource estimates ...............................................................47
6.4 Production ..................................................................................................48
7 Geological setting and mineralization ......................................................................49
7.1 Regional geology ..........................................................................................49
7.2 Property geology ..........................................................................................51
7.2.1 Mesozoic rocks .............................................................................51
7.2.2 Tertiary igneous rocks ...................................................................51
7.2.3 Upper Tertiary rocks ......................................................................52
7.2.4 Structural geology .........................................................................52
7.2.5 Mineralization ...............................................................................56
7.2.5.1 Valdecañas vein system .....................................................56
7.2.5.2 Venadas vein ....................................................................59
7.2.5.3 Styles of mineralization ......................................................60
7.2.5.4 Other known mineralization ................................................60
8 Deposit types .......................................................................................................61
9 Exploration ..........................................................................................................63
9.1 Surface exploration .......................................................................................63
9.2 Underground channel sampling.......................................................................65
10 Drilling ................................................................................................................67
10.1 Introduction .................................................................................................67
10.1.1 Mag Silver (2003 - 2005) ...............................................................68
10.2 Fresnillo (2005 - 2023) ..................................................................................68
10.3 Surveying and drilling procedures ...................................................................68
10.4 Drilling pattern and hole density .....................................................................68
10.5 Discussion on drilling programs ......................................................................69
10.5.1 Valdecañas vein system .................................................................69
10.5.2 Juanicipio vein ..............................................................................70
10.5.3 Venadas vein ................................................................................72
10.6 Comments ..................................................................................................73
11 Sample preparation, analyses, and security .............................................................74
11.1 Sample Preparation and security by operator ...................................................74
11.1.1 MAG Silver (2005) ........................................................................74
11.1.2 Fresnillo (2005 - 2023) ..................................................................74
11.2 Bulk density data ..........................................................................................75
11.3 QAQC procedures .........................................................................................76
11.3.1 Standard reference materials .........................................................79
11.3.1.1 SRMs overview ..............................................................79
11.3.1.2 Discussion on SRMs (2022 – 2023 program) .....................80
11.3.1.3 Discussion on SRMs (2007 – 2022 programs) ....................82
11.3.1.4 Comments on SRM samples ............................................82

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11.3.2 Blank samples ..............................................................................83

11.3.2.1 Blank samples overview .................................................83
11.3.2.2 Discussion on blank samples (2022 – 2023 program) .........83
11.3.2.3 Discussion on blank samples (2007 – 2022 programs) .......86
11.3.2.4 Comments on blank samples ...........................................87
11.3.3 Duplicate samples .........................................................................87
11.3.3.1 Duplicate samples overview ............................................87
11.3.3.2 Discussion on duplicate samples (2022 – 2023 program) ....88
11.3.3.3 Discussion on duplicate samples (2007 – 2022 programs) ..91
11.3.3.4 Comments on duplicate samples ......................................92
11.3.4 Umpire samples ............................................................................92
11.3.4.1 Umpire samples overview ...............................................92
11.3.4.2 Discussion on umpire samples (2022 – 2023 program) .......93
11.3.4.3 Discussion on umpire samples (2007 – 2022 programs) .....96
11.3.4.4 Comments on umpire samples.........................................96
11.3.5 QAQC recommendations ................................................................96
11.3.6 Conclusions ..................................................................................97
12 Data verification ...................................................................................................98
12.1 Site inspections ............................................................................................98
12.2 Assay verifications ........................................................................................98
13 Mineral processing and metallurgical testing .......................................................... 100
13.1 Metallurgical testing .................................................................................... 100
13.2 Sample preparation..................................................................................... 101
13.3 Head assays ............................................................................................... 101
13.4 Mineralogical characterization ....................................................................... 102
13.4.1 Mineral composition and species distribution .................................. 102
13.4.2 Mineral liberation ........................................................................ 103
13.5 Flotation tests ............................................................................................ 103
13.5.1 Sequential open circuit flotation test work ...................................... 104
13.5.2 Locked cycle flotation test work .................................................... 106
13.6 Cyanidation of pyrite concentrate ................................................................. 108
13.7 Gravity recoverable gold and silver ............................................................... 109
13.8 Comminution test results (2015) .................................................................. 109
13.9 Optimization testwork program 2021 and 2022 .............................................. 110
14 Mineral Resource estimates .................................................................................. 111
14.1 Introduction ............................................................................................... 111
14.2 Data used ................................................................................................ 112
14.2.1 Drillhole database ....................................................................... 112
14.2.2 Bulk density ............................................................................... 113
14.3 Geology and vein modelling ......................................................................... 114
14.4 Statistics of selecting samples, capped samples, and composites ...................... 115
14.5 Variography ............................................................................................... 119
14.6 Search and estimation parameters ................................................................ 120
14.7 Block model parameters .............................................................................. 120
14.8 Block model validation ................................................................................. 121
14.8.1 Visual check ............................................................................... 121
14.8.2 Statistical comparison model versus composites ............................. 122
14.8.3 Swath plots ................................................................................ 125
14.9 Economic considerations .............................................................................. 127
14.10 Mineral Resource classification .................................................................. 128
14.11 Mineral Resource estimate ....................................................................... 129
14.12 Grade sensitivity analysis......................................................................... 130

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14.13 Previous Mineral Resource estimates ......................................................... 131

14.14 Conclusion and recommendations ............................................................. 132
15 Mineral Reserve estimates ................................................................................... 133
15.1 Introduction ............................................................................................... 133
15.2 Mineral Reserve estimate ............................................................................. 133
15.3 Cut-off value .............................................................................................. 135
15.4 Dilution and recovery estimates .................................................................... 136
15.5 Conclusions and recommendations ................................................................ 136
16 Mining methods .................................................................................................. 137
16.1 Geotechnical considerations ......................................................................... 138
16.1.1 Geotechnical domains .................................................................. 138
16.1.2 Rock mass classification ............................................................... 141
16.1.3 Intact rock testing ....................................................................... 141
16.1.4 Longhole open stope stability ....................................................... 141
16.1.5 Ground support requirements ....................................................... 143
16.1.5.1 Lateral development .................................................... 143
16.1.5.2 Vertical development .................................................... 143
16.2 Stope design basis ...................................................................................... 144
16.2.1 Mineral Resource ........................................................................ 144
16.2.2 Stope optimization ...................................................................... 144
16.3 Production projection and production to date ................................................. 145
16.4 Ore and waste handling ............................................................................... 145
16.5 Access development .................................................................................... 146
16.6 Mine design ............................................................................................... 148
16.6.1 Typical development layout .......................................................... 149
16.7 Ventilation ................................................................................................ 150
16.7.1 Design criteria ............................................................................ 150
16.7.2 Airflow determination .................................................................. 151
16.7.3 Ventilation modelling ................................................................... 152
16.7.4 Ventilation control and distribution ................................................ 152
16.7.5 Ventilation updated design ........................................................... 153
16.7.6 Primary fan duties ....................................................................... 153
16.7.7 Auxiliary ventilation ..................................................................... 153
16.7.8 Conveyor decline ventilation ......................................................... 154
16.7.9 Conveyor risk of fire .................................................................... 154
16.8 Rock fill ................................................................................................ 154
16.9 Drill and blast design, and explosives management and logistics ...................... 155
16.9.1 Blasting agents (ANFO) ................................................................ 155
16.9.2 Boosters .................................................................................... 155
16.9.3 Detonators ................................................................................. 155
16.9.4 Stope drill and blast design .......................................................... 155
16.9.5 Drill selection for stoping ............................................................. 156
16.10 Production and development schedule ....................................................... 156
16.11 Mobile equipment ................................................................................... 157
16.12 Mine personnel ....................................................................................... 159
16.13 Conclusions and recommendations ............................................................ 163
17 Recovery methods .............................................................................................. 165
17.1 Ore transport ............................................................................................. 165
17.2 Ore stockpile .............................................................................................. 165
17.3 Grinding and classification ........................................................................... 165
17.4 Lead flotation circuit.................................................................................... 166
17.5 Zinc flotation circuit .................................................................................... 166

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17.6 Pyrite flotation circuit .................................................................................. 166

17.7 Thickening of lead concentrate ..................................................................... 167
17.8 Surge tank for lead concentrate .................................................................... 167
17.9 Lead concentrate filtration ........................................................................... 167
17.10 Thickening of zinc concentrate .................................................................. 167
17.11 Surge tank for zinc concentrate ................................................................ 167
17.12 Filtration of zinc concentrate .................................................................... 168
17.13 Thickening of pyrite concentrate ............................................................... 168
17.14 Filtration of pyrite concentrate .................................................................. 168
17.15 Thickening of final tails ............................................................................ 168
17.16 Shipment of lead, zinc, and pyrite concentrates .......................................... 168
17.17 Process flowsheet and tailings storage ....................................................... 168
17.18 Mineral processing schedule and recovery .................................................. 170
17.19 Mineral processing conclusions and recommendations ................................. 177
18 Project infrastructure .......................................................................................... 178
18.1 Site layout ................................................................................................ 178
18.2 Power supply.............................................................................................. 180
18.3 Communications systems ............................................................................ 180
18.4 Water supply .............................................................................................. 181
18.4.1 Dewatering ................................................................................ 181
18.5 Compressed air .......................................................................................... 182
18.6 Stockpiles ................................................................................................ 182
18.7 Tailings storage .......................................................................................... 182
18.8 Other surface facilities ................................................................................. 186
18.8.1 Workshops and fuel storage ......................................................... 186
18.8.2 Water and sewage treatment........................................................ 186
18.9 Explosives magazines .................................................................................. 186
18.10 Mine safety ............................................................................................ 186
18.10.1 Emergency egress ....................................................................... 187
18.10.2 Stench system ............................................................................ 187
18.11 Material handling system ......................................................................... 187
18.12 Conclusions and recommendations ............................................................ 188
19 Market studies and contracts................................................................................ 189
19.1 Metal prices ............................................................................................... 189
19.2 Marketing ................................................................................................ 189
20 Environmental studies, permitting, and social or community impact .......................... 191
20.1 Land purchasing agreements ........................................................................ 191
21 Capital and operating costs .................................................................................. 192
21.1 Capital costs .............................................................................................. 192
21.2 Operating costs .......................................................................................... 193
22 Economic analysis............................................................................................... 196
22.1 Assumptions .............................................................................................. 196
22.2 Economic analysis ....................................................................................... 196
22.3 Selling costs and payabilities ........................................................................ 199
22.4 Taxes, depreciation, and royalties ................................................................. 199
22.5 Project sensitivities ..................................................................................... 199
22.6 Conclusions and recommendations ................................................................ 200
23 Adjacent properties ............................................................................................. 201
24 Other relevant data and information ..................................................................... 203

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25 Interpretation and conclusions ............................................................................. 204

25.1 Drilling ................................................................................................ 204
25.2 Sample preparation, analyses, and security ................................................... 204
25.3 Data verification ......................................................................................... 204
25.4 Mineral Resources ....................................................................................... 204
25.5 Mineral Reserve estimate ............................................................................. 204
25.6 Mining ................................................................................................ 205
25.7 Infrastructure ............................................................................................. 206
25.8 Processing ................................................................................................ 206
25.9 TSF ................................................................................................ 207
25.10 Environmental, permitting, and social aspects ............................................ 208
25.11 Economics ............................................................................................. 208
25.12 Risks ................................................................................................ 209
25.13 Opportunities for further consideration currently excluded from project scope 209
26 Recommendations .............................................................................................. 210
26.1 Sample preparation, analyses, and security - QAQC ........................................ 210
26.2 Mineral Resources ....................................................................................... 211
26.3 Mineral Reserves ........................................................................................ 211
26.4 Mining ................................................................................................ 212
26.5 Geotechnical .............................................................................................. 212
26.6 Infrastructure ............................................................................................. 212
26.7 Processing ................................................................................................ 212
26.8 TSF ................................................................................................ 213
26.9 Economics ................................................................................................ 213
27 References......................................................................................................... 214
28 QP Certificates ................................................................................................... 217

Tables
Table 1.1 Juanicipio Mineral Resources at 31 May 2023 ................................................ iv
Table 1.2 Summary of Mineral Reserves as of 31 May 2023 .......................................... v
Table 1.3 Ground support requirements for primary support. ....................................... vii
Table 1.4 Mill recoveries ........................................................................................... xi
Table 1.5 Productivity assumptions .......................................................................... xiv
Table 1.6 EPS production schedule by year ................................................................ xv
Table 1.7 Summary of projected capital costs ............................................................. xv
Table 1.8 Key inputs and results of economic analysis ............................................... xvii
Table 1.9 Proposed program and cost estimate ........................................................... xx
Table 2.1 Persons who prepared or contributed to this Technical Report ........................40
Table 4.1 Tenure data .............................................................................................43
Table 10.1 Summary of core drilling by year ................................................................67
Table 11.1 List of detection limits for Au, Ag, Pb, and Zn ...............................................75
Table 11.2 Density measurements from the Juanicipio project by rock type .....................76
Table 11.3 Juanicipio QAQC samples by year for all sample types ...................................77
Table 11.4 Fresnillo Juanicipio QAQC insertion summary ................................................77
Table 11.5 Juanicipio QAQC samples (2022 – 2023 program) .........................................78
Table 11.6 Juanicipio QAQC insertion percentages (2022 – 2023 program) ......................78

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Table 11.7 Summary of SRM types and grade summary (2022 – 2023 program) ..............79
Table 11.8 CDN-ME-1810 performance summary for surface diamond drill core samples ...80
Table 11.9 CDN-ME-1807 and CDN-ME-1903 performance summary for mine diamond drill core
samples ...................................................................................................81
Table 11.10 CDN-ME-1807 and CDN-ME-1903 performance summary for channel samples ..82
Table 11.11 Summary of results for pulp blank analysis of diamond drill (surface) sample stream
..............................................................................................................84
Table 11.12 Summary of results for pulp blank analysis of diamond drill (mine) sample stream
..............................................................................................................85
Table 11.13 Summary of results for pulp blank analysis from channel sample stream .........86
Table 11.14 Summary of duplicate sample results for the mine diamond drill core sample stream
..............................................................................................................89
Table 11.15 Summary of duplicate samples results for the channel sample stream .............91
Table 11.16 Summary of umpire sample results of the surface diamond drill core sample stream
..............................................................................................................94
Table 11.17 Summary of umpire sample results of the channel sample stream ..................95
Table 13.1 Metallurgical samples - head assay ........................................................... 101
Table 13.2 Head sample - minerals composition ......................................................... 102
Table 13.3 Elemental metal distribution by mineralogical species .................................. 103
Table 13.4 Tests 1 to 5 - calculated head grades ........................................................ 104
Table 13.5 Tests 1 to 5 - Pb concentrate grades and recoveries .................................... 104
Table 13.6 Tests 1 to 5 - Zn concentrate grades and recoveries ................................... 105
Table 13.7 Tests 1 to 5 - tails grades and recoveries ................................................... 105
Table 13.8 Tests 6 and 13 - calculated head grades .................................................... 105
Table 13.9 Tests 6 and 13 - Pb concentrate grades and recoveries ............................... 105
Table 13.10 Tests 6 and 13 - Zn concentrate grades and recoveries ............................... 105
Table 13.11 Tests 6 and 13 - Pyrite concentrate grades and recoveries ........................... 106
Table 13.12 Tests 6 and 13 – Tails grades and recoveries ............................................. 106
Table 13.13 Flotation circuit metallurgical balance ........................................................ 108
Table 13.14 Gravity recoverable gold and silver test results ........................................... 109
Table 13.15 SAG and ball mill comminution data .......................................................... 109
Table 14.1 Juanicipio Mineral Resources at 31 May 2023 ............................................. 111
Table 14.2 Data used in estimate by type .................................................................. 112
Table 14.3 Average bulk densities by vein ................................................................. 114
Table 14.4 Statistics of raw samples ......................................................................... 116
Table 14.5 Statistics of capped samples .................................................................... 117
Table 14.6 Statistics of composite data ..................................................................... 118
Table 14.7 Variogram parameters for Valdecañas vein ................................................ 119
Table 14.8 Juanicipio estimation search parameters .................................................... 120
Table 14.9 Block model parameters for domains 100, 101, 104, 106, 300 ..................... 120
Table 14.10 Block model parameters for Venadas (103) ................................................ 121
Table 14.11 Estimated block model fields .................................................................... 121
Table 14.12 Composites and model statistics for Ag, Au, and Pb .................................... 123
Table 14.13 Composites and model statistics for Zn, Fe, and bulk density ....................... 124

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Table 14.14 Input parameters in calculating resource NSR ............................................ 127

Table 14.15 Relative percentage contribution from each vein ......................................... 127
Table 14.16 Juanicipio Mineral Resources by vein on 31 May 2023 ................................. 130
Table 14.17 Sensitivities to cut off grade for Valdecañas Measured and Indicated ............. 130
Table 14.18 Comparison of the 2023 and 2017 Mineral Resources .................................. 131
Table 15.1 Summary of Minera Juanicipio Mineral Reserves as of 31 May 2023 .............. 134
Table 15.2 Summary of Minera Juanicipio Mineral Reserves as of 31 May 2023 (44% Mag Silver)
............................................................................................................ 134
Table 15.3 Mineral Resources and Mineral Reserves comparison ................................... 135
Table 15.4 NSR calculation assumptions .................................................................... 135
Table 16.1 Lithology code definitions and geotechnical domains ................................... 139
Table 16.2 Summary of intact rock elastic and strength properties of mafic tuff ............. 141
Table 16.3 H-B strength parameters for intact LUAR ................................................... 141
Table 16.4 Ground support requirements for primary support ...................................... 143
Table 16.5 MSO parameters used to estimate potential economically viable mineralization145
Table 16.6 LOM development metres ........................................................................ 147
Table 16.7 Ventilation velocity criteria ....................................................................... 151
Table 16.8 Total airflow allowance ............................................................................ 152
Table 16.9 Airway dimensions and friction factors ....................................................... 152
Table 16.10 Productivity assumptions ......................................................................... 156
Table 16.11 EPS production schedule by year .............................................................. 157
Table 16.12 Equipment list ........................................................................................ 158
Table 16.13 Projected mine personnel requirements for steady state operations .............. 160
Table 17.1 Juanicipio plant feed................................................................................ 171
Table 17.2 Juanicipio plant total recoveries – March to December 2023 ......................... 173
Table 17.3 Projected LOM concentrate production and payable metal by year ................ 176
Table 18.1 Estimated site power demand .................................................................. 180
Table 19.1 Lead concentrate – representative treatment terms .................................... 189
Table 19.2 Zinc concentrate – representative treatment terms ..................................... 190
Table 19.3 Concentrate transport costs ..................................................................... 190
Table 21.1 Remaining project capital and sustaining capital cost estimate ..................... 192
Table 21.2 LOM annual project capital cost estimate ................................................... 192
Table 21.3 LOM annual sustaining capital cost estimate ............................................... 193
Table 21.4 LOM annual capital cost estimate .............................................................. 193
Table 21.5 LOM site operating costs by major area ..................................................... 194
Table 21.6 LOM annual operating cost estimate .......................................................... 195
Table 22.1 Metal prices ........................................................................................... 196
Table 22.2 Key economic assumptions and results ...................................................... 197
Table 22.3 Juanicipio LOM production and cash flow forecast ....................................... 198
Table 26.1 Proposed program and cost estimate ......................................................... 211

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Figures
Figure 1.1 Geomechanical guideline for stoping and backfilling ....................................... vi
Figure 1.2 Access development composite plan layout (over three production levels) ...... viii
Figure 1.3 Overall mine layout .................................................................................... ix
Figure 4.1 Location map ...........................................................................................44
Figure 4.2 Claim map and surface rights on the Property ..............................................45
Figure 7.1 Regional geological setting of the Juanicipio project ......................................50
Figure 7.2 Local geology of the Juanicipio project .........................................................53
Figure 7.3 Stratigraphic column for the Fresnillo area ...................................................54
Figure 7.4 Examples of common rock types at the Juanicipio deposit ..............................55
Figure 7.5 Plan view showing distribution of the mineralized vein system ........................56
Figure 7.6 Examples of the Valdecañas vein ................................................................58
Figure 7.7 Example of Juanicipio vein .........................................................................59
Figure 7.8 Example of Venadas vein ...........................................................................59
Figure 8.1 Conceptual model for epithermal mineralization in the Fresnillo District ...........62
Figure 9.1 Map showing structural and hyperspectral interpretation ...............................64
Figure 9.2 Surface map showing property geology overlain by sample locations and gold values
..............................................................................................................65
Figure 9.3 Channel sampling markings at an underground development front ..................66
Figure 10.1 Map showing the distribution of drilling ........................................................69
Figure 10.2 Representative cross section of the Valdecañas, Anticipada, Pre-Anticipada, Ramal 1,
& Juanicipio veins .....................................................................................70
Figure 10.3 Representative cross section of the Juanicipio vein ........................................71
Figure 10.4 Representative cross section of the Venadas vein .........................................72
Figure 11.1 Density measurement station with electronic scale and instrument to record data75
Figure 11.2 Control chart showing Au results for pulp blanks - surface diamond drill sample stream
..............................................................................................................84
Figure 11.3 Control chart showing Au results for pulp blanks - mine diamond drill sample stream
..............................................................................................................85
Figure 11.4 Control chart showing Au results for pulp blanks - channel sample stream .......86
Figure 13.1 Lead flotation locked cycle test work flowsheet ........................................... 107
Figure 14.1 Juanicipio drillhole location plan ................................................................ 113
Figure 14.2 Plan view of the mineralization domains at the Juanicipio project .................. 115
Figure 14.3 3D view of Ag grades in Valdecañas block model and composite data ............ 122
Figure 14.4 South-North swath plot of Valdecañas domain ............................................ 125
Figure 14.5 West-East swath plot of Valdecañas domain ............................................... 126
Figure 14.6 Elevation swath plot of Valdecañas domain ................................................ 126
Figure 14.7 3D view of classification for Valdecañas ..................................................... 129
Figure 16.1 LHOS with rock fill general layout ............................................................. 137
Figure 16.2 CAF general layout .................................................................................. 138
Figure 16.3 Lithology model ...................................................................................... 139
Figure 16.4 Interpreted faults intersecting the Valdecañas vein ..................................... 140
Figure 16.5 Geomechanical guideline for stoping and backfilling .................................... 142

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Figure 16.6 Access development composite plan layout (over three production levels) ..... 147
Figure 16.7 Composite plan view of the underground mine design ................................. 148
Figure 16.8 Long-section view of the underground mine design ..................................... 149
Figure 16.9 Typical access development design (plan and oblique view) ......................... 150
Figure 16.10 Juanicipio ventilation – current ................................................................. 153
Figure 16.11 End of mine life snapshot ......................................................................... 157
Figure 16.12 Projected major equipment required over LOM from Owner .......................... 159
Figure 16.13 Projected major equipment required over LOM from contractor .................... 159
Figure 17.1 Process flowsheet ................................................................................... 169
Figure 17.2 Juanicipio plant feed rate – March 2023 to January 2024 ............................. 171
Figure 17.3 Juanicipio Au and Ag recoveries - March 2023 to January 2024 .................... 172
Figure 17.4 Juanicipio Pb and Zn recoveries – March 2023 to January 2024 .................... 173
Figure 17.5 Lead concentrate grade ........................................................................... 174
Figure 17.6 Zinc concentrate grade ............................................................................ 175
Figure 18.1 Site general layout .................................................................................. 179
Figure 18.2 Section view of the TSF layout and design ................................................. 184
Figure 18.3 Plan view of the TSF layout and design ...................................................... 185
Figure 18.4 Ore handling schematic ........................................................................... 188
Figure 22.1 Project sensitivity chart ........................................................................... 200
Figure 23.1 Adjacent properties ................................................................................. 202

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Units & abbreviations

Units & abbreviations Definition
° Degrees
°C Degrees Celsius
$ United States Dollars
µm Microns
% Percent
3D Three-dimensional
Ag Silver
AgEq Silver equivalent
ALS Chemex ALS Chemex Laboratory
AMC AMC Mining Consultants (Canada) Ltd.
amsl Above mean sea level
ANFO Ammonium nitrate fuel oil
Au Gold
bgs Below ground surface
BTS Brazilian Tensile Strength
BV Bureau Veritas
BWI Ball mill Work Index
CAF Cut-and-fill stoping
CCTV Closed-circuit television
CDA Canadian Dam Association
Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for
CIM
Mineral Resources and Mineral Reserves
CMS Cavity Monitoring System
Coeff. var.; CV Coefficient of variation
COG Cut-off grade
CONAGUA Comisión Nacional de Agua
CSA Canadian Securities Administrators
Cu Copper
dmt Dry metric tonne
DTM Digital Terrain Model
EBIT Earnings before interest and tax
EGBC Engineers & Geoscientists BC
ELOS Dilution
EPS Enhanced Production Scheduler
Fe Iron
Fresnillo Fresnillo plc
ft Foot; feet
FW Footwall
g Gram
G&A General and administration
g/l Grams per litre
g/t Grams per tonne
GCMP Ground Control Management Plan
GPa Gigapascals
gpm Gallons per minute

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Units & abbreviations Definition

ha Hectares
H-B Hoek-Brown
HW Hangingwall
ID3 Inverse distance cubed
JV Joint venture
kg Kilogram
kg/t Kilograms per tonne
km Kilometres
koz Thousand troy ounces
kt Kilotonnes
kV Kilovolts
kW Kilowatts
kWh Kilowatt hours
kWh/t Kilowatt hours per tonne
Lab Preparatory laboratory
LAN Local Area Network
LCT Locked cycle test
LHOS Longhole stopes
LLD Lower limit of detection
LLDPE Linear low-density polyethylene
LOM Life-of-mine
M Million
m Metres
m 3
Cubic metres
m³/s Cubic metres per second
Ma Mega annum
MAG Silver MAG Silver Corp
MIA-R Regional Environmental Impact Statement
Minera Lagartos Minera Lagartos S.A. de C.V.
mm Millimetres
MPa MegaPascal
MSO Mineable Shape Optimizer
Mt Million tonnes
Mtpa Million tonnes per annum
MW Megawatt
MXP Mexican Pesos
NI 43-101 National Instrument 43-101
NPV Net present value
NSAMT Natural Source Audio Magnetotelluric
NSR Net smelter return
NVD Night vision device
OK Ordinary Kriging
P Passing size
Pb Lead
PEA Preliminary Economic Assessment
Peñoles Industrias Peñoles S.A. de C.V.

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Units & abbreviations Definition

PLC Programmable logic controller
PMP Probable Maximum Precipitation
ppm Parts per million
PTU Profit-sharing benefit
QAQC Quality Assurance and Quality Control
QP Qualified Person
RF Rock fill
RMA Reduced major axis
RMR Rock Mass Rating
ROM Run-of-mine
RPD Relative percentage deviation
RQD Rock quality designation
RSD Relative standard deviation
SAG Semi-autogenous grinding
SC Support class
SEDAR System for Electronic Document Analysis and Retrieval
SG Specific gravity
SGS SGS S.A.
SOP Standard operating procedure
SRM Standard reference material
Stand. dev.; Std. dev; SD Standard deviation
t Tonne
TCS Triaxial Compressive Strength
tpd Tonnes per day
tph Tonnes per hour
TSF Tailings storage facility
UCS uniaxial compressive strength
UHF Ultra-high frequency
UTM Universal Transverse Mercator
VoIP Voice over Internet Protocol
wmt Wet metric tonne
Xanthate Potassium amyl xanthate
Zn Zinc

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2 Introduction
2.1 Purpose
This Technical Report (Report) on the Juanicipio Property (Property or Project) has been prepared
by AMC Mining Consultants (Canada) Ltd. (AMC) of Vancouver, Canada on behalf of MAG Silver Corp
(MAG Silver) and is reporting updated Mineral Resource estimates and a statement of Mineral
Reserve estimates for the first time. The Report has been prepared in accordance with the
requirements of National Instrument 43-101 (NI 43-101) “Standards of Disclosure for Mineral
Projects” of the Canadian Securities Administrators (CSA) for lodgement on CSA’s System for
Electronic Document Analysis and Retrieval (SEDAR). NI 43-101 utilizes the definitions and
categories of Mineral Resources and Mineral Reserves as set out in the Canadian Institute of Mining,
Metallurgy and Petroleum Definition Standards for Mineral Resources and Mineral Reserves 2014
(CIM, 2014).

MAG Silver holds a 44 percent (%) interest in Minera Juanicipio, the Mexican incorporated joint
venture (JV) company that owns (100%) of the Property. Fresnillo plc (Fresnillo) owns 56% of
Minera Juanicipio and is the Project operator. The Property is located in Zacatecas State, Mexico.
Feasibility-level studies completed in 2018 (2018 study work) on behalf of Minera Juanicipio were
used to advance the Project to construction in April 2019. Underground production of mineralized
development material commenced in the third quarter of 2020 and commercial production was
declared in mid-2023. Nameplate processing capacity of 4,000 tpd was achieved in Q3 2023, with
mine ore production averaging about 3,700 tpd in the latter part of the year (approximately
1.3 million tonnes per annum (Mtpa)). Optimization and efficiency improvements are to be worked
on in 2024.

The Report provides an update to the Preliminary Economic Assessment (PEA) that was reported in
the “MAG Silver Juanicipio NI 43-101 Technical Report, Amended and Restated, Zacatecas State,
Mexico”. This was prepared by AMC for MAG Silver, with an effective date 21 October 2017, and a
revised date of 19 January 2018.

2.2 Terms of reference

The Property hosts significant silver-gold epithermal structures. Indicated and Measured Mineral
Resource estimates are reported for the Valdecañas vein, which constitutes the major part of the
Valdecañas vein system. Inferred Mineral Resource estimates are reported for the Valdecañas,
Ramal 1, Venadas, and Anticipada parts of the Valdecañas system, and for the Juanicipio vein.
Mineral Reserve estimates are based on the Measured and Indicated Mineral Resources.

Mineral Resource estimates are current as of 31 May 2023 and were prepared by Fresnillo; they
have been audited by Mr J. M. Shannon, an independent consultant, who takes Qualified Person
(QP) responsibility for those estimates. Mineral Reserve estimates are current as of 31 May 2023
and were also prepared by Fresnillo; they have been reviewed by Mr P. Salmenmaki, of AMC, who
takes QP responsibility for those estimates. The Report has an effective date of 4 March 2024.

All mining and processing facilities are contained within the Property boundary. Access roads and
other surface infrastructure are restricted to areas over which Minera Juanicipio has secured surface
tenure or access rights.

AMC’s scope of work for the Report included auditing and provision of QP acceptance for the Mineral
Resource and Mineral Reserve estimates as part of overall responsibility for the Report.
Mr G. Dominguez of Knight Piésold takes QP responsibility for tailings storage facility (TSF) aspects.
AMC previously provided detailing and assessment of appropriate methods and production
scheduling for potential mining and processing of Mineral Resources as part of the 2018 study work.

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That work also involved preparation of plans, schedules, and cost parameters for mine and
infrastructure development concepts, and estimation of capital and operating costs for evaluation
in an economic model with which to assess potential project economics. All key parameters and
production scheduling have been updated and project economics re-evaluated to reflect the Mineral
Reserve estimates stated herein.

Projected risks and opportunities associated with the Project have been compiled together with a
list of recommendations for further Project activities, including monitoring of sample preparation,
analyses, and security Quality Assurance and Quality Control (QAQC), Mineral Resource
reconciliation model and exploration, Mineral Reserve estimation, mining backfill / materials balance
study, overall ventilation strategy, Geotechnical and ground support standards, infrastructure
materials handling and dewatering studies, Mineral processing monitoring, and to explore the
expansion of the tailings storage facility to have sufficient storage capacity to meet the life-of-mine
(LOM) tailings production.

2.3 Qualification of authors

The names and details of persons who prepared, or who have assisted the QPs, in the preparation
of this Technical Report are listed in Table 2.1. The QPs meet the requirements of independence as
defined in NI 43-101, Part 1.

Table 2.1 Persons who prepared or contributed to this Technical Report

Qualified Persons responsible for the preparation and signing of this Technical Report*
Independent
Qualified Date of Professional Sections of
Position Employer of Minera
Person site visit designation report
Juanicipio
2-6, 15, 20-24,
Principal AMC Mining
15 - 16 P.Eng. (BC, and parts of 1,
P. Salmenmaki Mining Consultants Yes
Feb 2024 ON) 12, 16, and
Engineer (Canada) Ltd.
25-27
13, 17, 19, and
Principal AMC Consultants FAusIMM
R. Chesher Yes No visit parts of 1 and
Consultant Pty Ltd (CP)
25–27
Principal AMC Mining
Parts of 1, 16,
M. Molavi Mining Consultants Yes No visit P.Eng. (BC)
18, 25, and 26
Engineer (Canada) Ltd.
Principal Independent 14, and parts
J.M. Shannon Yes No visit P.Geo. (BC)
Geologist Consultant of 1 and 25-27
AMC Mining 7-11, and parts
Senior
C. Stewart Consultants Yes No visit P.Geo. (BC) of 1, 12, and
Geologist
(Canada) Ltd. 25–27
Knight Piésold and 14 Feb Parts of 1, 18,
G. Dominguez Vice President Yes P.E. (USA)
Co. 2024 25, and 26
Notes: *QP responsibility for ‘part’ sections is governed by respective areas of responsibility and expertise: P. Salmenmaki
– Mining aspects; R. Chesher – Metallurgical aspects; M. Molavi – Underground and surface infrastructure aspects;
J.M. Shannon – Mineral Resource aspects; C. Stewart – Geology and QAQC aspects; G. Dominguez – Tailings storage aspects.

2.4 Sources of information

Key sources of information include previous study documents, diamond drillhole and channel sample
databases, metallurgical test work reports, site reporting, and other information provided by Minera
Juanicipio, supplier information and quotes, AMC and / or QP project experience in Mexico and
elsewhere, and marketing information gained with the assistance of Fresnillo. A full reference list is
included at the end of this report.

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This Report provides an update to the PEA that was reported in the “MAG Silver Juanicipio NI 43-101
Technical Report, Amended and Restated, Zacatecas State, Mexico”, (2017 AMC Technical Report).
This was prepared by AMC for MAG Silver, with an effective date 21 October 2017, and a revised
date 19 January 2018.

AMC was responsible for managing and preparing the Report.

The Report is effective as of 4 March 2024.

A draft of the report was provided to MAG Silver for checking for factual accuracy.

2.5 Units of measure and currency

Throughout this Report, measurements are in metric units and currency is in United States dollars
($) unless otherwise stated.

The Report includes the tabulation of numerical data, which involves a degree of rounding for the
purpose of Mineral Resource and Mineral Reserve reporting. The QPs do not consider any rounding
of the numerical data to be material to the reporting results.

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3 Reliance on other experts

The QPs have relied, in respect of legal aspects, upon the work of the Expert listed below. To the
extent permitted under NI 43-101, the QPs disclaim responsibility for the relevant section of the
Report:
• Expert: RUPA Abogados, S.C., Special Mexican counsel for Minera Los Lagartos, S.A. de C.V.,
as advised in a letter of 31 December 2023 to AMC.
• Report, opinion, or statement relied upon: information on mineral tenure and status, title
issues, and mining concessions.
• Extent of reliance: full reliance following a review by the QPs.
• Portion of Technical Report to which disclaimer applies: Section 4.

The QPs have relied, in respect of environmental aspects, upon the work of the issuer’s Expert listed
below. To the extent permitted under NI 43-101, the QPs disclaim responsibility for the relevant
section of the Report:
• Expert: Servicios Administrativos Peñoles, S.A. de C.V. (Peñoles) - Dirección de Ingeniería y
Construcción (Engineering and Construction Management), on behalf of Minera Juanicipio.
• Report, opinion, or statement relied upon: information on environmental studies and
permitting.
• Extent of reliance: full reliance following a review by the QPs.
• Portion of Technical Report to which disclaimer applies: Section 20.

The QPs have relied, in respect of taxation and royalty aspects, upon the work of the issuer’s Expert
listed below. To the extent permitted under NI 43-101, the QPs disclaim responsibility for the
relevant section of the Report:
• Expert: Fresnillo plc, as operator of the Juanicipio project.
• Report, opinion, or statement relied upon: information on taxation and royalty aspects.
• Extent of reliance: full reliance following a review by the QPs.
• Portion of Technical Report to which disclaimer applies: Section 22.

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4 Property description and location

The Property is located in central Zacatecas State, approximately 70 kilometres (km) by road
north-west of the state capital of Zacatecas City (Figure 4.1). Zacatecas City has a population of
approximately 140,000 and is located about 550 km north-west of Mexico City. Zacatecas City is
serviced by daily direct flights from Mexico City, Dallas, Los Angeles, and Chicago. The Property is
accessible by Federal Highway 49, north-west from Zacatecas City to Fresnillo, then 6 km to the
south-west along paved and dirt roads. The centre of the property is located at approximately
102 degrees (°) 58’ east longitude and 23° 05’ north latitude.

4.1 Land tenure

The Property consists of a single mining concession measuring 7,679.21 hectares (ha) (Figure 4.2).
Table 4.1 lists the tenure information for the Juanicipio concession. All concessions in Mexico are
classified as exploitation concessions and have a 50-year life from the date of issue, renewable for
another 50 years if desired.

Table 4.1 Tenure data

Concession Date issued Expiry date Area (ha) Title No. Owner
Juanicipio 1 13 Dec 2005 12 Dec 2055 7,679.2106 Tx 226339 Minera Juanicipio S.A.
Source: Fresnillo, 2022.

MAG Silver provided the QP with an independent opinion by RUPA Abogados, S.C. of México City,
dated 31 December 2023, which agrees with the above land tenure information.

The Property is owned by Minera Juanicipio, a joint venture company held 56% by Fresnillo and
44% by MAG Silver, with Fresnillo acting as the operator. Industrias Peñoles S.A. de C.V. (Peñoles)
holds a 75% interest in Fresnillo and Fresnillo owns approximately 10% of MAG Silver, therefore,
Peñoles has an approximate 45% interest in the Property.

Surface ownership over the area of interest in the north-east portion of the Property was held by
the Valdecañas Ejido and Ejido Saucito de Poleo. Minera Juanicipio purchased the surface rights of
that area for $1.4 million (M) (Figure 4.2).

More recently, Minera Juanicipio purchased surface rights north of the mining concession for the
mine processing and tailings storage facilities and access roads. Currently, Minera Juanicipio holds
sufficient surface rights for all its infrastructure needs.

Except for liabilities related to the reclamation of exploration drill roads and sites, the QP is not
aware of any outstanding environmental liabilities. Fresnillo is the Project operator and reports that
all applicable permits required to conduct mineral exploration, undertake underground development
and production, prepare and construct surface infrastructure, and improve or construct access roads
and powerlines have been granted.

The QP is not aware of any other significant factors and risks that may affect access, title, or the
right or ability to perform the planned work program on the Property.

4.2 Royalties and taxes

A 7.5% special mining duty is applied on earnings before taxes and allowable expenses, and a 0.5%
gross revenue royalty is applied on all gold and silver revenues. The tax provisions also include a
conventional profit-based tax using the 30% corporate tax rate currently in effect.

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Figure 4.1 Location map

Source: Mag Silver, 2023.

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Figure 4.2 Claim map and surface rights on the Property

Source: Mag Silver, 2014.

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5 Accessibility, climate, local resources, infrastructure, and physiography

5.1 Accessibility
As noted above, the Property is located 70 km by road north-west of Zacatecas City in central
Zacatecas State, see Figure 4.1. The Property is reached from Zacatecas City by taking Federal
Highway 49 north-west to Fresnillo and then travelling 6 km to the south-west along paved and dirt
roads. The closest airport with daily air service to Mexico City is located at Zacatecas City. Both
Zacatecas City and Fresnillo are serviced by rail.

5.2 Climate
The climate is warm and arid. Temperatures vary from 0°Celsius (C) to 41°C and average 21°C.
The average annual precipitation is 290 millimetres (mm), with the period from June to October
being the wettest. Exploration, development, and production activities can be carried out twelve
months a year.

5.3 Local resources

The closest full-service city is Fresnillo, located 8 km from the Property. Fresnillo has a population
of approximately 200,000 and has all the services required to support a mining operation, including
a trained workforce, hospital, and accommodations.

5.4 Infrastructure
Site infrastructure consists of the following items:
• A series of roads used to access: drill sites, decline and conveyor portals, mine offices and
workshop, process plant and TSF, and surface magazine.
• Training facilities, warehousing, run-of-mine stockpiles, change rooms and mine dry, dining
room, emergency response services and medical treatment facility.
• Twin underground access portals, conveyor decline from surface and underground access
ramps and associated infrastructure.
• Waste stockpile.
• Power lines and sub-station.
• Mineral Processing plant.
• Tailings storage facility.

Section 18 describes the project infrastructure in detail.

5.5 Physiography
The Property lies within the Mexican Mesa Central or Altiplano. This region is flanked to the west by
the Sierra Madre Occidental and to the east by the Sierra Madre Oriental mountain ranges. The
Altiplano in this region is dominated by broad alluvium-filled valleys between mountain ranges with
an average elevation of approximately 1,700 m amsl. Local mountain ranges reach 3,000 m amsl.
Elevations on the Property itself range from 2,050 m amsl to 2,450 m amsl and the terrain is
moderate to rugged.

Vegetation is sparse and consists mainly of grasses, low thorny shrubs, and cacti with scattered oak
forests at higher elevations. Surface water is rare, but groundwater is available.

There are sufficient surface rights and available power, water, and personnel to carry out
exploration, underground development and production, and surface processing and associated
infrastructure activities.

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6 History
6.1 Previous ownership
In July 2002, Minera Lagartos S.A. de C.V. (Minera Lagartos) optioned the Juanicipio 1 concession
from a Mr Sutti. On 8 August 2002, MAG Silver entered into an agreement whereby it could acquire
98% of the issued and outstanding shares of Minera Lagartos. This agreement was later amended
such that MAG Silver could acquire a 99% interest in Minera Lagartos and a beneficial ownership of
the remaining 1% interest.

On 4 April 2005, MAG Silver announced that it had entered into a joint venture agreement with
Peñoles whereby Peñoles could earn a 56% interest in the Property by spending $5M on or before
the end of Year Four of the agreement. Peñoles committed to a minimum expenditure of $750,000
and including at least 3,000 metres (m) of drilling, in the first year of the agreement. Peñoles
subscribed for $500,000 in MAG Silver shares at the market price on signing and an additional
$500,000 in MAG Silver shares if the contract continued into the second year. All earn-in
requirements were met.

In 2007, Peñoles’ precious metals assets were spun out into Fresnillo plc, which was simultaneously
listed on the London Stock Exchange.

On 21 December 2007, Fresnillo and MAG Silver announced the formation of a new company
incorporated in Mexico, Minera Juanicipio, to operate the joint venture. Minera Juanicipio is 56%
held by Fresnillo and 44% held by MAG Silver, with Fresnillo acting as the operator.

6.2 Exploration history

Silver mineralization in the Fresnillo area is reported to have been discovered in 1554. Although no
records exist prior to the 1970s, the Property was likely prospected periodically over the years
because of its proximity to the Fresnillo mining area.

Peñoles drilled several holes to the north-east of the Property in the 1970s and 1980s, prior to the
discovery of the nearby San Carlos Vein. Concerted exploration of the areas adjoining the Property
was begun by Fresnillo in 2006 based on results from the Valdecañas and San Carlos veins.

From 2000 to 2001, Minera Sunshine contracted IMDEX Inc. / Cascabel S.A. de C.V.
(IMDEX / Cascabel) to complete property-wide (1:50,000 scale) geological mapping, preliminary
rock chip sampling, and Landsat image and air photo analysis. This was followed by more detailed
(1:5,000 scale) geological mapping in areas of interest, additional Landsat image analysis, detailed
geochemical sampling, and a limited amount of Natural Source Audio Magnetotelluric (NSAMT)
geophysical surveying. The NSAMT survey was used to define structures, mainly in the
north-eastern part of the Property. Minera Sunshine obtained drill permits to test this area but was
not able to undertake drilling before it went bankrupt in 2001 (Megaw and Ramirez, 2001).

From May 2003 to June 2004, MAG Silver completed nine core holes for a total of 7,346 m, as well
as having done some limited surface sampling and prospecting prior to the formation of Minera
Juanicipio. This first drill program on the Property included the discovery hole of the Juanicipio vein.

6.3 Previous Mineral Resource estimates

There were no Mineral Resource or Mineral Reserve estimates prior to the Issuer’s involvement.
Hence there are no historical Mineral Resource or Mineral Reserve estimates on the Property.

Since 2005 there have been many estimates completed and reported, as the deposit was drilled off.
These are listed below.

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In April 2008, Fresnillo disclosed an initial Mineral Resource estimate for the Valdecañas silver-gold-
lead-zinc deposit as part of an initial public offering on the London Stock Exchange. In June 2008,
MAG Silver retained SRK to prepare a Technical Report documenting the initial Mineral Resource
estimate prepared by Fresnillo and audited by SRK (Chartier et al., 2008).

In 2009, Scott Wilson Roscoe Postle Associates Inc. was commissioned to update the Mineral
Resource estimate and prepare an independent Technical Report for Minera Juanicipio, dated 9 April
2009 (Ross and Roscoe, 2009). In the same year, Wardrop Engineering Inc. was commissioned to
complete a scoping study on the understood Mineral Resources (Ghaffari et al., 2009). The Mineral
Resource estimate used by Ghaffari et al. (2009) was completed by Fresnillo and audited by SRK.

In 2010, MAG Silver retained Scott Wilson Roscoe Postle Associates Inc. to update the Mineral
Resource estimate and prepare an independent Technical Report on the Juanicipio project.

In 2011, Minera Juanicipio retained Strathcona Mineral Services Limited to complete an independent
Mineral Resources estimate and report on the Juanicipio Joint Venture property using exploration
data available to June 2011 (Thalenhorst, 2011). Also in 2011, MAG Silver retained Roscoe Postle
Associates Inc. (formerly Scott Wilson Roscoe Postle Associates Inc.) to update the Mineral Resource
estimate and prepare an independent Technical Report (Ross, 2012).

In 2012, Minera Juanicipio commissioned AMC to complete a PEA on the Juanicipio project using the
Mineral Resource Estimate from Thalenhorst (2011) and other data from Ross (2012) and Thomas
et al. (2012).

In 2014, MAG Silver retained Roscoe Postle Associates Inc. to update the Mineral Resource estimate
and prepare an independent Technical Report (Ross et al., 2014). This report introduced the terms
‘Bonanza Grade Silver Zone’ and ‘Deep Zone’ when describing the Mineral Resources.

In 2017, MAG Silver retained AMC to update the Mineral Resource estimate and PEA of the Juanicipio
project using exploration data available to 31 December 2016. The Mineral Resource estimate had
an effective date of 21 October 2017, and the results of the PEA were published in the 2017 AMC
Technical Report (revised date of 19 January 2018).

6.4 Production
Up to 31 May 2023, 1,447 kt of mineralized material at 1.24 grams per tonne (g/t) Au, 477 g/t Ag,
0.81% Pb, and 1.55% Zn had been processed from Juanicipio development and production
operations.

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7 Geological setting and mineralization

7.1 Regional geology
The following information has been revised from the 2017 AMC Technical Report.

The Juanicipio Property is located on the western flank of the Mexican Mesa Central physiographic
province, along the eastern margin of the Sierra Madre Occidental range. Most bedrock is covered
by Quaternary alluvium and caliche with isolated outcrops restricted to drainages and low-lying hills
(Simmons, 1991).

The basement rocks comprise late Palaeozoic to Mesozoic marine sedimentary and submarine
volcanic rocks belonging to the Guerrero Terrane (Simmons, 1991, Figure 7.1) that were obducted
onto older Palaeozoic and Precambrian continental rocks during the early Jurassic. Mesozoic
basement rocks are unconformably overlain by late Cretaceous to Tertiary units of the Sierra Madre
Occidental magmatic arc. The “lower volcanic complex” consists of an assemblage of late Cretaceous
to Tertiary volcanic, volcaniclastic, conglomerate and locally limestone rocks. The “lower volcanic
complex” is unconformably overlain by the “upper volcanic supergroup” consists of mid-Tertiary
(~25 to 45 Ma) caldera related rhyolite ash flow tuffs and flows. Tertiary felsic volcanic rocks, up to
500 m thick in the Sierra de Valdecañas, unconformably overlay Mesozoic rocks (Lang et al., 1988).
Eocene to Oligocene intrusions occur throughout the area and are related to a later felsic volcanic
event (Ruvalcaba-Ruiz and Thompson, 1988; Wendt, 2002).

