Welcome!

News Feed Item

First Majestic Updates Reserves and Resource Estimates and Files Form 40-F Annual Report

TSX - FR March 27, 2014
NYSE - AG
Frankfurt - FMV (WKN: A0LHKJ)

VANCOUVER, March 27, 2014 /PRNewswire/ - First Majestic Silver Corp. ("First Majestic" or the "Company") is pleased to announce the updated Mineral Reserve and Resource estimates for its portfolio of properties in Mexico as of December 31, 2013.  The mineral Reserve and Resource estimates were calculated using US$24.00 per ounce silver, US$1,400 per ounce gold, US$0.95 per pound lead and US$0.90 per pound zinc.

The Company also announces that its 2013 audited financial statements have been filed on SEDAR.  In addition, a Form 40-F report has been filed with the United States Securities and Exchange Commission and is available on EDGAR.  Both documents are also available on the Company's website at www.firstmajestic.com.

Shareholders may also receive a copy of First Majestic's audited financial statements, without charge, upon request to First Majestic, Suite 1805 - 925 West Georgia Street Vancouver, B.C., Canada, V6C 3L2 or to [email protected].

HIGHLIGHTS

  • 138,734,210 silver equivalent ounces of Proven and Probable Reserves
  • 102,309,851 silver equivalent ounces of Measured and Indicated Resources
  • 285,388,953 silver equivalent ounces of Inferred Resources

In general, the tonnage for Mineral Reserves for the individual mines have decreased by 5% due to depletion and reclassification of Reserves into Measured and Indicated Resources in response to lower metal prices compared to the 2012 estimates. The Company has used US$24.00 silver prices with a cut-off of December 31, 2013, which impacted cut-off grades resulting in a reduction in the size of some ore blocks or conversely reclassification of ore blocks into lower categories. Total silver Reserves/Resources were reduced by 10% while total equivalent silver Reserves/Resources were reduced by 4%.

EXPLORATION AND DEVELOPMENT

In 2013, the Company invested $94.4 million on exploration and development activities and completed 58,578 metres of diamond drilling and 53,257 metres of underground development on its five operating mines in Mexico.  This represents a 57% reduction in drilling compared to 135,769 metres in 2012, and a 7% reduction in underground development as a result of numerous budget cuts which occurred throughout 2013 due to weak silver prices.

In 2014, First Majestic plans to invest $8.0 million on exploration activities.  The main priority of the exploration work is to further define and upgrade Resources to support future updates to the Company's NI 43-101 Technical Reports.  As a result of the exploration budget cuts in 2013, and reduced programs in 2014, no grassroots or greenfields drilling is taking place.  All drilling is either focused on mining activities or definition drilling.

The following table contains the Mineral Reserve and Resource as of December 31, 2013.

                   
PROVEN AND PROBABLE RESERVES 2013                
Mine/Project Category Mineral type Tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag (Oz) AgEq (Oz) 
LA ENCANTADA Proven (UG) Oxides 1,023,409 316 - 2.9 1.6 10,410,996 10,410,996
Proven (tailings) Oxides 5,304,946 105 - 0.6 0.2 17,903,993 17,903,993
Probable (UG) Oxides 1,030,341 269 - 2.6 1.2 8,916,063 8,916,063
Total Proven & Probable (UG) Oxides 7,358,696 157 - 1.2 0.5 37,231,053 37,231,053
                   
LA PARRILLA Proven (UG) Oxides 417,722 192 0.06 0.4 0.2 2,574,698 2,620,763
Proven (OP) Oxides 533,799 63 0.06 - - 1,081,207 1,140,073
Probable (UG) Oxides 1,105,650 190 0.06 0.5 0.5 6,751,587 6,873,515
Total Proven & Probable (UG)  Oxides 2,057,170 157 0.06 0.3 0.3 10,407,492 10,634,351
Proven (UG) Sulphides 660,333 207 - 2.7 2.5 4,403,326 7,320,761
Probable (UG) Sulphides 1,474,118 176 - 1.6 2.8 8,326,819 13,771,114
Total Proven & Probable (UG) Sulphides 2,134,451 186 - 1.9 2.7 12,730,145 21,091,875
  Total Proven & Probable (UG) Oxides + Sulphides 4,191,621 172 0.03 1.2 1.5 23,137,637 31,726,226
                   
