State-owned CFE has approved the commissioning of the main substation that will supply power to Mexico’s $440 million Juanicipio project, owned by Fresnillo.

“Fresnillo can confirm that the main substation that will supply the project has been inspected and approved for use,” the miner said in a statement. “This is a key milestone as the new substation components are 100% connected to the grid and the project’s main transformer has already been energized.”

Juanicipio, in the state of Zacatecas, is 56% owned by Fresnillo and 44% by MAG Silver. It is expected to become one of Mexico’s largest silver mines, bringing in 11.7 million ounces of silver and 43,500 ounces of gold annually.

Fresnillo, 75% owned by Industrias Peñoles, plans to start and expand production operations in Juanicipio after grid connection delays. Construction was complete by the end of 2021 and the ore is transported to the Fresnillo and Saucito mines for processing.

systems testing downstream the control and distribution of electrical energy for the final connection to the national grid continues in accordance with the requirements of the CFE.

“Fresnillo is very confident in the integrity of the new systems and that they will meet the regulator’s strict requirements. [Cenace]. Additionally, we are confident in our ability to rapidly ramp up operations once all end items are officially approved and full load start-up of Juanicipio commences,” the miner said in the release.

In September, Fresnillo CEO Octavio Alvídrez told the Gold Forum Americas event in Colorado Springs that commissioning of the plant will begin as soon as the mine is powered up, scheduled for the end of the month, while scaling will continue. the end of the year. A new start date has not been communicated.