Major lithologic units in the area consist of deformed Mesozoic marine sedimentary and mafic
volcanic rocks. Volcanic and volcaniclastic rocks of the Chilitos formation are likely Cretaceous in
age, represent the earliest phase of volcanism identified in the area, and likely correlate to the base
of the “lower volcanic complex” of the Sierra Madre magmatic arc.

The Cretaceous epicontinental marine greywacke and shale of the Proaño Group unconformably
overlie the Chilito Formation (de Cserna, 1977; Simmons, 1991; Wendt, 2002). The Proaño Group
is divided in to two formations: the “lower greywacke” Valdecañas Formation, a rhythmic sequence
of interbedded greywacke and thin shale units, and the “upper greywacke” Plateros Formation,
grading upward from carbonaceous and calcareous shale to alternating greywacke and shale
(de Cserna, 1976; Ruvalcaba-Ruiz and Thompson, 1988). The Fortuna Limestone conformably
overlies the Plateros Formation, consisting of medium-bedded dark-gray limestone with interbedded
chert and thin units of calcareous shale. A gradational contact separates the Fortuna Limestone and
the overlying Cerro Gordo Limestone. The Cerro Gordo Limestone is the youngest Mesozoic
stratigraphic unit in the area, consisting of medium- to thick-bedded medium-gray limestone
(de Cserna, 1976).

The late Cretaceous to early Tertiary Laramide Orogeny folded and thrust faulted rocks of the
Chilitos Formation, Proaño Group, Fortuna Limestone, and Cerro Gordo Limestone. A late
northeast-southwest extensional tectonic event accompanied by major strike-slip fault movement
affected the area starting circa 35 Ma. This extension was most intense during the Miocene and
developed much of the current basin and range topography. This generation of deformation is likely
related to the north-west-trending Fresnillo Fault. In the Fresnillo District, most of the ore deposits
are adjacent to the Fresnillo Fault (Ruvalcaba-Ruiz and Thompson, 1988).

The late northeast-southwest extensional tectonic event preceded the emplacement of mid-Tertiary
plutons and related dykes and stocks (Ruvalcaba-Ruiz and Thompson, 1988), such as a
quartz-monzonite stock / dyke which intruded the Fresnillo mine area during the mid-Tertiary
(~32.4 Ma) prior to mineralization (Velador et al., 2010). Silver-lead-zinc veins and mineralized
skarns were emplaced between 31 and 29.6 Ma, roughly coeval with the emplacement of a rhyolite
volcanic package which was affected by widespread silicification and argillic alteration (Velador et
al., 2010).

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An angular unconformity separates the Fresnillo Formation from the underlying Plateros Formation
and Fortuna Limestone. The Fresnillo Formation consists of an older (>29 Ma) conglomerate, welded
rhyolitic ash flow tuff and flow domes, and a younger (<29 Ma) conglomerate, rhyolitic ash flow
tuff, and Tertiary olivine basalt flows (de Cserna, 1976; Wendt, 2002).

Calcrete cemented alluvial material, typically less than 20 m thick, covers the basins within the
Fresnillo area and hill slopes are typically encrusted with caliche (de Csena, 1977).

Figure 7.1 Regional geological setting of the Juanicipio project

Source: Fresnillo, 2024.

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7.2 Property geology

The following section has been revised from the 2017 AMC Technical Report.

The bedrock geology of the property is presented in Figure 7.2. Geological mapping on the Property
was conducted by IMDEX / Cascabel on behalf of Minera Sunshine from 1999 to 2001. The results
of this mapping are described in a company report by Megaw and Ramirez (2001) and Megaw
(2010) and are summarized in the following subsections. A stratigraphic column of the Fresnillo It
has areas is presented in Figure 7.3, and examples of common rock types at the Juanicipio deposit
are presented in Figure 7.4.

The area in and around the Juanicipio project is dominated by a volcano-sedimentary sequence of
the Guerrero Terrain (Simmons, 1991). Locally, this comprises andesitic tuffs overlying a rhythmic
sequence of shale and sandstone.

7.2.1 Mesozoic rocks

Within the project area, the oldest rocks observed are the calcareous shale and andesitic
volcaniclastic rocks of the Chilitos Formation at the base of Linares Canyon. These highly deformed
and sheared rocks are shallow to moderate north-east dipping and locally boudinaged. The upper
contact of the Chilitos Formation forms an irregular unconformity to the overlying Tertiary volcanic
and volcaniclastic rocks.

Drilling and ramp development from 2003 to date have cut significant sections of the Chilitos
Formation and Proaño Group. The Chilitos Formation consists of intermediate-composition
volcanic-dominated sandstones and altered tuffs. The Proaño Group comprises a variety of shale,
greywacke, sandstones, polymictic intermediate volcanic breccias, and intermediate lava flows or
sills. Exhalite layers up to 20 cm thick and composed of pyritic silica are observed locally. These
rock units were altered to moderate, pervasive chloritization, argillization, and silicification.

7.2.2 Tertiary igneous rocks

The tertiary rocks comprise the Linares and Altamira units, two distinct volcanic assemblages
separated by an unconformity.

The lower assemblage, informally named the Linares volcanic package (Megaw and Ramirez, 2001),
consists of volcaniclastic sedimentary rocks, welded and non-welded crystal lithic tuff, flow breccia,
and rhyolite flow domes. The basal unit is composed of 5 to 20 m of epiclastic and arkosic rocks
overlain by 20 m to 100 m of variably welded, rhyolite to dacite, composite ash flow tuff that
resembles, and may correlate with, Fresnillo Formation volcanic rocks (Megaw and Ramirez, 2001).
This unit has been dated at 44.7 to 31.7 mega annums (Ma) (Velador et al., 2010) and generally
hosts the pervasive silicification “sinter”, advanced argillic alteration (kaolinite-alunite) and iron-
oxide alteration found on the Property. Textural variation and Landsat interpretation within this unit
suggests several eruptive centers (calderas) for these volcanic rocks in the Sierra Valdecañas range.

Overlying the ash flows is a layer of coarse tuffaceous rocks which underlies 100 to 150 m of welded
ash flow tuff, which is less silicified than the lower ash flow tuff. Several rhyolite domes (shown in
Figure 7.2) occur locally between Linares Canyon and the Cesantoni Kaolinite Mine in the north-west
corner of the claim.

The Linares volcanic rocks are block faulted along north-northwest trending faults. The faults have
shallow to moderate south-west dips. Silicification appears to post-date faulting as the faults only
locally cut or displace silicified units (Megaw and Ramirez, 2001).

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Megaw and Ramirez (2001) also describe and informally name the Altamira volcanic package after
the tallest peak in the area, Cerro Altamira, where the thickest section of these volcanic rocks is
exposed on surface. These volcanic rocks overlie the Linares volcanic package across an angular
unconformity overlain by a 20 to 50 m thick layer of bedded conglomerate and coarse tuff. Rounded
fragments of silicified Linares volcanic rocks occur within the conglomerate. Overlying these clastic
rocks is a 20 to 350 m thick section of welded rhyolite to rhyodacite ash flow tuff that has been
dated at 27.4 and 28.7 Ma (Lang et al., 1988). Several caldera complexes have been identified
within the Altamira package; however, to date, no mineralization has been found in these rocks.

7.2.3 Upper Tertiary rocks

These rocks comprise olivine basalt flows that locally overlie felsic mid-Tertiary volcanic and
volcaniclastic rocks on the Property. The olivine basalt flows have not been dated.

7.2.4 Structural geology

Regional satellite image interpretation suggests that the Sierra Valdecañas range is a
topographically high, but structurally down-dropped block surrounded by several major north-east
and north-west faults. The most notable of these structures is the over 200 km long Fresnillo dextral
strike-slip fault and the sub-parallel San Acacio-Zacatecas fault to the east of the project (Wendt,
2002). It also appears that the San Acacio-Zacatecas structure extends to the north-east corner of
the Property.

The dominant structural features on the Property include:

• 340° to 020°, or north-south structures
• 290° to 310° trending, steeply dipping faults
• 040° to 050° trending structures

Field observations indicate the north-south trending structures are the oldest and are steep-dipping
normal faults that cut and down-drop blocks of silicified tuff, especially in the vicinity of Linares
Canyon.

Silicification, however, appears to be more closely related to the 290° to 310° trending, steep- to
moderate-dipping faults. The 290° to 310° trending faults occur where silicification and advanced
argillic alteration are most intense and may have served as major hydrothermal fluid pathways.
Regional structural analysis suggests the 290° to 310° trending faults were extensional and
generated between the regional left-lateral strike-slip faults. Repeated opening of these faults by
intra-mineral strike-slip movements may have coincided closely with mineralization, resulting in the
lateral continuity of mineralization within the Valdecañas and other veins of the Fresnillo District.
The coincidence of extensional opening and mineralization may also explain the significant shifts in
depth of boiling in the veins (Simmons, 1991).

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Figure 7.2 Local geology of the Juanicipio project

Source: Fresnillo, 2023.

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Figure 7.3 Stratigraphic column for the Fresnillo area

Source: Fresnillo, 2022 - modified after Velador et al., 2010.

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Figure 7.4 Examples of common rock types at the Juanicipio deposit

Notes:
(A) Oxidized lithophysa rhyolite lapilli tuff with 2 to 3 cm pumice fragments and quartz fragments.
(B) Oxidized medium- to coarse-grained bedded ash tuff.
(C) Oxidized agglomerate tuff with volcanic and sedimentary clasts in a lapilli matrix.
(D) Rhyolite pumice tuff.
(E) Conglomerate, typical of contact between Tertiary and Guerrero Terrane units.
(F) Intermediate to basaltic igneous rocks with visible plagioclase and pervasive chloritization.
(G) Chloritized sandstone with minor shale.
(H) Carbonaceous shale with minor calcite stringers.
Source: Fresnillo, 2021.

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7.2.5 Mineralization
The Fresnillo silver district contains low-sulphidation epithermal quartz-carbonate veins which form
an extensive array of stacked, steeply dipping, west- to west-northwest-trending veins. The veins
are laterally extensive and although the structures are persistent with depth, the silver-gold rich
section is typically limited to a 300 m vertical interval corresponding to the boiling zone of the fossil
hydrothermal system. Metal distributions show a sub vertical zoning with base metal abundance
increasing with depth. Precious metal mineralization within the project area is hosted by two
significant epithermal structures discovered to date: the Valdecañas vein system and the Juanicipio
vein. Two plan views are shown in Figure 7.5 at 1,750 m and at 1,650 m Level. Both are located in
the north-east corner of the claim and dip 35° to 70° to the south-west, with an average dip of 58°.
The Valdecañas vein system extends beyond both the north and east property boundaries. The
Juanicipio vein extends to beyond the east boundary and is open to the west.

Figure 7.5 Plan view showing distribution of the mineralized vein system

Notes: RVL = Chiltos Formation; AR = Arenite; LUAR = Lutite / Arenite.

Source: Fresnillo, 2023.

7.2.5.1 Valdecañas vein system

The Valdecañas vein system displays a metal zonation typical of the Fresnillo District and epithermal
systems in general. The zonation comprises of an upper precious metal zone, the so-called “Bonanza
Zone,” grading downwards into the “Deep Zone”, a deeper, base metal-dominant zone. Significant
copper mineralization has recently been discovered within the deeper levels of the Valdecañas vein
system. The Valdecañas structure hosts all the Indicated Mineral Resources and approximately 46%
of the Inferred Mineral Resource tonnage currently estimated for the project.

The Valdecañas vein system was previously interpreted as an en echelon vein system and referred
to as the V1E and V1W veins. Subsequent diamond drilling has shown the Valdecañas vein to be a
continuous, moderate (50°) south-west dipping vein with a strike length of 1,100 m at the top of
the vein and down dip continuity up to 2,000 m amsl. The average true thickness of the is 6.2 m
but up to 29 m wide. The Valdecañas vein system consists of the Valdecañas itself, and the Ramal 1,
Venadas, Pre-Anticipada and Anticipada veins.

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A paragenetic sequence for mineralization in the Valdecañas vein system is separated into five
stages:
1 Sphalerite and galena.
2 Quartz and calcite with minor sulphides.
3 Alternating bands of chalcedonic quartz- calcite – epidote-sphalerite – galena – and
silver-bearing minerals.
4 Quartz – calcite – dolomite – ankerite with coarse-grained pyragyrite.
5 Barren quartz – calcite and fluorite (Velador, 2010). The main ore minerals are sphalerite,
galena, pyragyrite, polybasite, and acanthite, with gangue minerals consisting of pyrite,
arsenopyrite, quartz, and calcite (Figure 7.7).

The Ramal 1 Vein, previously referred to as the Desprendido and V2W (Ross 2012; Ross et al.,
2017), is located in the footwall to the Valdecañas vein (Figure 7.5). It is moderate (53°) south-west
dipping with a strike length of up to 850 m and down dip continuity between 940 and 1,930 m amsl.
The average true thickness of the vein is 2.0 m and reaches up to 13.8 m. Vein mineralogy
comprises white quartz with trace sulphides in the upper part of the system. Sulphide content and
chlorite and epidote alteration with pervasive silicification increases with depth.

The Anticipada Vein, previously referred to as VANT (2017 AMC Technical Report), is located in the
hanging wall to the Valdecañas vein (Figure 7.5). It is moderate (60°) south-west dipping with a
strike length of 800 m and down dip continuity between 1,900 and 1,185 m amsl. The average true
thickness of the vein is 1.9 m and reaches up to 17.8 m. Vein mineralogy comprises thin quartz,
crustiform and banded layers of sphalerite and galena, and disseminated pyrite with local brecciated
massive sulphide sections.

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Figure 7.6 Examples of the Valdecañas vein

Note: This is NQ drill core with the width of the core being approximately 47.6 mm.
Source: Fresnillo, 2022.

Juanicipio vein
The Juanicipio vein is located approximately 1,100 m south of the Valdecañas vein system (Figure
7.5). It is moderate (45°-55°) south-west dipping with a strike length of 1,100 m and down dip
continuity between 1,360 and 2,100 m amsl. The average true thickness of the vein is 0.9 m and
reaches 3.0 m. Vein mineralogy comprises white quartz and calcite with disseminated sphalerite
and galena (Figure 7.7).

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Figure 7.7 Example of Juanicipio vein

Note: This is NQ drill core with the width of the core being approximately 47.6 mm.
Source: Fresnillo, 2022.

7.2.5.2 Venadas vein

The Venadas vein is atypical of known vein types on the Juanicipio project. Located in the hanging
wall of the Valdecañas vein and north-west of the current known extent of the Juanicipio vein (Figure
7.5), the Venadas vein is steep (78°) north-west dipping with a strike length of 830 m and down
dip continuity between 1,510 and 2,070 m amsl. The average true thickness of the vein is 1.0 m
and up to 3.4 m. Vein mineralogy comprises banded quartz, sphalerite, galena, and disseminated
pyrite (Figure 7.8).

Figure 7.8 Example of Venadas vein

Note: This is NQ drillcore with the width of the core being approximately 47.6 mm.
Source: Fresnillo, 2022.

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7.2.5.3 Styles of mineralization

The veins are interpreted to have undergone multiple mineralizing events as suggested by repeated
stages of brecciation and quartz sealing, local rhythmic microcrystalline quartz-pyrargyrite banding,
and open-space cocks-comb textures. The veins exhibit vertical metal zoning, characteristic of other
epithermal veins in the Fresnillo district. This vertical zoning is characterized by a change from silver
and gold rich zones at the top, the so-called “Bonanza Zone”, to increased lead and zinc in the
deeper parts of the known system termed Deep Zone, with copper values being seen in at the
deepest levels. Notably, gold rich mineralization crosscuts the silver-dominant zones, which in turn
cut earlier base-metal dominant mineralization, indicating complex multi-stage mineralization as is
seen separately in other parts of the district. Gold appears to be present with silver as electrum.

Mineralization in the so-called “Bonanza Zone” consists of precious metal-rich, banded, or brecciated
quartz-pyrargyrite-acanthite-polybasite-galena-sphalerite veins. Within 10 to 20 m of the upper
extent of the veins, the wall rocks are progressively and pervasively silicified and cut by quartz
veinlets carrying pyrite-sphalerite-galena. Alteration in the volcaniclastic / sedimentary host rock
farther away from the vein is characterized by weak pyritization, moderate clay alteration, and
calcite veining. Mineralization in the Deep Zone consists of base metal-rich, banded, or brecciated
quartz-galena-sphalerite-chalcopyrite veins with lesser acanthite and pyrargyrite. Much of the silver
mineralization appears in late sugary quartz veins that cut across the finer-grained massive base
metal veins. Portions of the veins in the Deep Zone show skarn minerals including garnets,
pyroxenes, and axinite within and surrounding the veins. Retrograde hydration of these minerals
produced locally pervasive chlorite, ilvaite and hydrogrossular. The deep skarn zone appears best
developed beneath the central part of the Valdecañas vein and diminishes in pervasiveness laterally
in both directions. The degree and geometry of skarn development coupled with boron-bearing
minerals (i.e., axinite) and complex vein overprinting suggests this is the product of a major
upwelling zone of mineralizing fluid, possibly overlying an intrusive cupola at depth.

7.2.5.4 Other known mineralization

There have been several limited drilling programs aimed at finding veins outside of the Valdecañas
vein system and Juanicipio vein. To date, only narrow epithermal veins have been intercepted in
drillholes outside of known mineralization. However, several intercepts from the exploration holes
are above the 1,850 m amsl top-out of the Valdecañas vein system and future drill programs will
test if these are above the top-outs of new veins.

Another area of exploration called Mesa Grande is located approximately seven km to the south of
the Valdecañas vein system. Seven exploration holes were drilled at Mesa Grande and results
indicate narrow epithermal veins with anomalous silver and gold hosted in volcanic rocks with
alteration similar to the Valdecañas vein system and Juanicipio vein. In this area, there is a thick
unit of volcanic rocks that postdate mineralization and overlie the same host rocks as in the
Valdecañas vein system. The intercepts made at Mesa Grande were at or above 1,850 m amsl,
suggesting these intercepts may be above the top-out of any mineralization that might be present
in the area. Results from Mesa Grande suggest conditions were appropriate for epithermal veins
formation, specifically this far to the south. Future drill programs will follow up on these results.

Elsewhere on the Property, extensive areas of intense silicification and advanced argillic alteration
have been identified on surface and are like those documented above for the Valdecañas vein
system and Juanicipio veins. Given that only between 5% and 10% of the property has been drill
tested, these areas represent potential new targets for future vein discoveries.

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8 Deposit types
The Juanicipio Property is located within the Fresnillo silver mining district, a northwest-southeast-
trending corridor that extends 500 km from the Guanajuato District in the south-east through to
the Sombrerete-San Martin-Sabinas silver district in the north-west. Precious metal deposits within
the area consist of several low-sulphidation epithermal quartz-carbonate veining systems that
crosscuts Middle Jurassic to Late Cretaceous volcanic and sedimentary rocks of the Guerrero
Terrane. Structures hosting epithermal veins in the Fresnillo area are associated with a regional
north-west-trending sinistral shear zone that is locally crosscut by younger northeast-southwest
trending faults. Most of the low-sulfidation epithermal vein deposits are located at the intersection
of the two structural trends and many occur in dilatational zones associated with the north-westerly
structural trend (Megaw, 2010).

In the Fresnillo area, epithermal veins are laterally extensive, with continuous mineralization over
strike lengths between 1.3 and 8 km (Ruvalcaba-Ruiz and Thompson, 1988). The veins typically dip
steeply to the south and reflect the orientation of their host structure, though the veins may branch
and flatten to form stockworks as they approach the upper extents of the mineralizing system.
Although the structures hosting the deposits are vertically continuous, precious (Ag and Au) and
base (Pb, Zn and Cu) metal mineralization is typically vertically zoned within a restricted window of
the structure where mineralizing fluids range in temperature between ~180 to 280°C. Vertical metal
zonation within the veins reflects the relationship between ascending hydrothermal fluids, boiling of
these fluids, and depth below the syn-mineralization paleowater table (Hedenquist and Henley,
1985; Albinson, 1988). Horizontal metal zoning may also occur with higher metal content typically
associated with the core(s) of fluid up-welling zone(s).

Hydrothermal fluids associated with low sulfidation epithermal vein deposits have near-neutral pH
and are nearly in equilibrium with the vein wall rocks. Hydrothermal fluids that discharge at surface
will boil and form silica sinters. Alteration associated with this type of hydrothermal system reflects
the neutral pH of the mineralizing fluids and decreasing temperature gradient surrounding the fluid
conduit. Clay minerals dominate the alteration assemblages of low sulphidation epithermal deposits.
Smectite is indicative of low temperatures (<160°C), whereas illite by itself is indicative of higher
temperatures (>220°C; Reyes, 1990).

Sulphide minerals typical of low-sulphidation epithermal ore zones comprising pyrite, Ag-Au
sulphides, sphalerite, galena, and chalcopyrite. Gangue minerals typically include quartz, carbonate,
sericite, and adularia. Quartz and chalcedony veins may show banded, crustiform, cockade, and
druse-lined cavities, indicative of hydrothermal deposition in open structures. Multi-phase
hydrothermal breccia textures are also observed, indicative of repeated episodes of hydraulic
fracturing and mineral deposition. Lattice-textured calcite is also common, although it may be a
pseudomorph of quartz as the system cools (White and Hedenquist, 1999; Hedenquist et al., 2000).

The schematic vertical section presented in Figure 8.1 illustrates the conceptual model for
epithermal polymetallic mineralization in the Fresnillo District.

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Figure 8.1 Conceptual model for epithermal mineralization in the Fresnillo District

Source: Fresnillo, 2022 - adapted from Carlos Altamirano Morales, 2021.

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9 Exploration
9.1 Surface exploration
Exploration on the Property prior to formation of the Minera Juanicipio JV in 2007 is documented in
Section 6 of this report. Since 2007, most exploration on the Property has consisted of surface and
underground drilling and underground channel sampling. Drilling is discussed in detail in Section 10.

Limited soil sampling programs were carried out until 2017 and exploration to that point was focused
on the Valdecañas area. A few additional exploration targets were identified and are discussed in
Section 7. Less than 5% of the concessions have been explored or drilled.

Fresnillo, the operator of Minera Juanicipio, commenced a surface mapping and detailed sampling
program in 2016 to assist with identifying additional structures hosting mineralization on the
Property. This program incorporated hyperspectral analyses of surface and drill core coupled with
the collection of 255 rock samples from outcrops exhibiting deformation / veining and alteration.
The results of this program have helped improve the conceptual model of epithermal mineralization
in the Fresnillo district (Figure 8.1). The results were also used to create a detailed structural and
hyperspectral map (see Figure 9.1). The dashed white line in Figure 9.1 shows the location of the
schematic section in Figure 8.1.

Rock samples were submitted to the ALS Chemex Laboratory (ALS Chemex) in Guadalajara, Mexico
for gold analysis using fire assay with spectrometry finish (Au-ICP21), and four acid digestion with
spectrometry finish (ME-ICP61m) for arsenic, antimuonium, and mercury.

The results of this program helped identify anomalous concentrations of gold, mercury, arsenic, and
antimony. Gold anomalies are spatially related to hydrothermal breccias, veinlets of
quartz-chalcedony, and alunite-kaolin that are exposed at surface and in the projection to the
surface of the Valdecañas vein. Samples with concentrations up to 0.088 g/t gold, 514 parts per
million (ppm) arsenic, 28.8 ppm mercury, and 54 ppm antimony were collected during the program.
A map showing the location of surface samples and their gold values are shown in Figure 9.2.

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Figure 9.1 Map showing structural and hyperspectral interpretation

Note: The dashed white line shows the location of the schematic section in Figure 8.1.
Source: Fresnillo, 2023.

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Figure 9.2 Surface map showing property geology overlain by sample locations and gold values

Source: Fresnillo, 2023.

9.2 Underground channel sampling

Channel samples are collected regularly and used in the Mineral Resource estimation. Prior to
sampling, sample intervals are marked on the rock face by the mine geologist, typically
perpendicular to the mineralized structure. Samples are collected on faces with total sample
distance averaging 7 m but ranging from 2 to 14 m. To minimize contamination while sampling the
foot or hanging wall, samples are collected at a minimum distance of 10 cm from the vein contact.
A diamond disc cutter and rotary hammer or a hammer and chisel or wedge is used depending on
rock conditions. Individual sample intervals vary from 1 to 1.5 m. Sampled material is split into
quarters; one quarter (~ 3 kg) of the material is placed in a sample bag.

Duplicate channel samples are collected for every fourth sample, at positions where the
mineralization is conspicuous or at discretion of the mining geologist. Figure 9.3 shows a typical
underground channel sampling layout with duplicate sampling.

Samples are labelled, recorded in the sampling database, and then delivered to ALS Chemex
Laboratory in Guadalajara, Mexico immediately.

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Figure 9.3 Channel sampling markings at an underground development front

Source: Fresnillo, 2022.

A total of 4,537 channels totaling 4,677 m have been collected since October 2019.

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10 Drilling
10.1 Introduction
In 2003 and 2004, MAG Silver drilled nine core drillholes totaling 7,346 m. From August 2005 until
May 2023, MAG Silver and Fresnillo, on behalf of the joint venture, have drilled a total of 499 core
drillholes totaling 380,738 m on the Property (Table 10.1). Most of the drilling targeted the
Valdecañas vein system.

The majority of the initial drilling was conducted by the Fresnillo exploration team. Since 2015 when
underground, drilling was divided into two parts: surface drilling, still carried out by the exploration
team, and underground drilling, as infill drill programs carried out by the mine geology team from
underground setups. The mine geology team also conduct underground face sampling (i.e. channel
sampling) which is discussed in Section 9.2.

Drilling was commonly collared using HQ (64 mm core diameter) equipment, reducing to NQ (48
mm core diameter) and BQ (37 mm core diameter) as necessary.

Table 10.1 Summary of core drilling by year

Operator Surface drillholes Underground drillholes
Number of Number of
Drilling campaign Date Meterage Meterage
drillholes drillholes
MAG Silver
2003 and 2004 9 7,346
Fresnillo
1 Aug 2005 - May 2007 21 17,322
2 May 2007 - Oct 2007 5 4,252
3 Oct 2007 - Jan 2009 27 22,813
4 Jan 2009 - Nov 2009 19 13,138
5 Nov 2009 - Jun 2010 20 17,965
6 Jun 2010 - Nov 2010 17 13,687
7 Nov 2010 - Jun 2011 10 8,299
8 Jun 2011 - Jan 2012 10 7,958
9 Jan 2012 - Nov 2012 17 15,125
10 Nov 2012 - Dec 2013 32 29,326
11 Dec 2013 - Dec 2014 5 4,440
12 Dec 2014 - Dec 2015 5 5,024
13 Dec 2015 - Oct 2016 13 15,816 3 2,857
14 Oct 2016 - Dec 2017 8 9,140 1 353
15 Dec 2017 - Oct 2018 30 29,319 8 5,014
16 Oct 2018 - Oct 2019 19 23,644
17 Oct 2019 - Jul 2020 14 16,566 6 1,387
18 Jul 2020 -Dec 2020 12 15,722 7 969
19 Dec 2020 - May 2021 13 15,949 19 2,849
20 May 2021 - May 2022 24 32,591 67 7,529
21 May 2022 - May 2023 18 25,714 40 7,014
Total 348 351,156 151 29,582
Note: The total of surface and underground drilling is 499 holes for 380,738 m.

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10.1.1 Mag Silver (2003 - 2005)

From May 2003 to June 2004, MAG Silver completed nine diamond drillholes for a total of 7,346 m.
This first drill program on the Property included the discovery hole of the Juanicipio vein. Note that
results from this drilling are not utilized in resource estimation and are not shown in any figures.

10.2 Fresnillo (2005 - 2023)

From August 2005 to 31 May 2023, Fresnillo completed 490 diamond drillholes for a total of
373,392 m. The programs totaled 339 surface drillholes and 151 underground drillholes. Since
2017, Fresnillo has implemented directional drilling using Devico DeviDrill technology for most of
the surface directed holes.

10.3 Surveying and drilling procedures

Once collar locations and orientations are planned and drilling begins, single-shot survey data are
collected and monitored in Datamine© Fusion and Leapfrog® software. Surface drillhole collars are
located and surveyed using a differential GPS or transit system. Underground drillhole collars are
located by surveyors using a total station instrument. Downhole surveys for surface and
underground drillholes are collected using Reflex Flexit and EZ-Shot instruments with
measurements typically collected at 50 m or shorter intervals. Where holes have been surveyed
using a gyroscopic instrument, measurements are collected as frequently as every metre.

When surface drillholes are completed, the casing is removed, the collar location is identified by a
cement monument engraved with the drillhole identification, and the site is revegetated per local
requirements. Completed underground drillholes are marked with the hole number and either
capped with a shutter if the hole can be used as a water source or left uncapped.

Core recovered during drilling is placed in a core box at the end of each run. Core boxes are
transported to the logging facility at the end of each shift. The core recovery percentage per section
drilled (“run”) is recorded in the drill log. The logs generally contain the name of the hole, drilled
interval, and the core recovery percentage.

Core recovery is generally good except in extremely fractured near-surface rock, argillite, or wider
fault structures.

10.4 Drilling pattern and hole density

Overall drillhole spacing varies from 70 to 100 m along strike and 50 to 100 m down dip of
mineralization.

Diamond drillholes considered for Mineral Resource modelling in the Valdecañas vein system were
designed to have pierce points spaced approximately 50 to 100 m apart. Drilling density is highest
in the upper parts of the vein system where pierce points are typically spaced 50 to 60 m, becoming
more widely spaced in the deeper and lateral extents of the drill plan.

Diamond drillholes targeting the Venadas vein were drilled to have pierce points spaced at 30 to
50 m. Drilling density is highest within approximately 400 m of the Valdecañas vein system where
pierce points are typically spaced approximately 30 m apart, becoming more widely spaced with
increasing distance from the Valdecañas vein system.

Diamond drillholes targeting the Juanicipio vein were drilled to have pierce points spaced
approximately 30 to 75 m apart. The distribution of pierce points consists of clusters of 2 to 3 pierce
points spaced at approximately 30 m, with these clusters of drillholes spaced at 50 to 75 m. Pierce
point spacing is typically tighter in the middle, becoming more widely spaced towards the lateral
and vertical extents of the modelled Juanicipio vein.

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Figure 10.1 Map showing the distribution of drilling

Notes: Inset map shown in white above legend. The yellow dashed line shows the location of map area.
Source: Fresnillo, 2024.

10.5 Discussion on drilling programs

10.5.1 Valdecañas vein system
A total of 387 diamond drillholes holes from surface and underground totaling 254,368 m have
targeted the Valdecañas vein system. The majority of drillholes were drilled on an azimuth of 350 to
020 degrees with a downward inclination of 60° to 70°. Drillhole lengths range from 207 to 1,635 m
for drillholes collared from surface stations and 80 to 1,225 m for drillholes collared from
underground stations. Drillholes were surveyed at regular intervals of 50 m using Reflex tools.
Figure 10.2 shows a representative cross section through the Valdecañas vein system at azimuth
295°. Other veins are shown on the figure for context.

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Figure 10.2 Representative cross section of the Valdecañas, Anticipada, Pre-Anticipada, Ramal 1,
& Juanicipio veins

Source: Fresnillo, 2024.

10.5.2 Juanicipio vein

A total of 37 diamond drillholes from surface totaling 32,706 m targeted the Juanicipio vein and of
these, 18 drillholes intercepted mineralization. Most drillholes were drilled on an azimuth of 000 to
010 degrees with a downward inclination of 65° to 70°. Drillhole lengths range from 124 to 1,119 m.
Drillholes were surveyed at regular intervals of 50 m using Reflex tools. Figure 10.3 shows a
representative cross section through the Juanicipio vein at azimuth 295°.

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Figure 10.3 Representative cross section of the Juanicipio vein

Source: Fresnillo, 2024.

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10.5.3 Venadas vein

A total of 62 diamond drillholes from surface and underground totaling 39,350 m targeted the
Venadas vein. The majority of drillholes were drilled on an azimuth of 140° to 150° with a downward
inclination of 50° to 60°. Drillhole lengths range from 583 to 1,635 m. Drillholes were surveyed at
regular intervals of 50 m using Reflex instruments. Figure 10.4 shows a representative cross section
through the Venadas vein at azimuth 230°.

Figure 10.4 Representative cross section of the Venadas vein

Source: Fresnillo, 2024.

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10.6 Comments
In the opinion of the QP, the drilling strategy and procedures used by Fresnillo on the Juanicipio
Property conform to generally accepted industry best practices and are suitable for this deposit. The
drilling information is sufficiently reliable, and the drilling pattern is sufficiently dense to interpret
with confidence the geometry and the boundaries of silver, gold, zinc, and lead mineralization in
the Valdecañas vein system and the Juanicipio vein. All diamond drillcore sampling was conducted
by appropriately qualified personnel under the direct supervision of appropriately qualified
geologists.

The QP is not aware of any drilling, sampling, or recovery factors that could materially impact the
accuracy and reliability of diamond drilling results from the Valdecañas vein system or the Juanicipio
vein.

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11 Sample preparation, analyses, and security

11.1 Sample Preparation and security by operator
Sample preparation and security for both MAG Silver and Fresnillo are discussed below. Only assays
from samples collected while Fresnillo has been the operator of the JV have been used in the Mineral
Resource estimation.

11.1.1 MAG Silver (2005)

During the 2005 season, drill core was logged at MAG Silver’s core processing facility in Fresnillo.
After logging, sample technicians split core and placed one half into plastic sample bags with affixed
labels, and the second half in a core tray for storage and reference. Batches of sealed samples were
packed in rice bags and shipped by courier to the BSI Inspectorate preparatory laboratory (lab) in
Durango, Mexico. Sample preparation involved crushing, splitting, and pulverizing of the
subsamples.

After preparation, sample pulps were flown to Reno, Nevada, and analyzed for silver, arsenic,
antimony, copper, mercury, lead, and zinc by aqua regia digestion and flame atomic absorption
methods. A standard fire assay was used for gold. Procedural details at BSI Inspectorate (including
the detection limits of each method) are described in Wetherup (2006). BSI Inspectorate is now
part of Bureau Veritas and would have been a certified laboratory at that time; however, these data
are not used in the Mineral Resource Estimation.

MAG Silver is and was independent of both BSI Inspectorate and Bureau Veritas.

11.1.2 Fresnillo (2005 - 2023)

Drill core was received by exploration team personnel at the core handling facility near the Saucito
mine site each day. Upon receipt, geotechnicians checked that depth markers were inserted at the
end of each 3 m run and core boxes were labelled. Drill core was reconstructed and assessed for
continuity and recovery data are recorded. The drill core was then logged by Fresnillo geologists
who assessed and recorded lithology, alteration, mineralization, and structural and rock quality
designation (RQD) information. Sample intervals were defined and sample tags were inserted.
Sample lengths range from 0.6 to 2.0 m.

Drill core was then split using two methods: a diamond saw in mineralized zones, and mechanical
splitter in altered zones; however, some early programs split both mineralized and altered core.
Core splitting tools were cleaned regularly to avoid cross-contamination between samples. After
splitting, half of the core was returned to the core box and the other half was placed in pre-numbered
plastic sample bags, boxed, and stored securely until shipped to the analytical lab. One blank and
at least two different SRMs were inserted into every batch of 20 to 30 samples.

Cut samples were shipped to ALS Chemex in Guadalajara, Mexico, where they were organized into
batches, weighed (method code LOG-22) and crushed to 70% passing below 2 mm mesh screen
(CRU-31). Up to 1,500 grams (g) of the crushed material was subsampled using a riffle splitter
(SPL-21) and pulverized to 85% passing below 75 μm mesh screen (SPL-31).

The prepared pulps were then shipped by exploration team personnel to ALS Chemex Assay
Laboratory in Vancouver, British Columbia for analysis. Each sample was analyzed for silver, lead,
and zinc by ICP-AES analysis (ME-ICP4m). If silver concentrations exceed 100 ppm, the upper
detection limit for ICP-AES, the sample was analyzed using gravimetric methods (Ag-GRA21).
Standard fire assay was used to analyze for gold (Au-AA23). The ALS Chemex Vancouver laboratory
is accredited to ISO 9001 by QMI-SAI Global and ISO 17025 by the Standards Council of Canada
for several specific test procedures, including fire assay for gold with an atomic absorption and

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gravimetric finish, multi-element inductively coupled plasma optical emission spectroscopy

(ICP-AES), and atomic absorption assays for silver, copper, lead, and zinc. See Table 11.1 for a list
of limits of detection for each analyte.

Table 11.1 List of detection limits for Au, Ag, Pb, and Zn
Element Limits of detection
Au 0.005 - 10,000 g/t
Ag 0.2 - 10,000 g/t
Pb 0.0002 - 20%
Zn 0.0002 - 30%
Source: Compiled by AMC, 2023.

Both MAG Silver and Fresnillo, the companies that make up the JV, are independent of ALS Chemex
Assay.

11.2 Bulk density data

Fresnillo collected specific gravity (SG) data as part of the core logging process. SG was calculated
hydrostatically using Archimedes’ Principle. A sample of dry core was weighed in air, then weighed
again while submerged in water. SG was then calculated by dividing the dry weight of the core by
the dry weight of core less the submerged weight of core. The core was not sealed. As the core is
not porous, the SG measurement accurately represents bulk density. The terms “density” and “bulk
density” are used throughout the rest of the report.

Until 2015, a triple beam balance with an accuracy of 0.5 g was used to weigh the samples. Since
2015, samples were weighed using an electronic scale attached to a tablet with an application that
calculates density values and uploads them directly to the drilling database (see Table 11.2). The
use of this method has reduced the number of errors during the data collection. The density station
is located inside the Juanicipio core storage facility.

Figure 11.1 Density measurement station with electronic scale and instrument to record data

Source: Fresnillo, 2021.

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By May 2023, a total of 65,328 measurements have been collected at the Juanicipio Property.
Density measurements are summarized in Table 11.2 and their use in the estimate is discussed in
Section 14.2.2.

Table 11.2 Density measurements from the Juanicipio project by rock type
Rock type Number Minimum Maximum Mean Median Std. dev. Coeff. var.
Alluvium 10 1.80 2.67 2.22 2.20 0.27 0.12
Fault 1320 1.80 3.25 2.35 2.38 0.22 0.09
Conglomerate 264 1.85 2.73 2.37 2.40 0.14 0.06
Intrusive 896 1.98 3.89 3.17 3.22 0.21 0.07
Limestone 53 2.42 2.75 2.57 2.58 0.08 0.03
Mineralized veins and stockwork 14,566 1.72 4.85 2.72 2.69 0.2 0.07
Rhyolites 1,448 1.74 3.70 2.23 2.21 0.17 0.08
Green volcanics 1900 1.88 3.04 2.58 2.58 0.15 0.06
Sandstone and shales 44,871 1.68 3.46 2.60 2.61 0.10 0.04
Source: Fresnillo, 2024.

A total of 37,189 bulk density samples were related to drillholes informing the Mineral Resource
Estimate.

11.3 QAQC procedures

Fresnillo maintains a QAQC program which currently comprises commercial standard reference
material (SRM), pulp blanks, field, coarse, and pulp duplicates, and umpire samples. Blank samples
were included beginning in 2009. SRM samples were included beginning in 2010. Umpire samples
were introduced in 2012. Field duplicates were introduced in 2022 and pulp and coarse duplicates
introduced in 2023. Since 2022, SRMs, blanks, and duplicates have been inserted into the sample
stream on a batch-by-batch basis and are used to monitor Au, Ag, Pb, and Zn assay values. Umpire
samples are a select batch of pulp samples submitted to a second lab (umpire lab) to check the
precision of analyses from the primary lab. The QP completed a review of QAQC data provided by
Fresnillo and associated with drilling and channel sampling between 2007 and 31 May 2023.

The QP has reviewed Fresnillo’s internal QAQC data and documents from 2017 to 2023 as well as
reviewing the QAQC data in Wetherup (2006) and AMC (2017; amended) and finds the results
acceptable.

In addition to reviewing past QAQC reports and data, the QP generated his own charts for the 12
months preceding the current Mineral Resource estimate dated 31 May 2023 (see Section 14).

Summaries of QAQC results for each sample type (i.e., surface drillhole, underground drillhole, and
face channel) including their pass / fail results, were provided by Fresnillo. Summaries of QAQC
sample types and insertion rates are provided in Table 11.3 and Table 11.4, respectively. The
summaries are divided into surface drilling, covering 2007 until 31 May 2023, and underground
drilling and channel sampling, covering the end of 2016 until 31 May 2023. No QAQC samples were
submitted in 2008.

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Table 11.3 Juanicipio QAQC samples by year for all sample types
Duplicate samples Umpire samples1
Surface
UG drill Channels ALS ALS SGS ALS ALS IPL
Year drill SRMs Blanks
2
samples samples Pulp Coarse Field vs vs vs vs vs vs
samples
BV SGS BV IPL ACME ACME
2007 2,264 0 0 0 1 0 0 0 0 0 0 0 0 0
2009 4,190 0 0 1 30 0 0 0 0 0 0 0 0 0
2010 2,716 0 0 79 160 0 0 0 0 0 0 0 0 0
2011 990 0 0 44 86 0 0 0 0 0 0 0 0 0
2012 3,204 0 0 119 243 0 0 0 22 22 22 0 0 0
2013 6,026 0 0 258 516 0 0 0 23 23 23 0 0 0
2014 894 0 0 121 242 0 0 0 129 129 129 0 0 0
2015 1,443 0 0 107 212 0 0 0 123 123 123 0 0 0
2016 3,746 718 0 272 536 0 0 0 319 319 319 0 0 0
2017 2,013 10 0 107 216 0 0 0 34 34 34 0 0 0
2018 5,535 2,248 0 288 586 0 0 0 206 242 206 0 0 0
2019 4,586 0 0 289 288 0 0 0 137 179 137 1,082 1,119 1,082
2020 6,381 891 898 289 572 0 0 0 0 0 0 0 0 0
2021 2,519 952 635 295 292 0 0 0 0 0 0 0 0 0
2022 5,018 4,487 1,514 61 61 0 0 278 0 0 0 0 0 0
2023 3,371 1875 1490 302 400 203 199 121 50 99 50 0 0 0
Total 54,896 11,181 4,537 2,632 4,441 203 199 399 1,043 1,170 1,043 1,082 1,119 1,082
Notes:
1
The ALS vs ICP vs ACME samples were analyzed over the 2019 – 2020 period. For the purposes of this table, all samples
are placed in 2019.
2
Total SRMs by element vary slightly, the SRM number by year is based on the element with the most samples.
Source: Compiled by AMC, 2023.

Table 11.4 Fresnillo Juanicipio QAQC insertion summary

QAQC samples insertion rate (%)
Year Total samples
SRMs Blank samples Umpire samples Duplicate samples
2007 2,264 0 0 0 0
2009 4,190 0 0.7 0 0
2010 2,716 2.9 5.9 0 0
2011 990 4.4 8.7 0 0
2012 3,204 3.7 7.6 2.1 0
2013 6,026 4.3 8.6 1.1 0
2014 894 13.5 27.1 43.3 0
2015 1,443 7.4 14.7 25.6 0
2016 4,464 6.1 12 21.4 0
2017 2,023 5.3 10.7 5 0
2018 7,783 3.7 7.5 8.4 0
2019 4,586 6.3 6.3 9.9 0
2020 8,170 3.5 7 0 0
2021 4,105 7.2 1.5 0 0
2022 11,020 1.2 0 0 2.5
2023 6,739 4.5 5.9 3 7.8
Total 70,617 3.7 6.3 9.3 1.1
Source: Compiled by AMC, 2023.

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A more detailed table including sample types for QAQC sampling and insertion rates are shown for
1 June 2022 and 31 May 2023 (2022 – 2023 program) are shown in Table 11.5 and Table 11.6,
respectively.

Table 11.5 Juanicipio QAQC samples (2022 – 2023 program)

Diamond drill Diamond drill
QAQC sample type Channel Total
- surface - mine (UG)
CDN-ME-1807 47 49 96
SRMs CDN-ME-1810 170 170
CDN-ME-1903 9 27 36
Blanks Pulp 169 117 114 400
Pulp 72 131 203
Duplicates Coarse 68 131 199
Field 39 82 121
ALS - BV 50 50
Umpire ALS - SGS 53 46 99
SGS - BV 50 50
Total samples (QAQC) 492 352 580 1,424
No. drillholes 18 40 362 420
No. samples 3372 1876 1491 6,739
Total meterage 25,714 7,014 4,677 37,405
Notes: Drillholes sample dates have been extrapolated to QAQC samples and used to filter the data for the relevant time
period. QAQC samples not associated with the sample database have been removed.
Source: Compiled by AMC from data provided by Fresnillo.

Table 11.6 Juanicipio QAQC insertion percentages (2022 – 2023 program)

Diamond drill Diamond drill
Sample type Channel
- surface - mine (UG)
No. samples 3,371 1,876 1,491
CDN-ME-1807 0.0% 2.5% 3.3%
SRMs CDN-ME-1810 5.0% 0.0% 0.0%
CDN-ME-1903 0.0% 0.5% 1.8%
Blanks Pulp 5.0% 6.2% 7.6%
Pulp 0.0% 3.8% 8.8%
Duplicates Coarse 0.0% 3.6% 8.8%
Field 0.0% 2.1% 5.5%
ALS - BV 1.5% 0.0% 0.0%
Umpire ALS - SGS 1.6% 0.0% 3.1%
SGS - BV 1.5% 0.0% 0.0%
Notes: Drillholes sample dates have been extrapolated to QAQC samples and used to filter the data for the relevant time
period. QAQC samples not associated with the sample database have been removed.
Source: Compiled by AMC from data provided by Fresnillo.

Industry best practice typically advocates an SRM insertion rate of at least 5 – 6%, a blank insertion
rate of 4 – 5%, a duplicate insertion rate (field, coarse, and pulp duplicates combined) of 5 – 6%,
and a check (umpire) sample insertion rate of 4 – 5% of the total samples submitted, yielding a
total of ~20% QAQC samples (Long et al., 1997; Méndez, 2011; Rossi and Deutsch, 2014). SRMs,
blanks, and duplicates should be inserted in every batch of samples submitted to the laboratory to
enable the monitoring of laboratory accuracy, contamination, and precision, respectively.

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The QAQC sample insertion summary is provided in Table 11.3 and the insertion percentages are
provided in Table 11.4. The QP notes that the insertion rates meet industry standards for some
sample types; however, several Fresnillo insertion rates are lower than industry standard. No
duplicates were submitted with the surface diamond drill core samples and no umpire samples were
submitted with the mine diamond drill core samples. Standard reference materials and blanks for
mine diamond drill core samples and umpire samples for channel samples all have insertion
percentages below the industry standards.

The QP notes that the complete database including drill core, channel, and QAQC samples was not
provided by Fresnillo, and it is therefore not possible to comment on the spacing of QAQC samples,
the proportion of QAQC samples within individual batches, or whether the distribution of QAQC
samples relative to mineralized zones is appropriate.

11.3.1 Standard reference materials

11.3.1.1 SRMs overview
SRMs contain standard, predetermined concentrations of material (Au, Ag, Pb, and Zn) and are
inserted into the sample stream to check the analytical accuracy of the laboratory. Fresnillo’s QAQC
program at the Juanicipio Property includes the insertion of three SRMs into the sample stream for
surface and mine diamond drill core and channel samples. All current SRMs have been supplied by
CDN Resource Laboratories of Langley, British Columbia, Canada and certified for Au analysis by
30 g fire assay and AA / ICP / gravimetric finish, for Ag analysis by either 30 g fire assay and
gravimetric finish or by four-acid digestion and AA / ICP finish, and for Pb and Zn analysis by
four-acid digestion and AA / ICP finish. All SRMs have a relative standard deviation (RSD) of less
than 10%.

A summary of the SRMs used at Juanicipio is presented in Table 11.7. SRM CDN-ME-1810 is used
to monitor surface diamond drill core samples, and SRMs CDN-ME-1807 and CDN-ME-1903 are used
to monitor mine diamond drill core samples and channel samples. For each economic metal, the QP
recommends the use of at least three SRMs with values:
1 At the approximate cut-off grade of the deposit.
2 At the approximate expected grade of the deposit.
3 At a higher grade.

Table 11.7 Summary of SRM types and grade summary (2022 – 2023 program)
CDN-ME-1807 CDN-ME-1810 CDN-ME-1903
Analyte Unit Method Mean SD Mean SD Mean SD
Instrumental 7.88 0.42 4.41 0.33 3.035 0.242
Au
Gravimetric 7.91 0.42 - - - -
g/t
4-acid 327 20 154 9 180 11
Ag
Gravimetric 324 15 151 12 177 15
Pb 4-acid 2.34 0.1 1.46 0.07 1.06 0.04
%
Zn 4-acid 2.43 0.08 0.96 0.04 1.75 0.07
Source: Compiled by AMC from data provided by Fresnillo.

The QP understands SRM performance at Juanicipio is monitored on a regular basis, using control
limits defined by the mean and standard deviation, which are provided on the SRM certificate.
Analytical bias is calculated based on the average of analytical results within the reporting period
relative to the ‘declared value’ provided on the SRM certificate.

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Fresnillo reviews SRMs using control charts based on calculated mean and standard deviation. Assay
batches that include an SRM with a result outside of three standard deviations, or two out of three
consecutive results outside of two standard deviations and consistently above or below the
calculated SRM mean are considered outliers that are investigated. The QP notes that the protocol
for batches with failed SRMs has not been provided, and there does not appear to be any reanalysis
of batches with failed SRMs.

11.3.1.2 Discussion on SRMs (2022 – 2023 program)

SRMs for surface diamond drill core samples
A total of 170 SRM samples were submitted with 3,371 surface diamond drill core samples between
1 June 2022 and 31 May 2023 for an insertion rate of 5.0%, which meets the industry standard
SRM insertion rate of at least 5 – 6%. Only one SRM (CDN-ME-1810) was used in the surface drilling
sample stream, and the performance of this SRM is summarized in Table 11.8. One high warning
(Au), two low warnings (Zn), and one mislabel (Au) are reported. There is a minor negative bias for
Au, Pb, and Zn, and a minor positive bias for Ag. The bias for all analytes is <5% and these results
are considered to reflect a high level of accuracy.

Table 11.8 CDN-ME-1810 performance summary for surface diamond drill core samples
CDN-ME-1810
Au Ag Pb Zn
Unit g/t %
Cert. value 4.41 151 1.46 0.96
SD (control) 0.33 12 0.07 0.04
Mean (assays) 4.41 154.66 1.45 0.93
SD (assays) 0.17 3.11 0.02 0.02
Low warning (-2SD) 0 0 0 2
High warning (+2SD) 1 0 0 0
Low fail (-3SD) 0 0 0 0
High fail (+3SD) 0 0 0 0
Mislabel 1 0 0 0
Fail % 0% 0% 0% 0%
Bias -0.09% 2.37% -1.03% -3.34%
Note: SD=standard deviation.
Source: Compiled by AMC from data provided by Fresnillo.

SRMs for mine diamond drill core samples

Two SRMs were used in the mine drilling sample stream between 1 June 2022 and 31 May 2023,
which included 47 analyses of CDN-ME-1807 and nine analyses of CDN-ME-1903 for a total of
56 SRM samples for 1,875 mine diamond drill core samples. This produced an SRM insertion rate of
only 3.0%, which does not meet industry standards. The performance of both SRMs is summarized
in Table 11.9. Two high warnings (Ag, Pb) are reported for CDN-ME-1807, and no warnings or
failures are reported for CDN-ME-1903. The bias for all analytes is <5% and generally considered
to be acceptable, except for Ag in CDN-ME-1903 which has 7.18% bias. The control chart for these
analyses shows a high level of precision for the Ag measurements in CDN-ME-1903, but all the
measurements are consistently greater than the certified value, which has produced the slightly
high positive bias. With only nine analyses, it is not possible to draw any further conclusions, and
this degree of bias did not produce a warning or a failure, but this should be monitored if
CDN-ME-1903 continues to be used in subsequent drilling.

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Table 11.9 CDN-ME-1807 and CDN-ME-1903 performance summary for mine diamond drill core
samples
CDN-ME-1807 CDN-ME-1903
Au Ag Pb Zn Au Ag Pb Zn
Unit g/t % g/t %
Cert. value (g/t) 7.88 324 2.34 2.43 3.035 177 1.06 1.75
SD (control) 0.42 15 0.1 0.08 2.42 15 0.04 0.07
Mean assays (g/t) 7.96 335 2.35 2.43 3.04 194 1.02 1.70
SD (assays) 0.27 8 0.06 0.06 0.12 2 0.02 0.02
Low warning (-2SD) 0 0 0 0 0 0 0 0
High warning (+2SD) 0 1 1 0 0 0 0 0
Low fail (-3SD) 0 0 0 0 0 0 0 0
High fail (+3SD) 0 0 0 0 0 0 0 0
Mislabel 0 0 0 0 0 0 0 0
Fail % 0% 0% 0% 0% 0% 0% 0% 0%
Bias -1.51% 3.26% -3.20% -3.33% -4.72% 7.18% -4.68% -4.61%
Note: SD=standard deviation. Time period: 2022 – 2023 program.
Source: Compiled by AMC from data provided by Fresnillo.

SRMs for channel samples

Two SRMs were used in the channel sample stream between 1 June 2022 and 31 May 2023, which
included 49 analyses of CDN-ME-1807 and 27 analyses of CDN-ME-1903 for a total of 76 SRM
samples for 1,491 channel samples. This produced an SRM insertion rate of 5.1%, which meets
industry standards. The performance of both SRMs is summarized in Table 11.10. Three high
warnings (Ag), ten low failures (Pb, Zn), and one high failure (Zn) are reported for CDN-ME-1807.
One high warning (Zn) is reported for CDN-ME-1903. The calculated bias for all analytes for both
SRMs is <5% and considered to be acceptable. The five analyses with low failures for Pb coincide
with the five low failures for Zn, which suggests that these analyses were from the same samples.
The high failure for Zn also coincides with a peak in Pb that nearly meets the threshold for a high
warning. Of the low failures, there are two instances of consecutive failures, which should trigger a
reanalysis by Fresnillo; however, it is not clear from the provided data if this reanalysis was done.
Overall, the failures appear to be outliers and do not appear to indicate a systematic analytical issue
with the lab.

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Table 11.10 CDN-ME-1807 and CDN-ME-1903 performance summary for channel samples
CDN-ME-1807 CDN-ME-1903
Au Ag Pb Zn Au Ag Pb Zn
Cert. value (g/t) 7.88 324 2.34 2.43 3.035 177 1.06 1.75
SD (control) 0.42 15 0.1 0.08 2.42 15 0.04 0.07
Mean assays (g/t) 8.04 339 2.32 2.40 3.10 186 1.05 1.76
SD assays 0.28 11.8 0.12 0.16 0.15 7.89 0.03 0.06
Low warning (-2SD) 0 0 0 0 0 0 0 0
High warning (+2SD) 0 3 0 0 0 0 0 1
Low fail (-3SD) 0 0 5 5 0 0 0 0
High fail (+3SD) 0 0 0 1 0 0 0 0
Mislabel 0 0 0 0 0 0 0 0
Fail % 0% 0% 10% 13% 0% 0% 0% 0%
Bias -3.85% 4.26% -3.53% -3.64% -2.98% 4.22% -4.22% -3.85%
Note: SD = standard deviation. Time period: 2022 – 2023 program.
Source: Compiled by AMC from data provided by Fresnillo.

11.3.1.3 Discussion on SRMs (2007 – 2022 programs)

Fresnillo has included SRMs with sample submissions in previous work programs. SRM results prior
to 2010 are not available A detailed review of SRM results from 2010 – 2022 was completed with
internal documents and data provided by Fresnillo, and a summary of the key findings is presented
below:
• SRM data is available from 2010 – 2022 for surface drilling and from 2021 – 2022 for
underground drilling and channel sampling.
• SRM insertion rates vary from 1.2 – 13.5%, with 6 programs (2014 –2017, 2019, 2021)
meeting or exceeding the industry standard SRM insertion rate of 5 – 6%, and the remaining
8 programs falling below the industry standard.
• Ten different SRMs have been used for surface drilling from 2010 – 2022, with the total
number used in a single year ranging from 1 – 3.
• For surface and underground drilling, failure rates vary between different SRMs and for
different analytes. For Au, Ag, and Pb, SRMs demonstrate reasonable analytical accuracy, with
most SRM analyses falling within control limits. Results for Zn are more variable, with failure
rates ranging from 0 –62%.
• SRM results for channel sampling reflect lower degrees of analytical accuracy for all analytes,
with only one SRM (CDN-ME-1807) returning <10% failure rate for one analyte (Au). All other
SRMs and analytes have 10 – 50% failure rates.
• Overall, the SRMs for the period of 2010 – 2022 reflect reasonable analytical accuracy.

11.3.1.4 Comments on SRM samples

Overall, the SRM results from 2010 – 2023 in all three sample streams are acceptable and indicate
an appropriate level of accuracy. There were no failures and no consecutive warnings for SRMs in
the surface and mine diamond drill core sample streams. SRM CDN-ME-1807 shows an increase in
variance for Ag, Pb, and Zn towards the end of the reporting period and may indicate some
contamination / machine errors and analytical drift. There were no consecutive warnings for SRMs
in the channel sample stream; however, there were five low failures and one high failure. SRMs
should be monitored on a batch-by-batch basis and any required remedial action taken immediately.
The QP notes that the protocol for batches with failed SRMs was not provided, and there does not
appear to be any reanalysis of batches with failed SRMs.

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At Juanicipio, the average grades based on the 2023 Mineral Resource estimate are 1.5 g/t Au,
277 g/t Ag, 2.7% Pb, and 5.7% Zn. Fresnillo applies an equivalency cut-off grade of 209 g/t Ag Eq,
which incorporates estimated metal prices and recoveries. Based on these grades, all three SRMs
used have mean Au concentrations higher than the approximate expected average grade of the
deposit and mean Zn concentrations lower than the approximate expected average grade of the
deposit. SRM CDN-ME-1807 has a mean Ag concentration higher than the approximate expected
average grade of the deposit, whereas SRMs CDN-ME-1810 and CDN-ME-1903 have mean Ag
concentrations lower than the approximate expected average grade of the deposit. With respect to
Pb, SRM CDN-ME-1807 has a mean concentration at the approximate expected average grade of
the deposit, and SRMs CDN-ME-1810 and CDN-ME-1903 have mean concentrations lower than the
approximate expected average grade of the deposit. The following values are not covered by the
current suite of SRMs used:
• The approximate expected average Au grade of the deposit.
• The approximate expected average Ag grade of the deposit.
• The approximate expected average Zn grade of the deposit.
• A higher grade than the approximate expected average Zn grade of the deposit.

Additional SRMs should be added to cover the above values and a wider range of grades.

11.3.2 Blank samples

11.3.2.1 Blank samples overview
Fresnillo’s QAQC program at the Juanicipio Property included the insertion of pulp blank samples to
test for sample contamination of Au during preparation and analysis. Certified pulp blanks were
supplied by Rocklabs Ltd. and KLEN International. Fresnillo does not monitor sample contamination
for Ag, Pb, and Zn. A total of 400 pulp blank samples were inserted in the sample streams for the
surface and underground drilling and channel sampling over the period of 1 June 2022 to
31 May 2023, with an overall insertion rate of 5.9%. Blank samples are included regularly in each
batch of samples.

Fresnillo defines a failure threshold for pulp blanks of three times the lower limit of detection (LLD)
for each analyte. Fresnillo does not state what remedial action is taken to address batches with
failed blanks.

AMC typically reviews blank performance relative to the stated LLD for typical ore grade analysis,
and it is generally expected that 90% of pulp blanks should be less than two times the LLD. For
each of the sample streams described below, the blank performance is summarized according to
Fresnillo criteria and AMC criteria separately. The blank material used for all sample streams on the
Juanicipio Property are only certified for Au and not for Ag, Pb, and Zn. Thus, sample contamination
was only assessed for Au and not for Ag, Pb, and Zn.

11.3.2.2 Discussion on blank samples (2022 – 2023 program)

Blank analysis of surface diamond drill core samples
A total of 169 pulp blank samples were included in the surface diamond drill core sample stream
between 1 June 2022 and 31 May 2023. This produced a blank insertion rate of 5.0% for this sample
stream, which meets industry standards of 4 – 5%. The performance of the blanks is summarized
in Table 11.11, and the control chart for Au is provided in Figure 11.2. There were no failures using
both Fresnillo and AMC criteria, which produced a pass rate of 100%. Some of the analyses were
slightly above the LLD, but overall, there does not appear to be any contamination in this sample
stream.

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Table 11.11 Summary of results for pulp blank analysis of diamond drill (surface) sample stream
LLD Failure limit No. No. Pass
Sample type No. analyses Fail criteria
(g/t) (g/t) fails pass %
AMC fail (2x LLD) >0.010 0 169 100%
Pulp blank 169 0.005
Fresnillo fail (3x LLD) >0.015 0 169 100%
Source: Compiled by AMC from data provided by Fresnillo.

Figure 11.2 Control chart showing Au results for pulp blanks - surface diamond drill sample stream

Notes: Data from 1 June 2022 to 31 May 2023.

Source: Compiled by AMC from data provided by Fresnillo.

Blank analysis of mine diamond drill core samples

A total of 117 pulp blank samples were included in the mine diamond drill core sample stream
between 1 June 2022 and 31 May 2023. This produced a blank insertion rate of 2.2% for this sample
stream, which is below industry standards. The performance of the blanks is summarized in Figure
11.2 and the control chart for Au is provided in Figure 11.3. Two blank analyses failed according to
AMC criteria (>2x LLD), and one analysis failed according to Fresnillo criteria (>3x LLD), for a pass
percentage of 98.3% and 99.1%, respectively. Overall, this is an acceptable pass rate, and there
does not appear to be any contamination in this sample stream.

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Table 11.12 Summary of results for pulp blank analysis of diamond drill (mine) sample stream
LLD Failure limit No. No. Pass
Sample type No. analyses Fail criteria
(g/t) (g/t) fails pass %
AMC fail (2x LLD) >0.010 2 115 98.3%
Pulp blank 117 0.005
Fresnillo fail (3x LLD) >0.015 1 116 99.1%
Note: Data from June 2022 to May 2023.
Source: Compiled by AMC from data provided by Fresnillo.

Figure 11.3 Control chart showing Au results for pulp blanks - mine diamond drill sample stream

Notes: Data from 1 June 2022 to 31 May 2023.

Source: Compiled by AMC from data provided by Fresnillo.

Blank analysis of channel samples

A total of 114 pulp blank samples were included in the channel sample stream between 1 June 2022
and 31 May 2023. This produced a blank insertion rate of 7.6%, which exceeds industry standards.
The performance of the blanks is summarized in Table 11.13, and the control chart for Au is provided
in Error! Reference source not found.. Three blank analyses failed according to AMC criteria (
>2x LLD) for a pass percentage of 97%, which is acceptable. These failures belong to a group of
samples in the second half of the shipment order with Au values at or above the LLD (Figure 11.4).
This may indicate some minor contamination in the sample stream at this point. All samples passed
according to Fresnillo criteria (>3x LLD). Given these results, there does not appear to be any major
contamination in this sample stream.

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Table 11.13 Summary of results for pulp blank analysis from channel sample stream
LLD Failure limit No. No. Pass
Sample type No. analyses Fail criteria
(g/t) (g/t) fails pass %
AMC fail (2x LLD) >0.010 3 111 97%
Pulp blank 114 0.005
Fresnillo fail (3x LLD) >0.015 0 114 100%
Source: Compiled by AMC from data provided by Fresnillo.

Figure 11.4 Control chart showing Au results for pulp blanks - channel sample stream

Notes: Data from 1 June 2022 to 31 May 2023.

Source: Compiled by AMC from data provided by Fresnillo.

11.3.2.3 Discussion on blank samples (2007 – 2022 programs)

Fresnillo has included blanks with sample submissions in previous work programs. A summary of
the key findings is presented below:
• Blank data is available from 2007 – 2022 for surface drilling and from 2021 – 2022 for
underground drilling and channel sampling.
• Blank insertion rates vary from 0 – 27.1%, with most programs meeting or exceeding the
industry standard blank insertion rate of 4 – 5%. Only 5 programs (2007 – 2009, 2021, 2022)
fall below the industry standard.
• From 2007 – 2018, grey cement was used as the blank material for all sampling programs. In
2019, the blanks used were grey cement and material from Rock Labs and KLEN International.
From 2020 – 2022, only material from Rock Labs and KLEN International was used.
• For all sampling programs and all years, no systematic contamination was noted. Pass rates
range from 84 – 100%, with the majority of sampling programs reporting >95% pass rates.

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11.3.2.4 Comments on blank samples

Overall, the blank results for all three sample streams in the 1 June 2022 to 31 May 2023 period
are acceptable and do not indicate any significant sample contamination for Au. In the surface
diamond drill core sample stream, all blank analyses passed. In the mine diamond drill core sample
stream, two blank analyses failed according to AMC criteria, and one blank analysis failed according
to Fresnillo criteria. In the channel sample stream, three blank analyses failed according to AMC
criteria, and no blank analyses failed according to Fresnillo criteria.

The QP recommends that Fresnillo reduce their blank failure limits to 2x LLD to ensure that any
potential contamination is flagged. Fresnillo does not state what remedial action is taken to address
batches with failed blanks, and it is therefore not possible to comment on their procedure. Given
the high concentrations of Ag, Pb, and Zn in the deposit, the QP recommends inserting blanks that
are certified for these analytes to ensure that there is no contamination.

11.3.3 Duplicate samples

11.3.3.1 Duplicate samples overview
Duplicate samples monitor analytical precision and are taken at successive points within the sample
preparation and analysis process to understand the variances occurring at each stage of this
process. Pulp duplicates monitor variance associated with sub-sampling of the pulp, the analysis
process, and the inherent geological variability. Coarse reject duplicates monitor these same
variances plus the variance associated with sub-sampling of the coarse reject. Field duplicates
monitor all the above variances plus the variance associated with sub-sampling of the drill core in
the case of drill core samples or the variance along the targeted structure in the case of channel
samples.

Fresnillo reviews duplicate samples using a min-max graph, which involves plotting the minimum
duplicate value on the x-axis and the maximum duplicate value on the y-axis of a scatter plot. The
resulting plot shows the magnitude of deviations with all points occurring above the y = x line. A
hyperbolic equation is then calculated to define an error tolerance, which accounts for decreased
precision that occurs towards the LLD. Fresnillo expects coarse duplicates to be within a 20% relative
error, and pulp duplicates to be within a 10% relative error. Samples falling outside of the error line
defined by the hyperbolic equation are considered to have failed. Fresnillo does not specify whether
remedial action is taken to address failed duplicates or what rate of failure is considered acceptable.

AMC typically assesses duplicate data using scatter plots and absolute relative percentage deviation
(RPD) plots, which measure the absolute difference between a sample and its duplicate relative to
the mean of the pairs. In these analyses, pairs where the original or duplicate is less than 15x LLD
are excluded. Removing these low values ensures that there is no undue influence on the RPD plots
due to the higher variance of grades expected near the lower detection limit, where precision
becomes poorer (Long et al., 1997).

The performance of duplicates is dependent on the mineralization style, inherent geological

variance, and variance associated with sampling. The relative precision of a duplicate sample will
increase as the fundamental sampling error (and other errors) associated with sub-sampling is
removed. Pulp duplicates should therefore be more precise (alike) than coarse duplicates as they
do not incorporate the same level of heterogeneity and extraction errors. The generally accepted
criterion is that 85 - 90% of field duplicate samples should have an absolute relative difference of
less than 25%. The threshold RPD decreases to less than 20% for coarse duplicates and to less than
10% for pulp duplicates (Rossi and Deutsch, 2014).

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Duplicate samples were not included in sample stream until the 2022 season. From 1 June 2022 to
31 May 2023, Fresnillo submitted pulp, coarse, and field duplicates with the mine diamond drill core
sample stream and the channel sample stream. No duplicates were -submitted with the surface
diamond drill core sample stream, and it is therefore not possible to assess the precision of analyses
from this sample stream.

11.3.3.2 Discussion on duplicate samples (2022 – 2023 program)

Duplicate analysis of mine diamond drill core samples
Fresnillo submitted 72 pulp duplicates, 68 coarse duplicates, and 39 field (twin) duplicates (half
core) in the mine diamond drill core sample stream between 1 June 2022 and 31 May 2023. Table
11.14 summarizes the duplicate performance. The combined insertion rate for all duplicates in the
mine diamond drill core sample stream is 9.5%, which exceeds the industry standard of 5 – 6% for
duplicates. However, when duplicate pairs with concentrations <15x LLD are removed, the
remaining duplicate pairs that can be used for QAQC analysis account for an insertion rate of
4.3 - 9.2% depending on the analyte. The insertion rates for Ag (7.5%), Pb (5.5%), and Zn (9.2%)
meet or exceed industry standards, whereas the insertion rate for Au is 4.3%, which is just below
industry standards.

The pulp and coarse duplicates performed well, with 85 – 95% of pulp duplicates within 10% RPD
and 95 – 100% of coarse duplicates within 20% RPD (Table 11.14). The ranges reported reflect
slight variations in precision between the different analytes. Although 85% is just below the
threshold of 90%, these results are considered to reflect an acceptable degree of analytical precision
and reproducibility. The results also indicate good sample homogenization at the pulp and coarse
reject levels and appropriate sub-sampling procedures for coarse reject and pulp material. There is
slightly more variation between the measured concentrations in the original and duplicate samples
at higher grades. The control of grade on precision is minimal for the pulp duplicates, and the effect
is slightly more pronounced for the coarse duplicates.

In contrast, the field duplicates did not perform well, and the results vary significantly depending
on the analyte. The percentage of samples within 20% RPD are as follows: 79% for Au, 60% for
Ag, 41% for Pb, and 68% for Zn (Table 11.14). Given the good performance of the pulp and coarse
duplicates, it is unlikely that the poor results for the field duplicates reflect major issues in the
analytical process. It is more likely that the poor reproducibility is due to the heterogeneity of the
mineralization. Of the four analytes investigated, Au has the highest reproducibility, followed by Zn,
Ag, and Pb, which has the lowest reproducibility. This suggests that Au is more evenly distributed
in mineralized zones than the other analytes. There is a greater variation between the measured
concentrations in the original and duplicate samples at higher grades. This effect is especially
pronounced at >0.4 g/t Au, >200 g/t Ag, >1% Pb, and >2% Zn. This relationship suggests there
is greater heterogeneity of mineralization at higher grades. The field samples used for duplicate
analysis have higher mean concentrations than the pulp and coarse samples for all analytes (Table
11.14), which, based on the relationship between variance and grade described above, likely also
contributed to the poor performance of the field duplicate samples.

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Table 11.14 Summary of duplicate sample results for the mine diamond drill core sample stream
Analyte Au Ag Pb Zn
Unit g/t %
ndup pairs= 72 72 72 72
ndup pairs > 15x LLD 27 54 39 68
LLD 0.005 0.2 0.0002 0.0002
Meanori 0.60 321.16 0.24 0.84
Pulp

Meandup 0.59 329.41 0.23 0.83

Bias (%) 2.08 -2.57 3.65 1.30
% samples > 15x LLD 38% 75% 54% 94%
% samples within 10% RPD 89% 85% 95% 91%
% samples within 20% RPD 100% 96% 95% 96%
ndup pairs= 68 68 68 68
ndup pairs > 15x LLD 25 50 32 66
LLD 0.005 0.2 0.0002 0.0002
Meanori 0.49 271.65 0.52 0.93
Coarse

Meandup 0.48 280.22 0.49 0.92

Bias (%) 1.73 -3.15 4.68 1.12
% samples > 15x LLD 37% 74% 47% 97%
% samples within 10% RPD 84% 82% 78% 82%
% samples within 20% RPD 92% 88% 91% 95%
ndup pairs= 39 39 39 39
ndup pairs > 15x LLD 28 37 32 38
LLD 0.005 0.2 0.0002 0.0002
Meanori 2.05 1099.55 1.01 3.10
Field

Meandup 1.79 1014.66 1.02 3.23

Bias (%) 12.81 7.72 -1.03 -4.16
% samples > 15x LLD 72% 95% 82% 97%
% samples within 10% RPD 46% 32% 34% 34%
% samples within 20% RPD 79% 59% 41% 68%

Duplicate analysis of channel samples

Fresnillo submitted 131 pulp duplicates, 131 coarse duplicates, and 82 field (twin) duplicates (half
core) in the channel sample stream between 1 June 2022 and 31 May 2023. Error! Reference s
ource not found. summarizes the duplicate performance of the underground drilling duplicates.
The combined insertion rate for all duplicates in the mine diamond drill core sample stream is 23.1%,
which well exceeds the industry standard of 5 – 6% for duplicates. When duplicate pairs with
concentrations <15x LLD are removed, the remaining duplicate pairs that can be used for QAQC
analysis account for an insertion rate of 19.3 – 22.9% depending on the analyte, which still well
exceeds industry standards.

The performance of the pulp duplicates varies significantly depending on the analyte. Results for
Ag, Pb, and Zn indicate a high level of accuracy, with 94 – 95% of pulp duplicates within 10% RPD.
For Au, only 76% of pulp duplicates are within 10% RPD. The coarse duplicates performed well for
all analytes, with 95 – 99% of samples within 20% RPD. These results for Au are unusual and
suggest that homogenization and / or sub-sampling procedures are better for coarse material than
pulp material with respect to Au. Despite the pulp duplicates falling below the threshold of 90% of
samples within 10% RPD for Au, the results for the pulp and coarse duplicates are considered to

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reflect an acceptable degree of analytical precision and reproducibility. The results also reflect good
sample homogenization and appropriate sub-sampling procedures overall. The degree of variation
between the measured concentrations of the original and duplicate samples does not appear to be
significantly influenced by grade, with the exception of Au in the pulp duplicate samples, which
exhibits more variation at >2 g/t.

The field duplicates for the channel samples performed poorly, with <40% of samples within 20%
RPD for all analytes. As with the field duplicates for the mine diamond drill core samples, Au has
the highest reproducibility of the four analytes, with 39% of samples within 20% RPD. The other
three analytes also performed poorly, with 26 – 32% of samples within 20% RPD (Table 11.15). As
with the mine diamond drill core duplicate samples, the good performance of the pulp and coarse
channel duplicate samples suggests that the poor reproducibility of the field duplicates reflects
heterogeneity in the mineralization rather than major issues in the analytical process. The results
of the field duplicates for the channel samples are also consistent with Au being slightly more evenly
distributed in mineralized zones than the other analytes. As with the field duplicates for the mine
diamond drill core samples, the field duplicates for the channel samples reflect a greater variation
between the measured concentrations in the original and duplicate samples at higher grades. This
effect is especially pronounced at >1 g/t Au, >500 g/t Ag, >1% Pb, and >2% Zn.

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Table 11.15 Summary of duplicate samples results for the channel sample stream
Analyte Au Ag Pb Zn
Unit g/t %
ndup pairs= 131 131 131 131
ndup pairs > 15x LLD 104 130 128 130
LLD 0.005 0.2 0.0002 0.0002
Meanori 1.287 586.608 1.223 2.996
Pulp

Meandup 1.294 575.291 1.215 2.964

Bias (%) -0.57 -1.18 0.62 1.09
% samples > 15x LLD 79% 99% 98% 99%
% samples within 10% RPD 76% 94% 95% 95%
% samples within 20% RPD 97% 98% 99% 99%
ndup pairs= 131 131 131 131
ndup pairs > 15x LLD 109 131 129 130
LLD 0.005 0.2 0.0002 0.0002
Meanori 1.576 555.110 1.239 2.644
Coarse

Meandup 1.593 556.438 1.215 2.638

Bias (%) -1.05 -0.24 1.94 0.21
% samples > 15x LLD 83% 100% 99% 99%
% samples within 10% RPD 84% 94% 95% 96%
% samples within 20% RPD 95% 99% 98% 99%
ndup pairs= 82 82 82 82
ndup pairs > 15x LLD 75 81 81 81
LLD 0.005 0.2 0.0002 0.0002
Meanori 2.912 974.403 1.702 2.492
Field

Meandup 2.602 931.755 1.715 2.276

Bias (%) 10.64 4.38 -0.74 8.65
% samples > 15x LLD 92% 99% 99% 99%
% samples within 10% RPD 24% 17% 17% 19%
% samples within 20% RPD 39% 26% 32% 30%
Source: Compiled by AMC from data provided by Fresnillo.

11.3.3.3 Discussion on duplicate samples (2007 – 2022 programs)

Fresnillo has included duplicate samples with sample submissions in previous work programs.
Duplicate samples were not submitted for the surface drilling from 2007 – 2022. Duplicate samples
were submitted with the underground drilling and channel sampling in 2022. A detailed review of
duplicate sample results from 2010 – 2022 was completed with internal documents and data
provided by Fresnillo, and a summary of the key findings is presented below:
• A total of 49 field duplicates were submitted with the underground drilling, and 228 field
duplicates were submitted with the channel sampling. No coarse or pulp duplicates were
submitted in 2022.
• The duplicate insertion rate for underground drilling was 1.1%, which is below the industry
standard of 5 – 6%. When this is corrected for the number of samples that can be used for
analysis of precision (i.e., >15x LLD), the insertion rate varies from 0.36 – 0.78% depending
on the analyte.
• The duplicate insertion rate for channel sampling 15.1%, which well above the industry
standard of 5 – 6%. When this is corrected for the number of samples that can be used for

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analysis of precision (i.e., >15x LLD), the insertion rate varies from 7.9 – 11.0% depending
on the analyte.
• There are too few samples for the underground drilling dataset to make a meaningful
assessment of precision.
• For the channel samples, the duplicate samples returned consistently higher analyte
concentrations than the original, and there is poor precision for all elements.

11.3.3.4 Comments on duplicate samples

Duplicate performance can only be assessed from 2022 onwards when duplicates were first
introduced into the sample stream.

The performance of the duplicate samples is highly variable and depends on the analyte, duplicate
type (pulp, coarse, field), and sample stream. The QP notes that it is not possible to assess the
precision of analyses in the surface diamond drill core sample stream because no duplicates were
submitted with this sample stream. The pulp and coarse duplicates performed well for all analytes
in both the mine diamond drill core and channel sample streams with a few exceptions. The
percentages of pulp duplicates within 10% RPD for Au and Ag in the mine diamond drill core sample
stream fall slightly below the 90% threshold at 89% and 85%, respectively (Table 11.10). The
percentage of coarse duplicates within 20% RPD for Ag in the mine diamond drill core sample stream
falls slightly below the 90% threshold at 88% (Table 11.10). All other analytes in the mine diamond
drill core sample stream meet or exceed the threshold of 90% of pulp duplicates within 10% RPD
and 90% of coarse duplicates within 20% RPD. In the channel sample stream, the 90% threshold
is exceeded for pulp and coarse duplicates for all analytes apart from Au in the pulp duplicates, with
only 76% of duplicate pairs within 10% RPD (Table 11.12). Overall, the results for the pulp and
coarse duplicates for both sample streams are considered to reflect an acceptable degree of
analytical precision and reproducibility.

The field duplicates for both the mine diamond drill core and channel sample streams performed
poorly, and the threshold of 90% of duplicates within 20% RPD was not met for any analytes. Given
the good performance of the pulp and coarse duplicates, it is unlikely that the poor results for the
field duplicates reflect major issues in the analytical process. It is more likely that the poor
reproducibility is due to the heterogeneity of the mineralization. The effects of this heterogeneity
are more pronounced for field duplicates, which have not undergone any homogenization through
crushing or pulverizing prior to separating the duplicate pairs. Furthermore, there is a greater
variation between the measured concentrations in the original and duplicate samples at higher
grades. The field samples used for duplicate analyses have higher mean concentrations than the
pulp and coarse samples for all analytes, except for Zn in the channel sample stream. The higher
grades of the field duplicates therefore likely also contributed to their poor performance.

11.3.4 Umpire samples

11.3.4.1 Umpire samples overview
Umpire samples are used to assess the accuracy of the primary laboratory, with duplicate samples
sent to a second laboratory (‘umpire laboratory’). Between 1 June 2022 and 31 May 2023, the
primary laboratory used by Fresnillo was ALS, and two umpire laboratories were used: SGS and
Bureau Veritas.

Fresnillo monitors umpire performance using reduced major axis (RMA) plots and coefficient of
determination (R2) values, which are acceptable for analyzing pair performance. In the QP’s opinion,
umpire pairs should also be monitored in terms of RPD (similar to duplicate samples), with 90% of
umpire pairs expected to be within 10% RPD (Rossi and Deutsch, 2014). As with duplicate samples,
umpire pairs where the original or duplicate is less than 15x LLD are excluded to ensure that there

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is no undue influence on the RPD plots due to the higher variance of grades expected near the lower
detection limit, where precision becomes poorer (Long et al., 1997).

Samples have been submitted to a secondary laboratory between 2012-2019. Umpire samples were
also submitted in 2023.

From 1 June 2022 to 31 May 2023, Fresnillo submitted pulp umpire duplicates with the surface
diamond drill core sample stream and the channel sample stream. No umpire samples were
submitted with the mine diamond drill core sample stream.

11.3.4.2 Discussion on umpire samples (2022 – 2023 program)

Umpire sample analysis of surface diamond drill core samples
Fresnillo submitted 50 umpire samples to Bureau Veritas and 53 umpire samples to SGS in the
surface diamond drill core sample stream between 1 June 2022 and 31 May 2023. summarizes the
umpire performance by comparing the ALS analyses to Bureau Veritas and SGS and by comparing
the Bureau Veritas and SGS analyses to each other. The insertion rate for umpire samples in the
surface diamond drill core sample stream is 4.5%, which meets the industry standard of 4 – 5% for
umpire samples. However, when umpire pairs with concentrations <15x LLD are removed, the
remaining umpire pairs that can be used for QAQC analysis account for an insertion rate of only
1.8 – 4.4% depending on the analyte. The insertion rates for Pb (4.4%) and Zn (4.4%) meet
industry standards, whereas the insertion rates for Au (1.8%) and Ag (3.4%) are below industry
standards.

The performance of the umpire samples varies significantly depending on the analyte and the
laboratory. The worst reproducibility is between SGS and Bureau Veritas, with Ag being the only
analyte to have >90% of umpire pairs within 10% RPD. The best reproducibility is between ALS and
SGS, with all analytes except for Au having >90% of umpire pairs within 10% RPD. For ALS and
SGS, 81% of umpire pairs are within 10% RPD for Au, which is below the expected threshold but
considered to be acceptable given the good performance of the other analytes and the heterogeneity
of Au in mineralized zones.

The Au results for ALS and Bureau Veritas and for SGS and Bureau Veritas fall well below the 90%
threshold for umpire pairs within 10% RPD. Only 50% of umpire pairs are within 10% RPD for ALS
and Bureau Veritas, and only 37% of umpire pairs are within 10% RPD for SGS and Bureau Veritas.
The Bureau Veritas data appear to indicate an analytical error for Au, which has likely contributed
to the poor umpire sample performance with this laboratory. Nineteen samples analyzed by Bureau
Veritas returned Au concentrations of 0.45 g/t, and none of these samples correlate well with the
results from ALS or SGS. All these samples returned low Au concentrations from ALS and SGS
(<0.8 g/t). Given that analyses below the lower limit of detection are often reported as half the
detection limit, it appears that the samples with the analytical errors were analyzed by fire assay
with a gravimetric finish, which has a lower limit of detection of 0.9 g/t at Bureau Veritas. These
samples were not re-analyzed by a more sensitive method, resulting in poor correlation with the
results from ALS and SGS. When these samples are removed, all umpire pairs plot along or close
to the 1:1 line on scatter plots for ALS vs. Bureau Veritas (BV) and SGS vs. BV.

All other umpire results for all labs and analytes are considered acceptable and either meet the
threshold of >90% of umpire pairs within 10% RPD or are close to this threshold (>85%). The
exception is Zn for SGS and Bureau Veritas, which has only 77.1% of umpire pairs within 10% RPD
(Table 11.16). The difference in results from SGS and Bureau Veritas is especially pronounced at
higher grades (>10% Zn), and it is therefore possible that that the poor reproducibility is the result
of greater heterogeneity of mineralization at higher grades. However, it is unclear why this effect is
not as pronounced for comparisons of ALS and Bureau Veritas (BV) and ALS and SGS.

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Table 11.16 Summary of umpire sample results of the surface diamond drill core sample stream
Bureau SGS SGS Bureau
ALS ALS
Veritas (ump. (ump. Veritas
(pri. lab) (pri. lab)
(ump. lab) lab) lab 1) (ump. lab 2)
ndup pairs= 50 53 50
ndup pairs > 15x LLD 20 21 19
LLD (g/t) 0.005 0.005* 0.005 0.005 0.005 0.005*
Mean (g/t) 0.15 0.37 0.16 0.15 0.15 0.37
Maximum (g/t) 2.16 5.80 2.16 2.42 2.42 5.80
Minimum (g/t) 0.003 0.006 0.003 0.000023 0.000023 0.006
Au

Std. dev. 0.33 0.87 0.33 0.36 0.37 0.87

CV 2.19 2.38 2.07 2.31 2.43 2.38
Bias (%) -140.22 1.24 -143.00
Correlation coefficient 0.33 1.00 0.33
Percent Samples <10% RPD 50 81 37
Percent Samples <20% RPD 65 100 68
ndup pairs= 50 53 50
ndup pairs > 15x LLD 46 35 33
LLD (g/t) 0.2 0.3* 0.2 2 2 0.3*
Mean (g/t) 109.18 104.55 106.05 99.93 102.84 104.55
Maximum (g/t) 538 513 538 539 539 513
Minimum (g/t) 0.10 0.15 0.10 1.00 1.00 0.15
Ag

Std. dev. 134.96 129.25 131.76 125.29 128.37 129.25

CV 1.24 1.24 1.24 1.25 1.25 1.24
Bias (%) 4.24 5.77 -1.66
Correlation coefficient 1.00 0.97 0.96
Percent Samples <10% RPD 87 91 91
Percent Samples <20% RPD 98 97 97
ndup pairs= 50 53 50
ndup pairs > 15x LLD 48 51 48
LLD (%) 0.0002 0.0003* 0.0002 0.0002 0.0002 0.0003*
Mean (%) 1.41 1.38 1.35 1.36 1.41 1.38
Maximum (%) 16.65 16.20 16.65 15.67 15.67 16.20
Minimum (%) 0.0004 0.0003 0.0004 0.0007 0.0007 0.0003
Pb

Std. dev. 2.58 2.51 2.52 2.42 2.48 2.51

CV 5.49 5.78 1.86 1.78 1.76 1.82
Bias (%) 1.71 -0.42 2.05
Correlation coefficient 1.00 1.00 1.00
Percent Samples <10% RPD 94 90 85
Percent Samples <20% RPD 98 100 98
ndup pairs= 50 53 50
ndup pairs > 15x LLD 49 51 48
LLD (%) 0.0002 0.0001* 0.0002 0.0005 0.0005 0.0001*
Mean (%) 7.95 7.99 8.10 8.49 8.33 7.99
Maximum (%) 30.00 36.65 30.00 37.00 37.00 36.65
Minimum (%) 0.001 0.001 0.0013 0.0017 0.0017 0.001
Zn

Std. dev. 7.26 7.59 7.42 8.09 7.92 7.59

CV 0.91 0.95 0.92 0.95 0.95 0.95
Bias (%) -0.48 -4.82 4.11
Correlation coefficient 0.99 0.99 0.99
Percent Samples <10% RPD 90 90 77
Percent Samples <20% RPD 98 98 98
Notes: *Certified values for the Bureau Veritas LLD were taken from the 2023 Bureau Veritas Geochemistry Fee Schedule.
Source: Compiled by AMC from data provided by Fresnillo.

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Umpire sample analysis of channel samples

Fresnillo submitted 46 umpire samples to SGS in the channel sample stream between 1 June 2022
and 31 May 2023. Table 11.17 summarizes the umpire sample performance. The insertion rate for
umpire samples in the channel sample stream is 3.1%, which is below the industry standard of
4 - 5% for umpire samples. When umpire pairs with concentrations <15x LLD are removed, the
remaining umpire pairs that can be used for QAQC analysis account for an insertion rate of only
2.6 - 3.0% depending on the analyte.

The performance of the umpire pairs varies depending on the analyte, but results are good overall,
with 84 – 91% of umpire pairs within 10% RPD for Ag, Pb, and Zn. The results for Ag (87.2%) and
Zn (84.4%) fall just below the 90% threshold but are considered acceptable. The results for Au are
poor, with only 56% of umpire pairs within 10% RPD. Given the good Au results for the ALS and
SGS umpire pairs in the surface diamond drill core sample stream, it is unlikely that the poor
performance of the channel sample umpire pairs is due to an analytical issue. There are also no
obvious analytical errors visible on the scatter plots. It is more likely that the poor reproducibility
of Au results between the two labs is due to the higher grade of samples submitted from the channel
sample stream. The mean Au concentrations for ALS and SGS in the channel sample stream are
8.94 g/t and 9.03 g/t, respectively, whereas the mean concentrations in the surface diamond drill
core sample stream are 0.16 g/t (ALS) and 0.15 g/t (SGS). It is also clear from the scatter plots
that there is more variation between the ALS and SGS results at Au concentrations >2 g/t.

For the other analytes, there is slightly more variation between the measured concentrations
returned from the primary and umpire labs at higher grades. This effect is more pronounced at
>1,000 g/t Ag, >2% Pb, and >2% Zn. The mean Ag and Zn concentrations of umpire samples in
the channel sample stream are higher than umpire samples in the surface diamond drill core sample
stream, which likely contributed to the slightly lower reproducibility of umpire samples in the
channel sample stream.

Table 11.17 Summary of umpire sample results of the channel sample stream
Au (g/t) Ag (g/t) Pb (%) Zn (%)
ALS SGS ALS SGS ALS SGS ALS SGS
(pri. (ump. (pri. (ump. (pri. (ump. (pri. (ump.
lab) lab) lab) lab) lab) lab) lab) lab)
ndup pairs= 46 46 46 46
ndup pairs > 15x LLD 39 39 45 45
LLD 0.005 0.005 0.2 2 0.0002 0.0002 0.0002 0.0005
Mean 8.94 9.03 1894.80 1952.09 1.52 1.54 1.88 1.92
Maximum 265.00 262.50 7600.00 7693.38 14.75 16.10 12.10 11.70
Minimum 0.014 0.014 7.4 7.0 0.0009 0.0008 0.0041 0.0043
Std. dev. 39.18 38.81 2416.02 2215.76 2.69 2.82 2.24 2.27
CV 5.36 5.32 1.13 1.14 1.78 1.83 1.19 1.18
Bias (%) -1.03 -3.02 -1.55 -2.21
Correlation coefficient 1.00 1.00 1.00 1.00
Percent Samples >10% RPD 56 87 91 84
Percent Samples >20% RPD 85 97 98 98
Source: Compiled by AMC from data provided by Fresnillo.

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11.3.4.3 Discussion on umpire samples (2007 – 2022 programs)

Fresnillo has included umpire samples with sample submissions in previous work programs. Umpire
samples have not consistently been used for all years, and as discussed above results are only
available for 2012 – 2019 A detailed review of umpire sample results from 2012 – 2019 was
completed with internal documents and data provided by Fresnillo, and a summary of the key
findings is presented below:
• The industry standard for umpire sample insertion rates is 4 – 5%, and the insertion rates for
umpire duplicates from 2012 – 2019 varied from 1 – 43%.
• There is poor precision for gold, with all comparisons indicating poor reproducibility between
umpire duplicate samples.
• The primary laboratory consistently under-estimated gold grades when compared to the
umpire laboratories.
• The primary laboratory consistently over-estimated silver; however, this appears to be in the
range of 2 – 4 % and is not considered material.
• The comparison with ALS and IPL is poor and should be disregarded.
• Generally, silver, lead and zinc show acceptable precision, with the performance being
consistent over time and generally improving with each year.

11.3.4.4 Comments on umpire samples

An umpire sample program was implemented to assess the accuracy of the primary laboratory
(ALS), with results compared to analyses by SGS and Bureau Veritas for the surface diamond drill
core sample stream and by SGS for the channel sample stream. No umpire samples were submitted
with the mine diamond drill core sample stream.

The umpire samples submitted to SGS performed well for most analytes, with >90% of umpire pairs
within 10% RPD for Ag, Pb, and Zn in the surface diamond drill core sample stream (Table 11.15)
and 84 – 91% of umpire pairs within 10% RPD for Ag, Pb, and Zn in the channel sample stream
(Table 11.17). In the surface diamond drill core sample stream, 81% of umpire pairs are within
10% RPD for Au, which is below the expected threshold but considered to be acceptable given the
good performance of the other analytes and the heterogeneity of Au in mineralized zones. In the
channel sample stream, the results for Au are poor, with only 56% of umpire pairs within 10% RPD.
This is interpreted to be the result of significantly higher-grade umpire samples submitted in the
channel sample stream than in the surface diamond drill core sample stream.

The umpire samples submitted to Bureau Veritas performed well for most analytes, but the results
for Au were poor, and there appears to be an analytical error. These results indicate a high level of
accuracy for ALS as the primary laboratory and suggest that SGS is a more appropriate umpire
laboratory than Bureau Veritas.

11.3.5 QAQC recommendations

Fresnillo has recently implemented a QAQC program that combines key elements to monitor
accuracy, precision, and sample contamination during sample preparation and analysis. The QP
makes the following recommendations for future QAQC programs:
• General QAQC
⎯ Increase insertion rates for all QAQC sample types as necessary to meet industry
standards and develop a procedure to ensure that QAQC samples are included in each
batch of samples submitted to the laboratory.
⎯ Create a standard operating procedure (SOP) that outlines the actions to be taken for
QAQC failures.

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⎯ Establish a ‘table of failures’ that documents warnings, failures, and remedial actions
taken for all QAQC sample types.
• Standard reference materials
⎯ Insert additional SRMs to cover a wider range of grades. For each economic metal, the
QP recommends the use of SRMs with values at the approximate cut-off grade of the
deposit, at the approximate expected grade of the deposit, and at a higher grade. The
current suite of SRMs used at Juanicipio do not cover the approximate expected Au, Ag,
or Zn grades, and an SRM with a Zn grade higher than the approximate expected grade
of the deposit is not used. Additional SRMs should be used that cover these values.
⎯ Plot SRM data over time to check for potential bias and instrumental drift.
⎯ Review SRM results using control charts as well as on a batch-by-batch basis. Re-assay
sample batches where the SRM value is greater than three standard deviations from the
expected value declared on the assay certificate. Investigate sample batches containing
consecutive SRMs with results outside of two standard deviations of the expected value.
⎯ Ensure that insertion rates for SRM samples meet industry standards (5 –6%).
• Blank samples
⎯ Establish a protocol for the remedial action to be taken to address sample batches with
failed blanks.
⎯ Adjust sampling procedures so that blank samples are included immediately after visible
high-grade mineralization.
⎯ Consider adding coarse blank material to the QAQC sample suite. This would allow for
better monitoring of contamination during sample preparation.
⎯ Consider inserting blank material that is certified for Ag, Pb, and Zn. Contamination is
currently only monitored for Au, but it is important to monitor contamination for all
analytes given their high grades.
⎯ Consider reducing the blank failure limit to 2x LLD.
• Duplicate samples
⎯ Develop a procedure that allows for selection of the majority of duplicate samples from
visibly mineralized zones that are likely to exceed 15x LLD.
⎯ Request detail on the pulp sub-sampling process to understand possible sampling errors.
⎯ Submit duplicate samples in the surface diamond drill sample stream. All QAQC sample
types should be submitted for all sample streams to ensure that the data can be properly
assessed.
• Umpire samples
⎯ Include SRM and pulp blank samples with umpire sample submissions. Ensure that these
SRM and blank samples are identified as umpire QAQC samples in the database so that
they can be reviewed independently of other SRMs and blanks.
⎯ Submit umpire samples in the mine diamond drill sample stream.
⎯ All QAQC sample types should be submitted for all sample streams to ensure that the
data can be properly assessed.

11.3.6 Conclusions
The QP considers sample preparation and analytical and security protocols employed by Fresnillo to
be acceptable. The QP has reviewed the QAQC procedures used by Fresnillo including certified
reference materials, blank, duplicate and umpire data and has made some recommendations. The
QP does not consider these to have a material impact on the Mineral Resource estimate and
considers the assay database to be adequate for Mineral Resource estimation.

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12 Data verification
12.1 Site inspections
In accordance with NI 43-101 guidelines, QP Mr Paul Salmenmaki, P.Eng., Principal Mining Engineer
with AMC, visited the Juanicipio property on 15 and 16 February 2024. The following site visit
activities were undertaken:
• Discussions with site staff regarding:
⎯ Survey procedures.
⎯ Mine planning procedures.
⎯ Geotech and ground support procedures.
⎯ Backfill procedures.
⎯ Ventilation procedures.
⎯ Mine maintenance procedures.
⎯ Geology procedures.
• Inspection of the underground ground conditions.
• Inspection of underground workings, stopes, and development.
• Inspection of underground infrastructure, including main shop, pumps, ventilation fans,
electrical power stations, crusher, twin declines and portals, conveyor ramp and portal, and
communications systems.
• Inspection of the mineral processing and TSF.
• Inspection of surface offices, warehouses, security buildings, haul roads, power supply and
backup, water supply, shotcrete plant, emergency response facilities, laboratory, and
maintenance shops.
• Inspection of core sheds and some recent drill core intersections from the property.

During the first day of the site visit, which was focused on the underground facilities and activities,
Mr Paul Salmenmaki was guided by Mr Sergio Palomino Orenday, Fresnillo Technical Services
Manager for the Juanicipio project. The second day consisted of a visit to the surface workings of
the Juanicipio project in the morning, which was guided by Mr Roman Cruz Ortega, Processing
Manager at Minera Juanicipio. In the afternoon, meetings were held with the Juanicipio Technical
Services departments, including Geology, Geotech, Survey, Ventilation, Mine Planning, and Mine
Maintenance, which were facilitated by Mr Sergio Palomino Orenday to discuss the Juanicipio
operations and technical services.

During the site visit, the core storage facility was also inspected. In this facility, half cores are
preserved in a good state within plastic boxes. SG measurements are taken with the help of an
electronic scale located within this facility. The functionality of this scale and the measurement of
the SG of core samples was demonstrated to the QP by Juanicipio Geology.

In the QP’s opinion, the site, building, equipment, and operations were observed to be clean, well
maintained and being operated in a safe and orderly manner.

12.2 Assay verifications

Craig Stewart, QP, Senior Geologist with AMC, supervised a random cross-check of 3.7% of the
assay database with original assay results for data collected from August 2005 to 31 May 2023.
These dates correspond with the database used for the Mineral Resource.

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The verification comprised randomly selecting data from each assay program and comparing Au,
Ag, Zn, Cu, Fe, and Pb assay results in the Mineral Resource database with analytical results on the
original assay certificate.

The QP requested original certificates for a total of 55 drillholes (7,538 samples). Certificates could
not be found for some of the older drilling. This impacted 175 samples. The remaining 7,363 samples
were checked with minor issues noted. Rounding issues were ignored.

The QP does not consider the issues noted to have a material impact on Mineral Resource estimates.
The QPs consider the assay database to be acceptable for Mineral Resource estimation.

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13 Mineral processing and metallurgical testing

13.1 Metallurgical testing
Metallurgical test work reporting to date has been reviewed by the QP, focusing on the most recent
reports issued; these reports address: i) a flotation and milling test work program conducted during
2013, ii) further comminution testwork carried out in 2015, and iii) optimization testwork conducted
in 2021 and 2022. The metallurgical test work reports consist of the following:
• May 2008 Interim Report (Proyecto Juanicipio, 2008), which describes the initial tests on
samples from the G, I+K, and M sections of the Valdecañas vein.
• June 2009 Final Report (Proyecto Juanicipio, 2009), which describes additional tests from a
more representative suite of samples from the G, H+I+J, K+L+M+N+O, and Q+R+S+T+U
sections of the Valdecañas vein.
• October 2013 - Proyecto Juanicipio 002-OT10-015-13 - Recovery of gold, silver, lead, and
zinc.
• May 2015 – Proyecto Juanicipio 002-OT10-015-13 - SAG and Ball-Milling Tests.
• 2022 – Resumen de investigacion metalúrgica 2021-22 (PowerPoint summary).

The May 2008 Interim Report included mineralogical characterization, basic Work Index
determinations, and selective flotation tests for lead, zinc, and pyrite. The test work was carried out
on an overall composite sample prepared from 79 individual samples obtained from 10 drillholes on
the G, I, K, and M sections of the Valdecañas vein, as well as separate flotation test composites
from sections G, I+K, and M. Mineralogical examinations indicated that the mineral matrix is mainly
composed of quartz, pyrite, and calcite, with lead and zinc present as galena and sphalerite,
respectively.

The most abundant silver species were sulphides and, in minor occurrences, native silver and
electrum. The mineralogical texture was fine-grained for all the silver species, so it was necessary
to grind to an 80% passing size (P80) of 40 microns (µm) to achieve an appropriate mineral liberation
for the flotation process. Even with this relatively fine particle size, a significant amount of gold and
a smaller proportion of silver were found in pyrite, with particle sizes at around 5 µm. This supported
the initiative to also generate a pyrite concentrate to reduce the gold and silver deportment to tails.

The June 2009 Final Report was based on findings from the previous work and included additional
test results on a representative suite of samples from more recent exploration. An overall composite
was prepared from 190 m of mineralized intersections from 27 drillholes on sections G, H, I, J, K,
L, M, N, O, P, Q, R, S, T, and U, and in addition, four composites from sections G, H+I+J,
K+L+M+N+O, and Q+R+S+T+U were prepared and subjected to flotation tests to determine any
metallurgical variability across the mineralized zones.

The October 2013 report was based on test work conducted on 136 samples obtained from 24
drillholes from the Valdecañas vein. The test work was again aimed at further building on the data
developed during the previous two test programs. The following work was covered in this third test
program:
• Chemical analyses of head samples.
• Mineralogical characterization.
• Liberation studies of the mineral species at a P80 of 42 µm.
• Selective flotation of lead, zinc, and pyrite in an open circuit under the operating conditions
as defined in the first two stages of test work.
• Locked cycle flotation tests.
• Cyanidation test work of the pyrite concentrate.

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• Determination of ball mill Work Indexes.

• Determination of gravity recoverable gold and silver.

This 2013 program was carried out on samples considered more closely corresponding to likely
production head grades, particularly in the first five years, and is considered in more detail below.

13.2 Sample preparation

For the 2013 metallurgical test work, a single, 50 kilogram (kg) composite sample was made up
from the available core samples. The following procedure was used to prepare the sample:
• Mix each sample by passing it four times through a Jones sample splitter.
• Obtain a weighted subsample based on thickness using a Jones sample splitter.
• Collect all subsamples to form the general composite.
• Grind to -20 mesh (0.85 mm equivalent).
• Set 10 kg apart for Work Index determinations.
• Homogenize and form lots of 1 kg using a rotary splitter.
• Select a lot of 1 kg.
• Pulverize at -200 nominal mesh (75 µm equivalent) for the head assay.
• The remainder was used in flotation tests and to test gold and silver recoverable by
gravimetry.

13.3 Head assays

The average composition of the samples used for the 2013 metallurgical test work is shown in Table
13.1. These values compare reasonably well with the average grades of all the drill core samples
used to make up the composite sample for the test work program.

Table 13.1 Metallurgical samples - head assay

Element Unit Grade
Au g/t 1.90
Ag g/t 549
Pb % 2.14
Cd % 0.04
Cu % 0.09
Zn % 4.63
Fe % 8.90
Al % 1.44
As % 0.37
Ca % 5.05
Si % 22.78
C (Total) % 1.32
S (Total) % 5.77
Insoluble % 57.58

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13.4 Mineralogical characterization

13.4.1 Mineral composition and species distribution
Table 13.2 shows the results of the 2013 mineral composition analysis and Table 13.3 shows the
distribution by mineralogical species of gold, silver, lead, copper, zinc, and iron.

Table 13.2 Head sample - minerals composition

Minerals Density (g/cm3) Formula Head grade (%)
Sphalerite 4.0 (Zn,Fe)S 9.34
Galena 7.4 PbS 2.34
Chalcopyrite 4.2 CuFeS2 0.18
Pyrite 5.0 FeS2 15.83
Pyrrhotite 4.6 Fe1-xS 1.08
Arsenopyrite 6.0 FeAsS 1.12
Gold electrum 12.2 Au2Ag <0.001
Pyrargyrite 5.8 Ag3SbS3 0.05
Argentite 4.5 Ag2S 0.03
Freibergite 4.9 (Ag,Cu,Fe,Zn)12(Sb,As)4S13 0.03
Aguilarite 7.5 Ag4SeS 0.001
Native silver 10.5 Ag 0.001
Quartz 2.7 SiO2 47.69
Calcite 2.6 CaCO3 5.86
Orthoclase 2.8 KAlSi3O8 5.83
Iron oxides 5.5 FexOy 2.82
Wollastonite 3.4 CaSiO3 2.32
Chlorite 4.0 (AI,Mg,Fe)10(Si,AI)8O10 1.14
Ankerite 2.6 Ca(Mg,Fe)(C03)2 1.09
Fluorite 2.6 Ca5(PO4)3F 1.25
Muscovite 3.6 KAl2(Si3AI)O10(OH)2 0.51
Albite 3.0 NaAlSiO8 0.38
Andradite 2.7 Ca5Fe2(SiO4)3 0.36
Other --- --- 0.75

Lead and zinc are only present as galena and sphalerite, respectively. Gold was only detected as
electrum (a naturally occurring alloy of gold and silver, with possible trace amounts of other metals)
and the silver species were pyrargyrite, argentite, freibergite, aguilarite, and native silver. The
gangue consisted mainly of quartz, calcite, orthoclase, iron oxides, wollastonite, fluorite, chlorite,
ankerite, and smaller amounts of other silicates.

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Table 13.3 Elemental metal distribution by mineralogical species

Mineral Weight % Au (%) Ag (%) Pb (%) Cu (%) Zn (%) Fe (%)
Galena 2.35 100
Sphalerite 9.34 100 6
Chalcopyrite 0.18 92 0.43
Pyrite 15.82 66.6
Pyrrhotite 1.08 5
Arsenopyrite 1.12 3
Gold electrum <0.001 100 <0.05 0.01
Native silver <0.01 2 19
Argentite 0.03 34
Freibergite 0.03 12 8
Pyrargyrite 0.05 50
Aguilarite <0.01 2
Gangue 70
Total 100 100 100 100 100 100 100

13.4.2 Mineral liberation

Mineral liberation studies indicated that:
• At a P80 of 42 µm, the degree of liberation observed for various minerals was:
⎯ Galena – 86%
⎯ Sphalerite – 77%
⎯ Chalcopyrite – 64%
⎯ Pyrite – 87%
⎯ Pyrrhotite – 69%
⎯ Arsenopyrite – 85%
• Liberation of silver species was around 62%
• Liberation of non-sulphide gangue was 95%

The most important binary associations were:

• Galena: 7% associated with gangue, 3% with sphalerite, and 2% with pyrite.
• Sphalerite: 11% associated with gangue, 3% with galena, 3% with pyrite, and 3% with
pyrrhotite.
• Chalcopyrite: 16% associated with sphalerite, 5% with pyrite, 4% with gangue, and 3% with
silver species.
• Silver species: 11% associated with pyrite, 8% with sphalerite, 6% with gangue, and 5% with
galena.
• Gold was found as electrum particles, which were associated mainly with pyrite particles, both
in the edges of particles and as inclusions in the particles.

13.5 Flotation tests

For the 2013 test work, 17 sequential lead-zinc-pyrite flotation tests were conducted in open circuit
configuration, using the composite sample. The tests were performed in accordance with the
preferred reagent regime and flowchart established in previous experimental stages and with a
grind P80 of 42 µm. The production of a pyrite concentrate was aimed at the recovery of finely
disseminated gold and silver particles in the pyrite of the Juanicipio mineralization. The pyrite

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concentrate was subjected to cyanidation to evaluate gold and silver extractions. The presence of
small quantities of native gold and silver particles also encouraged testing gravimetric separation
of the gold and silver prior to the flotation circuit.

To take account of recycle streams, further locked cycle tests (LCTs) were conducted with the
composite mineralization sample.

13.5.1 Sequential open circuit flotation test work

Test work conditions selected were:
• Lead flotation: Operate at pH 8 to 8.5 by adding zinc sulphate combined with sodium
cyanide, sodium metabisulphite, lime, and sodium carbonate during grinding to depress
sphalerite and pyrite, as well as to clean surfaces and promote the flotation of metallic gold
and silver. Aerofloat 31 promoter was added because of the presence of native silver and
electrum, with Aerophine A-3418 added as a gold-silver-lead collector to maintain selectivity
against pyrite, pyrrhotite and sphalerite. The lead concentrate was cleaned three times. Lead
tailings became zinc flotation feed.
• Zinc flotation: Copper sulphate was added to activate sphalerite and Aerophine A-3418 as a
collector at pH about 10.5 and the concentrate was cleaned four times. Zinc tailings became
pyrite flotation feed.
• Pyrite flotation: Ammonium potassium xanthate was dosed as a collector and the pyrite
concentrate was cleaned twice.

Tests 1 to 5 were focused on selectively floating lead-zinc under operating conditions relatively
similar to the previous test work programs in order to confirm results. The results of Tests 1 to 5
are shown in Table 13.4 to Table 13.7.

Table 13.4 Tests 1 to 5 - calculated head grades

Test No. Au (g/t) Ag (g/t) Pb (%) Zn (%) Cu (%) Fe (%)
1 1.9 533 2.09 4.54 0.09 9.90
2 2.0 532 2.03 4.44 0.08 9.40
3 1.8 542 2.07 4.58 0.08 9.40
4 2.0 543 2.14 4.57 0.11 9.30
5 2.0 543 2.14 4.61 0.10 9.80
Average 1.9 539 2.10 4.55 0.10 9.50

Table 13.5 Tests 1 to 5 - Pb concentrate grades and recoveries

Grade Recovery
Test P80 % Au Ag Pb Zn Cu Fe Au Ag Pb Zn Cu Fe
No. (µm) weight (g/t) (g/t) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
1 42 3.76 30.6 10,434 48.8 5.9 0.70 11.5 60.2 73.6 87.8 5.7 28.2 4.4
2 42 2.73 40.8 11,377 60.9 5.6 0.24 5.7 54.7 58.5 82.1 3.4 7.7 1.7
3 42 3.15 33.6 11,196 58.5 6.1 0.23 7.2 59.2 64.9 85.7 4.2 9.0 2.4
4 42 3.89 33.6 10,911 48.7 7.3 0.75 9.9 65.1 78.2 88.3 6.2 27.3 4.1
5 42 3.90 29.9 10,809 50.4 7.1 0.87 9.7 61.6 76.8 90.6 6.0 32.5 3.9
Average 3.49 33.7 10,945 53.5 6.4 0.56 8.8 60.1 70.4 86.9 5.1 20.9 3.3

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Table 13.6 Tests 1 to 5 - Zn concentrate grades and recoveries

Grade Recovery
Test P80 % Au Ag Pb Zn Cu Fe Au Ag Pb Zn Cu Fe
No. (µm) Weight (g/t) (g/t) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
1 42 6.65 1.3 400 0.34 49.4 0.43 12.9 4.5 5.0 1.1 72.4 30.6 8.6
2 42 7.27 1.6 591 0.50 49.8 0.42 11.3 5.5 8.1 1.8 81.5 36.3 8.7
3 42 7.91 1.2 562 0.50 49.6 0.45 12.0 5.1 8.2 1.9 85.6 43.1 10.1
4 42 7.54 1.3 394 0.39 50.4 0.44 12.0 4.8 5.5 1.4 83.2 31.3 9.8
5 42 7.56 1.5 499 0.36 50.8 0.50 11.8 5.9 6.9 1.2 83.3 35.7 9.1
Average 7.39 1.4 489 0.42 50.0 0.45 12.0 5.2 6.7 1.5 81.2 35.4 9.3

Table 13.7 Tests 1 to 5 - tails grades and recoveries

Grade Recovery
Test P80 % Au Ag Pb Zn Cu Fe Au Ag Pb Zn Cu Fe
No. (µm) Weight (g/t) (g/t) %) (%) (%) (%) (%) (%) (%) (%) (%) (%)
1 42 78.42 0.73 55 0.09 0.08 0.02 8.5 20.5 8.1 3.5 1.4 14.3 67.6
2 42 80.56 0.73 73 0.14 0.14 0.01 8.8 28.9 11.1 5.6 2.4 12.5 75.9
3 42 81.21 0.62 75 0.15 0.15 0.01 9.0 28.2 11.3 5.7 2.6 12.9 77.8
4 42 82.77 0.59 64 0.11 0.10 0.03 8.6 24.3 9.7 4.4 1.8 20.9 76.9
5 42 83.59 0.65 77 0.12 0.14 0.03 9.3 28.7 11.8 4.5 2.5 20.0 79.6
Average 81.31 0.66 69 0.12 0.12 0.02 8.9 26.1 10.4 4.7 2.1 16.1 75.6

Tests 6 and 13 included flotation of pyrite, while Tests 7 to 12 and 14 to 17 were performed to
generate pyrite concentrate for cyanidation tests and were not reported separately. The results for
Tests 6 and 13 are shown in Table 13.8 to Table 13.12.

Table 13.8 Tests 6 and 13 - calculated head grades

Test No. Au (g/t) Ag (g/t) Pb (%) Zn (%) Cu (%) Fe (%)
6 1.91 533 2.09 4.54 0.09 9.9
13 2.04 532 2.03 4.44 0.08 9.4
Average 1.97 532 2.06 4.49 0.09 9.6

Table 13.9 Tests 6 and 13 - Pb concentrate grades and recoveries

Grade Recovery
P80 % Au Ag Pb Zn Cu Fe Au Ag Pb Zn Cu Fe
Test No.
(µm) Weight (g/t) (g/t) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
6 42 3.13 35.9 11,816 55.3 6.8 0.58 7.9 57.6 69.4 87.6 4.6 18.7 2.6
13 42 3.36 36.1 12,520 52.8 6.7 0.90 7.6 65.3 77.3 83.9 4.9 37.8 3.6
Average 3.25 36.0 12,168 54.1 6.7 0.74 7.7 61.5 73.4 85.8 4.7 28.2 3.1

Table 13.10 Tests 6 and 13 - Zn concentrate grades and recoveries

Grade Recovery
Test P80 % Au Ag Pb Zn Cu Fe Au Ag Pb Zn Cu Fe
No. (µm) Weight (g/t) (g/t) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
6 42 7.21 1.1 419 0.26 53.4 0.45 11.0 3.9 5.7 0.9 83.0 33.3 8.5
13 42 5.92 1.3 409 0.46 52.3 0.37 10.0 4.0 4.5 1.3 67.4 26.2 7.3
Average 6.57 1.2 414 0.36 52.8 0.41 10.5 4.0 5.1 1.1 75.2 29.8 7.9

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Table 13.11 Tests 6 and 13 - Pyrite concentrate grades and recoveries

Grade Recovery
Test P80 % Au Ag Pb Zn Cu Fe Au Ag Pb Zn Cu Fe
No. (µm) Weight (g/t) (g/t) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
6 42 12.66 2.60 366 0.27 0.35 0.05 40.0 16.8 8.7 1.7 1.0 6.6 54.3
13 42 11.22 2.80 336 0.36 0.48 0.03 33.9 16.6 6.9 1.9 1.2 4.3 47.2
Average 11.94 2.70 351 0.31 0.41 0.04 36.9 16.7 7.8 1.8 1.1 5.4 50.7

Table 13.12 Tests 6 and 13 – Tails grades and recoveries

Grade Recovery
Test P80 % Au Ag Pb Zn Cu Fe Au Ag Pb Zn Cu Fe
No. (µm) Weight (g/t) (g/t) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
6 42 68.20 0.16 10 0.07 0.05 0.01 2.9 5.6 1.3 2.5 0.8 8.4 21.2
13 42 69.31 0.16 12 0.10 0.07 0.07 3.1 6.0 1.5 3.1 1.0 7.5 26.3
Average 68.76 0.16 11 0.08 0.06 0.04 3.0 5.8 1.4 2.8 0.9 7.9 23.8

From the test results, it was considered feasible to achieve recoveries of around 65% of the gold in
feed to the final lead concentrate, producing a gold grade of around 34 g/t. Similarly, it was
considered viable to recover about 78% of the silver to the lead concentrate at a grade of around
11,000 g/t.

Lead recovery to the lead concentrate was just below 90%, with the lead grades at about 53%.
Further efforts at optimization of the lead concentrate grade were seen as desirable, aimed at
improving grades without impacting on recoveries. Generally, higher grades could demand higher
premiums for the concentrate when sold to smelter operations for further processing.

Zinc recovery to the zinc concentrate was around 86%, with grades at about 50%. Typically,
recovery was projected to decrease if grades were increased; however, further optimization of the
grade vs. recovery equation was still seen as possible and was recommended to be further
investigated.

The pyrite concentrate of Test 6 achieved a reasonable iron grade (40%), with 54% recovery of the
iron, 17% gold recovery and 9% silver recovery were also significant at respective grades of 2.6 g/t
and 366 g/t. During Test 13, gold, silver, and iron recoveries to the lead concentrate were higher,
resulting in lower grades in the pyrite concentrate. This was seen to indicate that optimization of
the lead flotation circuit could result in lower values reporting to the pyrite concentrate. This was
recommended to be further investigated, as operation of the pyrite flotation circuit would impact
both capital and operating costs.

13.5.2 Locked cycle flotation test work

To evaluate the impact of recycle streams on the overall flotation grades and recoveries, a five-cycle
locked cycle test was conducted, with the configuration of the flotation circuit shown in Figure 13.1.

Lead circuit:
• Primary lead rougher flotation, with resulting concentrate going through three stages of
cleaning and with the tails of each cleaner stage recycled to the preceding stage of the next
cycle (e.g., Cleaner 2 Cycle 1 tails go to Cleaner 1 of Cycle 2).
• Rougher tails to a secondary rougher or scavenger, with the concentrate recycled to the
Primary Rougher stage of the following cycle, where it was combined with the feed of the next
cycle.

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Zinc circuit:
• Primary zinc rougher flotation, with the resulting concentrate going through four stages of
cleaning and with tails of each cleaner stage recycled to the preceding stage of the next cycle
(e.g., Cleaner 2 Cycle 1 tails go to Cleaner 1 of Cycle 2).
• Rougher tails to a secondary rougher or scavenger, with the concentrate recycled to the
Primary Rougher stage of the following cycle, where it was combined with the feed of the next
cycle.

Pyrite circuit:
• Primary pyrite rougher flotation, with the resulting concentrate going through two stages of
cleaning and with the tails of each cleaner stage recycled to the preceding stage of the next
cycle (e.g., Cleaner 2 Cycle 1 tails go to Cleaner 1 of Cycle 2).
• Rougher tails to a secondary rougher or scavenger, with the concentrate recycled to the
Primary Rougher stage of the following cycle, where it was combined with the feed of the next
cycle.

Figure 13.1 Lead flotation locked cycle test work flowsheet

Source: Fresnillo, 2022.

The mass balance resulting from the locked cycle test work demonstrated the following:
• It was possible to stabilize lead, zinc, and pyrite concentrate recoveries and grades with some
adjustments to the reagents and operating regime. It was found that these were within the
ranges expected for typical operations.
• Gold and silver recoveries and grades also stabilized in the lead and pyrite concentrate.
However, significant losses to tails were still recorded due to the presence of fine gold and
silver-bearing particles. It was observed that these particles appear to concentrate in the

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scavenger circuit after several cycles before being rejected into tails. In the mass balance, it
was observed that the last cycles recorded the highest gold and silver assays.
• Calculated head grades were very close to the analyzed values.

The metallurgical mass balance for the flotation circuit is shown in Table 13.13.

Table 13.13 Flotation circuit metallurgical balance

Grades Distribution
%
Product Au Ag Pb Zn Cu Fe Insols Au Ag Pb Zn Cu Fe Insols
weight
(g/t) (g/t) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
Pb concentrate 4.02 30.68 11,156 49.4 6.1 0.8 9.5 4.9 65.2 80.1 92.8 5.3 38.4 4.3 0.4
Zn concentrate 8.24 1.14 459 0.4 50.5 0.4 10.9 1.5 4.9 6.8 1.5 89.8 43.9 10.1 0.2
Pyrite concentrate 14.80 2.83 376 0.3 1.0 0.0 35.0 6.5 22.1 9.9 1.9 3.0 7.3 58.1 1.7
Tails 72.94 0.20 24 0.1 0.1 0.0 3.4 73.6 7.8 3.2 3.8 1.9 10.4 27.5 97.7
Calculated head grade 100 1.89 560 2.14 4.63 0.08 8.9 55 100 100 100 100 100 100 100
Head assays 1.9 549 2.14 4.63 0.09 8.9 57.6

The following observations were made:

• Concentrate grades were aligned to the test results achieved during the open circuit tests.
• Gold recovery to the lead concentrate was 65.2%.
• Silver, lead, and copper recoveries to lead concentrate were 80.1%, 92.8%, and 38.4%,
respectively.
• Gold, silver, copper, and zinc recoveries to the zinc concentrate were 4.9%, 6.8%, 43.9%,
and 89.8%, respectively.
• Gold, silver, and iron recoveries to pyrite concentrate were 22.1%, 9.9%, and 58.1%,
respectively.
• Metal grades observed in the final tails stream were 0.2 g/t gold, 24 g/t silver, 0.11% lead,
0.01% copper, and 0.11% zinc.

13.6 Cyanidation of pyrite concentrate

As the previous test work programs had indicated significant recovery of both gold and silver to a
pyrite concentrate, cyanidation test work was undertaken during this program to confirm recovery
of gold and silver from the concentrate. Tests were conducted over 120 hours with the cyanide
concentration monitored and controlled at 5 grams per litre (g/l) and the pH of the leach slurry
adjusted with lime to between 10.5 and 12.0.

The test results indicated the following:

• Cyanidation without regrind: 16% of the gold and 47% of the silver were recovered. Copper,
zinc, and iron recoveries were around 62%, 34%, and 0.1%, respectively, which may have
indicated an excess of cyanide. Cyanide and lime consumption were 9 kg/t and 7 kg/t,
respectively.
• Cyanidation with regrind P80 of 5 µm and 72 hours of agitation: Recoveries averaged 51% for
gold and 79% for silver. Copper, zinc, and iron recoveries increased to 72%, 42%, and 0.3%,
with the consumption of cyanide and lime at around 17 kg/t and 16 kg/t, respectively.
• Cyanidation with regrind P80 of 5 µm and 120 hours of agitation: Average recoveries increased
slightly to 53% for gold and 81% for silver. The copper and zinc recoveries also increased
slightly to 73% and 45%, respectively, and the iron recovery remained unchanged. The
consumption of cyanide and lime was 16 kg/t and 32 kg/t, respectively.

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• On average, gold and silver recoveries with a regrind of the concentrate to P 80 of 5 µm were
52% for gold and 80% for silver, and tails contained an average of 1.28 g/t gold and 73 g/t
silver, with the best recoveries achieved after 120 hours of agitated cyanide leaching.

13.7 Gravity recoverable gold and silver

Preliminary tests were carried out to determine if some of the gold and silver was recoverable by
gravity with P80 particle sizes of 89 µm, 65 µm, and 42 µm. A laboratory scale Knelson concentrator
was used during this test work, requiring a 1 kg head sample. A summary of results is shown in
Table 13.14.

Table 13.14 Gravity recoverable gold and silver test results

Calculated Recovery to Tails
Knelson concentrate Knelson tails
Test P80 head conc. distribution
No. (µm) % Au Ag Au Ag Au Ag Au Ag Au Ag
weight (g/t) (g/t) (g/t) (g/t) (g/t) (g/t) (%) (%) (%) (%)
1 42 5.0 17.0 2,799 1.5 462 2.2 580 37.0 24 63.0 76
2 65 9.3 6.6 2,040 1.1 411 1.6 562 38.0 34 62.0 66
3 89 8.2 6.1 1,970 1.3 452 1.7 577 30.0 28 70.0 72

It was observed that the best gold and silver concentrate grades were obtained at a finer grind,
reaching 17 g/t for gold and 2,799 g/t for silver.

The results confirmed the presence of metallic gold and silver and indicated that there was good
potential to recover both gold and silver by gravity. The potential benefit of a gravity circuit would
be impacted by the efficiency of the flotation circuit, as well as the size and quantity of gold and
silver particles.

More extensive test work on a fully integrated circuit was recommended to be conducted to enable
a final evaluation of the benefits of a gravity circuit. Such work was seen as potentially improving
the project economics due to improved payment terms if a gold and silver concentrate could be
produced and sold, or alternatively, a separate leach and precious metal recovery circuit could be
installed to produce doré bar. If successful, the benefit of a pyrite flotation circuit was seen as likely
to also be reduced, which could lead to capital cost savings as well as a reduction in ongoing
operating costs.

13.8 Comminution test results (2015)

The results of the SAG and ball-milling tests carried out in 2015 are summarized in Table 13.15.

Table 13.15 SAG and ball mill comminution data

Sample A*b Abrasion resistance BWI (kWh/t)
R1 48.8 0.40 19.3
R2 42.4 0.41 21.1
R4 54.1 0.54 15.3
R5 55.8 0.36 18.3
R6-2 56.8 0.41 18.3
R7 47.6 0.55 18.3
Average 50.9 0.45 18.4
Maximum 56.8 0.55 21.1
Minimum 42.4 0.36 15.3

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Samples R2, R4, R6-2, and R7 were distributed along strike in the upper part of the Mineral
Resources, whereas samples R1 and R5 represented the deeper zones. Grouping these into two
data sets showed there to be no significant variability in hardness with depth.

The A*b data derived from the JK Drop-Weight test for SAG milling indicated that the mineralization
was of medium competence (competence increases with lower A*b). The ball mill Work Index data
(BWI), however, showed the mineralization to be hard in comparison with the industry database.
Abrasion resistance was classified as medium. Comparing these results with previous BWI data
showed very little change.

13.9 Optimization testwork program 2021 and 2022

The main areas covered in this program are listed below, along with the key outcomes:
• Pyrite Flotation and Cyanide Leaching:
⎯ Pyrite flotation tests and pyrite concentrate leaching tests were carried out on samples
with slightly different original head grades and significantly different deportments of Au
and Ag across the products. Notwithstanding this, global deportments of Au and Ag to
concentrate were very similar at around 92% Au and 96% Ag. Leaching extractions were
only 32% for Au and 72% for Ag.
• Optimization of zinc depressants, i.e., zinc sulphate / cyanide dosage and techno-economic
comparison with Deprezinc:
⎯ Reducing the dosage of zinc sulphate from 500 g/t to 250 g/t showed no statistically
significant difference in performance and, therefore, 250 g/t was the recommended
dosage.
⎯ Zinc sulphate and the Peñoles Deprezinc also showed no statistically significant
difference in performance, but there was a significant difference in reagent costs in
favour of zinc sulphate.
• Comparison of standard testwork regimes for Juanicipio mineralization versus mineralization
from the (Fresnillo) Fresnillo and Saucito mines:
⎯ For Juanicipio versus Fresnillo the metallurgical performance differences appeared to fit
within a similar grade-recovery curve whereas, in the comparison with Saucito, the
Juanicipio regime showed absolute improvements in both grade and recovery.
⎯ Some sensitivity to grind size and effects of liberation on concentrate grade were also
observed.
• Evaluation of low-grade mineralization treatment:
⎯ With low-grade material, a similar sensitivity of concentrate grade to grind size was
observed.
• Testwork on high-grade material for the purposes of mineral characterization:
⎯ The main value contribution was seen to come from the gold and silver recovery to the
lead concentrate.
• A bulk sample was taken for grinding at Saucito with subsequent flotation testwork at Centro
de Investigacion y Desarollo Tecnologico (Centre of Investigations and Technological
Development) and a testwork program of 10 weeks was conducted to confirm grinding and
flotation performance, complemented with mineralogical analysis.
• Evaluation of flocculants:
⎯ The flocculant AN923SH was found to be the best performer with respect to setting
velocity and supernatant clarity.

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14 Mineral Resource estimates

14.1 Introduction
The Mineral Resources for the Juanicipio deposit have been prepared by Mr Gerardo Elly Merino
Angel, Resource Geologist of Fresnillo Operations S.A. Mr John Morton Shannon, P.Geo. reviewed
the methodologies and data used to prepare the resource estimates and was satisfied that they
comply with reasonable industry practice. Mr John Morton Shannon takes responsibility for these
estimates.

This estimate is dated 31 May 2023 and supersedes the previous estimate outlined in the 2017 AMC
Technical Report. The previous estimate had an effective date of 21 October 2017, and included
drilling up to December 2016.

The data used in the current estimate includes results of all drilling carried out on the Property up
to 31 May 2023. Depletion by mining is also up to that date. The database consists of 488 surface
and underground diamond drillholes and 972 channel samples.

Mineralization is hosted in six veins. Each has been wireframed separately. Estimates were done
separately on each of the six veins resulting in six block models.

Leapfrog Geo was used to construct the geological domains and to prepare assay data for
geostatistical analysis. Leapfrog EDGE version 4.0.5 was used for geostatistical analysis and
variography. Datamine RM was used to construct the block model, estimate metal grades, and
report out Mineral Resources. Grade interpolation for Au, Ag, Pb, Zn, and Fe were carried out using
Ordinary Kriging (OK) for the Valdecañas, Ramal 1, Anticipada, Pre-Anticipada and Juanicipio veins.
For the Venadas vein inverse distance cubed (ID3) was chosen as the interpolation method. The
bulk density was estimated into the block model using ID3 for all veins.

The current estimate is summarized in Table 14.1, and expanded in Table 14.16.

Table 14.1 Juanicipio Mineral Resources at 31 May 2023

Quantity Grade Contained metal
Cut-off
Resource category Tonnes Au Ag Pb Zn Au Ag Pb Zn
grade
(kt) (g/t) (g/t) (%) (%) (koz) (koz) (kt) (kt)
Measured 1,441 2.19 780 1.42 2.70 102 36,130 20 39
Indicated 15,555 1.83 266 3.03 5.56 916 133,039 472 865
209 g/t Ag Eq
Measured & Indicated 16,996 1.86 310 2.89 5.32 1,017 169,169 492 904
Inferred 14,051 1.06 236 2.41 6.12 480 106,676 339 860
Notes:
• CIM Definition Standards (2014) were used for reporting.
• Mineral Resources are reported inclusive of Mineral Reserves.
• Mineral Resources are reported at or above a cut-off grade of 209 g/t silver equivalent (AgEq), equivalent to $96.9
net smelter return (NSR). While a 3 m minimum width is applied and blocks above the cut-off grade are largely
contiguous, mineable shapes have not been defined, which may result in the tonnes of underground Mineral Resources
being slightly exaggerated.
• Mineral Resources are reported at values based on metal price assumptions, metallurgical recovery assumptions,
mining costs, processing costs, general and administrative (G&A) costs, & variable smelting and transportation costs.
• Metal price assumptions considered for the calculation of metal equivalent values are gold (US$1,450.00/oz), silver
(US$20.00/oz), lead (US$0.90/lb), and zinc (US$1.15/lb).
• Assumed metal recoveries of 75.84%, 87.06%, 86.33% and 74.48% for Au, Ag, Pb, and Zn, respectively, and on
NSR factors of US$30.71/g Au, US$0.46/g Ag, US$15.01/% Pb and US$11.36/% Zn.
• Mineral Resources are reported on a 100% basis. The MAG share is 44%.
• Totals may not compute exactly due to rounding.
• The Mineral Resources were estimated by Fresnillo. John Morton Shannon, P.Geo. (EGBC #32865) has reviewed the
Mineral Resources and takes QP responsibility.
Source: AMC based on Fresnillo data, 2023.

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The QP is not aware of any known environmental, permitting, legal, title, taxation, socioeconomic,
marketing, political, or other similar factors that could materially affect the stated Mineral Resource
estimates. This part of Mexico is regarded as a good jurisdiction to operate in with a solid framework
addressing the factors mentioned above.

Fresnillo has been working in the region for decades and operate an additional two major mining
operations at Fresnillo and Saucito and is aware of any local aspects of operating in the district.

14.2 Data used

14.2.1 Drillhole database
The Mineral Resource estimation is supported by a single database that contains the results of both
diamond drill core from surface, underground drilling, and data from underground channel sampling.
The data used for estimation of the Juanicipio deposit consists of 336 surface drillholes,
152 underground drillholes with average lengths of 1,016 m and 195 m respectively, in addition to
972 channels. This data has been acquired from 2006 to present. The drillholes are typically drilled
in fans from both surface and underground as shown in plan view in Figure 14.1. Most of the
drillholes intersect the mineralization at oblique angles, resulting in core lengths less than the true
widths, but all attempts are made to drill as close to a normal intersection as possible. All drillhole
collars are located in x, y, z coordinates by the mine surveyors in a truncated Universal Transverse
Mercator (UTM) grid and elevation above mean sea level (amsl). Viewing the drillholes in
three-dimensional (3D) space shows an average spacing of approximately 50 m to 100 m between
pierce intersections of the plane of the mineralization. The data used in the estimate is shown in
Table 14.2.

Table 14.2 Data used in estimate by type

Data type Number of holes / channels Number of samples Meterage
Surface 336 52,700 341,505
Underground 152 11,181 29,735
Channel 972 4,537 4,677
Total 1,460 68,418 375,917
Source: AMC based on Fresnillo data, 2023.

In addition to the drillholes listed in Table 14.2, there were six holes drilled for metallurgical
purposes and 17 others which had poor core recovery. Data from these 23 holes were used in the
geological interpretation only and not in reviewing the statistics or in the estimate.

A high-level audit of the database was done to check for: invalid x, y collar locations or elevations
with respect to surface topography; errors in downhole surveys shown by drastic dip changes;
overlapping intervals in lithology or sampling; and errors in assays shown by negative or excessive
values. No inconsistencies were identified during checking the drillholes in 3D.

Checking the collar locations of the surface drillholes against the Digital Terrain Model (DTM) of the
topography surface showed some differences in elevation. About 15% of collars have a difference
greater than 1 m. The maximum difference reached 3.33 m for 5 drillholes out of 336 surface
drillholes. Note that the provided DTM was built based on 5 m contours, therefore, the differences
discovered are not material.

The data is collected and stored in Fusion’s DHLogger system into which are built several “locks” to
control anomalous values, which are then investigated. The data is ultimately held in a master
server where only the database administrator can make changes.

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Figure 14.1 shows a drillholes location plan map with a set of sections lines shown over the
Valdecañas structure.

Figure 14.1 Juanicipio drillhole location plan

Source: Fresnillo, 2023.

14.2.2 Bulk density

Fresnillo has performed bulk density measurements on the core drilled on the Property. The
collection of bulk density measurements is described in Section 11.3. A total of 37,189 bulk density
measurements were related to drillholes informing the Mineral Resource Estimate.

The bulk density was estimated into the block model using ID 3. Because of the limited search radii,
some blocks were un-estimated. Any un-estimated blocks were assigned the average bulk density
for that vein. Table 14.3 lists the average estimated bulk density for each vein as well as the average
values that were assigned to un-estimated blocks.

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Table 14.3 Average bulk densities by vein

Raw data average Estimated average Assigned average
Vein number Vein
Bulk density (t/m3) Bulk density (t/m3) Bulk density (t/m3)
100 Valdecañas 2.91 2.92 2.91
101 Ramal 1 2.85 2.86 2.85
103 Venadas 2.59 2.66 2.74
104 Anticipada 2.93 2.75 2.92
106 Pre-Anticipada 2.71 2.77 2.71
300 Juanicipio 2.93 2.94 3.00
Source: AMC based on Fresnillo data, 2023.

14.3 Geology and vein modelling

The Juanicipio deposit consists of six veins making up the two main vein systems that lie in the
north-eastern part of the concession. The two main veins are the Valdecañas vein and the Juanicipio
vein, which are significant silver-gold epithermal structures. In addition to the Valdecañas vein, the
Valdecañas vein system includes four additional veins: Ramal 1, Anticipada, Pre-Anticipada and
Venadas. The single Juanicipio vein is situated about 800 m south-east from the Valdecañas vein.
Both systems strike east-southeast with an average dip of about 55° south-west. The more recently
discovered sub-vertical Venadas vein crosses the Valdecañas vein near perpendicularly and is one
of a family of veins, three in total discovered to date, that are in this orientation.

Six separate mineralization domains were built by Fresnillo geologists using implicit modelling using
the vein coding assigned to each vein intercept, vertical cross sections, and underground geological
mapping. These domains are shown in Figure 14.2.

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Figure 14.2 Plan view of the mineralization domains at the Juanicipio project

Source: AMC based on Fresnillo data, 2023.

14.4 Statistics of selecting samples, capped samples, and composites

The composite file and capped samples file provided by Fresnillo were validated. The following tables
show the statistics by attribute for each vein, or domain. Table 14.4 shows the statistics for the raw
samples selected within the vein wireframes.

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Table 14.4 Statistics of raw samples

Vein Element Number of samples Minimum Maximum Mean Stand. dev. Coeff. var.
Vein Valdecañas
100 SG 2,619 1.88 4.85 2.91 0.32 0.11
100 AU 6,147 0.001 262.50 1.97 6.67 3.39
100 AG 6,147 0.10 27,411 591 1,389 2.35
100 PB 6,147 0.0001 48.91 1.42 3.01 2.12
100 ZN 6,147 0.0003 30.00 2.91 4.46 1.53
100 FE 6,136 0.05 44.89 6.65 4.37 0.66
Vein Ramal 1
101 SG 494 2.15 4.52 2.86 0.26 0.09
101 AU 551 0.001 17.65 0.59 1.67 2.86
101 AG 551 0.10 8,880 252 805 3.19
101 PB 551 0.0001 14.75 1.07 2.13 1.99
101 ZN 551 0.0005 30.00 2.95 4.49 1.52
101 FE 551 0.32 17.60 4.97 3.15 0.63
Vein Venadas
103 SG 93 2.36 3.60 2.59 0.13 0.05
103 AU 171 0.0025 28.72 2.16 3.96 1.83
103 AG 171 0.30 2,820 377 494 1.31
103 PB 171 0.0004 4.65 0.04 0.36 9.74
103 ZN 171 0.0009 4.23 0.05 0.33 7.05
103 FE 171 0.43 6.64 1.77 1.07 0.60
Vein Anticipada
104 SG 554 1.91 4.49 2.93 0.38 0.13
104 AU 553 0.001 19.85 1.05 2.20 2.10
104 AG 553 0.001 5,390.00 194 444 2.29
104 PB 553 0.0003 17.95 2.28 3.31 1.45
104 ZN 553 0.0008 30.00 5.93 7.05 1.19
104 FE 553 0.46 27.50 7.71 4.94 0.64
Vein Pre-Anticipada
106 SG 71 2.12 3.98 2.71 0.25 0.09
106 AU 72 0.01 13.55 0.92 1.98 2.15
106 AG 72 2 2,429 336 531 1.58
106 PB 72 0.0002 2.43 0.42 0.60 1.44
106 ZN 72 0.0005 11.30 1.07 1.84 1.72
106 FE 71 0.69 14.30 4.51 2.99 0.66
Vein Juanicipio
300 SG 26 2.27 3.76 2.99 0.35 0.12
300 AU 27 0.018 15.45 1.36 2.77 2.04
300 AG 27 2.4 4,370 819 1,359 1.66
300 PB 27 0.0015 10.50 1.46 1.82 1.25
300 ZN 27 0.014 11.25 3.44 3.32 0.97
300 FE 27 1.76 19.40 7.43 4.83 0.65
Note: Stand. dev.= Standard deviation; Coeff. var.= Coefficient of variation; SG= specific gravity which is equivalent to bulk
density for these rocks.
Source: Compiled by AMC from data provided by Fresnillo, 2023.

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Capping was applied on the raw samples prior to compositing. The top cut values were selected
based on log probability charts and decile analysis and applied to each vein. Statistics for five
elements and density (SG) data were compared with those generated by Fresnillo. Table 14.5 shows
the number of capped samples and difference of mean values in percent in addition to the statistics
of the capped samples.

Table 14.5 Statistics of capped samples

Number Maximum Number of
Stand. Coeff.
Vein Element of Minimum (capped value Mean capped
dev. var.
samples in italics) samples
Vein Valdecañas
100 SG 6,147 1.88 4 2.91 0.2 0.07 17
100 AU 6,147 0.001 23 1.75 3.26 1.87 42
100 AG 6,147 0.1 8,000 564.02 1,124 1.99 38
100 PB 6,147 0.001 25 1.41 2.86 2.03 11
100 ZN 6,147 0.001 25 2.89 4.38 1.51 28
100 FE 6,136 0.05 44.89 6.65 4.37 0.66 0
Vein Ramal 1
101 SG 551 2.15 4 2.86 0.24 0.08 1
101 AU 551 0.001 15 0.57 1.56 2.72 2
101 AG 551 0.1 3,000 205.77 484 2.35 10
101 PB 551 0.001 10 1.04 1.98 1.9 7
101 ZN 551 0.001 20 2.9 4.27 1.47 6
101 FE 551 0.32 17.6 4.97 3.15 0.63 0
Vein Venadas
103 SG 171 2.36 3.6 2.72 0.19 0.07 0
103 AU 171 0.0025 12 1.92 2.86 1.49 8
103 AG 171 0.3 1,350 347.71 394 1.13 8
103 PB 171 0.001 0.4 0.01 0.05 4.06 1
103 ZN 171 0.001 0.6 0.03 0.07 2.97 1
103 FE 171 0.43 6.64 1.77 1.07 0.6 0
Vein Anticipada
104 SG 554 1.91 4 2.93 0.37 0.13 5
104 AU 554 0.001 14 1.01 1.97 1.95 4
104 AG 554 0.001 1,800 172.45 290 1.68 6
104 PB 554 0.001 16.5 2.25 3.25 1.45 6
104 ZN 554 0.001 25 5.78 6.7 1.16 18
104 FE 553 0.46 27.5 7.71 4.94 0.64 0
Vein Pre-Anticipada
106 SG 74 2.12 3.98 2.72 0.25 0.09 0
106 AU 74 0.001 5 0.71 0.93 1.3 1
106 AG 74 0.001 1,300 277.76 383 1.38 6
106 PB 74 0.001 1.5 0.37 0.5 1.37 6
106 ZN 74 0.001 5 0.95 1.46 1.55 2
106 FE 71 0.69 14.3 4.51 2.99 0.66 0

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Number Maximum Number of

Stand. Coeff.
Vein Element of Minimum (capped value Mean capped
dev. var.
samples in italics) samples
Vein Juanicipio
300 SG 27 2.27 3.76 2.99 0.35 0.12 0
300 AU 27 0.018 5.5 1.03 1.25 1.21 1
300 AG 27 2.4 2,250 572.79 794 1.39 4
300 PB 27 0.0015 5.5 1.33 1.26 0.94 1
300 ZN 27 0.014 6.5 2.94 2.4 0.82 4
300 FE 27 1.76 19.4 7.43 4.83 0.65 0
Note: Stand. dev.= Standard deviation; Coeff. var.= Coefficient of variation; SG= specific gravity which is equivalent to bulk
density for these rocks.
Source: Compiled by AMC from data provided by Fresnillo, 2023.

Compositing was performed after capping. Before compositing, samples with absent grades are
assigned with a value of 0.001 for all five elements. Upon analysis of sample length histograms for
each vein, a composite length of 1.20 m was chosen for all veins. Composites were made using an
option in Datamine of variable lengths that equally adjusts the length of each composite to
incorporate any small residuals. The total number of samples decreased from 7,524 to 6,240 after
compositing. Samples without bulk density values were assigned the average bulk density of the
domain.

Table 14.6 shows the statistics of the bulk density and the 5 elements estimated for each vein.

Table 14.6 Statistics of composite data

Vein Element Number of samples Minimum Maximum Mean Stand. dev. Coeff. var.
Vein Valdecañas
100 SG 5,127 1.88 4.00 2.91 0.18 0.06
100 AU 5,127 0.001 23.00 1.75 2.94 1.68
100 AG 5,127 0.2204 8,000 565.75 1,027.43 1.82
100 PB 5,127 0.001 25.00 1.43 2.60 1.82
100 ZN 5,127 0.001 25.00 2.92 4.07 1.40
100 FE 5,119 0.0733 38.60 6.67 4.05 0.61
Vein Ramal 1
101 SG 439 2.19 4.00 2.86 0.22 0.08
101 AU 439 0.001 15.00 0.58 1.41 2.44
101 AG 439 0.1 3,000 207.56 442.54 2.13
101 PB 439 0.001 10.00 1.06 1.79 1.70
101 ZN 439 0.001 20.00 2.94 3.94 1.34
101 FE 439 0.34 15.90 4.98 2.97 0.60
Vein Venadas
103 SG 145 2.4 3.38 2.72 0.19 0.07
103 AU 145 0.0025 12.00 1.92 2.61 1.36
103 AG 145 1.4 1,350 348.10 365.51 1.05
103 PB 145 0.001 0.36 0.01 0.05 3.89
103 ZN 145 0.001 0.56 0.03 0.07 2.87
103 FE 145 0.46 5.73 1.78 0.96 0.54

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Vein Element Number of samples Minimum Maximum Mean Stand. dev. Coeff. var.
Vein Anticipada
104 SG 451 1.91 4.00 2.93 0.35 0.12
104 AU 451 0.001 13.88 1.02 1.79 1.75
104 AG 451 0.001 1,800 174.60 268.07 1.54
104 PB 451 0.001 16.50 2.29 2.88 1.26
104 ZN 451 0.001 25.00 5.84 6.37 1.09
104 FE 448 0.46 24.34 7.74 4.64 0.60
Vein Pre-Anticipada
106 SG 56 2.12 3.25 2.72 0.19 0.07
106 AU 56 0.001 5.00 0.72 0.89 1.24
106 AG 56 0.001 1,300 281.83 334.11 1.19
106 PB 56 0.001 1.50 0.37 0.47 1.26
106 ZN 56 0.001 4.62 0.95 1.38 1.45
106 FE 53 0.69 12.14 4.56 2.83 0.62
Vein Juanicipio
300 SG 22 2.27 3.58 2.99 0.33 0.11
300 AU 22 0.018 2.92 1.05 0.97 0.92
300 AG 22 2.4 2,250 580.99 738.10 1.27
300 PB 22 0.0015 5.50 1.34 1.16 0.87
300 ZN 22 0.014 6.50 2.97 2.15 0.72
300 FE 22 1.76 19.34 7.48 4.62 0.62
Note: Stand. dev. = Standard deviation; Coeff. var. = Coefficient of variation; SG = specific gravity which is equivalent to
bulk density for these rocks.
Source: Compiled by AMC from data provided by Fresnillo, 2023.

The compositing and capping employed for the estimation was found to be acceptable.

14.5 Variography
Experimental variograms and variogram models on the Valdecañas vein were carried out using
Leapfrog EDGE software. The variogram models were fitted by Fresnillo on experimental
semi-variograms for all metals, except for silver, for which experimental correlograms were
calculated. The anisotropy orientations were defined from the orientation of the mineralized
structures, the visual observation of grades in longitudinal sections and variogram maps.

Table 14.7 shows the variogram model fitting for the five elements and bulk density for the biggest
vein, the Valdecañas vein.

Table 14.7 Variogram parameters for Valdecañas vein

Axis Nugget Structure 1 Structure 2
Item X Y Z Sill 1 Range (m) Sill 2 Range (m)
C0
Dip / Azi Dip / Azi Dip / Azi C1 X Y Z C2 X Y Z
Au -6/227 -8/125 32/210 0.2 0.33 60 50 4 0.52 280 130 10
Ag -6/227 -8/125 32/210 0.2 0.5 70 50 3 0.3 275 150 10
Pb 53/359 -15/290 32/210 0.2 0.51 50 110 5 0.29 500 200 12
Zn -5/259 -27/139 33/209 0.1 0.37 225 158 5 0.43 490 308 10
Fe 57/30 0/300 33/210 0.1 0.26 48 50 8 0.64 450 250 12
Density 30/60 00/120 30/210 0.2 0.33 60 50 4 0.52 280 130 10
Source: AMC based on Fresnillo data, 2023.

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14.6 Search and estimation parameters

Search ranges and estimation parameters for all domains are shown below in Table 14.8. For the
Valdecañas, Ramal 1, Anticipada and Pre-Anticipada veins the minimum number of composites was
4 and the maximum number of composites was varying from 12 to 20. For Juanicipio and Venadas
veins estimations only one pass was used with a minimum of one composite and maximum
24 composites for Juanicipio and 12 composites for Venadas.

Table 14.8 Juanicipio estimation search parameters

Range 1 Range 2 Range 3 Rotation angles around axis Min. Max. Max. comps
Vein Pass
(m) (m) (m) 1 2 3 comps comps per drillhole

1 48 40 40 35 (Z) -8 (Y) -57 (X) 4 12 3

Valdecañas 2 72 60 60 35 (Z) -8 (Y) -57 (X) 4 16 3
3 192 160 160 35 (Z) -8 (Y) -57 (X) 4 20 3
1 48 40 40 30 (Z) -60 (X) 0 (Z) 4 12 3
Ramal 1 2 72 60 60 30 (Z) -60 (X) 0 (Z) 4 16 3
3 192 160 160 30 (Z) -60 (X) 0 (Z) 4 20 3
1 48 40 40 35 (Z) -8 (Y) -57 (X) 4 12 3
Anticipada 2 72 60 60 35 (Z) -8 (Y) -57 (X) 4 16 3
3 192 160 160 35 (Z) -8 (Y) -57 (X) 4 20 3
1 48 40 40 35 (Z) -8 (Y) -57 (X) 4 12 3
Pre-
2 72 60 60 35 (Z) -8 (Y) -57 (X) 4 16 3
Anticipada
3 192 160 160 35 (Z) -8 (Y) -57 (X) 4 20 3
Juanicipio 1 50 100 50 50 (Z) -40 (X) 0 (Z) 1 24 -
Venadas 1 100 50 25 -45 (Z) -80 (X) 0 (Z) 1 12 2
Notes: Comp = composites.
Source: AMC based on Fresnillo data, 2023.

14.7 Block model parameters

Six block models were constructed and were sub-celled and rotated. The parent block size was 24 m
by 6 m by 12 m with sub-blocking employed. Sub-blocking resulted in minimum cell dimensions of
4 m by 1 m by 1 m except for the Venadas vein where the minimum sub-block was 2 m by 0.5 m
by 1 m.

Five vein models, Valdecañas (100), Ramal 1 (101), Anticipada (104), Pre-Anticipada (106), and
Juanicipio (300) have the same model dimensions as shown in Table 14.9. Table 14.10 shows the
block model dimension for the Venadas (103) vein, which is of a different orientation. The block
models were built in the UTM system of coordinates, Datum NAD 27 R13.

Table 14.9 Block model parameters for domains 100, 101, 104, 106, 300
Block models 100, 101, 104, 106, 300
Parameter X Y Z
Origin 708,936 559,362 900
Minimum block size 4 1 1
Maximum block size 24 6 12
Number of blocks 102 256 104
Rotation angle 30
Source: AMC based on Fresnillo data, 2023.

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Table 14.10 Block model parameters for Venadas (103)

Block model 103
Parameter X Y Z
Origin 709,608 559,038 1488
Minimum block size 2 0.5 1
Maximum block size 24 6 12
Number of blocks 62 52 52
Rotation angle -45
Source: AMC based on Fresnillo data, 2023.

The estimated block model fields are shown in Table 14.11.

Table 14.11 Estimated block model fields

Model field Description Unit
DENSITY Bulk density t/m3
AU Gold grades g/t
AG Silver grades g/t
PB Lead grades %
ZN Zinc grades %
FE Iron grades %
Source: AMC based on Fresnillo data, 2022.

14.8 Block model validation

The block models were validated in three ways: visual checks, statistical comparisons, and swath
plots.

14.8.1 Visual check

Visual checks were carried out on vertical sections comparing the block model estimates and
drillhole grades. The grades for Au, Ag, Pb, and Zn were checked. The screen checks demonstrated
a good agreement between the drillhole data and the model estimate in Figure 14.3.

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Figure 14.3 3D view of Ag grades in Valdecañas block model and composite data

Source: AMC based on Fresnillo data, 2023.

14.8.2 Statistical comparison model versus composites

The estimated attributes in the block models are Ag, Au, Pb, Zn, Fe, and SG (equivalent to bulk
density).

The comparison of the statistics of the composites and models by each individual vein has a general
tendency for the mean grades in the block model for silver and gold to be below the mean grades
of the composites. The mean grades of Pb and Zn in the block models are greater than in composites
for all veins, except vein Ramal 1 (101).

The composites for Valdecañas (100), were declustered (80 m by 80 m by 80 m spacing). The
comparison of the mean values shows that mean values for the base metals in the model are greater
than mean values in the declustered composites. In a separate validation of the statistics of the
upper more informed portions of the vein, where the composites are mostly represented by
underground channels, a better match of grades between the block model and composites was
obtained.

The mean values of all elements in the model are slightly lower than in the composites in Ramal
1 Vein (101) except for Zn.

In the separate block model of the Venadas vein (103) the mineralization mainly contains Au and
Ag. The mean grades of Au and Ag in the model are less than in the composites. The grades of Pb
and Zn are close to zero.

The comparison of the mean values of all elements for the Anticipada vein (104) shows the mean
grades of Ag, Au, Fe, and the mean SG value in the model are slightly lower than in the composites.
The mean grade for Zn is overestimated.

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The estimated values of all elements in the Juanicipio vein (300) are close to the values in
composites, but with a slight underestimation for Ag and Au.

A general statement would be that silver is underestimated, and in the case of the main contributors
100, 101, and 104 this is in the tens of percent, as evident in Table 14.12 and Table 14.13.

Table 14.12 Composites and model statistics for Ag, Au, and Pb
Ag (g/t) Au (g/t) Pb (%)
Vein Parameter
Composites Model Composites Model Composites Model
N Samples 5,127 305,035 5,127 305,035 5,127 305,035
Minimum 0.2204 0 0.001 0 0.001 0
Maximum 8,000 5,829 23 17.66 25 16.74
100*
Mean 354 267 1.44 1.45 1.69 2.39
Stand. dev 853.15 400.15 2.85 1.38 3.00 2.38
Coeff. var. 2.41 1.50 1.99 0.96 1.77 1.00
N Samples 439 104,342 439 104,342 439 104,342
Minimum 0.1 0.61 0.001 0 0.001 0
Maximum 3,000 1,701 15 7.83 10 6.76
101
Mean 208 135 0.58 0.57 1.06 0.96
Stand. dev 442.54 183.12 1.41 0.93 1.79 1.00
Coeff. var. 2.13 1.36 2.44 1.64 1.70 1.04
N Samples 145 78,887 145 78,887 145 78,887
Minimum 1.4 0 0.0025 0 0.001 0
Maximum 1,350 1,100 12 7.46 0.36 0.19
103
Mean 348 231 1.92 1.02 0.01 0.00
Stand. dev 365.51 298.42 2.61 1.45 0.05 0.01
Coeff. var. 1.05 1.29 1.36 1.43 0.00 2.65
N Samples 451 109,463 451 109,463 451 109,463
Minimum 0.001 1.82 0.001 0.01 0.001 0
Maximum 1,800 1,084 13.8815 7.23 16.5 14.32
104
Mean 175 141 1.02 0.94 2.29 2.37
Stand. dev 268.07 114.63 1.79 0.91 2.88 1.97
Coeff. var. 1.54 0.81 1.75 0.97 1.26 0.83
N Samples 56 12,310 56 12,310 56 12,310
Minimum 0.001 2.51 0.001 0.05 0.001 0
Maximum 1,300 839 5 3.75 1.5 1.37
106
Mean 282 285 0.72 0.74 0.37 0.50
Stand. dev 334.11 141.67 0.89 0.56 0.47 0.34
Coeff. var. 1.19 0.50 1.24 0.76 1.26 0.68
N Samples 22 28,140 22 28,140 22 28,140
Minimum 2.4 2.4 0.018 0.02 0.0015 0
Maximum 2,250 2,250 2.919 2.92 5.5 5.5
300
Mean 581 490 1.05 0.97 1.34 1.41
Stand. dev 738.10 648.75 0.97 0.85 1.16 1.26
Coeff. var. 1.27 1.32 0.92 0.88 0.87 0.89
Note: *Declustered composites, Stand. dev= Standard deviation, Coeff. var. = Coefficient of variation.
Source: AMC based on Fresnillo data, 2023.

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Table 14.13 Composites and model statistics for Zn, Fe, and bulk density
Zn (%) Fe (%) SG
Vein Parameter
Composites Model Composites Model Composites Model
N Samples 5,127 305,035 5,119 305,035 5,127 305,035
Minimum 0.001 0 0.0733 0 1.88 2.1828
Maximum 25 20.35 38.596 17.68 4.0 3.67
100*
Mean 3.71 4.78 6.66 6.88 2.91 2.93
Stand. dev 4.65 3.44 4.08 2.47 0.24 0.19
Coeff. var. 1.25 0.72 0.61 0.36 0.08 0.06
N Samples 439 104,342 439 104,342 439 104,342
Minimum 0.001 0 0.34 0.34 2.19 2.35
Maximum 20 15.37 15.90 15.90 4 3.93
101
Mean 2.94 3.00 4.98 4.57 2.86 2.87
Stand. dev 3.94 2.60 2.97 2.81 0.22 0.16
Coeff. var. 1.34 0.87 0.60 0.61 0.08 0.06
N Samples 145 78,887 145 78,887 145 78,887
Minimum 0.001 0 0.46 0 2.4 2.4
Maximum 0.56 0.32 5.73 4.77 3.38 2.93
103
Mean 0.03 0.01 1.78 1.35 2.72 2.66
Stand. dev 0.07 0.02 0.96 1.02 0.19 0.13
Coeff. var. 2.87 1.64 0.54 0.76 0.07 0.05
N Samples 451 109,463 448 109,463 451 109,463
Minimum 0.001 0 0.46 1.30 1.91 1.94
Maximum 25 24.74 24.34 18.25 4.00 3.75
104
Mean 5.84 6.81 7.74 7.82 2.93 2.99
Stand. dev 6.37 5.51 4.64 3.05 0.35 0.31
Coeff. var. 1.09 0.81 0.60 0.39 0.12 0.10
N Samples 56 12,310 53 12,310 56 12,310
Minimum 0.001 0 0.69 0 2.12 2.1735
Maximum 4.6224 4.14 12.1439 10.05 3.25 3.2476
106
Mean 0.95 1.18 4.56 4.64 2.72 2.78
Stand. dev 1.38 0.97 2.83 1.82 0.19 0.16
Coeff. var. 1.45 0.82 0.62 0.39 0.07 0.06
N Samples 22 28,140 22 28,140 22 28,140
Minimum 0.014 0.01 1.76 1.76 2.27 2.27
Maximum 6.5 6.5 19.3412 17.88 3.58 3.51
300
Mean 2.97 2.99 7.48 7.53 2.99 3.01
Stand. dev 2.15 2.04 4.62 4.32 0.33 0.34
Coeff. var. 0.72 0.68 0.62 0.57 0.11 0.11
Note: *Declustered composites Stand. dev.= Standard deviation; Coeff. var.= Coefficient of variation; SG= specific gravity
which is equivalent to bulk density for these rocks.
Source: AMC based on Fresnillo data, 2023.

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14.8.3 Swath plots

Swath plots were generated to compare the average composite grade with the estimated grade for
each vein. The swath plots were produced for all estimated elements contained in the block model.
The swath plots show sufficiently good agreement of distribution of the grades between the
composites and block model. Figure 14.4, Figure 14.5, and Figure 14.6 show the swath plots for
silver for the largest vein – the Valdecañas vein. The swath plots show good agreement between
declustered drillhole grades and block model grades.

Figure 14.4 South-North swath plot of Valdecañas domain

Source: AMC based on Fresnillo data, 2023.

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Figure 14.5 West-East swath plot of Valdecañas domain

Source: AMC based on Fresnillo data, 2023.

Figure 14.6 Elevation swath plot of Valdecañas domain

Source: AMC based on Fresnillo data, 2023.

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14.9 Economic considerations

Juanicipio Mineral Resources were reported based on AgEq, that was calculated by dividing NSR
value by factor 0.4642. The values of AgEq provided were checked and no error was found. The
NSR and AgEq calculation formulas are:
NSR= Au * 30.7088 + Ag * 0.4642 + Pb * 15.0140 +Zn * 11.3629
Ag Eq= NSR / 0.4642

Multiplication factors were based on the input parameters shown in Table 14.14.

Table 14.14 Input parameters in calculating resource NSR

Item Unit Value
Gold price US$/oz 1,450
Silver price US$/oz 20.00
Lead price US$/lb 0.90
Zinc price US$/lb 1.15
Gold recovery % 75.84
Silver recovery % 87.06
Lead recovery % 86.33
Zinc recovery % 74.48
Source: AMC based on Fresnillo data, 2023.

These estimates are based on a geological interpretation of the six vein structures. The Valdecañas
vein contains almost 80% of the total silver ounces and all of the Measured and Indicated category.
In addition to the cut off of 209 g/t AgEq, for the Measured and Indicated Mineral Resource a 3 m
minimum width is applied. This is seen as a fair approach towards meeting the criteria for reasonable
prospects for eventual economic extraction (RPEEE) for the Measured and Indicated.

For the other veins, all of which are in the Inferred category the domains are interpreted by Fresnillo
geologists and the cut off of 209 g/t AgEq is again used. A visual review shows that at that cut off
the majority of the narrow, (sub 2 m) material is not included. This essentially screens out material
not meeting RPEEE for these veins. The relative contribution of the individual veins is shown in Table
14.15.

Table 14.15 Relative percentage contribution from each vein

Relative percentages
Vein name Vein number
Tonnes Ag content
Valdecañas 100 75.8% 78.7%
Ramal 1 101 8.0% 6.6%
Venadas 103 1.2% 2.2%
Anticipada 104 12.6% 7.8%
Pre-Anticipada 106 1.0% 1.1%
Juanicipio 300 1.5% 3.6%

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14.10 Mineral Resource classification

Mineral Resources were classified by degree of confidence based mainly on sample spacing, spatial
continuity of assays supported by geology and geostatistics.

All veins were classified as Inferred Mineral Resources except for Valdecañas where sufficient data
and knowledge exists such that Measured and Indicated Mineral Resource classifications have been
assigned. The visual check showed the continuity of Indicated material is well supported by the
drilling density and in the upper areas of Valdecañas where underground development sampling
and detailed underground drilling were carried out, the blocks are classified as Measured. The
Measured category represents about 8.5% of the total tonnes or 21.4% of the Measured plus
Indicated Mineral Resources.

For the Indicated Mineral Resources, a limit was generated at an average hole spacing of less than
90 m, and only taking into account drillhole intersections with a vein width of greater than 3 m. All
block estimates in the Indicated category are supported by a minimum of five samples and a
minimum of two holes. The drilling density in the area was also considered.

Any material not classified as Measured and Indicated within the Valdecañas vein volume is Inferred.

For the other veins, the Inferred Mineral Resources are located in areas with drillhole intersections
spaced at average distances ranging from 70 m to 100 m. All estimated blocks in the Inferred
category are supported by a minimum of four samples except for Venadas and Juanicipio, where a
minimum of one sample is used. These two veins contain only a total of 2.7% of the tonnes and
5.8% of the silver metal, and a strong recommendation is to use more than one sample for this
estimation.

Figure 14.7 shows a 3D view of the classification of the Valdecañas vein.

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Figure 14.7 3D view of classification for Valdecañas

Source: AMC based on Fresnillo data, 2023.

14.11 Mineral Resource estimate

Juanicipio Mineral Resources were reported based on AgEq, that was calculated by dividing NSR
value by 0.4642 as explained in Section 14.9.

The Mineral Resources were reported at a 209 g/t AgEq cut-off grade based on mining parameters
and realistic prices and recoveries. The Mineral Resources by vein are shown in Table 14.16.

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Table 14.16 Juanicipio Mineral Resources by vein on 31 May 2023

Quantity Grade Contained metal
Resource
Vein Tonnes Au Ag Pb Zn Au Ag Pb Zn
category
(kt) (g/t) (g/t) (%) (%) (koz) (koz) (kt) (kt)
Measured Valdecañas 1,441 2.19 780 1.42 2.7 102 36,130 20 39
Indicated Valdecañas 15,555 1.83 266 3.03 5.56 916 133,039 472 865
Total Measured & Indicated 16,996 1.86 310 2.89 5.32 1,017 169,169 492 904
Valdecañas 6,526 1.04 228 2.73 6.15 217 47,932 178 401
Ramal 1 2,473 0.89 228 1.44 4.35 71 18,135 36 108
Venadas 371 2.19 507 0.01 0.02 26 6,050 0 0
Inferred
Anticipada 3,923 1.09 169 2.86 8.38 138 21,378 112 329
Pre-Anticipada 301 0.76 311 0.54 1.28 7 3,012 2 4
Juanicipio 457 1.29 679 1.69 3.62 19 9,974 8 17
Total Inferred 14,051 1.06 236 2.41 6.12 480 106,676 339 860
Notes:
• CIM Definition Standards (2014) were used for reporting.
• Mineral Resources are reported inclusive of Mineral Reserves.
• Mineral Resources are reported at or above a cut-off grade of 209 g/t AgEq equivalent to $96.9 NSR. While a 3 m
minimum width is applied and blocks above the cut-off grade are largely contiguous, mineable shapes have not been
defined, which may result in the tonnes of underground Mineral Resources being slightly exaggerated.
• Mineral Resources are reported at values based on metal price assumptions, metallurgical recovery assumptions,
mining costs, processing costs, G&A costs, and variable smelting and transportation costs.
• Metal price assumptions considered for the calculation of metal equivalent values are gold (US$1,450.00/oz), silver
(US$20.00/oz), lead (US$0.90/lb), and zinc (US$1.15/lb).
• Assumed metal recoveries of 75.84%, 87.06%, 86.33% and 74.48% for Au, Ag, Pb, and Zn, respectively, and on
NSR factors of US$30.71/g Au, US$0.46/g Ag, US$15.01/% Pb and US$11.36/% Zn.
• Mineral Resources are reported on a 100% basis. The MAG share is 44%.
• Totals may not compute exactly due to rounding.
• The Mineral Resources were estimated by Fresnillo. John Morton Shannon, P.Geo. (EGBC #32865) has reviewed the
Mineral Resources and takes QP responsibility.
Source: AMC based on Fresnillo data, 2023.

14.12 Grade sensitivity analysis

The Mineral Resources of the Juanicipio project are not very sensitive to the selection of the
reporting cut-off grade. To illustrate this sensitivity, the Measured and Indicated quantities and
grade estimates are presented in Table 14.17 at a range of different AgEq cut-off values.

Table 14.17 Sensitivities to cut off grade for Valdecañas Measured and Indicated
COG AgEq Tonnes Au Ag Pb Zn Metal Au Metal Ag Metal Metal
Class
(g/t) (kt) (g/t) (g/t) (%) (%) (koz) (koz) Pb (kt) Zn (kt)
200 17,156 1.85 307 2.87 5.29 1022 169,551 493 908
209 16,996 1.86 310 2.89 5.32 1,017 169,169 492 904
220 16,708 1.88 314 2.93 5.37 1009 168,483 489 898
Measured
240 16,313 1.90 319 2.98 5.45 998 167,390 486 889
& Indicated
260 15,827 1.93 326 3.04 5.54 984 165,938 481 876
280 15,285 1.96 334 3.10 5.64 965 164,222 474 862
300 14,750 1.99 342 3.17 5.75 945 162,351 468 848
Source: AMC based on Fresnillo data, 2023.

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14.13 Previous Mineral Resource estimates

The most recent Mineral Resource statement reported by MAG is found in the 2017 AMC Technical
Report. That estimate included drilling to 31 December 2016 and the Mineral Resource was dated
21 October 2017.

Changes since the 2017 Mineral Resource estimate include:

• 167,233 m in an additional 179 surface drillholes.
• 28,707 m in an additional 158 underground drillholes.
• 4,737 m of additional channel sampling of underground development on mineralization.
• Reinterpretation and reconfiguration of the domains.
• Incorporation of geological knowledge gained during start-up of operations.
• Classification of Measured in the Valdecañas vein.
• Ongoing depletion and sterilization due to mining.
• Updated AgEq inputs and cut-off grades.

A comparison between the 2017 and 2023 Mineral Resource estimates is shown in Table 14.18.

Table 14.18 Comparison of the 2023 and 2017 Mineral Resources

Quantity Grade Contained metal

Mineral Resources Cut-off
Tonnes Au Ag Pb Zn Au Ag Pb Zn
classification grade
(Mt) (g/t) (g/t) (%) (%) (koz) (Moz) (kt) (kt)
31 May 2023
Measured 1.44 2.19 780 1.42 2.70 102 36 20 39
Indicated 209 g/t 15.56 1.83 266 3.03 5.56 916 133 472 865
AgEq or
Measured & Indicated $96.9 NSR 17.00 1.86 310 2.89 5.32 1,017 169 492 904
Inferred 14.05 1.06 236 2.41 6.12 480 107 339 860
21 October 2017
Measured - - - - - - - - -
Indicated 12.83 2.10 427 2.11 3.68 867 176 271 472
$55.1 NSR
Measured & Indicated 12.83 2.10 427 2.11 3.68 867 176 271 472
Inferred 12.13 1.44 232 2.46 4.68 562 90 298 568
Percent differences
Indicated 21.2 -12.9 -37.7 43.6 51.1 5.7 -24.4 74.2 83.3
Measured & Indicated - 32.5 -11.4 -27.4 37.0 44.6 17.3 -3.9 81.5 91.5
Inferred 15.8 -26.4 1.7 -2.0 30.8 -14.6 18.5 13.8 51.4
Notes for 2023: See footnotes under Table 14.1.
Notes for 2017:
• Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not
have demonstrated economic viability.
• Dr A. Ross, Ph.D., P.Geo. of AMC is the QP under NI 43-101 and takes responsibility for the Mineral Resource estimate.
• Mineral Resources are reported at values based on metal price assumptions, metallurgical recovery assumptions,
mining costs, processing costs, G&A costs, and variable smelting and transportation costs. Mineral Resource are
reported at $55.1 NSR cut-off.
• Metal price assumptions considered for the calculation of metal equivalent values are gold (US$1,300/oz), silver
(US$20/oz), lead (US$0.95/lb), and zinc (US$1.00/lb).
• Assumed metal recoveries of 82%, 95%, 93% and 90% for Au, Ag, Pb, and Zn, respectively, and NSR factors for
each metal of US$30.71/g Au, US$0.61/g Ag, US$19.48/% Pb and US$19.84/% Zn.
• Drilling results up to 31 December 2016.
Source: AMC based on Fresnillo data, 2023, and 2017 AMC Technical Report

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The following observations have been made by the QP when comparing the 2017 Mineral Resource
estimate with the 2023 Mineral Resource estimate:
• The development of the underground operation with dense drilling and underground sampling
now enables the classification of Measured Resources.
• Measured and Indicated tonnes have increased by 32.5%. The silver grades decreased by
27.4% and gold grades decreased by 11.4%, lead and zinc grades have increased by 37.0%
and 44.6%, respectively. This is due to these Mineral Resources including deeper more base
metal rich material and this demonstrates the move from the silver (precious metal) upper
part of the epithermal system to the more base-metal-rich system at depth.
• Inferred tonnes increased by 15.8%. In the Inferred category silver grades have increased by
1.7%, lead grades have decreased by 2.0% and zinc grades have increased by 30.8%. The
gold grades decreased in the Inferred Resource by 26.4%.

14.14 Conclusion and recommendations

A summary of recommendations regarding the Mineral Resources specifically is inserted below:
• Use estimation parameters that ensure a minimum of two samples and two drillholes inform
each block for the Venadas and Juanicipio veins.
• Evaluate and document the effect of the inclusion of channel samples on the grade estimates.
• Carry out reconciliation between production and local estimates.
• Assess method to more clearly demonstrate reasonable prospects for eventual economic
extraction.
• To give greater certainty to the plan, carry out in-fill drilling prior to the delimitation of the
production stopes and, as far as possible, achieve a distance between holes of 35 m to 50 m.
• Ensure that geology is incorporated in any detailed short-term modelling and delineation.
• Continue drilling to depth in the Valdecañas veins.
• Continue drilling from the upper part of the Ramal 1 development to confirm vein continuity.

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15 Mineral Reserve estimates

15.1 Introduction
The Juanicipio Mineral Reserve estimates have been completed to a level consistent with the CIM
Definition Standards for Mineral Resources and Mineral Reserves (2014). As such, the Mineral
Reserves are based on Measured and Indicated Resources and do not include any Inferred
Resources.

The 2023 Mineral Reserve estimation has identified Proven Mineral Reserves of 735 kt at 1.48 g/t
Au, 545 g/t Ag, 1.05% Pb, and 1.99% Zn, and Probable Mineral Reserves of 14,622 kt at 1.59 g/t
Au, 233 g/t Ag, 2.72% Pb, and 4.94% Zn. The Project was approved for construction by Minera
Juanicipio in 2018. Underground production of mineralized development material commenced in the
third quarter of 2020 and commercial production was declared in mid-2023.

Nameplate processing capacity of 4,000 tpd was achieved in Q3 2023, with mine ore production
averaging about 3,700 tpd in the latter part of the year (approximately 1.3 Mtpa). Optimization and
efficiency improvements are to be worked on in 2024.

Up to 31 May 2023, 1,447 kt of mineralized materials at 1.24 g/t Au, 477 g/t Ag, 0.81% Pb, and
1.55% Zn have been processed from Juanicipio development and production operations.

15.2 Mineral Reserve estimate

The estimation of Mineral Resources that form the basis of the Mineral Reserve estimates is
described in Section 14 of this report. Mr Paul Salmenmaki, P.Eng. of AMC, takes responsibility for
the estimation of the Juanicipio Mineral Reserves. The Mineral Reserve estimate is effective as of
31 May 2023 and is shown in Table 15.1 (100% basis) and Table 15.2 (MAG Silver 44% ownership
basis).

Mineral Reserve estimates are based on a variable cut-off value that considers sustaining capital,
mining, processing, and general and administration costs, with a variable trucking cost for each
mining block. The variable component of the operating cost is generally a small fraction of the
overall cost and Mineral Reserves are largely reported above a value of $150/t ore for cut-and-fill
stopes and $122/t ore for longhole stopes. Some marginal material that may lie on the fringes of
other stopes that require development is included at a variable marginal cost that is generally above
$121/t for cut-and-fill and $93/t for longhole stopes. The methodology used to determine the
variable cut-off value is based on NSR and is described below in Section 15.4.

The current Mineral Reserve estimate is 15.4 million tonnes (Mt) of combined Proven and Probable
Mineral Reserves at a grade of 1.58 g/t Au, 248 g/t Ag, 2.64% Pb, and 4.80% Zn.

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Table 15.1 Summary of Minera Juanicipio Mineral Reserves as of 31 May 2023

Quantity Grade Contained metal
Cut-off
Reserve category Tonnes Au Ag Pb Zn Au Ag Pb Zn
grade
(kt) (g/t) (g/t) (%) (%) (koz) (koz) (kt) (kt)
Proven 735 1.48 545 1.05 1.99 35 12,865 8 15
277 g/t
Probable 14,622 1.59 233 2.72 4.94 746 109,357 398 722
AgEq
Proven and Probable 15,356 1.58 248 2.64 4.80 781 122,221 406 736
Notes 2023:
• Totals may not compute exactly due to rounding.
• CIM Definition Standards (2014) were used for reporting.
• All figures rounded to reflect the relative accuracy of the estimates. Mineral Reserves are reported at a cut-off value
based on metal price assumptions, metallurgical recovery assumptions, mining costs, processing costs, G&A costs,
sustaining capital costs, and variable trucking costs.
• NSR values are calculated as:
⎯ NSR = 30.71*Au+0.46*Ag+15.01*Pb+11.36*Zn. Units Au (g/t), Ag (g/t), Pb (%), Zn (%).
⎯ NSR factors are based on metal prices of $1,450/oz Au, $20.00/oz Ag, $0.90/lb Pb, and $1.15/lb Zn, and
estimated recoveries of 75.84% Au, 87.06% Ag, 86.33% Pb, and 74.48% Zn.
⎯ Payable metal assumptions for Au are 95% for lead concentrates, and 65% for zinc concentrate; for Ag: 95%
for lead concentrates, and 70% for zinc concentrate. Lead 95% payable and zinc 85% payable.
⎯ The all-inclusive operating costs for longhole stopes and cut-and-fill stopes are $122/tonne and $150/tonne
respectively (277 g/t AgEq based on weighted average for mining method). The marginal stope cut-off value
is generally above $121/t for cut-and-fill and $93/t for longhole stopes.
⎯ The stope hangingwall (HW) and footwall (FW) dilution (ELOS) was included in the stope optimization process.
The dilution thickness for stope hangingwall and footwall varies by mining method.
⎯ An additional operational floor mucking dilution of 0.5 m for longhole and cut-and-fill stopes is applied to the
Mineral Reserve calculation. An extra endwall dilution for longhole stopes is 0.5 m.
⎯ Mining recovery factors are 95% for longhole stopes and 98% for cut-and-fill stopes. Mining recovery factor
for ore drive development is 99%. Mining recovery factor for both sill pillars and rib pillars is 0%.
⎯ Exchange rate of 19 Mexican Pesos (MXP) to US$1.
⎯ The Mineral Reserves were estimated by Fresnillo. Mr Paul Salmenmaki, P.Eng. (EGBC #40227), a QP,
reviewed and audited the Mineral Reserves and accepts QP responsibility for them.
• Note: Reported on a 100% basis for Minera Juanicipio. MAG Silver owns 44% of Minera Juanicipio, which are presented
separately in Table 15.2.
Source: AMC / Fresnillo, 2023.

Table 15.2 Summary of Minera Juanicipio Mineral Reserves as of 31 May 2023 (44% Mag Silver)
Grade
Category Tonnes (kt)
Au (g/t) Ag (g/t) Pb (%) Zn (%)
Proven 323 1.48 545 1.05 1.99
Probable 6,433 1.59 233 2.72 4.94
Proven and Probable 6,757 1.58 248 2.64 4.80
Note:
• MAG Silver owns 44% of Minera Juanicipio.
• Totals may not compute exactly due to rounding.
Source: AMC / Fresnillo, 2023.

For the property as a whole, total Mineral Reserve tonnes are approximately 90% of Mineral
Resources (Measured plus Indicated) tonnes (Table 15.3). Gold, silver, lead, and zinc Mineral
Reserves are 85%, 80%, 91%, and 90%, respectively, of the corresponding Measured plus
Indicated Mineral Resource grades. Metal conversion of gold, silver, lead, and zinc are 77%, 72%,
83%, and 81%, respectively.

With respect to the difference in tonnes and metal content between (Measured plus Indicated)
Mineral Resources and (Proven and Probable) Mineral Reserves, the QP notes that the Mineral
Resources have not had modifying factors applied that would allow consideration of conversion to
Mineral Reserves.

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Table 15.3 Mineral Resources and Mineral Reserves comparison

Tonnes Au Ag Pb Zn Metal contained

(Mt) (g/t) (g/t) (%) (%) Au (koz) Ag (Moz) Pb (kt) Zn (kt)
Resource MS + ID 17.00 1.86 309.60 2.89 5.32 1,017.49 169.17 491.91 904.18
Reserve Prv + Prb 15.36 1.58 247.56 2.64 4.80 781.07 122.22 405.88 736.43
Conversion percentages 90% 85% 80% 91% 90% 77% 72% 83% 81%
Source: AMC / Fresnillo, 2023.

15.3 Cut-off value

An NSR value field was generated in the Mineral Resource model and used to select the projected
economically viable stopes. The parameters used for the NSR calculation are summarized in Table
15.4.

The cut-off value represents the estimate of sustaining capital costs, operating costs, base
operational costs, and the variable trucking cost. The estimated operating costs are referenced
against actual costs to date and those for other Fresnillo mines in the area using similar mining
methods and with similar production rates. Development cost projections recognize actual
contractor rates. The weighted average marginal cut-off that excludes sustaining capital is
estimated to be $96.9/t, as shown in Table 15.4 ($121/t for cut-and-fill and $93/t for longhole
stopes). The average full cut-off values for cut-and-fill and longhole stopes are $150/t and $122/t
ore, respectively.

The NSR field is calculated based on the following formula:

NSR = 30.71*Au+0.46*Ag+15.01*Pb+11.36*Zn

General administration and royalty values are based on historical costs.

Table 15.4 NSR calculation assumptions

Parameter field Unit Parameter value
Gold price $/oz 1,450
Silver price $/oz 20.0
Lead price $/lb 0.90
Zinc price $/lb 1.15
Gold recovery % 75.84
Silver recovery % 87.06
Lead recovery % 86.33
Zinc recovery % 74.48
Lead concentrate grade % 33.73
Zinc concentrate grade % 48.70
Lead concentrate treatment charge (including freight) $/dmt 263
Zinc concentrate treatment charge (including freight) $/dmt 365
Silver refining cost (lead concentrate) $/oz 1.6
Gold refining cost (lead concentrate) $/oz 17.0
NSR cut-off (marginal) $/t 96.9
NSR cut-off (cut-and-fill) $/t 150
NSR cut-off (longhole stoping) $/t 122
Note: A variable cut-off value that reflects different trucking and loading costs by block is used in the model. The averages
for both longhole and cut-and-fill stopes are presented in Table 15.2.
Source: Fresnillo, 2023.

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15.4 Dilution and recovery estimates

There are two main sources of dilution in narrow vein stopes:
1 Planned dilution. This is the dilution required to achieve the designed stope shape. Designed
dilution can result from waste included:
⎯ To achieve minimum mining width.
⎯ To achieve a viable mining shape.
2 Unplanned dilution. This is dilution that is outside of the designed stope shape. Depending on
the mining method, it may include both overbreak, floor dilution, and endwall dilution.

Overbreak is typically a result of blasting practices and geotechnical conditions. Floor dilution is the
result of mucking waste rock from the rock fill floor. Endwall dilution is the result of blasting ore
against the waste backfill.

Estimated hangingwall and footwall overbreak dilution of the order of 1.0 m and 0.45 m,
respectively, is currently assumed for both longhole stopes (LHOS) and cut-and-fill stoping (CAF).

Additional factors for mucking and endwall dilution (0.5 m in both cases for each of LHOS and
CAF stoping), and mining recovery (98% for CAF and 95% for LHOS) are also applied in the
Enhanced Production Scheduler (EPS).

Sill pillars and rib pillars are designed for the current layout of the deposit. The recovery of both sill
pillars and rib pillars is assumed to be 0%.

Each stope is re-assessed for value after dilution and mining recovery factors are applied and after
factors such as access development cost are evaluated, and any that fall below the cut-off value
are removed from the estimate.

15.5 Conclusions and recommendations

The QP considers that the Reserves for Minera Juanicipio as stated herein are consistent with
industry standards and are suitable for public reporting purposes.

The QP makes the following observations and recommendations:

• The QP considers the estimation process for cut-off grade (COG) that uses a variable trucking
cost component to be relatively complex, without making a material difference. Consideration
of streamlining this process is recommended.
• Mining operations are ramping up to full production. It is recommended that full
acknowledgement be given to actual costs for steady-state operations going forward.
• Recognizing that the mine is now milling ore through the Juanicipio plant, it is recommended
that process recoveries specific to plant steady-state operation are well recorded and are used
in future Ore Reserve estimation.

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16 Mining methods
The primary mining method proposed in the 2018 study work was LHOS with waste rock fill. The
same method has been adopted for most of the stoping to date and for the Mineral Reserve estimate
but, in some areas where the ore is thin or ground conditions are deemed ‘Poor’, the CAF method
has been selected for ore extraction; these areas were flagged individually in the model. The steady
state production throughput from the mine is planned to be approximately 4,000 tonnes per day
(tpd).

The main mine access is via twin declines to the top of the mineralization. The access route then
splits into three internal ramp systems on 20 m sub-level spacing for longhole mining, with central
accesses to the vein as well as footwall drives to the extents of the mineralization to allow placement
of rock fill. Stopes 20 m high (floor to floor) are mined from the extents back to the central access
(retreat) with rock fill placed within about 20 m of the retreating face.

For sill cuts where stoping immediately below will subsequently be undertaken, a cemented layer
has been poured.

In the lower levels of the mine where vein widths up to a maximum thickness of approximately
30 m are realized, the vein is planned to be mined in two longitudinal passes, each with a maximum
width of 15 m. The footwall pass will be taken first over the full strike length, followed by the
hangingwall pass. Cemented rock fill will be used in the footwall pass to minimize fill dilution into
the hangingwall side of the stope.

Long-section schematics of the two mining methods are shown in Figure 16.1 and Figure 16.2.

Figure 16.1 LHOS with rock fill general layout

Source: AMC, 2024.

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Figure 16.2 CAF general layout

Source: AMC, 2024.

16.1 Geotechnical considerations

AMC undertook a review of geotechnical work completed for Juanicipio underground mining. The QP
adopted the findings of the review for the Technical Report. This section summarizes the key aspects
of geotechnical assessment and geotechnical practices for the underground mining. The following
information was provided to support AMC’s findings and conclusions:
• The 2018 study work geotechnical assessment for Juanicipio by AMC.
• Field observations during AMC’s site visit in February 2024.
• Updated geotechnical model provided by site.
• Geotechnical guidelines and practices for Juanicipio underground mining operations provided
by site.

16.1.1 Geotechnical domains

The Juanicipio orebody is situated in a series of volcanic and sedimentary rocks. Figure 16.3 shows
a view of the 3D lithology model developed for Juanicipio underground mining, with lithology code
definition being provided in Table 16.1.

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Figure 16.3 Lithology model

Source: Juanicipio, 2024.

Table 16.1 Lithology code definitions and geotechnical domains

Geotechnical domains Lithological unit Code
Rhyolite Lithic Tuff RLF
Rhyolite Tuff Agglomerate RTAV
Tertiary volcanics
Rhyolite Tuff Pumice RTP
Conglomerate CG
Shale LU
Sandstone AR
Cretaceous sediments
Sandstone / Shale LUAR
Green Lava RVL
Stockwork STWK
Vein 1 V1
Ore veins Vein 2 V2
Isolated veins VA
Breccia BX
Fault Fault F

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The rock mass at Juanicipio was divided into four geotechnical domains based on lithology domains:
• Tertiary volcanics overlie the host sediments across most of the mine site. The volcanics
vary in thickness from 0 m to approximately 350 m, with an average thickness of 150 m to
200 m. This domain groups a variety of rock types as shown in Figure 16.4. Rock quality within
this domain varies from ‘Vey Poor’ to ‘Good’ (in terms of RMR values), which are associated
with the degree of weathering and alteration.
• Cretaceous sediments are overlain by tertiary volcanics across most of the mine site. This
domain is the host rock of the mineralization, comprising predominantly sandstone, shale,
interbedded shale – sandstone, and green lava. Similar to the volcanics, rock quality within
this domain is related to the degree of alteration and intact rock strength. There appears to
be a transition in rock quality about 300 m below ground surface (bgs); above this horizon
the shale layers are generally green and black, with heavy chloride alteration; below this
horizon the shale layers are generally black, with no or slight alteration.
• Ore veins are the predominant mineralization-bearing structure. Juanicipio comprises two
major vein systems, namely the Valdecañas vein system and the Juanicipio vein system. Both
systems strike east-southeast with an average dip of 58° to the south-west. the Valdecañas
vein is the principal vein structure and consists of three zones, with variable thicknesses (2 m
to 30 m).
• Faults - There are three major steep-dipping faults interpreted based on data from core
logging, with two intersecting the Valdecañas vein (Figure 16.4). These faults generally consist
of ‘Poor’ to ‘Fair’ rock. Given their spatial orientations, they are not expected to have a
significant impact on large-scale stability but affect ground conditions locally.

Figure 16.4 Interpreted faults intersecting the Valdecañas vein

Source: Juanicipio, 2018.

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16.1.2 Rock mass classification

Both Bieniawski’s RMR89 (Rock Mass Rating) and Barton’s Q system have been used for the rock
mass classification for Juanicipio. In development and stoping operation to date, encountered
ground conditions have been largely aligned with those projected from the 2018 study work
geotechnical assessment. In terms of RMR 89, rock qualities in the volcanic domain are varying
considerably from ‘Very Poor’ to ‘Good’, which is largely associated from weathering and alteration.
The fault zones are classified as being ‘Poor’ to ‘Fair’. Rock qualities of the sedimentary and vein
domains are typically ‘Fair’ to ‘Good’, with some ‘Very Poor’ to ‘Poor’ ground being encountered in
the vicinity of faults or shale.

16.1.3 Intact rock testing

A number of Uniaxial Compressive Strength (UCS), Brazilian Tensile Strength (BTS), and Triaxial
Compressive Strength (TCS) tests have been undertaken on selected core samples of typical rock
units. Table 16.2 provides a summary of laboratory test results.

Table 16.2 Summary of intact rock elastic and strength properties of mafic tuff
UCS (MPa) E-Young’s modulus (GPa) Poisson’s ratio BTS (MPa)
Intact rock
Average Std. dev. Average Std. dev. Average Std. dev. Average Std. dev.
AR 46.3 41.0 23.9 2.3 0.17 0.08 - -
LUAR 63.0 56.9 27.2 11.7 0.14 0.06 10.8 3.2
CG 29.8 - 8.3 - 0.12 - 1.9 0.4
RTAV 9.0 5.9 21.4 1.3 0.19 0.07 - -
RTP 49.8 43.2 20.3 3.1 0.15 0.07 - -
RVL 32.7 24.1 24.3 1.6 0.18 0.07 5.3 2.3
V1/V2 178.1 - 89.3 - 0.29 - - -

Based on the test result from TCS, UCS, and BTS, the Hoek-Brown (H-B) strength parameters for
intact LUAR are derived and presented in Table 16.3.

Table 16.3 H-B strength parameters for intact LUAR

No. of tests
Domain σci (MPa) mi
UCS TCS BTS
MT 17 6 13 63 22.8214
Note: σci is the intact rock strength.

16.1.4 Longhole open stope stability

Prior to the commencement of underground operations, stope stabilities were projected using the
empirical modified stability graph method (after Potvin, 1988; Nickson, 1992; Hadjigeorgiou et al.,
1995) for various stoping scenarios:
• Dip of hangingwall ranges from 45° to 65°.
• Width of vein varies from 2 to 30 m, with an average of 8 m.
• Spacing of sublevels is 20 m.
• Stope strike length is 20 m.

Stope dilution was estimated using the equivalent linear overbreak slough (ELOS) method (after
Clark and Pakalnis, 1997) for the proposed stoping dimensions.

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The assessment results indicated that:

• Stope wall stability was influenced by rock mass conditions and vein dips. For typically ‘Fair’
rock mass conditions, stope hangingwalls at dips of 65° would be stable without support for
the proposed stope dimensions (20 m long by 20 m high), while stope hangingwalls at dips of
45° to 55° were projected to be marginally stable without support. The ELOS was anticipated
to range from 0.5 m to 0.8 m for dipping angles decreasing from 65° to 45°.
• Cable bolt support for wider stope spans (more than 6 m) and / or reduced effective strike
lengths (thus to reduce the hydraulic radii of stope walls) was recognized as potentially being
required to improve stope stability and control the overbreak and level of dilution for poorer
ground conditions.

In stoping operations to date, stope design criteria have been adjusted to account for difference in
ground conditions, including adverse fault structures and unfavourable bedding planes of shale
encountered. Figure 16.5 presents the current geotechnical guideline of stoping and backfilling for
different rock mass conditions.

Figure 16.5 Geomechanical guideline for stoping and backfilling

Source: Juanicipio, 2024.

Six metre long single-strand Ø16 mm cable bolts on a 3 m (longitudinal) by 3.5 m (radial) staggered
pattern have been installed in the back of stopes as required; 8 m long cable bolts with the same
space pattern have been installed at the intersections of stope backs and access drives.

Cavity Monitoring System (CMS) surveying has indicated that footwall ELOS is typically less than
0.4 m, and the hangingwall ELOS is typically within the range of 0.5 m to 1.2 m. Excessive
hangingwall overbreak up to 3 m-3.5 m has been encountered in Poor rock mass conditions or due
to the adverse bedding planes of shale.

Root causes of overbreak and underbreak should be investigated during the stope reconciliation
process. Most common factors include fault or shear zones, weak rock, adverse stope geometry,
drilling and blasting, time that the stope is open, cable bolt performance, and all aspects of QAQC.
To minimize the hangingwall overbreak, drilling and blasting design, particularly for Poor ground,
should be optimized, and a robust QAQC procedure for drilling and blasting should be implemented
to improve drilling and blasting practices.

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16.1.5 Ground support requirements

16.1.5.1 Lateral development
AMC recommended that support classes be implemented at Juanicipio in accordance with rock mass
conditions and the underground development be supported based on those conditions and the
dimensions of the excavations. AMC proposed a geotechnical classification based on RMR89. This
classification is used to describe ground support classes (SC) on rock mass classification scheme
RMR89. The ground support design was adjusted subsequently by site based on site specific
experiences of ground support and rock mass conditions. Table 16.4 presents the current primary
ground support requirement based on RMR89.

Table 16.4 Ground support requirements for primary support

Support class (SC) Primary support Notes
2.4 m long fully grouted rebar (Ø16 mm) on a 1.2 m x 1.2 m
SC 1: RMR > 60 spacing, extending to 1 m (2 m for development in ore vein)
Good to Very Good above sill.
50 mm thick shotcrete (no shotcrete required in vein zone)
2.4 m long fully grouted rebar (Ø16 mm) on a 1.2 m x 1.2 m
SC 2: RMR 41 – 60
spacing, extending to 2 m above sill.
Fair
50 mm thick shotcrete
2.4 m long fully grouted rebar (Ø16 mm) on a 1.2 m x 1.2 m Need for light frame (reinforced
SC 3: RMR 21 – 40
spacing, extending to 2 m above sill. rib), rigid frame (steel sets),
Poor 100 mm thick shotcrete installed in 2 layers, full coverage and cable bolt support will be
2.4 m long fully grouted rebar (Ø16 mm) on a 1.2 m x 1.2 m assessed by site geotechnical
SC 4: RMR 0 – 20 personnel based on actual
spacing, extending to 1 m above sill.
Very Poor ground conditions.
100 mm thick shotcrete installed in 2 layers, full coverage.

Secondary support, such as cable bolting, is designed for large spans in intersections, stope backs,
and chambers if the primary support is inadequate. Cable bolt design (lengths and bolting pattern)
may vary due to local conditions (excavation dimensions, structures orientations and rock mass
qualities) and is assessed on a case-by-case basis.

Spiling is also used at Juanicipio for drifting through Poor ground to prevent ground from unravelling
causing overbreak or large instabilities, and limit overbreak due to adverse structures. As required,
12 m long Ø20 mm cement grouted steel bars have been used as spiles and installed above
excavation profiles on a 0.5 m spacing prior to development.

16.1.5.2 Vertical development

The QP understands that several raises have had sections collapse and have been abandoned,
largely because of highly weathered / altered near surface soil and rock mass.

Before assessing the stability of future raises and the required support, specific geotechnical drilling
should be undertaken along the centreline of the selected sites and a thorough analysis of rock
mass and discontinuity properties should be made. Site specific investigations should consist of:
• Oriented core drilling / geotechnical logging using both Q and RMR system with full ATV / OTV
surveys.
• Packer testing.
• Core sample testing for UCS, triaxial, indirect tensile strength, and direct shear test of typical
joints.
• Detailed raise stability assessments, including kinematic analysis for face and sidewall wedge
formation, together with an analysis of raise performance.

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For geotechnical drilling and core logging, the following recommendations are made:
• During drilling, any weak zones and areas containing water-make should be recorded in the
drilling logs.
• AMC recommends logging interval monitoring is practiced as below:
⎯ Geotechnical and geological parameters are collected per drill run. Raisebore stability
assessments are then made using rolling average techniques to average rock quality
over drill run increments to determine the lower bound raisebore quality QR for more
accurate raisebore assessment.
⎯ Distinct lithology or lithological / structure contacts such as faults or shear zones are
recorded.
⎯ Zones of distinct quality such as a highly fractured intervals (broken zone, rubble zone),
alteration, or soft infilling are recorded.
⎯ Core should be examined carefully to determine if there are rock units susceptible to
deterioration.

Ground improvement is likely to be required for raise stability in the near surface soil and rock
mass, which is highly weathered/altered. Ground improvement options include:
• Pre-reinforcement of raise area by using rings of drilled piles in near surface soil and rock
mass. Box-cut and / or pre-sink methods should also be considered for near surface ground
improvement.
• Pre-pressure grouting rings of drillholes for sections of ‘Poor’ to ‘Very Poor’ ground along the
entire raise length.

16.2 Stope design basis

16.2.1 Mineral Resource
The Juanicipio Mineral Resource estimate is discussed in Section 14 of this report and is the basis
for the 2023 Mineral Reserve estimate. All veins are classified as having Inferred material, with the
Valdecañas vein carrying the Indicated and Measured material from which the Mineral Reserves
Proven and Probable classifications are, respectively, derived.

16.2.2 Stope optimization

An estimation of potential economically viable mineralization was generated using the stope
optimizing software Mineable Shape Optimizer (MSO) on the Mineral Resource block model. The
estimation is largely based on the application of LHOS as the predominant mining method, with
waste rock fill and all supporting development. Some cut-and-fill stopes have been designed in
areas of Poor ground conditions. Mined out development and stopes have been flagged in the
Mineral Resource model and excluded from the Mineral Reserves estimation process.

As described in Section 15, mining recovery factors of 98% for CAF and 95% for LHOS stopes are
assumed. The sill pillar and rib pillars have been designed for the current development layout for
exploitation of the deposit. The recoveries of the sill pillar and the rib pillar are both assumed to be
0%.

Estimated hangingwall and footwall overbreak dilution ranges of the order of 1.0 m and 0.4 m,
respectively, have been assumed for both LHOS and CAF. Additional factors for mucking dilution
(0.5 m for each of CAF and LHOS stoping), and endwall dilution (0.5 m for LHOS stoping) have also
been applied in the EPS schedule.

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The MSO parameters used for the generation of stope wireframes are summarized in Table 16.5.
Beyond the generation of the MSO shapes, further assessment of economic viability for any stopes
of a marginal nature included recognition and costing of access development.

Table 16.5 MSO parameters used to estimate potential economically viable mineralization
Parameter field Parameter value
NSR cut-off value Variable based on the trucking distance
NSR marginal cut-off value (average) $96.9/t*
Density, default (waste) 2.6 t/m3
Default dip (seed) 124°
Default strike azimuth (seed) 0°
Sub-stoping Yes
Stope waste max fraction 1
Stope creation interval 20 m (along strike)
Stope height for longhole open stope 20 m
Stope height for cut-and-fill stope 5m
Model evaluation plane XZ
Stope width Minimum: 2 m, Maximum: 60
Minimum pillar between stopes 7m
Hangingwall dilution thickness for ore drive 0.8 m
Footwall dilution thickness for ore drive 0.4 m
Hangingwall dilution thickness for cut-and-fill stope 1.0 m
Footwall dilution thickness for cut-and-fill stope 0.5 m
Hangingwall dilution thickness for longhole open stope 1.0 m
Footwall dilution thickness for longhole open stope 0.4 m
Waste pillar width Minimum: 7 m
Stope dip Minimum: 40°, Maximum: 140°
Strike angle tolerance Maximum: 40°, Maximum Change: 20°
Side-length ratio Maximum: 2.25
Stope orientation plane XZ
Note: *$121/t for cut-and-fill stopes, $93/t for longhole stopes. As described in Section 15.2.
Source: Fresnillo, 2023.

16.3 Production projection and production to date

Due to the number of independent zones (three) and the three separate accesses, as well as footwall
drives that interconnect zones, AMC considered a production rate of approximately 4,000 tpd to be
reasonably achievable. This production rate is well supported by the EPS schedule and associated
animation, and by consideration of a viable number of working places, supporting manpower and
equipment, ore and flill transport requirements, and ventilation.

In recent operations towards the end of 2023, monthly production around 3,800 tpd has been
achieved, with the mine considered to be still in ramp-up mode.

16.4 Ore and waste handling

A number of trade-off studies were previously undertaken to identify the optimum ore and waste
handling systems both for underground and surface transportation. One of the studies considered
moving the processing plant from its initially envisaged site near the mine portal to an alternate
site closer to the main highway. This study identified that conveying the ore directly to the relocated

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process plant from underground was economically and operationally superior to other
arrangements. The conveyor option was subsequently adopted as the primary LOM method for
transporting ore to the process plant. Until the conveyor is installed and fully operational, ore is
continuing to be trucked to surface.

The earlier trade-off studies also assumed that all waste would be trucked to surface or placed into
stopes as available. The potential for a waste fill deficit at some point in the mine life was also
recognized and, in that regard, it has been assumed that the additional waste needed would be
sourced from a small pit near the waste stockpile. All waste required from surface would be
transferred via a waste pass for loading and distribution to stopes as required. As exploitation of
the Mineral Resource and Mineral Reserves is expanded the requirements will be reassessed.

Based on the selected depth of the start of the underground conveyor (1940 RL), further analysis
was undertaken to assess ore-handling options below 1940 RL. Several options were considered
including trucking, vertical conveying and hoisting via a winze. Of these options, trucking was
determined to offer the most favourable economics and it has, therefore, been adopted for Juanicipio
operations. However, the economic benefit differences were small between the three systems
considered and well within the study accuracy range, and there were seen to be some potential
operational benefits to hoisting or vertical conveying over trucking. Further work was undertaken
from a long-term point of view to consider a potentially expanded resource at depth; based on this
work, either a winze or vertical conveyor was seen as an option that could merit further
consideration in the future.

16.5 Access development

The mine access is via twin declines from surface to the top of the mineralization, and a third
conveyor decline with a portal located near the process plant in the Linares valley. The twin main
declines access the orebody before splitting into three internal ramp systems that access the ore
on a 20 m sub-level spacing, with central accesses to the vein as well as footwall drives to the
extents of the mineralization to allow placement of rock fill. Stopes 20 m high (floor to floor) are
designed to be mined from the extents back to the central access (retreat) with rock fill placed
within 20 m of the retreating face.

The three internal ramps used to access the ore are shown in a composite plan view in Figure 16.6
(see also Figure 16.8). Waste accesses are developed in the footwall to provide access for backfill
directly off the main ramp systems east and west along strike.

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Figure 16.6 Access development composite plan layout (over three production levels)

Note: Projection and not to scale.

Source: Fresnillo, 2023.

Table 16.6 provides a summary of the access and other development metres projected to be
required over the envisaged LOM.

Table 16.6 LOM development metres

Development (m)
Access declines 13,262
Access level development 32,593
Footwall drives 10,667
Other waste development 1,514
Infrastructure development 14,355
Ore drive development 67,353
Total lateral development 139,745
Total vertical development 11,447

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16.6 Mine design

The upper extent of the orebody is accessed by three declines, with the mineralization divided into
six stoping sections (three zones comprising east and west stopes) with each zone accessed by a
decline. Access crosscuts from the declines to the ore are positioned approximately in the centre of
each pair of stoping sections to enable stope extraction to progress on retreat from the end of each
stoping section to the central access. Each stoping section has a maximum strike length of the order
of 250 m.

At the base of each sub-zone, sill pillars vertically separate the stoping sections into independently
accessed stoping areas, providing flexibility in production scheduling and simplifying ventilation,
stope mucking, and truck loading arrangements.

A composite plan view of the mine design showing the mine portals is provided in Figure 16.7 and
a long-section view of the mine design is shown in Figure 16.8.

Figure 16.7 Composite plan view of the underground mine design

Source: Fresnillo, 2022.

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Figure 16.8 Long-section view of the underground mine design

Note: Not to scale.

Source: AMC, 2024.

When not being trucked to surface, ore will be trucked to the ore chute feeding the crusher that is
located at 1950 RL. Crushed ore is then fed via a feeder conveyor to the main underground to
surface conveyor. The planned underground conveyor is split into two legs, the initial leg is 1,577 m
in length and the second leg is 2,651 m in length. The conveyor has been designed and constructed
to deliver material to the mill stockpile located approximately 400 m from the mill on surface. For
underground operations to date, all ore has been trucked to surface. The conveyor is planned to be
purchased and installed in 2024 to 2025.

16.6.1 Typical development layout

A typical Level layout consists of a Level access, ore drive, waste footwall drive, sump, electrical
bay, orepass drive, remuck and truck loading bay, and a ventilation drive - see Figure 16.9. Finished
development size parameters used for design are as follows:
• Ramp development ends - 5 m by 5 m.
• Conveyor decline - 5 m by 5 m.
• Ramp / conveyor remuck spacing - 150 m.
• Overcuts and undercuts - 4.5 m high and from 4.5 m to 15 m in width.
• Ramp gradients - 12%.
• Level development has been assumed to be at a flat gradient for design purposes but, for the
Level, plans are acknowledged to have a minor gradient of 1:40 up.
• Ramp turning radius - 20 m.
• Diameter of ventilation raisebores - 2.4 m.

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In general, a non-arched profile has been adopted for development throughout the mine (Figure
16.9). Ore drives are understood as currently being mined with a shanty-back arrangement to
reduce dilution.

Figure 16.9 Typical access development design (plan and oblique view)

Note: Not to scale.

Source: Fresnillo, 2022.

16.7 Ventilation
The ventilation system has been designed to meet the requirements of Mexican Regulations and
industry leading practices. The ventilation system for Juanicipio is designed as a ‘pull’ system, with
primary exhaust fans located on surface at the top of each primary exhaust raise.

16.7.1 Design criteria

Regulations included in the Mexico Regulations for Safety and Hygiene in Mines (NORMA Oficial
Mexicana NOM-023-STPS-2012) that are relevant to the design of the ventilation system are
summarized as follows:
• Each horsepower of diesel combustion motor driven machinery located in the interior of the
mine must be supplied with a minimum of 2.13 m3 of air per minute (equivalent to
approximately 0.05 m3/s/kW).
• In any areas where diesel engines operate, a minimum air velocity of 15.24 metres/minute
(approximately 0.25 m/s) must be maintained.
• A volume of air equal to 1.5 m3 per minute per worker must be supplied to the interior of the
mine.

The criteria for exposure to elevated temperatures in the workplace are outlined in NORMA Oficial
Mexicana NOM-015-STPS-2001, Condiciones térmicas elevadas o abatidas - Condiciones de
seguridad e hygiene. Dependent upon work type and ambient measured temperature, a work / rest
regime may be applied for higher thermal exposures. Above 32.2°C wet bulb, only momentary
exposure is permitted.

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In addition to ensuring that the ventilation design meets the regulatory requirements noted above,
consideration has also been given to best practice employed at comparable mines. As such, the
design criteria shown in Table 16.7 were adopted for the design of the ventilation system for the
Juanicipio mine.

Table 16.7 Ventilation velocity criteria

Minimum Maximum
Airway Criteria Criteria
velocity (m/s) velocity (m/s)
5 m/s is the velocity at which
Minimum airflow for areas visible dust can become entrained
where personnel are present. in air resulting in reduced
Ramps / travel-
0.5 to ensure contaminant / dust 6 visibility and dusty working areas.
ways
removal and maintenance of Use of water trucks in travelways
thermal conditions. will mitigate dust control issues
with higher velocity.
Dust minimization, personal
Working area 0.5 4
comfort.
Minimum airflow for areas
Relative air velocity between
where personnel are present
Conveyor airflow and conveyor belt speed
0.5 to ensure contaminant / dust 6
decline to limit liberation of dust from
removal and maintenance of
conveyed material.
thermal conditions.
Air velocities between 7 m/s
Economic considerations - in
Return air raise and 13 m/s should be avoided
No minimum 20 certain conditions velocity can be
(RAR) in up-cast RARs to prevent
exceeded.
formation of water blankets.
Avoid creation of additional
Emergency Minimum velocity for areas hazards in the form of dust and
0.5 10
egress where personnel are present. decreased mobility in any area
used for emergency egress.
Minimum velocity for dust and
Drawpoint 0.5 4 Limit excess liberation of dust
blast fume removal.
Return air drive 0.5 12 Maximum for personnel travel.

16.7.2 Airflow determination

Two approaches have been used to estimate the total quantity of air required to ventilate the mine:
• An assessment of the operating diesel fleet required for the maximum anticipated production
and development activities, and the airflow required to meet statutory requirements.
• An assessment of airflow required for personnel based upon Mexico Regulation 8.4.4 (a) (1).

In addition, an airflow allowance is also required for underground infrastructure and leakage, and
for balancing inefficiencies.

To ensure that the local regulatory standards are met, at least 356 m 3/sec (sum total of
development, production, truck haulage and personnel values) should pass through the active mine
workings. Adding the infrastructure allowance increases the requirement to 478 m 3/sec. All mines
experience leakage and balancing inefficiencies in the distribution of air through the mine workings.
It is therefore common to add a contingency to the total primary airflow of between 15% and 30%
above the airflow calculation. AMC factored the calculated air quantity by 15%, bringing the total
airflow allowance to 550 m3/s, as shown in Table 16.8.

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Table 16.8 Total airflow allowance

Area Airflow (m3/s)
Underground infrastructure 122
Development 172
Production 99
Haulage 80
Personnel 5
Leakages and losses 72
Total 550

A recent review of the diesel equipment operating underground as well as the number of personnel
was undertaken by the mine operator and the results supplied to AMC. It was demonstrated that
the diesel equipment, appropriately factored for utilization, required 490 m³/s of airflow. A further
10 m³/s was allocated for the number of personnel working underground for a total of 500 m³/s.

16.7.3 Ventilation modelling

AMC conducted ventilation modelling (Ventsim™) for the Juanicipio project for three primary
purposes:
• To validate the operability of the ventilation circuit to ensure airflow can be provided to all the
required areas.
• To ensure compliance with design criteria.
• For determination of peak permanent primary fan duties.

Peak primary fan duties occur with maximum concurrent development and production activity in
the lowest levels of each ventilation district. Airway dimensions and friction factors used in the
modelling are summarized in Table 16.9.

Table 16.9 Airway dimensions and friction factors

Friction factor
Excavation method Profile Height (m) Width (m)
(kg/m3)
Main decline / production ramp
Drill and blast Arched 5.4 5.4 0.013
and other lateral development
Conveyor decline Drill and blast Arched 7.0 5.0 0.013
Level to level exhaust raises Raisebore Round 3.0 (diameter) n/a 0.005
Return air raises to surface Raisebore Round 4.5 (diameter) n/a 0.003
Fresh air raises to surface Raisebore Round 3.0 (diameter) n/a 0.005

16.7.4 Ventilation control and distribution

The distribution of the required airflow from the primary intakes to the working areas is controlled
by a combination of regulators and fans.

The crusher area will be ventilated via fresh air sourced from the ramps. The dust generated at the
tipple and crusher are planned to be ducted to an exhaust raise and through to the surface. Auxiliary
fans are to be used to deliver fresh air to the production levels. Drop-board regulators in the return
air raises on each level access will ensure that the required amount of air is supplied to the auxiliary
fans.

To ensure the primary airflow is available in sufficient quantities to the active working places,
diligent airflow monitoring and control is required as development and stoping progress.

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16.7.5 Ventilation updated design

The most recent site Ventsim model was assessed. The model showing the current primary airflows
is shown in Figure 16.10. The QP notes that differences between total intake and total exhaust flows
are due to differences in density between the fresh air and return air.

Figure 16.10 Juanicipio ventilation – current

Source: Fresnillo, 2024.

16.7.6 Primary fan duties

AMC carried out a computer simulation of the initially proposed ventilation circuit to determine the
duty of the main ventilation fans. Including the currently installed fans, when the mine is fully
developed with a total airflow of 550 m³/s, the fans were projected to operate at a pressure of up
to 4.4 kPa and a power draw of up to 1,200 kW each.

A recent review of information received from the mine operator show that there are identical exhaust
fans located on the two exhaust shafts. Each fan has a design duty operating point of 267 m³/s at
a pressure of 2,971 Pa. The motors are sized at 1,035 kW and are presently operated at 90%
rotational speed for Tiro (shaft) #1 fan and 80% for Tiro #2 fan.

16.7.7 Auxiliary ventilation

Auxiliary fans are required during development of ramps and ore drives.

The initially designed maximum length of a dead-end heading in the ramp is based on a 60 m
vertical distance between raise extensions connecting to the ramp. At a ramp grade of
approximately 12% and allowing for continuation of development beyond the raise extension access
during the raise development, the maximum dead-end heading length and, therefore, duct length

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is calculated as 550 m for the design parameters. Note that two ducts have been envisaged for the
longer headings whereby one duct is extended to the face and the second duct ends at the truck
loading bay.

The auxiliary fans have been planned to be moved to a new location after every 550 m of ramp
development to maintain the maximum duct length.

Ramp dimensions of 5.4 m by 5.4 m will accommodate two 1,065 mm ventilation ducts in a parallel
arrangement along with the scoop and truck. For the ramp development, one duct provides the
required airflow for the ramp development face with the remaining airflow distributed to the truck
loading area through the second duct.

For ore drive development and production activities, the largest piece of diesel equipment operating
in a heading is a 310 kW, 17 t loader, which requires 14.8 m 3/s of air to be delivered by a single
ventilation fan with 1,065 mm ventilation duct.

It is noted from the fan inventory provided by the site that a variety of auxiliary fans have been
purchased of varying volumetric capacities and pressures. Fans matched with ducting are
appropriately selected and installed by site personnel to ensure regulatory criteria are met.

16.7.8 Conveyor decline ventilation

During steady state operations, the conveyor decline may act as a primary means of access for
personnel travelling in light vehicles, primarily at shift change. The conveyor decline is planned to
exhaust both to the conveyor portal and to the crusher exhaust raise. A fan installed in a planned
bypass near the portal entrance will affect the exhaust through the conveyor decline.

16.7.9 Conveyor risk of fire

An underground conveyor belt carries the risk of a conveyor belt fire. AMC believes that, with the
appropriate measures in place, the risk of a conveyor fire can be safely managed, as has been, and
is being done at many mining operations.

To manage the risk, the design included allowance for the following:
• Fire retardant belt.
• Fire retardant grease and lubricants.
• Ventilation controls to isolate the air in the conveyor decline in the event of a fire.
• Regular inspection of the conveyor decline during operation in order to detect the development
of faulty rollers, belt misalignment, or excessive dust build-up.

The conveyor decline will be established as an exhaust airway such that the air will not to be reused
in the mine production areas. In the unlikely event of a conveyor belt fire, smoke would not be
introduced into the primary ventilation circuit. Additionally, fire-rated airlock doors are planned to
be installed in the connecting development from the conveyor decline to the main ramp which may
be activated in the event of a fire to ensure isolation of the conveyor.

16.8 Rock fill

The majority of backfill for Juanicipio has been planned to be supplied by waste rock from
development. Since the start of operations, all waste has been tipped directly into stopes or trucked
to a stockpile on surface near the twin ramp portal. As and when stope production voids are
available, waste rock from concurrent underground operations or drawn from surface stockpiles is
used for backfilling requirements.

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There will be a deficit in the amount of waste required for backfilling estimated to be 4.2 Mt. It is
assumed that additional waste will be mined from a small surface pit and dropped down a waste
pass for distribution to the stopes.

AMC recommends a waste materials balance study to further assess options for the backfill deficit.

All rockfill other than for sills has been projected to be uncemented to provide working platforms
for equipment and to provide stability to the mining operations via void filling. At the start of each
stoping block, a cemented beam has been poured. However, the recovery of sill pillars and rib pillars
is currently assumed to be 0% until further studies are undertaken.

AMC recommends a backfill study to further assess options for sill pillar recovery.

16.9 Drill and blast design, and explosives management and logistics
16.9.1 Blasting agents (ANFO)
Ammonium nitrate fuel oil (ANFO) is generally the lowest cost explosive available to a mining
operation and it is readily available in Mexico. However, ANFO should only be used in dry ground as
it will readily dissolve in water and can potentially create problems with elevated nitrate levels in
mine water. Also, ANFO should never be used in stopes that have very high concentrations of
sulphide ore. ANFO is known to react exothermically with sulphides, and in extreme situations, the
reactions have culminated in spontaneous detonations.

ANFO is the primary explosive product used for both lateral development and stope blasting at
Juanicipio.

16.9.2 Boosters
Boosters are high-strength explosive products that are used in conjunction with detonators to
initiate the detonation of ANFO, booster sensitive packaged or bulk emulsion explosives. Boosters
are commonly used explosive products and are readily available from explosives suppliers.

16.9.3 Detonators
Non-electric detonators are the most common detonators used in mining and they are utilized for
development blasting. Non-electric detonators are reliable, simple to use, and they are less
expensive than alternatives such as electronic detonators.

16.9.4 Stope drill and blast design

LHOS with waste rock fill is the primary mining method for Juanicipio. The following design
parameters, assumptions and constraints have been recognized in the drill and blast design:
• Applicable explosives products have been identified (e.g., ANFO, packaged explosive products,
and electric and non-electric detonators).
• Designs provided are recommended to be optimized in line with operating experience.
• The stope size ranges assumed are: 20 m high (floor to floor), stope width varies from 4.5 m
to 15 m, and total stoping panel lengths range from 100 m to 250 m.
• Other than for sill cuts, longhole stopes to be filled with waste rock fill and the fill kept within
5 m to 15 m of the retreating production face based on local ground conditions.
• Overcuts and undercuts at 4.0 m high and from 4.0 m to 15 m in width.
• Production drills capable of drilling holes with diameters up to 102 mm. The production drill
also to be capable of drilling 152 mm reamer holes.
• All holes assumed to be drilled to maximize drilling accuracy, minimize hole-loading and
blasting problems, minimize dilution, and optimize fragmentation.

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16.9.5 Drill selection for stoping

The production drill rigs utilized are Sandvik DL432i or equivalent (slot and production blasthole
drilling).

The Sandvik DL432i is capable of drilling holes with diameters between 76 mm and 102 mm in a
single pass over the full length of the stope. Larger hole diameters up to 152 mm can also be drilled.
The drill rig is suitable for accurate drilling of all stope production blastholes and the slot blastholes.
It is also capable of operating under remote and tele-remote control, making it amenable to
production ring drilling if required.

16.10 Production and development schedule

For generation of the LOM production and development schedule, the entire mine design was
imported into Datamine Studio 5DP software to undertake overall mine sequencing and evaluation.
The mine physicals have been scheduled using EPS software. The productivity assumptions used
for scheduling are shown in Table 16.10.

Table 16.10 Productivity assumptions

Activity Unit Value
Ramp development rate m/month 90
Lateral development rate m/month 50
Vertical development and surface raises m/month 200
Stope production (longhole stopes) tpd/stope 850
Stope production (cut and fill stopes) tpd/stope 850
Backfill tpd/stope 350
Source: Fresnillo, 2023.

During the EPS scheduling, additional dilution of 0.5 m for mucking and 0.5 m for endwall (HW and
FW dilution are included in the stope wireframe), as well as mining recovery factors (95% for LHOS
and 98% for CAF), have been applied. Stopes have then been rechecked for economic viability
(above cut-off) and any uneconomic stopes removed from the estimate.

The EPS production schedule is summarized in Table 16.11. AMC was provided the EPS output file
and checked for dilution and mining recovery as well as the updated NSR values. The QP notes that,
for the Juanicipio Economic Analysis discussed in Section 22 of the Technical Report, the EPS
schedule has been adjusted to include actual values for 2023. The QP also notes that, for the LOM
total values, there are only minor and non-material differences between those in the Ore Reserve
estimate and those in the production schedule.

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Table 16.11 EPS production schedule by year

Description 2023 2024 2025 2026 2027 2028 2029
Ore tonnes (kt) 360 1,285 1,303 1,294 1,300 1,318 1,297
Au (g/t) 1.26 1.45 1.50 1.59 1.53 1.93 1.65
Ag (g/t) 620 403 373 300 287 198 155
Pb (%) 1.62 1.44 1.57 2.18 3.09 3.46 3.03
Zn (%) 3.27 2.76 2.70 3.71 5.10 6.15 5.39
Description 2030 2031 2032 2033 2034 2035 Total
Ore tonnes (kt) 1,308 1,309 1,308 1,302 1,272 702 15,356
Au (g/t) 1.61 1.66 1.61 1.51 1.37 1.72 1.58
Ag (g/t) 198 169 200 245 135 172 248
Pb (%) 2.97 2.65 2.82 3.13 2.72 3.11 2.64
Zn (%) 4.89 5.20 4.92 5.75 5.87 6.15 4.80
Note: Part-year for 2023.
Source: Fresnillo, 2023.

A snapshot of the projected mined-out stopes at the end of the mine life is provided in Figure 16.11.
The schedule provides a sequence of mining events that are driven by constraints. The optimal
sequence will be realized in conjunction with full stope production operations.

Figure 16.11 End of mine life snapshot

Note: Not to scale.

Source: AMC, 2023.

16.11 Mobile equipment

Equipment for Juanicipio has been selected based on projected productivities but also considering
the practical travel distances between mining zones. As the time to travel from one zone to another
could be significant, the planned fleet size for the major pieces of development and production
equipment has been based on most pieces being dedicated to a single mining zone. The haul truck
fleet sizes, however, have been based on projected ore and waste tonnages as well as the haulage
distances to each destination.

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The mine has been planned to operate with two 12-hour shifts per day. This is reduced to
approximately 17.0 effective working hours per day after considering travel time, lunch breaks,
pre-shift meetings, and other miscellaneous breaks.

Development and production cycle times were evaluated to assist in the determination of the overall
mining fleet. A typical development cycle analysis included jumbo drilling, face charging, mucking,
scaling, and bolting as well as intersection cable bolting and shotcreting as required. A typical
production cycle analysis consisted of longhole drilling, stope charging, mucking, and backfilling.

Table 16.12 shows the proposed equipment numbers for peak development and stope production.

Table 16.12 Equipment list

Contractor development equipment Description Number of units (Peak)
Loader large Scoop Large (>12 t) 3
Loader medium Scoop Medium (9-12 t) 4
Truck medium Camion Medium (20-34 t) 10
Jumbo single boom Single Boom Jumbo 16 ft 8
Utility truck Oldenburg UV6 2
Scaler Getman S3120 4
Bolter Epiroc BOLTEC 235 4
Transmixer Normet Transmixer Agitator Alpha 3
Shotcrete sprayer Normet Spraymec 3
Raise borer Robbins 2.44 m 6
Raise borer Robbins 1.83 m 1
Service truck Services & Mesh Ancillary 4
Utility truck Flatbed Transport 1
Owner production equipment Description Number of units (Peak)
Loader large Scoop Large (>12 t) 9
Loader medium Scoop Medium (9-12 t) 2
Truck large Camion Large (>34 t) 9
Truck medium Camion Medium (20-34 t) 7
Jumbo single boom Single Boom Jumbo 16 ft 5
Longhole rig Sandvik DL432I 5
Scissor lift Getman A64 EXC 3000 2
Scaler Getman S3120 2
Bolter Epiroc BOLTEC 235 4
Cable bolter Sandvik DS421 1
Transmixer Normet Transmixer Agitator Alpha 1
Shotcrete sprayer Normet Spraymec 1
Service truck Services & Mesh Ancillary 2
Utility truck Flatbed Transport 2
Ambulance Ambulance 2
Note: Light vehicle requirements not shown.
Source: Fresnillo, 2023.

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Figure 16.12 shows the projection for truck, jumbo, bolter, production drill, charger, scoop, and
light / auxiliary vehicle requirements over the LOM separated by contractor and owner operator. As
the mine achieves and maintains full production, the equipment numbers will be re-evaluated based
on current operating productivities, contractor contribution, and operational projections.

Figure 16.12 Projected major equipment required over LOM from Owner

Source: Fresnillo, 2023.

Figure 16.13 Projected major equipment required over LOM from contractor

Source: Fresnillo, 2023.

16.12 Mine personnel

All vertical development has been planned to be completed by raiseboring and drop-raising methods
and to be undertaken by contractors. Horizontal development and the recommended construction
of concrete road surfaces for the main ramps is also being done by a contractor workforce. The
production and remaining workforce have been assumed to be made up of owner employees.

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The underground mining team is organized into the following operational groups:
• Mining supervision
• General and administration
• Development crews
• Production crews
• Raising
• Logistics
• Materials handling
• Maintenance
• Technical support

Table 16.13 shows the projected maximum total mine personnel by operational group. Labour
requirements are based on an operating schedule of two 12-hour shifts per day, 360 days per year.
The workforce estimates have been largely based on a productivity analysis of underground
activities and the physical requirements of the mine schedule. The underground workforce, as well
as geology and survey, is made up of three rotations working a 10-days-on (5-day shifts and 5-night
shifts) and 5-days-off rotation. Other technical support staff, mining supervisors and general and
administration employees work a 5-day per week schedule. The underground crew numbers are
based on the equipment requirements to complete the scope of work as planned. Additional
personnel are included to cover absenteeism.

Table 16.13 Projected mine personnel requirements for steady state operations
Total fixed personnel Peak
Total Mine Management & Administration & Union Operators
Mine Superintendent 4
Maintenance Superintendent 2
Engineer & Planning Superintendent 2
Contractors Superintendent 2
Mine Control Room Superintendent 2
Process Improvement Superintendent 2
Geology & Exploration Superintendent 2
Rock Mechanic Superintendent 2
OH&S Supt Superintendent 2
Technology and Informatics Superintendent 2
Subtotal (Peak) 22
Owner Technical Services
Senior Engineer [Mine] 5
Junior Engineer - Shift Supervisor [Mine] 16
Training Engineer [Mine] 4
Senior Engineer [E&P] 2
Junior Engineer - Shift Supervisor [E&P] 13
Ventilation Senior Engineer [E&P] 2
Surveyor Senior Engineer [E&P] 2
Surveyor Junior Engineer [E&P] 7
Surveyors - Unionized [E&P] 17
Senior Engineer [Geology] 2
Junior Engineer - Shift Supervisor [Geology] 10

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Total fixed personnel Peak

Rock Mechanic Senior Engineer [Geology] 2
Rock Mechanic Junior Engineer [Geology] 5
Training Engineer [Geology] 4
Subtotal (Peak) 91
Other Fixed Positions
Senior Engineer [OH&S] 4
Junior Engineer - Shift Supervisor [OH&S] 7
Environmental Senior Engineer [OH&S] 4
Environmental Junior Engineer [OH&S] 4
Health & Safety Commission - Unionized (CSH) 7
Senior Medical - Doctor (Medical Services) 4
Nurse (Medical Services) 11
Owner Labour 30
Subtotal (Peak) 71
Total Union Operators
Jumbo Operator Official 16
Simba Operator 16
Scaler Operator 7
Rockbolter Operator Official 11
Rockbolter Operator Assistant 11
Cablebolter Operator 2
Shotcrete Transporter 3
Shotcrete Sprayer 3
Ancillary Equip Operator 11
Scoop Operator 31
Camion Driver 48
General Labourer 31
Subtotal (Peak) 206
Owner Maintenance
Secretary - Assistant [Maintenance UG] 2
Senior Mechanic Engineer [Maintenance UG] 8
Junior Mechanic Engineer - Shift Supervisor [Maintenance UG] 19
Senior Electrician Engineer [Maintenance UG] 4
Junior Electrician Engineer - Shift Supervisor [Maintenance UG] 13
Senior Instrumentation Engineer [Maintenance UG] 4
Junior Instrumentation Engineer - Shift Supervisor [Maintenance UG] 5
Senior Planning Engineer [Maintenance UG] 2
Drill Mechanic 6
Drill Electrician 8
Mobile Diesel Mechanic 3
Conveyor Mechanic [Unionized] 3
Conveyor Electrician [Unionized] 2
Instrumentation 14
Infrastructure Mechanic 7
Infrastructure Electrician 13
Mine Operations Mechanic [Unionized] 10
Subtotal (Peak) 123

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Total fixed personnel Peak

Total Contractor Fixed Personnel
Contractor Management and Supervision
Civil Work General Manager / Resident 2
Civil Work Admin Assistant 7
Civil Work Supervisor UG 6
Safety Coordinator UG 10
Dev General Manager 28
Dev Admin Assistant 28
Dev Safety Coordinator UG 25
Dev Senior Engineer 44
Dev Junior Engineer - Shift Supervisor 2
Dev Training Engineer 5
Dev Environment Junior Engineer 4
Vertical General Manager 2
Vertical Admin Assistant 2
Vertical Safety Coordinator UG 2
Vertical Junior Engineer - Shift Supervisor 7
Ground Support General Manager 7
Ground Support Admin Assistant 11
Ground Support Safety Coordinator UG 8
Ground Support Junior Engineer - Shift Supervisor 22
Ground Support Environmental Junior Engineer 2
Shotcrete & Concrete Supply General Manager / Resident 7
Shotcrete & Concrete Supply Admin Assistant 4
Shotcrete & Concrete Supervisor UG 3
Shotcrete & Concrete Supply Safety Coordinator UG 4
Miscellaneous Services General Manager / Resident 3
Miscellaneous Services Admin Assistant 6
Miscellaneous Services Junior Engineer - Shift Supervisor 22
Miscellaneous Services Safety Coordinator UG 8
Haulage General Manager 5
Haulage Admin Assistant 4
Haulage Safety Coordinator UG 7
Haulage Junior Engineer - Shift Supervisor 10
Dev Surveyor Junior Engineer 11
Dev Storer Man 21
Ground Support Storer Man 11
Haulage Storer Man 5
Civil Work UG 54
Concrete Laboratory Technician 8
Civil Works Storer Man 8
Explosives Delivery Man 4
Paramedic 28
Lamp Room 11
Training Instructors 10
Subtotal (Peak) 478

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Total fixed personnel Peak

Contractor Maintenance
Drills Mechanic 25
Scoop Mechanic 33
Truck Mechanic 22
Electricians 81
Welders (Contractor) 33
Raiseborer Mechanic (Contractor) 4
General Mechanic 24
Subtotal (Peak) 222
Contractor Other Positions
Contractor General Mine Services 43
Subtotal (Peak) 43
Contractor Labour Totals
Jumbo Operator Official 27
Jumbo Operator Assistant 27
Explosive Loader Operator 5
Explosive Loader Assistant 5
Scaler Operator 12
Rockbolter Operator Official 13
Rockbolter Operator Assistant 13
Shotcrete Transporter 10
Shotcrete Sprayer 10
ROBBINS Operator 40
Ancillary Equip Operator 14
Scoop Operator 17
Camion Driver 32
General Labourer 88
Subtotal (Peak) 313
Total Owner and Union Manpower (Peak) 513
Total Contractor Manpower (Peak) 1,056
Total Owner, Contractor, and Union Operators (Peak) 1,569

Personnel numbers will fluctuate over time to some extent as per the development and production
schedule requirements.

16.13 Conclusions and recommendations

The QP makes the following observations and recommendations for mining:
• Root causes of overbreak and underbreak should be investigated during the stope
reconciliation process. Drilling and blasting design, particularly for Poor ground, should be
optimized, and a robust QAQC procedure for drilling and blasting should be implemented to
improve drilling and blasting practices.
• Optimize ground support and improve ground support design particularly for Poor ground.
• Before assessing stability of future raises and required support, specific geotechnical drilling
should be undertaken along the centreline of the selected sites and a thorough analysis of
rock mass and discontinuity properties should be made. A detailed core logging program would
be an integral part of each raise assessment.
• Ground improvement options should be considered for raise stability, as required.

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• Update the Ground Control Management Plan (GCMP) to reflect the current ground control
practices at Juanicipio.
• An underground waste materials balance study is recommended to further assess options for
the backfill deficit.
• A backfill study is recommended to further assess options for sill pillar recovery.
• As the planned strategy for ventilation of the conveyor and crusher has recently changed, a
review is recommended to confirm the overall ventilation strategy for the medium to long
term.

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17 Recovery methods
The processing plant has a nominal capacity of 4,000 tpd and consists of a comminution circuit with
primary crushing and milling, followed by sequential flotation to produce a silver-rich lead
concentrate, then a zinc concentrate, and then a gold-silver-bearing pyrite concentrate. Ultimately,
ore crushing will be at an underground crusher, with delivery to the mill stockpile via a conveying
system that will exit the mine at the portal adjacent to the mill.

17.1 Ore transport

Currently, ore is trucked from underground to surface, then to the run of mine stockpiles adjacent
to the mill. The underground crusher has been designed to process the run-of-mine (ROM) material
using a primary jaw crusher to reduce the material from a nominal 500 mm to a 100% passing size
(P100) of 178 mm (P80 of 87 mm). Construction of the underground conveying system to transport
the ore from the underground crusher to the surface is planned to commence in 2024.

17.2 Ore stockpile

The main objective of the ore stockpile is to maintain continuity of the operation of the processing
plant and to allow blending of different ore types, if required, to achieve the targeted plant feed
grade and a consistent sizing of material. The stockpile acts as a buffer to any delays experienced
in underground production. The stockpile is intended to have a live capacity for two days of mill
operation (8,000 t). From the stockpile, the ore is delivered by a conveyor and feeder arrangement
leading to the semi-autogenous grinding (SAG) mill.

17.3 Grinding and classification

The main objective of grinding and classification is to liberate the valuable minerals in the ore by
reducing the size of the ore and classifying it to reach a final product size (P 80) of 60 µm. This is the
minimum size required to generate the metal recoveries determined during metallurgical test work.
An automated process control system is part of the design to ensure consistent grinding of the ore.
The plant has a SAG mill - ball mill grinding circuit with subsequent processing in a flotation circuit.
The SAG mill operates in closed circuit with a vibrating screen. The ball mill is designed to operate
in closed circuit with hydrocyclones which separate finished material. SAG and ball mill installed
power ratings have been estimated to be 1.6 megawatts (MW) and 3.7 MW respectively.

The ore from the stockpile is fed via three variable speed feeders that discharge onto the conveyor
belt that feeds the SAG mill. The discharge of the SAG mill flows over a vibrating screen and the
oversized material is returned to the SAG mill by means of a conveyor belt system.

The underflow of the screen flows under gravity to a pump-box where, together with ball mill
discharge, it is transferred by centrifugal pumps to a bank of D-10 hydrocyclones. The fines resulting
from the classification with a P80 of 60 µm, i.e., cyclone overflow, constitute the feed to the lead
flotation circuit.

Cyclone overflow is transferred to a vibrating screen to eliminate trash and present a clean feed to
flow by gravity to the lead circuit conditioning tank. The ball mill receives the coarse underflow from
the cyclone for regrinding and its discharge is then again combined with the SAG mill screen
undersized material and returned to the hydrocyclones to separate the fines and coarse material.
This results in a closed grinding circuit to achieve a product size P 80 of 60 µm. A Knelson centrifugal
concentrator to recover some of the gravity recoverable gold and silver early in the process flow
and at a coarse size is installed in the circuit, with full system operation imminent.

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17.4 Lead flotation circuit

The general objectives of the lead circuit are to obtain a concentrate of lead with the least amount
of impurities and to recover as much as possible of the mineralogical species containing gold, silver,
lead, and copper. The cyclone overflow feeds by gravity to the conditioning tank for the lead flotation
circuit, where the pH is adjusted and collectors, together with frother and zinc and pyrite
depressants are added. Subsequently the overflow of the conditioning tank also flows by gravity to
the lead flotation circuit. This circuit consists of the rougher 1, rougher 2, scavenger sections, and
three stages of cleaning of rougher concentrate. The rougher and scavenger flotation stages are
each performed in three banks of two cells of 100 m 3 capacity. The first cleaning stage consists of
a bank of four smaller flotation cells, each of 20 m 3 capacity, and the second and third cleaning
stages of banks of three cells, again each of 20 m3 capacity.

The rougher and scavenger flotation is carried out in series and the rougher concentrates 1 and 2
are cleaned three times in cascade, with the tails of the third cleaner returned to the second cleaner
and the tails of the second cleaner returned to the first cleaner. The scavenger concentrate is
combined with the tails of the first cleaner and returned to the head of the second rougher bank.
The concentrate obtained in the third cleaner constitutes the final concentrate and is sent to the
lead concentrate thickener.

The tails of the scavenger bank are the lead circuit tails and become feed for the zinc circuit. This
zinc feed is pumped to two zinc conditioning tanks.

17.5 Zinc flotation circuit

The overall objectives of the zinc circuit are to recover most of the zinc content in a concentrate
with a minimum grade of 50% Zn at the lowest possible impurities content. The lead circuit tails
are pumped to two zinc conditioners, where the pH is adjusted with lime, and cyanide, collector and
frother are added. Subsequently, the tails pass by gravity to the zinc flotation circuit, consisting of
two rougher stages, a scavenger stage, and three stages of cleaning of rougher concentrate.

The two rougher and scavenger flotation stages are each performed in three banks of two cells, of
100 m3 capacity. The first cleaning stage consists of a bank of four 20 m 3 cells, with the second and
third cleaner stages consisting of a bank of three cells, each of 20 m 3 capacity. Similar to the lead
circuit, the rougher and scavenger flotation is carried out in series, and the rougher concentrates
1 and 2 are cleaned three times in cascade. The tails of the third cleaner are returned to the second
cleaner and the tails of the second cleaner are returned to the first. The scavenger concentrate is
combined with the tails of the first cleaner and returned to the head of the second zinc rougher
bank.

The concentrate obtained in the third cleaner constitutes the final concentrate and is sent to the
zinc concentrate thickener. In the event that the pyrite circuit was not being operated, the tails of
the scavenger bank would be the final tails and pumped to the tails thickener, where the maximum
amount of process water would be recovered.

17.6 Pyrite flotation circuit

The general objectives of the pyrite circuit are to recover most of the remaining gold and silver
content in a pyrite concentrate with a minimum grade of 35% Fe and the lowest possible amount
of impurities. The zinc circuit tails are pumped to the pyrite flotation conditioning tank, where
potassium amyl xanthate (xanthate) is added as a collector, then passed by gravity to the pyrite
flotation circuit, where xanthate is also added in the scavenger stage and frother in the two cleaner
stages.

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The circuit for the pyrite flotation consists of a rougher flotation stage, a scavenger stage and two
stages of cleaning of rougher concentrate. The rougher and scavenger flotation is carried out in two
banks of four and two cells of 200 m3, respectively. The cleaning stages consist of two banks of five
cells of 50 m3 in the first stage and four cells of 50 m3 in the second stage. The rougher and
scavenger flotation is carried out in series, whereas the rougher concentrate is cleaned twice in
cascade. The tails of the second cleaner return to the first cleaner and the tails of the first cleaner
are combined with the scavenger concentrate and are returned to the head of the rougher bank.
The concentrate obtained in the second cleaner constitutes the final concentrate and is sent to the
pyrite concentrate thickener. The tails of the scavenger bank are the final tails, and they are pumped
to the tails thickener, where the maximum amount of process water is recovered.

The pyrite circuit has initially been in an optimization phase, with delivery to, and acceptance of a
first pyrite concentrate shipment by, an off-shore purchaser recently achieved.

17.7 Thickening of lead concentrate

The main objective of thickening the lead concentrate is to increase the percentage of solids in the
underflow and to obtain clarified water with the minimum content of suspended solids in the
overflow. The 20% solids lead concentrate is pumped into a 60 foot (ft) by 10 ft (18.3 m by 3.0 m)
thickener, where flocculant is added, and the underflow of the thickener, containing 60% solids, is
pumped to the surge tank. The water from the overflow of the thickener flows by gravity to a
pump-box, from where it is pumped to a polishing filter. The discharge of this filter flows directly to
the surge tank, while the filtered water flows under gravity to the pump-box of the process water
system.

17.8 Surge tank for lead concentrate

The function of the lead concentrate surge tank is to keep the feed supply to the lead filter constant.
A surge tank was designed with capacity to store 12 hours of lead concentrate production from the
plant.

17.9 Lead concentrate filtration

The main objective of filtering the lead concentrate is to decrease its moisture content to a maximum
of 9.0%. The pulp of the surge tank with 60% solids is pumped to a pressure filter for lead
concentrate with sufficient capacity to filter the daily production during the 18 hours of operation
considered in the design parameters. The filtered concentrate is stored in the loading yard and then
loaded onto specialized trucks, which are weighed, loaded, and sampled before onward
transportation to the smelter location.

17.10 Thickening of zinc concentrate

The main objective of the thickening of the zinc concentrate is to increase the percentage of solids
in the underflow and to obtain clarified water with the minimum content of suspended solids in the
overflow. The zinc concentrate with 20% solids is pumped into a 60 ft by 10 ft (18.3 m by 3.0 m)
thickener. The underflow of the thickener, containing 60% solids, is pumped into a surge tank. The
water from the overflow of the thickener flows by gravity to a pump-box, from where it is pumped
to a polishing filter. The discharge of this filter flows directly to the surge tank, and the filtered water
flows under gravity to the pump-box of the process water.

17.11 Surge tank for zinc concentrate

The function of the zinc concentrate surge tank is to keep the feed to the zinc filter constant. A
surge tank was designed with capacity to store 12 hours of zinc concentrate production from the
plant.

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17.12 Filtration of zinc concentrate

The main objective of filtering the zinc concentrate is to reduce its moisture content to a maximum
of 9.0%. The slurry from the surge tank, at 60% solids, is pumped to a pressure filter for the zinc
concentrate with sufficient capacity to filter the daily production during the 18 hours of operation
considered in the design parameters. The filtered concentrate is stored in the loading yard and then
loaded onto specialized trucks, which are weighed, loaded, and sampled before onward
transportation to the smelter location.

17.13 Thickening of pyrite concentrate

The main objective of the thickening of the pyrite concentrate is to increase the percentage of solids
in the underflow and to obtain clarified water with the minimum content of suspended solids in the
overflow. The pyrite concentrate with 20% solids is pumped into a 60 ft by 10 ft (18.3 m by 3.0 m)
thickener, where flocculant is added, and the underflow of the thickener containing 60% solids is
pumped to the surge tank. The water from the overflow of the thickener tank of the pyrite
concentrate flows under gravity to the process water pump-box.

17.14 Filtration of pyrite concentrate

The thickened pyrite concentrate is dewatered in a pressure filter to a target moisture content of
9% for onward transport, as described in Section 17.16.

17.15 Thickening of final tails

The main goal of thickening final tails is to increase the percentage of solids in the underflow and
recover the maximum amount of process water as soon as possible. The final tails with 10% solids
are pumped to the 85 ft by 10 ft (25.9 m by 3.0 m) thickener. The underflow of the thickener
containing 50% solids is pumped to the tailings dam. The overflow of the thickener flows by gravity
to a pump-box, where it is combined with the water recovered from the lead, zinc, and pyrite
pressure filters. Subsequently, the water is pumped into the process water tank for reuse in the
process.

17.16 Shipment of lead, zinc, and pyrite concentrates

Lead and zinc concentrates are stored in separate concentrate storage areas with capacity for seven
days of operation. The shipment of concentrates is carried out from Monday to Saturday using a
front-end loader and specialized concentrate trucks, which transport the concentrates directly to a
smelter or to a port or rail system for onward shipment.

Pyrite concentrates are similarly stored, with a first successful concentrate shipment recently
achieved.

17.17 Process flowsheet and tailings storage

The underflow of the tailings thickener is pumped to the tailings storage facility, where the discharge
is performed at the perimeter of the facility. A downstream construction method as described in
Section 18 is used for the impoundment dike and the water is recovered by a floating pontoon. The
recovered water flows under gravity to a channel that leads to a process water pond for reuse in
the process. Figure 17.1 shows the process flow sheet.

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Figure 17.1 Process flowsheet

Source: Fresnillo, 2022.

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Source: Fresnillo, 2022.

17.18 Mineral processing schedule and recovery

The QP notes that, for the financial model, a variable recovery is applied on an annual basis based
on the projected head grade. The average LOM recoveries used to estimate payable metal in the
financial model are 84.4%, 86.6%, 86.8%, and 72.3% for Au, Ag, Pb, and Zn, respectively. This
includes gold and silver recovery from the pyrite concentrate, for which the process has been in an
optimization phase.

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The Juanicipio processing plant commenced operation in March 2023. Prior to that date, Juanicipio
ore was largely processed at the neighbouring Saucito plant.

Figure 17.2 shows the monthly Juanicipio plant feed rate for March 2023 to January 2024 compared
to the nominal designed feed rate of 4,000 tpd. The QP notes the range of daily averages is
tightening and the average production increasing and attaining the nominal figure of 4,000 tpd as
operators conduct the optimization process.

Figure 17.2 Juanicipio plant feed rate – March 2023 to January 2024

Source: Fresnillo, 2024.

Figure 17.1 shows monthly Juanicipio plant feed data for the 2023 operating months (March to
December). Total plant feed for the plant operating period was 956,914 t. Average grades for the
period were 1.28 g/t Au, 489 g/t Ag, 1.20% Pb, 2.14% Zn, and 6.23% Fe. Average planned grades
from Juanicipio mining for 2023 (January to December) were 1.21 g/t Au, 434 g/t Ag, 1.10% Pb,
and 1.99% Zn.

Table 17.1 Juanicipio plant feed

Parameter Unit Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2023
Throughput t 64,830 89,055 84,544 93,371 96,258 102,973 97,708 103,959 113,651 111,565 956,914
Gold grade g/t 0.89 1.20 1.23 1.23 1.25 1.34 1.34 1.25 1.38 1.47. 1.28
Silver grade g/t 286.85 532.79 526.52 497.15 517.22 507.72 560.36 506.14 471.87 432.99 488.92
Lead grade % 0.49 0.85 1.13 1.11 1.22 1.32 1.50 1.65 1.35 1.06 1.20
Zinc grade % 1.01 1.56 2.12 2.01 2.11 2.19 2.57 2.99 2.46 1.89 2.14
Iron grade % 4.88 5.49 5.95 5.88 5.67 5.90 6.84 7.38 7.32 6.15 6.23
Source: Fresnillo, 2024.
Numbers may not compute exactly due to rounding.

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Figure 17.3 shows projected recovery values from test data (dashed red lines), and ranges of daily
average gold and silver plant recoveries for the period from March 2023 to January 2024, and Figure
17.4 shows projected recovery values from test data (dashed red lines), and ranges of daily average
lead and zinc plant recoveries for the same period.

Figure 17.3 Juanicipio Au and Ag recoveries - March 2023 to January 2024

Source: Fresnillo, 2024.

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Figure 17.4 Juanicipio Pb and Zn recoveries – March 2023 to January 2024

Source: Fresnillo, 2024.

Table 17.2 shows average monthly plant total recoveries (before payables adjustment) for March
to December 2023. Gold, silver, lead, and zinc recoveries averaged 69.4%, 87.6%, 89.9%, and
90.5%, respectively, for the period, compared to planned values of 75.8%, 87.1%, 86.3%, and
74.5%, respectively, for 2023 January to December.

Table 17.2 Juanicipio plant total recoveries – March to December 2023

Parameter Unit Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Gold recovery % 73.6 71.1 69.7 66.3 64.6 73.0 68.8 68.1 68.5 71.4
Silver recovery % 85.0 88.3 87.8 87.2 87.9 90.3 88.1 85.3 86.1 89.0
Lead recovery % 81.0 86.2 87.0 87.6 89.4 92.7 94.3 91.7 90.7 93.5
Zinc recovery % 80.6 83.1 89.5 91.6 88.3 94.1 93.3 89.6 94.3 94.9
Notes: Before payables adjustment.
Numbers may not compute exactly due to rounding.
Source: Fresnillo, 2024.

Figure 17.5 shows the monthly range of daily average grade of lead in lead concentrate and zinc in
lead concentrate (“Ley de Pb en Pb y Zn en Pb” – graph title in Spanish) from March 2023 to January
2024. Excluding the start-up month of March, lead content exceeded the planned value of 33.75%
and ranged from 38% to 52%. Zinc content was generally in the planned range from 4.84% Zn to
12.0% Zn and ranged from 7% to 14%.

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Figure 17.5 Lead concentrate grade

Source: Fresnillo, 2024.

Figure 17.6 shows the monthly range of daily average grade of zinc in zinc concentrate and lead in
zinc concentrate (“Ley de Zn en Zn y Pb en Zn” – graph title in Spanish) from March 2023 to January
2024. With the exception of the start-up month (March 2023), zinc content exceeded the planned
value of 49.71% and ranged from 49% to 53%. Lead content generally met the planned limit of
1.31%.

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Figure 17.6 Zinc concentrate grade

Source: Fresnillo, 2024.

A summary of the LOM projected concentrate produced in dry metric tonnes (dmt) per year together
with the payable metal is provided in Table 17.3.

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Table 17.3 Projected LOM concentrate production and payable metal by year
Concentrate Unit Total 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Lead concentrate dmt 878,634 21,474 40,969 45,277 62,983 87,465 95,340 84,266 84,737 75,895 80,373 91,073 89,323 19,462
Zinc concentrate dmt 1,034,890 28,851 52,388 51,284 70,645 97,250 117,303 102,069 95,708 95,648 91,095 98,771 108,732 25,147
Iron concentrate dmt 1,478,600 3,054 76,781 142,796 147,751 134,190 139,736 136,577 130,424 144,998 151,492 128,585 115,787 26,429
Gold metal payable kg 17,313 710 1,334 1,378 1,483 1,393 1,861 1,507 1,519 1,538 1,479 1,428 1,288 393
Silver metal payable kg 2,893,054 308,992 411,966 392,187 309,220 282,782 190,021 146,015 193,060 157,212 184,517 192,055 101,710 23,317
Lead metal payable t 326,141 7,647 14,749 16,300 22,674 32,362 37,183 32,021 31,014 27,778 29,738 33,242 33,943 7,493
Zinc metal payable t 449,413 12,149 22,556 22,242 30,585 42,693 50,675 44,400 41,920 41,320 39,258 42,886 47,814 10,914
Notes:
• 2023 concentrate values are ‘Actuals’ from June to December as per Fresnillo.
• Numbers may not compute exactly due to rounding.
Source: Fresnillo / AMC, 2024.

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17.19 Mineral processing conclusions and recommendations

AMC visited Juanicipio in February 2024 and conducted an inspection of the Juanicipio plant. The
facility was observed to be clean, well maintained and being operated in a safe and orderly manner.
A site-wide maintenance record-keeping, planning and execution system utilizing industry standard
software is fully implemented.

The designed throughput rate for the Juanicipio plant is 4,000 tpd. Daily averages increased during
the commissioning and ramping up of the new plant (see Figure 17.2) and have demonstrated
achievement of designed performance.

Total gold recovery (before payables adjustment) averaged 69.4% for March to December 2023
compared to the planned value of 75.8%. However, recoveries have improved as ramp-up and
optimization of plant circuits have progressed (see Figure 17.3), with gold recovery in December
2023 averaging 71.4% (silver at 89.0%, lead at 93.5%, zinc at 94.9%).

Total recoveries for March to December 2023 (before payables adjustment) for silver, lead and zinc
exceeded plan:
• Silver recovery averaged 87.6% compared to the planned value of 87.1%.
• Lead recovery averaged 89.9% compared to the planned value of 86.3%.
• Zinc recovery averaged 90.5% compared to the planned value of 74.5%.

Excluding the start-up month of March 2023, lead content of lead concentrate exceeded the planned
value of 33.75% and ranged from 38% to 52%. Zinc content was generally in the planned range
from 4.84% Zn to 12.0% Zn and ranged from 7% to 14%.

Excluding the start-up month of March 2023, zinc content of zinc concentrate exceeded the planned
value of 49.71% and ranged from 49% to 53%. Lead content generally met the planned limit of
1.31%.

Commissioning and ramp-up have generally gone well, with the plant achieving designed
throughput and designed silver, lead and zinc recoveries and concentrate grades. The QP
acknowledges the continuing testing and process development being conducted by the plant’s
operators to improve all processing aspects, including for gold recovery, and recommends
continuation of the program.

The pyrite circuit has initially been in an optimization phase, with delivery to, and acceptance of a
first pyrite concentrate shipment by, an off-shore purchaser recently achieved.

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18 Project infrastructure
18.1 Site layout
A 6.5 km access road, mostly over hilly terrain, accesses the underground main declines portal area
from the mill, with the plant site being connected to the main highway by a 1.4 km road. Both the
1.4 km two lane sealed road, which is suitable for use by heavy vehicles, and the access road to
the main portals are fully constructed and in operation.

The Juanicipio processing plant has been operating since March 2023, with an average of 3,580 tpd
being achieved in the last quarter of 2023. As noted, it is located approximately 6.5 km from the
underground decline portals, and it is approximately 400 m from the conveyor drive portal. Delivery
of ore from underground at full production will be via the conveyor in the conveyor decline, which
will be constructed in 2024 to 2025. Until the conveyor is fully operational, ore is continuing to be
trucked to surface.

The site layout, showing the mill location relative to the existing mine, twin decline portals and
conveyor portal, is shown in Figure 18.1.

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Figure 18.1 Site general layout

Source: AMC, 2022 – initial drawing from MAG Silver.

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18.2 Power supply

The electrical supply system for the Juanicipio project has been developed in stages as the project
has progressed. The initial system, with power sourced from a nearby mine, was used to develop
the first decline. Power is currently supplied to a main substation at the processing site via a
115 kilovolts (kV) overhead power line connected to the state-owned power grid. From the mill, a
13.2 kV power line has been extended to the conveyor drive, with a similar line to the main mine
portals location.

The final estimated power demand for the site when the mine is fully constructed is shown in Table
18.1.

Table 18.1 Estimated site power demand

Total attached Estimated load Average load
Purpose GWh per annum
load (kW) factor (kW)
Mine ventilation 5,040 78% 3,926 33.1
Mine dewatering 5,356 28% 1,510 9.4
Material handling 6,865 83% 5,708 48.7
Shaft sinking1 1,620 26% 426 N/A
Mining equipment 3,025 18% 551 4.8
Other underground 2
175 75% 131 1.2
Underground total 22,081 55% 12,252 97.3
Mill 11,989 70% 8,400 70.6
Surface infrastructure 515 60% 310 2.2
Total 34,585 61% 20,962 170.1
Notes:
1
Additional loads for potential future shaft sinking, dependent on further materials handling studies. These are not included
in annual power consumption estimates, as loads would be temporary.
2
Includes lighting panels and other miscellaneous loads.
• Attached and average loads are based on peak demand.
• Annual power consumption is based on typical operating demand.

As noted, there are two 13.2 kV feeders for the mine: an overhead pole line to deliver power from
the mill to the main access portal area and surface ventilation fans, and a second pole line to the
conveyor portal. This arrangement provides some degree of redundancy using cross-feed
switchgear. The mill is powered directly from the mill substation.

Detailed electrical single-line diagrams that reflect the power distribution were developed for
construction purposes, with associated designs for electrical switch gear, transformers, and
reticulation.

18.3 Communications systems

The development declines are furnished with a Leaky Feeder system that is extended underground
via one feeder line with amplifiers spaced between ultra-high frequency (UHF) coax cable segments
at no more than 350 m intervals.

Fibre-optic cable has been installed from the mill control room to the underground mine via the
conveyor decline and via the mine overland power line, which extends past the entrance to the
conveyor decline and out to the underground mine main portal area. The fibre-optic cable fed into
the underground mine from two locations provides some redundancy and greater communications
reliability. Should one of the fibre-optic lines be damaged, communications service will continue
with the remaining line.

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The underground wireless network infrastructure consists of:

• Voice over Internet Protocol (VoIP) mine phones.
• Programmable logic controllers (PLC) for control of pumps, ventilation doors and start and / or
stop of main fans.
• Electrical substation monitoring.
• Closed-circuit television (CCTV) system inside the mine.
• Conversion to Wi-Fi which in turn connects tablets (chat, video calls, IP PBX calls, Apps),
Smart cables, vehicle location night vision device (NVD) and People location (via cap lamp).
• An IP PBX is a system that connects telephone extensions to the public switched telephone
network and provides internal communication for a business.
• Asset and personnel tracking capability.

Radio communications capability has been established underground by a wireless digital, Local Area
Network (LAN) protocol Wi-Fi compatible system.

The backbone of the network comprises gigabit network switches connected by a composite cable
that runs fibre and power to each device. Each switch also houses up to two wireless radios, giving
pervasive wireless coverage along travelways. This also provides the ability to make continuous
VoIP telephone calls from the portal to the face, and to have full asset and personnel tracking
capability. The system also has redundancy to maintain operation if the fibre cable is damaged.

18.4 Water supply

In 2023, the majority of Juanicipio process and operational water requirements was sourced from
dewatering underground workings, with the water used primarily for mine development and dust
control. Juanicipio also purchased potable well water from third parties for mine development and
domestic use.

With completion of a Reverse Osmosis plant in 2023 and optimizing the consumption of treated
municipal wastewater, all process water requirements are satisfied through the exclusive use of
treated wastewater, currently eliminating any freshwater requirements from third parties. There are
two additional wastewater treatment plants on site to reuse service water for dust control and
irrigation of green spaces on the property. In 2022, Juanicipio water use was 397,300 m 3, with 2023
consumption anticipated to be similar at approximately 1,200 m 3 per day. Potable water is
purchased from local providers as required.

18.4.1 Dewatering
The groundwater inflow into the mine was estimated using pre-drilling ahead of ramp development.
SRK conducted the groundwater studies and provided the predrilling program. There have been two
temporary pump stations in operation that together can handle 2,500 gallons per minute (gpm).
The main pump station on 1850 Level has three pumps installed with a fourth available on stand-by.
The current capacity is 5,000 gpm. A second permanent pump station is planned for 1650 Level
that will pump to the 1850 Level station. A main pump station is also planned at the bottom of the
mine (1250 Level) with a capacity of 2,500 gpm. It is estimated that the current and planned pump
stations should provide sufficient capacity for the life of the mine.

The overall plan for handling groundwater is an advanced dewatering strategy that will largely
depend on accessing the lower levels of the mine well ahead of stope production. This early
development approach provides a means for installing a series of dewatering holes and sumps that
will dewater sections of the mine prior to production mining. The risk of flooding will be partially
mitigated by this early development strategy and by the provision of spare pumping capacity.

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18.5 Compressed air

Mobile electrical compressors supply compressed air for the underground operations and primary
equipment such as longhole drills have their own mobile compressors. The main compressor is
located near the No 2 fan on surface above the main portal and twin declines. Air supply to the
underground workshop is from this compressor via the main decline.

18.6 Stockpiles
Provision for an 8,000-tonne ore stockpile has been made to provide a two-day buffer between the
underground mine production and the plant. Ore transported to surface via the underground
conveyor will be transferred to the surface conveyor feeding the mill stockpile. The stockpile design
includes a geodesic dome cover to control dust emissions.

A total of approximately 5.1 Mt of waste rock is expected to be produced over the mine life. Waste
rock produced during the initial development period has been used for road and tailings dam
construction or stockpiled on surface. Later in the mine life, any waste rock produced will be
backfilled to stopes and mined out areas or stored on surface. Temporary waste rock storage areas
have been designed near the main portal.

18.7 Tailings storage

The Juanicipio TSF site is located immediately to the west of the processing plant, at the foot of the
local mountain range which rises to the south with natural slopes between 2% to 7%. The dam is
designed in a “U” shape with constructed embankments on the west, north, and east sides, and
supported by the natural hillside to the south. The TSF is designed for two construction and
operational phases, denoted Stages 1 and 2. Stage 1 will be constructed to a crest elevation of
2,217 m amsl and will have a maximum height of approximately 33 m. When the facility is at its
ultimate configuration (Stage 2), the maximum height of the dam will be approximately 38 m, with
a crest elevation of 2,222 m amsl.

The Canadian Dam Association (CDA) Application of Dam Safety Guidelines to Mining Dams (CDA,
2014) was used to establish the risk classification of the TSF. The Juanicipio TSF classifies in the
"Extreme" consequence category, mainly due to its proximity to the processing plant on the east
side of the facility and the “El Obligado” community to the north of the TSF.

The Stage 1 dam may be considered a starter dam, encircling three sides of the geomembrane-lined
tailings storage basin; the fourth side of the facility is created by the natural hillside slope. The final
facility will be completed via a 5 m downstream raise of the Stage 1 dam, known as Stage 2. For
both the Stage 1 and Stage 2 configurations, the upstream and downstream slopes of the dam are
designed to 2.5:1.0 H:V, with a crest width of 10 m.

Due to a series of ephemeral streams located on the TSF property that require construction permits
from the Comisión Nacional de Agua (CONAGUA) to allow construction within their waterways, Stage
1 of the TSF was divided into two adjacent cells, referred to as Cell 1 and Cell 2. Construction of
Cell 1 was completed in December 2022 in the western part of the facility, where the ephemeral
streams are not impacted by construction; therefore, no permits were required from CONAGUA.
The QP understands that all permitting documentation for construction of Cell 2 has been submitted
and is expected to be approved in Q1 2024. Cell 2 will join with the north-east corner of the Cell 1
dam to form the complete Stage 1 starter dam. Construction of Cells 1 and 2 during Stage 1 implies
that there will be an intermediate berm between the two cells, which serves as the eastern wing of
Cell 1 during its operation. Only the outer embankments of the TSF will be raised during Stage 2
construction; thus, this intermediate berm will be covered with tailings during Stage 2 operations
of the TSF.

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Near-surface site geology consists of conglomerated sandstone and colluvium, while volcanic units
are found at greater depths. The design of the Juanicipio TSF considers a large, graded excavation
within the sandstone and colluvium, around which the three sides of the dam are constructed. This
excavation produces structural fill for the dam and increases the tailings storage capacity of the
facility. It is possible that excavation of the tailings basin will not produce sufficient volume of fill
for construction of the Stage 2 raise, and thus external borrow sources may be needed to complete
the final dam construction.

The Juanicipio TSF features a homogeneous dam (i.e., non-zoned) founded upon native materials.
Following site stripping, foundation preparation consists of removing all unsuitable soil strata (i.e.,
loose, caliche-rich) until reaching a competent layer as determined by site engineers. The dam
contains a basal drainage system, consisting of a blanket drain built below the downstream portion
of the dam to control potential seepage. Seepage that reaches the blanket drain is conveyed to
collection drains along the outer perimeter of the dam, and then discharged into geomembrane-lined
collection ponds. Seepage collected in the ponds is recirculated to the TSF, to the processing plant,
or, as permitted by geochemical testing and regulations, discharged directly into the downstream
environment.

Geochemical testing on the Juanicipio tailings indicates they are potentially acid generating.
Hydrogeochemical transport modelling, considering geochemical properties of the tailings and the
hydrogeological characterization of the foundation units, demonstrated that lining of the TSF is
necessary to prevent contamination of groundwater downstream of the facility. Both the upstream
slope of the dam and the entire tailings basin are lined with a 2.0-millimetre-thick, linear low-density
polyethylene (LLDPE) geomembrane, which is textured on both sides. The soil surfaces upon which
geomembrane is installed are moisture conditioned and compacted to provide intimate contact
between the liner and the substrate.

Geotechnical instrumentation, consisting of open standpipe piezometers, vibrating wire

piezometers, and survey monuments, has been installed within the TSF, and in its proximity, to
monitor the performance of the facility. The piezometers monitor phreatic levels within the dam,
groundwater levels, and are also used as part of the groundwater quality monitoring program.
Additional instrumentation consisting of seepage flowmeters and accelerometers are considered for
future installation.

As per results of laboratory testing on the tailings, a dry tailings density of 1.4 tonnes per cubic
metre was used for deposition modelling. The total estimated storage capacities of Stage 1 – Cell
1, Stage 1 – Cell 2, and Stage 2 at projected deposition rates are 14 months, 47 months, and
30 months, respectively, making for a total storage life of approximately 7.6 years. Based on the
project's design criteria, the total anticipated production of tailings for surface storage is 12.2 Mt,
which will occur over approximately 13 years. Due to property restrictions on the TSF footprint,
current projections indicate that the ultimate configuration (Stage 2) will provide up to 8.5 Mt of
storage, or approximately 7.6 years of operations. The remaining required tailings storage will come
from potential deepening of the Cell 2 basin, expansion to the existing TSF through construction of
an adjacent cell, and / or from an additional raise of the dam.

The QP notes that, with respect to potential deepening of the Cell 2 tailings basin, site investigation
work completed in 2023 indicated that such deepening could provide additional tailings storage and
produce sufficient fill for the Stage 2 raise of the TSF. Conceptual engineering of the deepened Cell
2 basin by Knight Piésold suggests that more than a year of additional tailings storage could be
added to the TSF. Detailed engineering of the Cell 2 basin deepening has been authorized by Minera
Juanicipio.

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Stage 1 – Cell 1 of the TSF is currently in operation with limited remaining capacity. Partial
construction of the Stage 1 – Cell 2 dam and tailings basin has been completed in areas where the
CONAGUA permit is not required. Because the Stage 1 – Cell 2 facility will not be ready by the time
the Stage 1 – Cell 1 facility reaches maximum capacity, an alternate option for tailings deposition
has been negotiated with the neighbouring mine. An engineered pipeline was designed to transport
tailings with the existing pumps at the Juanicipio processing plant to the neighbouring mine’s TSF.
Construction of the pipeline, pressure reduction stations, and leak collection bays is currently
complete, and the pipeline is ready to be commissioned.

Surface water management at the TSF is facilitated primarily by two non-contact diversion channels,
one along the east side of the dam and the other along the south end and west sides of the facility.
The channels are verified to accommodate run-on from the 1,000-year storm event as required by
CONAGUA. The east diversion channel is concrete-lined and the south / west channel is geotextile
and riprap lined to deter erosion. Both channels feature energy dissipators at their termini prior to
flow discharging into the downstream native environment. The TSF does not contain an operational
spillway as it has been designed to store rainfall and run-on associated with the 72-hour probable
maximum precipitation (PMP).

The design contemplates a maximum elevation of tailings in contact with the dam of 2,221 m amsl,
which maintains the required freeboard of 1 metre between the tailings beach and the dam crest.
The design freeboard from the dam crest to the design supernatant pond is 2 metres; this freeboard
complies with specifications in the Mexican standard NOM-141-SEMARNAT-2003 for TSFs in humid
areas (SEMARNAT, 2003). Results of the site-specific water balance confirmed that the required
pond freeboard is met if the 72-hour PMP were to occur. During normal conditions, it is anticipated
that the average operational pond elevation will maintain a minimum freeboard of 4 metres.

The tailings are deposited in the TSF by a series of spigots (discharge points) located along the
perimeter of the facility. Tailings are generally deposited from the north and east sides of the facility
to form a tailings beach against the dam and push the supernatant pond towards the
south-southwest, where water reclaim infrastructure is located. A combined system consisting of
barges and floating suction elements (i.e., turrets) has been implemented for the recirculation of
recovered water to the processing plant; the final number of barges and turrets required during the
future stages of TSF operation will be evaluated according to the location of the pond and the
requirements of the processing plant.

The current closure concept of the TSF considers a water-shedding revegetated cover. The design
location of the pond in the south-west corner of the basin readily accommodates the construction
of a cover that sheds water in this direction and allows for the excavation of a spillway in the natural
terrain south-west of the facility. Construction of diversion channels sized for closure requirements,
on the perimeter of the TSF, is also planned.

A section view and plan view of the TSF are shown in Figure 18.2 and Figure 18.3, respectively.

Figure 18.2 Section view of the TSF layout and design

Source: Knight Piésold Ltd., 2024.

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Figure 18.3 Plan view of the TSF layout and design

Source: Knight Piésold Ltd., 2024.

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18.8 Other surface facilities

An office complex is located close to the mill. This complex accommodates the metallurgical staff
and the site laboratory. A training facility is also located near to the mill that provides mock-up
emergency and mine rescue training and teaching. Sandvik simulators for operating major
equipment including trucks, loaders and drilling equipment are in the training facility.

The mine administrative office complex is located near the main decline portals. This complex
houses staff for mine engineering, geology, mine operation, and maintenance supervision. Other
facilities at the main portal area include contractor lay-down and office areas, the main surface
workshop, emergency and medical facilities, mine dry and lunchroom. Security gates provide
controlled access to the mine site at both the main decline portals and the access road to the mill.

18.8.1 Workshops and fuel storage

A surface workshop near the main decline portals is constructed to facilitate all major and minor
mobile fleet repairs and rebuilds. Equipment that regularly exits the mine, such as the haulage fleet
and light vehicles, is serviced at the surface shop, while equipment such as production scoops,
jumbos, and production drills is generally serviced in the underground workshop.

Although a main maintenance area is located on surface, all major scheduled planned maintenance
and rebuilds will take place in the underground workshop on 1850L, which is currently approaching
completion. The workshop is fully operational and is being fitted out with offices and training rooms.
The workshop acts as the parking area for the major equipment, to reduce travel time during shift
changes. The workshop is also fitted with lunchroom, workstations, communications room, and
emergency facilities.

A 110-kL fuel storage and dispensing facility is established near the portal area. The tank is
double-walled, and installed in combination with appropriate pumps, emergency shut-off
mechanisms, concrete containment area, and fire suppression equipment.

18.8.2 Water and sewage treatment

A water treatment facility has been designed to treat all mine and mill water prior to discharge into
the environment to ensure it meets regulatory standards. The water treatment facility is fully
operational, and all water is reclaimed for use in the mill and mine. Raw sewage water is also treated
on site prior to use.

18.9 Explosives magazines

Separate explosives magazines have been developed for detonators and high explosives (ANFO and
packaged emulsion explosives). The primary explosives magazine has a concrete floor and is fitted
with an overhead manual lifting system for handling bulk ANFO explosive. The underground
explosives magazines are located at 1920 Level. A secure explosives storage facility is also located
on surface, north of the main access portals and is under national guard.

18.10 Mine safety

The primary emergency response facility is located near the main decline portals. This includes a
fire engine and firefighting equipment appropriate for initial response to any mine or mill fire.
Support from community-based fire departments will be coordinated as part of the major emergency
response.

On surface there are also facilities for handling and dispensing first aid services. This includes a
treatment room and an ambulance, which is outfitted appropriately for response to any emergency
and for transport to an offsite medical facility as required.

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Surface provision has been made for the mine rescue team. Facilities and work benches for storage,
inspection, and maintenance of mine rescue equipment such as breathing apparatus, gas testers,
or lifting gear have been made available.

Refuge station chambers with 30-person capacity are used for emergencies; these chambers are
portable for flexibility of location at the most appropriate areas of the mine.

18.10.1 Emergency egress

Secondary egress is by one of the three portal declines and, in each zone, either up or down the
zone ramps (one of three) and then across to either of the other declines via the footwall drives,
which are inter-connected between the zones at regularly spaced vertical intervals.

18.10.2 Stench system

An automatic stench gas warning system is installed on the supply side of the twin access decline
portals, conveyor portal, and two fresh air raises. When fired, this system will release stench gas
into the main fresh air system allowing the gas to permeate rapidly throughout the mine workings.

If the automatic system fails to release, two back-up measures are in place: manual firing of the
system at the unit, allowing the stench gas to be distributed as above, and release of a gas cylinder
by hand into the fresh air intake.

Once stench is released, underground mine personnel must report immediately to the nearest mine
refuge station or surface, whichever is closer.

18.11 Material handling system

The material handling system for ore is based around a nominal 4,000 tpd production capacity,
which is equivalent to 216 tph, based on a capacity factor of 1.3 over a 24-hour operating period.
This allows for excess capacity in the ore handling system relative to any potential disconnection
between the mine and mill.

Prior to installation of the crusher and conveyor portal, all ore has been transported to surface at
the development portal and along the surface mine road to the plant. The underground crusher is
currently installed and operational. Once the underground conveyor is installed all ore will be
transported from the various mining levels by truck to the crusher. The crushed material will then
be placed on a load-out belt feeding two other conveyors to surface, with an overland conveyor
providing final delivery of ore to the mill. Currently, all ore is hauled in trucks to the surface and
then to the ore stockpile at the mill.

Later in the mine life, pending further trade-off studies, either an internal winze or vertical conveyor
may be installed to allow hoisting of ore from the proposed loading pocket at 1366 RL. A second
crusher station would be located at the bottom of the mine to accommodate this option. Material
would be discharged at 1950 Level and fed directly onto the conveyor belt for transport out of the
mine via the conveyor system. There is some available spare capacity built into the system that
could be realized through increased running speed or hours of operation, with minimal increase in
costs.

Development waste is either hauled to surface by trucks via the twin access declines or placed
directly into stopes as backfill. All waste hauled to surface is used as construction material or stored
near the main portals. Future waste required for subsequent backfilling will be dropped down a
waste pass driven as close to the deposit as practicable, and then distributed to the stopes.

A flowsheet of the potential final ore handling system is shown in Figure 18.4.

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Figure 18.4 Ore handling schematic

Note: Either a winze or a vertical conveyor may be installed pending further trade-off studies
The existing LOM plan excludes the UG winze in the actual ore handling system.
Source: AMC, 2021.

The conveyor belts are proposed to be 800 mm wide and to travel at 1.25 m/s. These parameters
ensure that some spare capacity is available, allow mitigation of dust generation, and help control
wear on the belt.

Sections of conveyor truss consisting of back-to-back channel steel are hung from chains connected
to rock bolts in the back of the decline. Carry and return idlers span the truss forming a ridged
structure. Careful adjustments and shims in the hangers allow the sections to be lined up so that
the belt tracks along the idlers.

All conveyor belting will be constructed of fire-resistant material and sprinklers will be provided
along the length of the belt. The conveyor will be hung so that mobile service equipment can travel
alongside the belt. Fire protection monitoring will be provided so that the belt can be stopped to
minimize any spread of a potential fire.

The first and second underground conveyors will transport, in series, ore out of the mine and onto
a third conveyor that is located on the surface. The 388 m long surface conveyor will then transport
ore to the 8,000-t capacity surface stockpile. The surface conveyor will be mounted on steel support
structures and will be provided with a cover to prevent fine mineralization loss due to wind.

18.12 Conclusions and recommendations

The QP considers that current infrastructure and plans for future additions and adjustments are
appropriate to support the Juanicipio Mineral Reserves and their extraction.

The following recommendations are made:

• Consider opportunities to optimize the materials handling system for deeper ore with an aim
to reduce operating costs and increase efficiency.
• Continue with advanced dewatering of the orebody to reduce the amount of heat introduced
to the mine workings from ingress of hot groundwater.
• Consider all options for necessary expansion of TSF capacity, with work to be completed in a
timeframe that matches tailings disposal requirements.

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19 Market studies and contracts

19.1 Metal prices
Project economics have been assessed using the following metal prices, which were selected
referencing current market and recent historical prices, values used in other recent projects, and
forecasts in the public domain. The metal prices selected are considered by the QP to be reasonable.
• Silver price = $22.00/oz
• Gold price = $1,750/oz
• Lead price = $1.00/lb
• Zinc price = $1.15/lb

19.2 Marketing
For economic assessment in this report, metal prices are assumed constant over the life of mine
and, as such, no escalation or de-escalation is considered for the treatment charges of any of the
three concentrates.

The representative market terms and conditions discussed below recognize the existing relationship
that Minera Juanicipio has with local smelters in Torreón, Coahuila State, Mexico, and with other
concentrate purchasing entities. Representative treatment and other terms for lead and zinc
concentrates are shown in Table 19.1 and Table 19.2. Both lead and zinc concentrates are subject
to minor treatment penalties for impurities. Penalty elements associated with the lead concentrate
include arsenic, antimony, zinc, and cadmium. Penalty elements associated with the zinc
concentrate include iron, arsenic, magnesium oxide, and cadmium.

The QP has reviewed payment conditions and accepts responsibility for use, in this report, of the
representative terms set out in Table 19.1 and Table 19.2. The QP also confirms that these are the
values used in the financial model.

Table 19.1 Lead concentrate – representative treatment terms

Treatment terms Value
Gold payment terms (% of contained metal in concentrate) 95%
Minimum deduction from gold grade 1.0 g/t
Silver payment terms (% of contained metal in concentrate) 95%
Minimum deduction from silver grade 50 g/t
Lead payment terms (% of contained metal in concentrate) 95%
Minimum deduction from lead concentrate grade 3 units (%)
Penalties $27.93/dmt
Lead concentrate treatment charge $198.24/dmt
Miscellaneous / other $0.90/dmt
Gold refining charge applied to payable gold metal $17.11/oz
Silver refining charge applied to payable silver metal $1.00/oz

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Table 19.2 Zinc concentrate – representative treatment terms

Treatment terms Value
Gold payment terms (% of contained metal in concentrate) after deduction below 65%
Deduct from gold grade 1.5 g/t
Silver payment terms (% of contained metal in concentrate) after deduction below 70%
Deduct from contained silver in concentrate 124.4 g/dmt
Zinc payment terms (% of contained metal in concentrate) 85%
Minimum deduction from zinc concentrate grade 8 units (%)
Penalties $10.53/dmt
Zinc concentrate treatment charge (includes price participation) $319.89/dmt
Miscellaneous / other $0.81/dmt

For pyrite concentrates, it has been envisaged that, on an ongoing basis, they will be sold to a
customer able to recover gold and silver through blending with other concentrates. The pyrite circuit
has initially been in an optimization phase, with delivery to, and acceptance of a first pyrite
concentrate shipment by, an off-shore purchaser, recently achieved. The terms for that shipment
included payment for 50% of the final silver and gold content in the concentrate. The same terms
have been assumed for the economic assessment. It is acknowledged that silver-rich lead
concentrate and zinc concentrate could be sold to smelters locally, in the Asian region, or elsewhere.
For the purposes of this report, it is assumed that all lead, zinc, and pyrite concentrates over the
LOM are transported to Torreón for smelting. Assumed concentrate transport costs and moisture
content are shown in Table 19.3.

Table 19.3 Concentrate transport costs

Transport cost Value
Lead concentrate $36.76/wmt
Zinc concentrate $35.68/wmt
Pyrite concentrate $36.18/wmt
Moisture content for lead concentrates 12.5%
Moisture content for zinc concentrates 9.8%
Moisture content for pyrite concentrates 9.0%

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20 Environmental studies, permitting, and social or community impact

Environmental investigations were undertaken on areas likely to be disturbed by the project. These
included baseline environmental assessments and initial studies required under Mexican
Environmental Laws for the plant site, inclusive of a Regional Environmental Impact Statement
(MIA-R).

The mine is in a region that hosts several significant mining operations where the community is
accustomed to mining activities. The QP is not aware of any environmental permitting or licensing
requirements to which the Property has been or will be subject other than the normal permitting
and licensing requirements as set forth by the Mexican Government for undertaking mine
development and operations.

Fresnillo, on behalf of Minera Juanicipio, has confirmed that the project does not have any
environmental obligations or liabilities identified to date.

Climate change aspects were not specifically addressed in the Mineral Reserve estimation, but the
QP considers that, for Juanicipio, any impacts would not have a material effect.

The following indicates key permits and licenses for the project:
• Land Purchasing agreements by Minera Juanicipio.
• Authorization for the Juanicipio project obtained from the Ministry of Environment and Natural
Resources - Secretaría de Medio Ambiente y Recursos Naturales (SEMARNAT) for the
environmental impact assessment. This is outlined in document Oficio No. SGPA/DGIRA/DG/
07005.
• MIA-R required by the Environmental Authority.
• Land Use Change Authorization by the Environmental Authority:
⎯ Underground Works Exploration (33.26 Has) Inactive: DFZ152-201/13/1428.
⎯ Minera Juanicipio Stage 1 (124.11 Has) Inactive: DFZ152-201/17/1707.
⎯ Minera Juanicipio Stage 2 (61.95 Has) Inactive: DFZ152-201/18/1550.
⎯ Minera Juanicipio Stage 3 (94.26 Has) Inactive: DFZ152-201/19/1591.
• Restitution and Closure Plan validated by the authority through Official Letter
SGPA/DGIRA/DG/07353.

20.1 Land purchasing agreements

The operator has indicated that all the land included in the design and operation of the Juanicipio
mine has been purchased. There is no further expected requirement in this regard.

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21 Capital and operating costs

21.1 Capital costs
AMC completed a capital cost estimate as part of the 2018 study work. Since then, Fresnillo has
advanced the project through detailed engineering, project construction, and initial mine
development and stoping leading to achievement of mine commercial production in mid-2023.
Internal estimates for the remaining Juanicipio capital, inclusive of sustaining capital and as of
31 May 2023, total $453M. The details of the estimate have been reviewed by the QP and the
estimate is considered to be reasonable.

The following are key aspects of the remaining project and LOM sustaining capital cost estimate:
• Lateral and vertical development unit costs per metre were estimated referencing site actual
costs based on contractor rates.
• Major aspects of project capital requirements for remaining surface and underground
infrastructure items (e.g. underground to surface conveyor system, tailings facility, etc.) and
for sustaining capital have been based on the site information provided by Minera Juanicipio
and verified by the QP.

All costs, unless otherwise stated, are in US dollars ($).

The estimated total remaining project capital and sustaining capital costs over the LOM are
summarized in Table 21.1. The QP understands that a potential hoist or vertical conveyor system
via a winze may still be considered for future operations, but no estimate of related costs is included.

Table 21.1 Remaining project capital and sustaining capital cost estimate
Area Total ($M)
Total remaining project capital costs 40
Total sustaining capital costs 413
Total LOM capital 453
Note: Numbers may not compute exactly due to rounding.

Details of projected annual capital expenditure for the LOM are shown in Table 21.2 though Table
21.4. The conventional conveyor from underground to the mill is estimated to cost approximately
$34.3M, with installation planned from 2024 to 2025. It is noted that the conveyor cost is still
preliminary and may be subject to change. This infrastructure is a critical item to complete to
facilitate smooth production for the remainder of the LOM.

Table 21.2 LOM annual project capital cost estimate

Mobile equipment purchases
Year Mining infrastructure ($M) Total project capital ($M)
(capacity increase) ($M)
2023 0.05 - 0.05
2024 1.80 15.79 17.59
2025 3.93 18.51 22.44
Total 5.78 34.30 40.08
Note: Numbers may not compute exactly due to rounding.

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Table 21.3 LOM annual sustaining capital cost estimate

Other Mobile Mining Total
Mining
mining equipment infrastructure Processing G&A sustaining
Year development
activities* replacement & investment ($M) ($M) capital
($M)
($M) rebuilds ($M) ($M) ($M)
2023 14.39 4.69 - 5.72 8.86 0.52 34.18
2024 11.81 4.48 0.15 5.62 14.15 5.72 41.93
2025 14.29 4.95 0.67 1.56 12.85 3.99 38.31
2026 9.95 6.37 5.38 3.50 15.12 4.02 44.34
2027 8.25 6.13 5.34 3.00 9.77 4.07 36.56
2028 6.25 4.07 9.76 2.50 8.74 2.86 34.18
2029 9.52 4.68 5.21 2.50 8.73 2.84 33.49
2030 6.70 4.53 10.45 1.75 13.46 2.87 39.76
2031 9.61 7.20 7.68 1.75 8.41 2.64 37.28
2032 4.56 5.74 6.24 2.50 8.47 2.64 30.15
2033 2.08 8.37 1.40 1.00 5.56 2.39 20.80
2034 - 4.23 2.05 1.00 5.46 2.20 14.93
2035 - 2.13 0.07 - 3.55 1.28 7.04
Total 97.40 67.57 54.40 32.40 123.14 38.04 412.94
Notes: *Other mining activities include material handling, backfill, mine services, sustaining capital to maintain existing fixed
plant, primary fans, etc.
Numbers may not compute exactly due to rounding.

Table 21.4 LOM annual capital cost estimate

Year Total project capital ($M) Total sustaining capital ($M) Total capital cost ($M)
2023 0.05 34.18 34.23
2024 17.59 41.93 59.52
2025 22.44 38.31 60.76
2026 - 44.34 44.34
2027 - 36.56 36.56
2028 - 34.18 34.18
2029 - 33.49 33.49
2030 - 39.76 39.76
2031 - 37.28 37.28
2032 - 30.15 30.15
2033 - 20.80 20.80
2034 - 14.93 14.93
2035 - 7.04 7.04
Total 40.08 412.94 453.03
Note: Numbers may not compute exactly due to rounding.

21.2 Operating costs

The operating costs used for the evaluation of project economics are based on actual operating
costs and benchmark costs for similar operations in the area. Average LOM operating costs from
the latest cost model for the 2023 Mineral Reserves are summarized as follows:
• Mining - $63.32/t ore (excludes sustaining capital)
• Processing - $12.15/t ore
• General and Administration - $10.38/t ore
• Total operating cost - $85.85/t ore

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For cut-off purposes, the average cut-off values used were $122/t for longhole stopes and $150/t
for cut-and-fill stopes to also cover the LOM sustaining capital costs for mining, processing, and
G&A, and the operating management fee (totaling $36/t). Similarly, marginal cut-off values
generally above $93/t for longhole stopes and $121/t for cut-and-fill stopes are used.

Key factors related to the operating cost estimate are:

• Mining operating cost projections have referenced Juanicipio experience to date and other
operations in the area. Some mine operating unit costs have been provided by mine
contractors.
• Costs estimated for trucking and conveying again reference similar projects / operations in
the area and contractor information, and with labour, equipment, and power projections
reflecting the operator-modelled production schedule. Further optimization of the mine
production plan is aimed at aligning steady-state production with the Juanicipio processing
plant full capacity of approximately 4,000 tpd.
• Diesel consumption cost was estimated at a unit rate of $1.03/L.
• Power costs were estimated based on projected infrastructure power requirements and an
estimated rate of $0.10/kWh provided by Minera Juanicipio.
• Ore development rates reflect current operating experience and contractor rates.
• Variable and fixed processing unit costs ($/t milled) were estimated based on actual
processing experience.
• Fixed G&A costs ($/year) including site administration, human resources, finance and
purchasing, general maintenance, security, safety, and environment, insurance, and are based
on actual costs.
• Operating costs were estimated for the underground conveyor and crushers at $0.71/t ore
conveyed. The cost excludes maintenance labour and operating labour. Operating cost
improvements may be anticipated once the conveyor is installed and commissioned.

The details of the LOM operating cost estimates have been reviewed by the QP and the estimates
are considered to be reasonable.

21.2.1 Mine site operating cost summaries

LOM site operating cost totals and average unit costs ($/t milled), by major area, are shown in
Table 21.5.

Table 21.5 LOM site operating costs by major area

Department $M $/t milled
Mine 972 63.32
Process plant and surface equipment 187 12.15
General and administration 159 10.38
Total 1,318 85.85
Note: Numbers may not compute exactly due to rounding.

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Details of the estimated LOM annual operating costs are shown in Table 21.6.

Table 21.6 LOM annual operating cost estimate

UG Other UG General and Total
Total UG Processing
Year development mining administration operating cost
mining ($M) ($M)
($M) activities ($M) ($M) ($M)
2023 22.84 42.23 65.07 14.24 12.17 91.48
2024 23.84 69.41 93.26 16.05 13.72 123.03
2025 20.57 66.29 86.86 14.72 12.58 114.16
2026 22.38 62.75 85.13 14.66 12.53 112.31
2027 23.11 61.34 84.45 14.70 12.56 111.71
2028 24.29 61.60 85.89 14.82 12.66 113.37
2029 22.18 66.05 88.22 14.68 12.54 115.44
2030 17.31 67.00 84.31 14.75 12.61 111.67
2031 6.49 65.96 72.45 14.76 12.61 99.83
2032 6.27 68.04 74.31 14.75 12.61 101.67
2033 5.12 63.72 68.84 14.71 12.57 96.12
2034 5.02 63.05 68.07 14.51 12.40 94.97
2035 0.71 14.76 15.47 9.19 7.85 32.52
Total 200.12 772.21 972.33 186.54 159.41 1,318.27
Notes:
• 2023 numbers are ‘Actuals’ from June to December as indicated by Minera Juanicipio monthly reports.
• Numbers may not compute exactly due to rounding.

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22 Economic analysis
22.1 Assumptions
All currency is in US dollars ($) unless otherwise stated. The cost estimate and projected revenue
were prepared with a base date of Year 1 (2023) and use constant Year 1 dollars (no inflation). For
net present value (NPV) estimation, all costs and revenues are discounted at 5% from the base
date. Metal prices were selected after discussion with Fresnillo and MAG Silver representatives and
referencing current market and recent historical prices, values used in other recent mineral projects
reporting on SEDAR (‘System for Electronic Document Analysis and Retrieval’ in Canada), and
forecasts in the public domain. A summary of the metal prices used in the economic model and in
the Mineral Reserves estimation is shown in Table 22.1. An exchange rate of MXP19:US$1, a
corporate tax rate of 30%, special mining duty of 7.5%, and 0.5% gross gold and silver revenue
royalty have been assumed.

Table 22.1 Metal prices

Description Unit Mineral Reserves Economics model
Gold price $/oz 1,450 1,750
Silver price $/oz 20 22
Lead price $/lb 0.90 1.00
Zinc price $/lb 1.15 1.15

22.2 Economic analysis

Underground production of mineralized development material at the Juanicipio mine commenced in
the third quarter of 2020 and commercial production was declared in mid-2023. The QP notes that
the Juanicipio operations are still in ramp-up mode, with steady-date production and associated
costs and revenue not yet fully realized in practice.

The main metrics used to summarize the economic modelling are the discounted and
non-discounted NPV, both pre-tax and post-tax. To facilitate assessment of economic viability,
production physicals from the EPS schedule as of 31 May 2023 were uploaded into a simplified
economic model. The start date for the economic analysis is 1 June 2023, with all discounted metrics
reflecting that start date. For simplicity, the period June to December of 2023 is treated as a full
year when applying discounting. The economic model includes current estimates for LOM capital
and operating costs. 2023 ore production and operating cost values in the economic model are
‘Actuals’ from June to December as indicated by Minera Juanicipio monthly reports. The results of
the analysis show that the project continues to maintain positive and robust economics.

Over a 13-year operating life, the mine is projected to generate approximately $2,116M in
undiscounted pre-tax cash flow ($1,570M post-tax), with a NPV at 5% discount rate of $1,656M
pre-tax and $1,224M post-tax. Total remaining project capital together with sustaining capital is
estimated at $453M. Key assumptions and results of the mine economic assessment are provided
in Table 22.2. The LOM annual cash flow projection is presented in Table 22.2.

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Table 22.2 Key economic assumptions and results

Juanicipio deposit Unit 2023 LOM evaluation
Total ore kt 15,356
Total waste production kt 5,222
Gold grade1 g/t 1.58
Silver grade 1
g/t 248
Lead grade1 % 2.64
Zinc grade1 % 4.80
Gold recovery1 % 84.4
Silver recovery1 % 86.6
Lead recovery 1
% 86.8
Zinc recovery1 % 72.3
Payable gold metal koz 557
Payable silver metal koz 93,014
Payable lead metal M lbs 719
Payable zinc metal M lbs 991
Revenue split by commodity Gold 20%
Revenue split by commodity Silver 42%
Revenue split by commodity Lead 15%
Revenue split by commodity Zinc 23%
Gross revenue $M 4,879
Selling costs2 $M 773
Management fee7 $M 158
Capital costs ($40M remaining Project, $413M sustaining) $M 453
Operating costs (total) 3
$M 1,318
Operating costs (total)3 $/t 85.85
Depreciation expenses 4
$M 1,175
Cumulative pre-tax net cash flow5 $M 2,116
Cumulative post-tax net cash flow 5
$M 1,570
Pre-tax NPV @ 5% discount rate6 $M 1,656
Post-tax NPV @ 5% discount rate6 $M 1,224
Notes: Numbers may not compute exactly due to rounding.
Exchange rate MXP19:US$1. Metal prices: gold - $1,750/oz; silver 22/oz; lead - $1.00/lb; zinc - $1.15/lb.
1
LOM average recoveries to concentrates.
2
Selling costs include penalties, treatment, transportation, and refining costs.
3
Includes mine operating costs, milling, and mine G&A.
4
Depreciation expenses include remaining project capital, sustaining capital, and sunk capital costs and are used for
calculating taxes only.
5
Undiscounted from 1 June 2023. Cash flow after employee profit sharing benefit (PTU).
6
Discounted from 1 June 2023. Depreciation expenses of $453M (for the remaining project and sustaining capital) and sunk
costs of $840M (prior to 31 May 2023) are recognized in the tax calculations.
7
Management fee relates to the Operator Services Agreement for Fresnillo operation of the mine.

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Table 22.3 Juanicipio LOM production and cash flow forecast

Item Unit Total 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Ore mined kt 15,356 746 1,285 1,303 1,294 1,300 1,318 1,297 1,308 1,309 1,308 1,302 1,272 316
Ore milled kt 15,356 746 1,285 1,303 1,294 1,300 1,318 1,297 1,308 1,309 1,308 1,302 1,272 316
Development - lateral m 139,745 12,029 15,382 16,189 16,467 15,824 15,645 15,515 11,586 7,196 6,048 3,871 2,990 1,002
Development - vertical m 11,447 2,670 2,740 1,232 290 597 715 599 455 1,466 646 39 0 0
Waste mined kt 5,222 591 446 698 500 497 449 587 565 426 295 113 41 15
Gold grade - milled g/t 1.58 1.44 1.45 1.50 1.59 1.53 1.93 1.65 1.61 1.66 1.61 1.51 1.40 1.72
Silver grade - milled g/t 248 513 403 373 300 287 198 155 198 169 200 210 114 105
Lead grade - milled % 2.64 1.47 1.44 1.57 2.18 3.09 3.46 3.03 2.97 2.65 2.82 3.13 3.26 3.11
Zinc grade - milled % 4.80 2.62 2.76 2.70 3.71 5.10 6.15 5.39 4.89 5.29 5.37 5.99 6.28 6.29
Gold metal payable koz 557 23 43 44 48 45 60 48 49 49 48 46 41 13
Silver metal payable koz 93,014 9,934 13,245 12,609 9,942 9,092 6,109 4,694 6,207 5,054 5,932 6,175 3,270 750
Lead metal payable M lbs 719 17 33 36 50 71 82 71 68 61 66 73 75 17
Zinc metal payable M lbs 991 27 50 49 67 94 112 98 92 91 87 95 105 24
Total gross revenue $M 4,879 306 456 447 430 458 450 371 397 364 379 398 340 83
Selling costs $M 773 26 46 49 59 74 81 71 70 67 68 73 73 16
Total net revenue1 $M 4,106 280 410 398 371 384 368 300 327 297 311 325 268 66
Operating costs
Underground mining $M 972 65 93 87 85 84 86 88 84 72 74 69 68 15
Processing $M 187 14 16 15 15 15 15 15 15 15 15 15 15 9
General and administration $M 159 12 14 13 13 13 13 13 13 13 13 13 12 8
Total operating cost $M 1,318 91 123 114 112 112 113 115 112 100 102 96 95 33
Management fee2 $M 158 8 13 13 13 13 13 13 13 13 13 13 13 8
Capital costs
Project capital $M 40 0 18 22 - - - - - - - - - -
Sustaining capital $M 413 34 42 38 44 37 34 33 40 37 30 21 15 7
Total capital cost $M 453 34 60 61 44 37 34 33 40 37 30 21 15 7
3
Undiscounted cash flow (pre-tax) $M 2,116 145 209 205 196 218 202 133 157 141 161 190 140 19
Discounted cash flow (pre-tax)5%3 $M 1,656 145 199 186 169 179 159 99 112 96 104 117 82 10
Cumulative pre-tax NPV5% $M 1,656 145 344 530 699 878 1,037 1,136 1,248 1,343 1,447 1,564 1,646 1,656
Undiscounted cash flow (post tax) $M 1,570 108 142 141 143 161 153 110 124 116 132 129 97 16
Discounted cash flow (post-tax)5% $M 1,224 108 136 128 123 132 120 82 88 78 85 79 57 9
Cumulative post-tax NPV5% $M 1,224 108 243 371 495 627 747 828 917 995 1,080 1,159 1,216 1,224
Notes: Numbers may not compute exactly due to rounding. Year 2023 is part year. Metal prices: gold - $1,750/oz; silver 22/oz; lead - $1.00/lb; zinc - $1.15/lb.
1
Gross revenue less selling costs.
2
Management fee is $13M per year.
3
After recognition of PTU.

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22.3 Selling costs and payabilities

Selling costs include penalties, treatment charges, refining charges, transport costs, and other
miscellaneous costs. Terms and conditions for the selling costs and payabilities with respect to the
lead, zinc, and pyrite concentrates are outlined in Section 19.

22.4 Taxes, depreciation, and royalties

Total paid taxes are calculated as the following percentage of taxable income:
• Juanicipio: 30% of taxable income

A $13M management fee is paid annually to Fresnillo as of the commercial production declaration
date.

Two types of royalties are recognized:

• Extraordinary Rights: 0.5% of revenue from gold and silver sales.
• Special Mining Right: 7.5% of earnings after allowable expenses and before taxes.

The operation also pays a profit-sharing amount to their employees in the form of the PTU
(‘Participación de los Trabajadores en las Utilidades’), which is calculated as 10% of earnings before
interest and taxes (EBIT). The PTU has an annual cap of three months’ salary.

Depreciation expenses were estimated using straight line depreciation at 10%. The remaining
project and sustaining capital of $453M together with sunk capital costs of $840M were included in
the depreciation expenses.

22.5 Project sensitivities

The economics for Juanicipio are very robust, with sensitivity ranges from -30% to +30% assessed,
as shown in Figure 22.1. The operation is most sensitive to silver price and silver grade, followed
by operating costs.

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Figure 22.1 Project sensitivity chart

Source: AMC / Fresnillo, 2024.

22.6 Conclusions and recommendations

Using the referenced production projections and cost estimates, Juanicipio has a post-tax NPV5% of
$1,224M (pre-tax $1,656M). Project economics are shown to be most sensitive to silver price and
silver grade, followed by operating costs.

The QP has reviewed the overall economics for Juanicipio and provides the following related
recommendations:
• Maintain focus on achieving steady-state operations as soon as practicable to achieve full
financial and operational benefit.
• Complete construction of the planned conventional conveyor as soon as practicable to
minimize operating costs and assist in maintaining production and mill feed targets.
• Re-evaluate the usage of vertical conveyors or other viable materials handling options as the
mine goes deeper.
• Further drilling and investigation work aimed at upgrading Inferred Mineral Resources is
recommended to consolidate the design basis for the project and, in particular, plans for, long
term ore handling.

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23 Adjacent properties
Fresnillo holds the mining concessions surrounding the Property. For many years, Fresnillo focused
exploration activity on tracing the San Carlos vein to the west from the known Fresnillo mining
centre and on exploration for parallel veins, both to the north and south of San Carlos (Figure 23.1).
Fresnillo has been successful in following the San Carlos vein for over six kilometres and in
discovering several parallel veins lying between the San Carlos and Saucito veins to the south. This
includes the Jarillas vein, which was traced eastward from the Valdecañas vein and now appears to
be the eastern extension of the Valdecañas vein. Fresnillo initially referred to the veins to the south
of San Carlos, including the Juanicipio Joint Venture area, as its Fresnillo II development project
(Fresnillo, 2009) but, since mid-2009, has referred to its 100% owned properties in that area as
the Saucito project, separate from the Juanicipio Joint Venture.

The Saucito project lies west of the Fresnillo Mine and east of the Property (Figure 23.1). The project
is made up of three main vein structures: El Saucito, Jarillas, and Santa Natalia. Smaller veins
include Madroño and Mesquite. Fresnillo (Fresnillo, 2022) reported Proven plus Probable Ore
Reserves (JORC reporting) for Saucito to be 13.66 Mt grading 264 g/t Ag, 1.17 g/t Au, 1.36% Pb,
and 2.27% Zn. Measured plus Indicated Mineral Resources (JORC reporting) for Saucito were
reported to be 21.10 Mt grading 289 g/t Ag, 1.54 g/t Au, 1.56% Pb, and 2.65% Zn. Inferred Mineral
Resources (JORC reporting) were reported to be 26.15 Mt grading 276 g/t Ag, 1.04 g/t Au,
1.38% Pb, and 2.96% Zn. The Saucito operation consists of an underground mine and two flotation
plants with a combined production rate around 7,800 tpd or 2,600,000 tpa. Fresnillo has built a
circuit to produce pyrite concentrates at Saucito, with the aim of increasing recovery rates of gold
and silver.

The QP notes that the Saucito tonnes and grade information referenced above is as per Fresnillo
reporting in the public domain. The QP has no reason to doubt that information but has not
undertaken independent verification. The Saucito information is not necessarily indicative of the
mineralization on the Property that is the subject of this Technical Report.

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Figure 23.1 Adjacent properties

Source: MAG Silver, 2023.

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24 Other relevant data and information

The QPs consider that there is no additional information or explanation to add at this time to make
the Technical Report more understandable and not misleading.

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25 Interpretation and conclusions

25.1 Drilling
In the opinion of the QP, the drilling strategy and procedures used by Fresnillo on the Juanicipio
Property conform to generally accepted industry best practices and are suitable for this deposit. The
drilling information is sufficiently reliable, and the drilling pattern is sufficiently dense to interpret
with confidence the geometry and the boundaries of silver, gold, zinc, and lead mineralization in
the Valdecañas vein system, and Juanicipio vein. All diamond drillcore sampling was conducted by
appropriately qualified personnel under the direct supervision of appropriately qualified geologists.

The QP is not aware of any drilling, sampling, or recovery factors that could materially impact the
accuracy and reliability of diamond drilling results from the Valdecañas vein system, and Juanicipio
vein.

25.2 Sample preparation, analyses, and security

The QP considers sample preparation and analytical and security protocols employed by Fresnillo to
be acceptable. The QP has reviewed the QAQC procedures used by Fresnillo including certified
reference materials, blank, duplicate and umpire data and has made some recommendations. The
QP does not consider these to have a material impact on the Mineral Resource estimate and
considers the assay database to be adequate for Mineral Resource estimation.

25.3 Data verification

The QPs consider the assay database to be acceptable for Mineral Resource estimation.

25.4 Mineral Resources

Six veins have been estimated. All are classified as Inferred except for portions of the Valdecañas
vein, which have been classified as Measured and Indicated. The development of the underground
operation with dense drilling and underground sampling has enabled the classification of Measured
Resources on this vein for the first time. Measured material consists of 8.5% of the Measured and
Indicated material on this vein.

Since the last Mineral Resource reported by MAG Silver in 2018, Measured and Indicated tonnes
have increased by 32.5%. The silver grades decreased by 27.4% and gold grades decreased by
11.4%, lead and zinc grades have increased by 37.0% and 44.6%, respectively. This reflects
additional drilling in the lower, more base-metal-rich part of the deposit.

Inferred tonnes increased by 15.8%. In the Inferred category silver grades have decreased by
3.9%, lead grades have decreased by 2.0% and zinc grades have increased by 10%. The gold
grades decreased in the Inferred Resource by 26.4%.

In regard to the management of the current Mineral Resource, reconciliation from the resource
model to the short-term model and to what is actually produced is recommended to be pursued
further.

25.5 Mineral Reserve estimate

Mineral Reserves are reported at an NSR cut-off value of $122 for longhole stoping and $150 for
cut and fill. Mineral Reserves are based only on Measured or Indicated Resources.

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The total Proven and the Probable Mineral Reserves are:

• 15.36 Mt at average grades of 1.58 g/t Au, 248 g/t Ag, 2.64% Pb, and 4.80% Zn.
• Relevant dilution and mining recovery factors have been applied in the estimation of Mineral
Reserves.
• The QP considers that the Mineral Reserves for Minera Juanicipio as stated herein are
consistent with industry standards and are suitable for public reporting purposes.

25.6 Mining
• The mine is accessed by two main declines and a conveyor decline. Procurement and
installation of the conveyor in the decline will occur to Year 2024 to Year 2025.
• Mechanized longhole stoping with waste backfill has been selected as the main mining method.
Some cut and fill stopes are planned for thinner veins or Poor ground conditions.
• Trade-off studies have identified that conveying the ore directly to the process plant from
underground is economically and operationally advantageous compared to other
arrangements.
• Evaluation of the production rate and scheduling indicates that the deposit supports a plan at
approximately 4,000 tpd.
• All waste will be tipped directly into stopes or trucked to surface. There will be a deficit in the
amount of waste required for backfilling estimated to be 4.2 Mt. It is assumed that additional
waste will be mined from a small surface pit and dropped down a waste pass for distribution
to the stopes.
• Approximately 15.4 Mt of ore is projected to be mined and processed over the currently
envisaged mine life of 13 years.
• Initial development and all development over the mine life has been or will be completed by
contractors. All stoping operations will be completed by the owner - this includes all waste
rock filling.
• Blasting will be undertaken primarily with ANFO and non-electric detonators. In conditions
that are wet, bulk emulsion explosives will be utilized.
• The ventilation system for Juanicipio is designed as a ‘pull’ system with primary exhaust fans
located on surface at the top of each primary exhaust raise.
• With the infrastructure airflow and leakage and balancing allowances the total airflow
determination based on the projected diesel fleet size is 550 m 3/s whilst currently 491 m³/s
is being circulated.
• The mine is using modern trackless mobile equipment for the development and stoping
operations.
• The peak number of personnel is projected to be 1,569, inclusive of a peak estimated number
for contactor employees of 1,056. Labour requirements are based on an operating schedule
of two, 12-hour shifts per day, 360 days per year.
• The underground workforce, as well as geology and survey, consists of three rotations working
for 10-days on (5 day shifts and 5 night shifts) and 5-days off rotation. Remaining technical
support staff, mining supervisors and general and administration employees work a 5-day per
week schedule.
• An underground waste materials balance study is recommended to further assess options for
the backfill deficit.
• A backfill study is recommended to further assess options for sill pillar recovery.
• As the planned strategy for ventilation of the conveyor and crusher has recently changed, a
review is recommended to confirm the overall ventilation strategy for the medium to long
term.

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25.7 Infrastructure
• A 6.5 km access road, mostly over hilly terrain, accesses the underground main declines portal
area from the mill, with the plant site being connected to the main highway by a 1.4 km road.
• Power supply is to a main substation at the plant site via a 115 kV overhead power line from
a pre-existing power line located to the north of the Property.
• Service water is generated at site by reverse osmosis process. Raw sewage water is treated
on site prior to use.
• Potable water is purchased from local providers as required.
• All mill tailings will be discharged to the TSF, which has a total projected volume of
approximately 8.5 Mt in its ultimate configuration. Stage 1 – Cell 1 of the TSF is currently in
operation with limited remaining capacity. Stage 1 – Cell 2 of the structure is partially
constructed and will be finished when the necessary permit is obtained. During the period in
which Cell 1 is at maximum storage capacity and Cell 2 construction has not been finished,
tailings from the Juanicipio processing plant will be pumped to the neighbouring mine’s TSF.
Stage 2 will be constructed following the construction of Stage 1 – Cell 2, providing additional
storage capacity via a downstream raise of the dam. The remaining estimated requirement
for an additional 3.7 Mt of tailings storage will come from an expansion to the TSF via a vertical
raise or an additional cell.
• Dewatering will be via two main pump stations capable of handling 5,000 gpm. Drilling ahead
of the advancing ramps has indicated no major water bearing structures. It is estimated that
this should be sufficient capacity for the life of the mine.
• Continuation of advanced dewatering of the orebody to reduce the amount of heat introduced
to the mine workings from ingress of hot groundwater is recommended.
• The risk of flooding will be partially mitigated by this early development strategy and by the
provision of spare pumping capacity.
• Mobile compressors supply compressed air for the underground operations, and primary
equipment, such as longhole drills, have their own mobile compressors. The main compressor
supplying air to the workshop is located near the No 2 fan on surface above the main portal
area and twin declines.

The QP considers that current infrastructure and plans for future additions and adjustments are
appropriate to support the Juanicipio Mineral Reserves and their extraction.

25.8 Processing
AMC visited Juanicipio in February 2024 and conducted an inspection of the Juanicipio plant. The
facility was observed to be clean, well maintained and being operated in a safe and orderly manner.
A site-wide maintenance record-keeping, planning and execution system utilizing industry standard
software is fully implemented.

The designed throughput rate for the Juanicipio plant is 4,000 tpd. Daily averages increased during
the commissioning and ramping up of the new plant and have demonstrated achievement of
designed performance.

Gold recovery averaged 69.4% for March to December 2023 compared to the planned value of
75.8%. However, recoveries have improved as ramp-up and optimization of plant circuits have
progressed, with gold recovery in December 2023 averaging 71.4%.

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Recoveries for silver, lead and zinc exceeded plan:

• Silver recovery averaged 87.6% for March to December 2023 compared to the planned value
of 87.1%.
• Lead recovery averaged 89.9% for March to December 2023 compared to the planned value
of 86.3%.
• Zinc recovery averaged 90.5% for March to December 2023 compared to the planned value
of 74.5%.

Excluding the start-up month of March 2023, lead content of lead concentrate exceeded the planned
value of 33.75% and ranged from 38% to 52%. Zinc content was generally in the planned range
from 4.84% Zn to 12.0% Zn and ranged from 7% to 14%.

Excluding the start-up month of March 2023, zinc content of zinc concentrate exceeded the planned
value of 49.71% and ranged from 49% to 53%. Lead content generally met the planned limit of
1.31%.

Commissioning and ramp-up have generally gone well, with the plant achieving designed
throughput and designed silver, lead and zinc recoveries and concentrate grades. The QP
acknowledges the continuing testing and process development being conducted by the plant’s
operators to improve gold recovery, and recommends continuation of the program.

The pyrite circuit has initially been in an optimization phase, with delivery to, and acceptance of a
first pyrite concentrate shipment by, an off-shore purchaser recently achieved.

25.9 TSF
Detailed design of the TSF for the project has been undertaken by Knight Piésold. It is estimated
that the Juanicipio processing plant will produce approximately 12.2 Mt of tailings for surface storage
over an anticipated mine life of approximately 13 years. Mill tailings will be discharged to the TSF,
which has a total volume capacity of approximately 8.5 Mt, as currently designed. The remaining
required tailings storage will come from potential deepening of the Cell 2 basin, a future expansion
to the TSF through construction of an adjacent cell, and / or a vertical raise of the dam.

The TSF is designed for two construction and operational phases, denoted Stages 1 and 2. Stage 1
will be constructed to a crest elevation of 2,217 m amsl and will have a maximum height of
approximately 33 m. When the facility is at its ultimate configuration, Stage 2, the maximum height
of the dam will be approximately 38 m, with a crest elevation of 2,222 m amsl. The Stage 1 dam
may be considered a starter dam, encircling three sides of the geomembrane-lined tailings storage
basin; the fourth side of the facility is created by the natural hillside slope. The final facility will be
completed via a 5-m downstream raise of the Stage 1 dam, known as Stage 2. For both the Stage 1
and Stage 2 configurations, the upstream and downstream slopes of the dam are designed to
2.5:1.0 H:V with a crest width of 10 m.

The Juanicipio TSF features a homogeneous dam (i.e., non-zoned) founded upon native materials.
Following site stripping, foundation preparation consists of removing all unsuitable soil strata (i.e.,
loose, caliche-rich) until reaching a competent layer as determined by site engineers. The dam
contains a basal drainage system, consisting of a blanket drain built below the downstream portion
of the dam to control potential seepage. Seepage that reaches the blanket drain is conveyed to
collection drains along the outer perimeter of the dam, and then discharged into geomembrane-lined
collection ponds. Seepage collected in the ponds is recirculated to the TSF, to the processing plant,
or, as permitted by geochemical testing and regulations, discharged directly into the downstream
environment.

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Surface water management at the TSF is facilitated primarily by two non-contact diversion channels,
one along the east side of the dam and the other along the south end and west sides of the facility.

The channels are verified to accommodate run-on from the 1,000-year storm event as required by
CONAGUA. The east diversion channel is concrete-lined and the south / west channel is geotextile
and riprap lined to deter erosion. Both channels feature energy dissipators at their termini prior to
flow discharging into the downstream native environment. The TSF does not contain an operational
spillway as it has been designed to store rainfall and run-on associated with the 72-hour PMP.

In regard to the TSF, a commitment is required to provide additional necessary storage capacity:
• Site investigation work completed in 2023 indicated that the excavation of the Cell 2 tailings
basin could be deepened to provide additional tailings storage and produce sufficient fill for
the Stage 2 raise of the TSF. Conceptual engineering of the deepened Cell 2 basin by Knight
Piésold suggests that more than a year of additional tailings storage could be added to the
TSF. Detailed engineering of the Cell 2 basin deepening has been authorized by Minera
Juanicipio.
• Even with the Cell 2 tailings basin deepening, the Juanicipio TSF will not have sufficient storage
capacity to meet the life of mine tailings production. As noted, it is envisaged that the
remaining required tailings storage will come from potential deepening of the Cell 2 basin, a
future expansion to the TSF through construction of an adjacent cell, and / or a vertical raise
of the dam. It is recommended that all viable opportunities be explored for expansion of the
TSF capacity.

25.10 Environmental, permitting, and social aspects

Environmental investigations included baseline assessments and initial studies required under
MIA-R.

The mine is in a region that hosts several significant mining operations where the community is
accustomed to mining activities. The QP is not aware of any environmental permitting or licensing
requirements to which the Property has been or will be subject other than the normal mine
permitting and licensing requirements as set forth by the Mexican Government.

Fresnillo, on behalf of Minera Juanicipio, has confirmed that the project does not have any
environmental obligations or liabilities identified to date.

Key permits and licenses for the project are in place and Fresnillo has indicated that all the land
included in the design and operation of the Juanicipio mine has been purchased. There is no further
expected requirement in this regard.

Climate change aspects were not specifically addressed in the Mineral Reserve estimation, but the
QP considers that, for Juanicipio, any impacts would not have a material effect.

25.11 Economics
The economic assessment clearly indicates the strong economic viability of the Juanicipio Project.
Over a 13-year operating life, the mine is projected to generate approximately $1,656M pre-tax
NPV and $1,224M post-tax NPV at 5% discount rate. Operating costs used for the economic
evaluation are based on actual operating costs and benchmark costs for similar operations in the
area. Total remaining capital expenditure is estimated at $453M. Further drilling and investigation
work aimed at upgrading Inferred Mineral Resources is recommended to consolidate the design
basis for the project and, in particular, plans for long term ore handling.

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25.12 Risks
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There
is a degree of uncertainty attributable to the estimation of Mineral Resources. There are considerable
Mineral Reserves estimated based on the Indicated Resources available which substantially reduces
the risk. However, until Mineral Resources are actually mined and processed, the quantity of
mineralization and grades must be recognized as estimates only. Any material change in quantity
of resources, mineralization, or grade may affect the economic viability of the project.

Increasing operating costs may lead to a reduction in the economic viability of the current Mineral
Reserves and could, therefore, affect overall project economics. Careful attention to cost control
and optimization should be considered during operations.

Ground control and appropriate ground support regimes must always be at the forefront of the mine
operating and management focus, and particularly in Poor ground areas and / or where faults are
anticipated to be encountered.

25.13 Opportunities for further consideration currently excluded from project scope
Potential opportunities for the project include:
• Inferred Mineral Resources have the potential to be converted to Indicated Mineral Resources
through additional exploration work, some of which can be converted through near-term infill
drilling.
• Significant exploration potential within a large land package and a number of high priority drill
targets.
• The Valdecañas vein system is largely open at depth.
• The Juanicipio vein is open to the west and to depth for further exploration.

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26 Recommendations
Other than for costs estimated below for exploration, the QPs consider that implementation of the
following recommendations can form part of the day-to-day operating cost of the Juanicipio mine.

26.1 Sample preparation, analyses, and security - QAQC

Fresnillo has recently implemented a QAQC program that combines key elements to monitor
accuracy, precision, and sample contamination during sample preparation and analysis. The QP
makes the following recommendations for future QAQC programs:
• General QAQC
⎯ Increase insertion rates for all QAQC sample types as necessary to meet industry
standards and develop a procedure to ensure that QAQC samples are included in each
batch of samples submitted to the laboratory.
⎯ Create a SOP that outlines the actions to be taken for QAQC failures.
⎯ Establish a ‘table of failures’ that documents warnings, failures, and remedial actions
taken for all QAQC sample types.
• Standard reference materials
⎯ Insert additional SRMs to cover a wider range of grades. For each economic metal, the
QP recommends the use of SRMs with values at the approximate cut-off grade of the
deposit, at the approximate expected grade of the deposit, and at a higher grade. The
current suite of SRMs used at Juanicipio do not cover the approximate expected Au, Ag,
or Zn grades, and an SRM with a Zn grade higher than the approximate expected grade
of the deposit is not used. Additional SRMs should be used that cover these values.
⎯ Plot SRM data over time to check for potential bias and instrumental drift.
⎯ Review SRM results using control charts as well as on a batch-by-batch basis. Re-assay
sample batches where the SRM value is greater than three standard deviations from the
expected value declared on the assay certificate. Investigate sample batches containing
consecutive SRMs with results outside of two standard deviations of the expected value.
⎯ Ensure that insertion rates for SRM samples meet industry standards (5 –6%).
• Blank samples
⎯ Establish a protocol for the remedial action to be taken to address sample batches with
failed blanks.
⎯ Adjust sampling procedures so that blank samples are included immediately after visible
high-grade mineralization.
⎯ Consider adding coarse blank material to the QAQC sample suite. This would allow for
better monitoring of contamination during sample preparation.
⎯ Consider inserting blank material that is certified for Ag, Pb, and Zn. Contamination is
currently only monitored for Au, but it is important to monitor contamination for all
analytes given their high grades.
⎯ Consider reducing the blank failure limit to 2x LLD.
• Duplicate samples
⎯ Develop a procedure that allows for selection of the majority of duplicate samples from
visibly mineralized zones that are likely to exceed 15x LLD.
⎯ Request detail on the pulp sub-sampling process to understand possible sampling errors.
⎯ Submit duplicate samples in the surface diamond drill sample stream. All QAQC sample
types should be submitted for all sample streams to ensure that the data can be properly
assessed.

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• Umpire samples
⎯ Include SRM and pulp blank samples with umpire sample submissions. Ensure that these
SRM and blank samples are identified as umpire QAQC samples in the database so that
they can be reviewed independently of other SRMs and blanks.
⎯ Submit umpire samples in the mine diamond drill sample stream.
⎯ All QAQC sample types should be submitted for all sample streams to ensure that the
data can be properly assessed.

26.2 Mineral Resources

• Use estimation parameters that ensure a minimum of two samples and two drillholes inform
each block for the Venadas and Juanicipio veins.
• Evaluate and document the effect of the inclusion of channel samples on the grade estimates.
• Carry out reconciliation between production and local estimates.
• Assess method to more clearly demonstrate reasonable prospects for eventual economic
extraction.
• To give greater certainty to the plan, carry out in-fill drilling prior to the delimitation of the
production stopes and, as far as possible, achieve a distance between holes of 35 to 50 m.
• Ensure that geology is incorporated in any detailed short-term modelling and delineation.
• Continue drilling to depth in the Valdecañas veins.
• Continue drilling from the upper part of the Ramal 1 development to confirm vein continuity.

The above items would be budgeted and be part of the mine operating costs.

Recommended exploration work is shown below in Table 26.1, along with estimated costs. This is
to be carried out by two separate groups: Operations and Exploration.

Table 26.1 Proposed program and cost estimate

Activity Proposed program Metres Cost (US$)
Underground Drilling Operational division 33,000 3,017,000
Other Expenses 104,000
Assay 564,000
Other 174,000
Surface Drilling Exploration division 17,000 3,548,000
Other expenses 666,000
Assay 186,000
Total 50,000 8,258,000
Note: Totals may not compute exactly due to rounding.

26.3 Mineral Reserves

• Consider streamlining the COG definition process. The QP considers the estimation process for
COG that uses a variable trucking cost component to be relatively complex, without making a
material difference.
• Mining operations are ramping up to full production. It is recommended that full
acknowledgement be given to actual costs for steady state operations going forward.
• Recognizing that the mine is now milling ore through the Juanicipio plant, it is recommended
that process recoveries specific to plant steady-state operation are well recorded and are used
in future Mineral Reserve estimation.

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26.4 Mining
• An underground waste materials balance study is recommended to further assess options for
the backfill deficit.
• A backfill study is recommended to further assess options for pillar recovery and tailings
disposal.
• As the planned strategy for ventilation of the conveyor and crusher has recently changed, a
review is recommended to confirm the overall ventilation strategy for the medium to long
term.

26.5 Geotechnical
• Conduct stope reconciliation and identify the root cause of overbreak and underbreak and
optimize future stoping design criteria.
• Focus on drilling and blasting practices to minimize the blasting effects of overbreak and
dilution.
⎯ Optimize drill and blasting design particularly for poor ground and adverse structures.
⎯ Develop and implement a robust QAQC procedure to improve drilling accuracy and
blasting quality.
• Improvements to drilling and blasting with stand-off of approximately 1.0 m from the CMS fill
shape will reduce the blast damage dilution and increase the stability of the exposed fill.
• Before assessing stability of future raises and required support, specific geotechnical drilling
should be undertaken along the centreline of the selected sites and a thorough analysis of
rock mass and discontinuity properties should be made. A detailed core logging program would
be an integral part of each raise assessment.
• Ground improvement options should be considered for raise stability, as required.
• Update the GCMP to reflect the current ground control practices at Juanicipio. All key aspects
of lithology, structures (major and minor), geotechnical model, rock mass characterization,
geotechnical design criteria for ground support and stope design, monitoring and QAQC should
be included in the GCMP.
• Optimize ground support and improve ground support design particularly for Poor ground.
⎯ Consider replacing mesh and plain shotcrete with fibrecrete to increase productivity and
cost reduction.
⎯ Improve configurations for reinforced rib shotcrete (light frame) and spiling.

26.6 Infrastructure
• Consider opportunities to optimize the materials handling system for deeper ore with an aim
to reduce operating costs and increase efficiency.
• Continue with advanced dewatering of the orebody to reduce the amount of heat introduced
to the mine workings from ingress of hot groundwater.
• Consider all options for necessary expansion of TSF capacity, with work to be completed in a
timeframe that matches tailings disposal requirements.

26.7 Processing
• Commissioning and ramp-up have generally gone well, with the plant achieving designed
throughput and designed silver, lead, and zinc recoveries and concentrate grades. The QP
acknowledges the continuing testing and process development being conducted by the plant’s
operators to improve all processing aspects, including for gold recovery, and recommends
continuation of the program.

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26.8 TSF
• Investigate all viable options for provision of additional necessary TSF storage capacity,
currently projected to be 3.7 Mt of tailings. Identified options include potential deepening of
the Cell 2 basin (currently being pursued but would only provide some of the required
capacity), a future expansion to the TSF through construction of an adjacent cell, and / or
from a vertical raise of the dam.

26.9 Economics
The QP has reviewed the overall economics for Juanicipio and provides the following related
recommendations:
• Maintain focus on achieving steady-state operations as soon as practicable to achieve full
financial and operational benefit.
• Complete construction of the planned conventional conveyor as soon as practicable to
minimize operating costs and assist in maintaining production and mill feed targets.
• Re-evaluate the usage of vertical conveyors or other viable materials handling options as the
mine goes deeper.
• Further drilling and investigation work aimed at upgrading Inferred Mineral Resources is
recommended to consolidate the design basis for the project and, in particular, plans for long
term ore handling.

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27 References
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Chartier, D., Cole, G., and Couture, J.-F. 2008, Mineral Resource Estimation, Valdecañas Silver Gold
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Clark, L., and Pakalnis, R. 1997, An Empirical Design Approach for Estimating Unplanned Dilution
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de Cserna, Z. 1976, Geology of the Fresnillo area, Zacatecas, Mexico. Geological Society of America
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de Cserna, Z., Delevaux, M.H., and Harris, D.C. 1977, Datos isotópicos, mineralógicos y modelo
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(2017 AMC Technical Report) prepared by AMC on behalf of MAG Silver with an effective date of
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Megaw, P.K.M. 2010, Discovery of the Silver-Rich Juanicipio-Valdecañas Vein Zone, Western
Fresnillo District, Zacatecas, Mexico. Society of Economic Geologists, Inc. Special Publication 15,
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Megaw, P.K.M., and Ramirez, R.L. 2001, Report on Phase 1 data compilation and geological,
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28 QP Certificates
CERTIFICATE OF AUTHOR

I, Paul Salmenmaki, P.Eng., of Vancouver, British Columbia, do hereby certify that:

1 I am currently employed as a Principal Mining Engineer with AMC Mining Consultants (Canada)
Ltd. (EGBC Permit #1002350), with an office at Suite 202, 200 Granville Street, Vancouver,
British Columbia V6C 1S4.
2 This certificate applies to the Technical Report titled “Juanicipio Mineral Resources and Mineral
Reserves NI 43-101 Technical Report” with an effective date of 4 March 2024, (the “Technical
Report”) prepared for MAG Silver Corp (“the Issuer”).
3 I am a graduate of Laurentian University in Sudbury, Canada (Bachelor of Applied Science in
Mining Engineering in 1998). I am a member in good standing of the Engineers and
Geoscientists British Columbia (ID#40227) and the Professional Engineers Ontario (License
#100012945). I have experience in underground copper-nickel mines, industrial minerals,
narrow vein precious metal deposits, bulk mining methods for base metals, mine
infrastructure, mine design and planning, mine production and financial evaluation, reserve
estimation, technical reviews, all levels of studies from scoping to feasibility, project, and
construction management.
I have read the definition of "qualified person" set out in National Instrument 43-101
Standards of Disclosure for Mineral Projects (“NI 43-101”) and certify that by reason of my
education, affiliation with a professional association (as defined in NI 43-101) and past
relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes
of NI 43-101.
4 I have visited the Minera Juanicipio property from 15 to 16 February 2024.
5 I am responsible for Sections 2 – 6, 15, 20 – 24, and parts of Sections 1, 12, 16 and 25 - 27
of the Technical Report.
6 I am independent of the Issuer and related companies applying all of the tests in Section 1.5
of the NI 43-101.
7 I have not had prior involvement with the property that is the subject of the Technical Report.
8 I have read NI 43-101 and each section of the Technical Report for which I am responsible
has been prepared in compliance with NI 43-101.
9 As of the effective date of the Technical Report, to the best of my knowledge, information,
and belief, each section of the Technical Report for which I am responsible contains all scientific
and technical information that is required to be disclosed to make the Technical Report not
misleading.

Effective Date: 4 March 2024

Signing Date: 27 March 2024

Original signed by

Paul Salmenmaki
Principal Mining Engineer
AMC Mining Consultants (Canada) Ltd.

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CERTIFICATE OF AUTHOR

I, Robert Chesher, FAusIMM (CPMET), of Brisbane, Australia, do hereby certify that:

1 I am currently employed as a Principal Consultant with AMC Consultants Pty Ltd, with an office
at Level 15, 100 Creek Street, Brisbane Qld 4000, Australia.
2 This certificate applies to the Technical Report titled “Juanicipio Mineral Resources and Mineral
Reserves NI 43-101 Technical Report” with an effective date of 4 March 2024, (the “Technical
Report”) prepared for MAG Silver Corp (“the Issuer”).
3 I am a graduate of University of Queensland in Saint Lucia, Australia (BA Science in
Metallurgical in 1977). I am a Fellow in good standing of the Australian Institute of Mining and
Metallurgy (AusIMM) and am accredited as a Chartered Professional of the AusIMM in the
discipline of Metallurgy (License #311429). I am a Registered Professional Engineer of
Queensland (RPEQ #24758). I have practiced my profession continuously since 1977. My
expertise is in corporate and technical (metallurgical) consulting, focusing on operational and
performance reviews, improvements, and optimization.
I have read the definition of "qualified person" set out in National Instrument 43-101
Standards of Disclosure for Mineral Projects (“NI 43-101”) and certify that by reason of my
education, affiliation with a professional association (as defined in NI 43-101) and past
relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes
of NI 43-101.
4 I have not visited the Minera Juanicipio property.
5 I am responsible for Sections 13, 17, 19 and parts of Sections 1 and 25 - 27 of the Technical
Report.
6 I am independent of the Issuer and related companies applying all of the tests in Section 1.5
of the NI 43-101.
7 I have not had prior involvement with the property that is the subject of the Technical Report.
8 I have read NI 43-101 and each section of the Technical Report for which I am responsible
has been prepared in compliance with NI 43-101.
9 As of the effective date of the Technical Report, to the best of my knowledge, information,
and belief, each section of the Technical Report for which I am responsible contains all scientific
and technical information that is required to be disclosed to make the Technical Report not
misleading.

Effective Date: 4 March 2024

Signing Date: 27 March 2024

Original signed by

Robert Chesher, FAusIMM (CPMET)

Principal Consultant
AMC Consultants Pty Ltd

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Juanicipio Mineral Resource and Mineral Reserves NI 43-101 Technical Report
MAG Silver Corp. 0723032

CERTIFICATE OF AUTHOR

I, Mo Molavi, P.Eng., of Vancouver, British Columbia, do hereby certify that:

1 I am currently employed as a Director / Mining Services Manager / Principal Mining Engineer
with AMC Mining Consultants (Canada) Ltd. (EGBC Permit #1002350), with an office at Suite
202, 200 Granville Street, Vancouver, British Columbia V6C 1S4.
2 This certificate applies to the Technical Report titled “Juanicipio Mineral Resources and Mineral
Reserves NI 43-101 Technical Report” with an effective date of 4 March 2024, (the “Technical
Report”) prepared for MAG Silver Corp (“the Issuer”).
3 I am a graduate from Laurentian University in Sudbury, Canada (Bachelor of Engineering in
1979) and McGill University of Montreal, Canada (Master of Engineering in Rock Mechanics
and Mining Methods in 1987). I am a registered member in good standing of the Association
of Professional Engineers and Geoscientists of Saskatchewan (License #5646), the Engineers
and Geoscientists British Columbia (License #37594), and a Member of the Canadian Institute
of Mining, Metallurgy and Petroleum. I have worked as a Mining Engineer for a total of 43
years since my graduation from university and have relevant experience in project
management, feasibility studies, and technical report preparations for mining projects.
I have read the definition of "qualified person" set out in National Instrument 43-101
Standards of Disclosure for Mineral Projects (“NI 43-101”) and certify that by reason of my
education, affiliation with a professional association (as defined in NI 43-101) and past
relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes
of NI 43-101.
4 I have not visited the Minera Juanicipio property.
5 I am responsible parts of Sections 1, 16, 18, 25, and 26 of the Technical Report.
6 I am independent of the Issuer and related companies applying all of the tests in Section 1.5
of the NI 43-101.
7 I have had prior involvement with the property that is the subject of the Technical Report.
8 I have read NI 43-101 and each section of the Technical Report for which I am responsible
has been prepared in compliance with NI 43-101.
9 As of the effective date of the Technical Report, to the best of my knowledge, information,
and belief, each section of the Technical Report for which I am responsible contains all scientific
and technical information that is required to be disclosed to make the Technical Report not
misleading.

Effective Date: 4 March 2024

Signing Date: 27 March 2024

Original signed by

Mo Molavi
Director / Mining Services Manager / Principal Mining Engineer
AMC Mining Consultants (Canada) Ltd.

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Juanicipio Mineral Resource and Mineral Reserves NI 43-101 Technical Report
MAG Silver Corp. 0723032

CERTIFICATE OF AUTHOR

I, John Morton Shannon, P.Geo., of North Vancouver, British Columbia, do hereby certify that:
1 I am currently a Principal Geologist with an address at 4-2133 St Georges Avenue, North
Vancouver, BC, Canada.
2 This certificate applies to the Technical Report titled “Juanicipio Mineral Resources and Mineral
Reserves NI 43-101 Technical Report” with an effective date of 4 March 2024, (the “Technical
Report”) prepared for MAG Silver Corp (“the Issuer”).
3 I am a graduate of Trinity College Dublin in Dublin, Ireland (BA Mod Nat. Sci. in Geology in
1971). I am a member in good standing of the Engineers and Geoscientists British Columbia
(Registration #32865). I have practiced my profession continuously since 1971 and have been
involved in mineral exploration and mine geology for over 50 years since my graduation from
university. This has involved working in Ireland, Zambia, Canada, and Papua New Guinea. My
experience is principally in base metals and precious metals and have been Chief Geologist on
two very large mines for major companies, with responsibility for all geological aspects of the
operation. I have been involved in many properties in Mexico in a consulting capacity over the
past 12 years.
I have read the definition of "qualified person" set out in National Instrument 43-101
Standards of Disclosure for Mineral Projects (“NI 43-101”) and certify that by reason of my
education, affiliation with a professional association (as defined in NI 43-101) and past
relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes
of NI 43-101.
4 I have not visited the Minera Juanicipio property.
5 I am responsible for Sections 14, and parts of Sections 1, and 25 - 27 of the Technical Report.
6 I am independent of the Issuer and related companies applying all of the tests in Section 1.5
of the NI 43-101.
7 I have had prior involvement with the property that is the subject of the Technical Report, in
a review capacity only.
8 I have read NI 43-101 and the section of the Technical Report for which I am responsible has
been prepared in compliance with NI 43-101.
9 As of the effective date of the Technical Report, to the best of my knowledge, information,
and belief, the section of the Technical Report for which I am responsible contains all scientific
and technical information that is required to be disclosed to make the Technical Report not
misleading.

Effective Date: 4 March 2024

Signing Date: 27 March 2024

Original signed by

John Morton Shannon

Principal Geologist

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Juanicipio Mineral Resource and Mineral Reserves NI 43-101 Technical Report
MAG Silver Corp. 0723032

CERTIFICATE OF AUTHOR

I, Robert Craig Stewart, P.Geo., of Calgary, Alberta, do hereby certify that:

1 I am currently employed as a Senior Geologist with AMC Mining Consultants (Canada) Ltd.
(EGBC Permit #1002350), with an office at Suite 202, 200 Granville Street, Vancouver, British
Columbia V6C 1S4.
2 This certificate applies to the Technical Report titled “Juanicipio Mineral Resources and Mineral
Reserves NI 43-101 Technical Report” with an effective date of 4 March 2024, (the “Technical
Report”) prepared for MAG Silver Corp (“the Issuer”).
3 I am a graduate of Saint Mary’s University in Halifax, Canada (Bachelor of Science in Geology
in 2008, and Master of Applied Science in Geochemistry in 2011) and Laurentian University in
Sudbury, Canada (Doctor of Philosophy in Mineral Deposits and Precambrian Geology in 2017).
I am a member in good standing of the Engineers and Geoscientists British Columbia (License
#55480). I have worked in multi-commodity deposits (e.g., gold, silver, lead, zinc) in northern
British Columbia, Alaska, the Yukon, and Nunavut. I am highly skilled in data synthesis,
including QAQC, and have been doing this work since 2008.
I have read the definition of "qualified person" set out in National Instrument 43-101
Standards of Disclosure for Mineral Projects (“NI 43-101”) and certify that by reason of my
education, affiliation with a professional association (as defined in NI 43-101) and past
relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes
of NI 43-101.
4 I have not visited the Minera Juanicipio property.
5 I am responsible for Sections 7-11 and parts of Sections 1, 12, and 25 - 27 of the Technical
Report.
6 I am independent of the Issuer and related companies applying all of the tests in Section 1.5
of the NI 43-101.
7 I have had prior involvement with the property that is the subject of the Technical Report. I
wrote a Quality Assurance / Quality Control assessment report and contributed as a writer to
an audit report in 2023.
8 I have read NI 43-101 and each section of the Technical Report for which I am responsible
has been prepared in compliance with NI 43-101.
9 As of the effective date of the Technical Report, to the best of my knowledge, information,
and belief, each section of the Technical Report for which I am responsible contains all scientific
and technical information that is required to be disclosed to make the Technical Report not
misleading.

Effective Date: 4 March 2024

Signing Date: 27 March 2024

Original signed by

Robert Craig Stewart

Senior Geologist
AMC Mining Consultants (Canada) Ltd.

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CERTIFICATE OF AUTHOR

I, Gilberto Dominguez, P.E., of Denver, Colorado, United States of America, do hereby certify that:
1 I am currently employed as a Vice President of Knight Piésold and Co., with an office at 1999
Broadway, Suite 900, Denver, Colorado 80207, U.S.A. I am acting as Operations Manager of
Knight Piesold Consulting S.A. de C.V. with an office at Av. Presidente Masaryk no. 29, Piso 11,
Polanco V Sección, Miguel Hidalgo, Mexico City 11560, Mexico.
2 This certificate applies to the Technical Report titled “Juanicipio Mineral Resources and Mineral
Reserves NI 43-101 Technical Report” with an effective date of 4 March 2024, (the “Technical
Report”) prepared for MAG Silver Corp (“the Issuer”).
3 I am a graduate from Pontificia Universidad Catolica del Peru in Lima, Peru (Bachelor’s, Civil
Engineering in 1989); from Pennsylvania State University in State College, Pennsylvania,
U.S.A (Master’s, Pavement & Geotechnical Engineering in 1992); and Washington University
in St. Louis, Missouri, U.S.A. (Master’s, International Project Management in 1994). I am a
registered member in good standing of the Professional Engineers of Colorado (License
#0032075). I have worked as a Civil Engineer for a total of 30+ years since my graduation
from university and have relevant experience in management, design, geotechnical and
hydraulic engineering, environmental control, permitting processes, and construction technical
support, particularly in the mining sector. I have worked extensively in design and construction
of waste, including tailings, and water management facilities. My experience includes
geotechnical and hydrological studies as well as project direction and coordination between
several disciplines, specialists, sub-consultants, and contractors; and with local and
international offices, optimizing tasks allocation, budgets and schedules.
I have read the definition of "qualified person" set out in National Instrument 43-101
(NI 43-101) and certify that by reason of my education, affiliation with a professional
association (as defined in NI 43-101) and past relevant work experience, I fulfill the
requirements to be a "qualified person" for the purposes of NI 43-101.
4 I have visited the Minera Juanicipio property on February 14, 2024.
5 I am responsible for parts of Sections 1, 18, 25, and 26 of the Technical Report.
6 I am independent of the Issuer and related companies applying all of the tests in Section 1.5
of the NI 43-101.
7 I have not had prior involvement with the property that is the subject of the Technical Report.
8 I have read NI 43-101 and the section of the Technical Report for which I am responsible has
been prepared in compliance with NI 43-101.
9 As of the effective date of the Technical Report, to the best of my knowledge, information,
and belief, the section of the Technical Report for which I am responsible contains all scientific
and technical information that is required to be disclosed to make the Technical Report not
misleading.

Effective Date: 4 March 2024

Signing Date: 27 March 2024

Original signed by

Gilberto Dominguez
Vice President
Knight Piésold and Co.
Juanicipio Mineral Resource and Mineral Reserves NI 43-101 Technical Report
MAG Silver Corp. 0723032

Our offices
Australia
Adelaide Brisbane
Level 1, 12 Pirie Street Level 15, 100 Creek Street
Adelaide SA 5000 Australia Brisbane Qld 4000 Australia
T +61 8 8201 1800 T +61 7 3230 9000
E [email protected] E [email protected]

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Level 12, 477 Collins Street Level 1, 1100 Hay Street
Melbourne Vic 3000 Australia West Perth WA 6005 Australia
T +61 3 8601 3300 T +61 8 6330 1100
E [email protected] E [email protected]

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Toronto ON M5C 1X6 Canada Vancouver BC V6C 1S4 Canada
T +1 647 953 9730 T +1 604 669 0044
E [email protected] E [email protected]

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First Floor, Willowbridge Centre Registered in England and Wales
Carl Cronje Drive Company No. 3688365
Cape Town 7530 South Africa
Building 3, 1st Floor
T +27 720 833 231 Concorde Park, Concorde Road
E [email protected] Maidenhead SL6 4BY United Kingdom
T +44 1628 778 256
E [email protected]
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