SAN MARTIN Proven (UG) Oxides 1,328,098 195 0.19 - - 8,330,574 8,795,400
Probable (UG) Oxides 2,506,767 175 0.19 - - 14,102,450 14,979,801
Total Proven & Probable (UG) Oxides 3,834,866 182 0.19 - - 22,433,025 23,775,201
                   
DEL TORO Proven (UG) Oxides 788,673 153 0.01 2.3 2.2 3,873,145 3,894,579
Probable (UG) Oxides 363,158 134 0.00 1.9 2.0 1,559,124 1,562,493
Total Proven & Probable (UG) Oxides 1,151,831 147 0.01 2.2 2.2 5,432,269 5,457,072
Proven (UG) Sulphides 1,132,390 180 0.00 3.2 3.0 6,537,571 12,547,372
Probable (UG) Sulphides 1,757,932 245 0.23 4.4 4.6 13,855,578 27,997,288
Total Proven & Probable (UG) Sulphides 2,890,322 219 0.14 3.9 4.0 20,393,149 40,544,659
  Total Proven & Probable (UG) Oxides + Sulphides 4,042,153 199 0.10 3.4 3.5 25,825,417 46,001,731
  Total Proven and Probable reserves Oxides + Sulphides 19,427,336 174 0.06 1.4 1.2 108,627,132 138,734,210
                   
                   
MEASURED AND INDICATED RESOURCES 2013                
Mine/project Category Mineral type Tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag (Oz) AgEq (Oz) in situ
LA ENCANTADA Measured (UG) Oxides 1,380,065 199 - 1.6 3.3 8,830,896 8,830,896
Indicated (UG) Oxides 1,805,358 225 - 1.6 5.3 13,032,801 13,032,801
Total Measured & Indicated  (UG) Oxides 3,185,423 213 - 1.6 4.4 21,863,698 21,863,698
                   
LA PARRILLA Measured (UG) Oxides 78,039 164 0.06 0.5 0.0 411,576 420,182
indicated (UG) Oxides 448,084 163 0.06 0.5 0.3 2,354,795 2,404,209
indicated (OP) Oxides 608,203 88 0.06 - - 1,712,576 1,779,647
Total Measured & Indicated (UG & OP) Oxides 1,134,326 123 0.06 0.2 0.1 4,478,948 4,604,038
Measured (UG) Sulphides 262,831 191 - 1.2 0.7 1,614,844 2,046,756
Indicated (UG) Sulphides 313,417 181 - 1.7 1.9 1,821,572 2,775,774
Total Measured & Indicated (UG) Sulphides 576,248 185 - 1.5 1.4 3,436,416 4,822,530
  Total Measured & Indicated (UG & OP) Oxides + Sulphides 1,710,574 144 0.04 0.6 0.5 7,915,364 9,426,568
                   
SAN MARTIN Indicated (UG) Oxides  475,399 158 0.19 - - 2,411,853 2,578,240
Measured & Indicated (UG) Sulphides 741,387 60 - 0.7 1.5 1,426,856 2,753,917
Total Measured & Indicated (UG) Oxides + Sulphides 1,216,786 98 0.07 0.4 0.9 3,838,709 5,332,156
                   
DEL TORO Measured (UG) Oxides 631,191 142 0.00 1.3 1.5 2,883,228 2,887,098
Indicated (UG) Oxides 808,295 157 0.04 1.9 1.4 4,076,180 4,134,962
Total Measured & Indicated (UG) Oxides 1,439,486 150 0.02 1.6 1.4 6,959,408 7,022,059
Measured (UG) Sulphides 169,994 207 0.01 3.3 2.1 1,131,518 1,920,105
Indicated (UG) Sulphides 672,288 165 0.04 3.7 2.0 3,557,624 6,886,611
Total Measured & Indicated (UG) Sulphides 842,282 173 0.03 3.6 2.0 4,689,142 8,806,715
  Total Measured & Indicated (UG) Oxides + Sulphides 2,281,768 159 0.03 2.4 1.6 11,648,550 15,828,775
                   
LA LUZ Measured & Indicated (UG) Oxides 2,656,428 222 - - - 18,960,160 18,960,160
Measured & Indicated (UG) Oxides (tailings) 1,403,233 90 - - - 4,060,348 4,060,348
Measured & Indicated (UG) Sulphides 1,052,170 316 - - - 10,689,662 10,689,662
Total Measured & Indicated (UG) Oxides + Sulphides 5,111,831 205 - - - 33,710,170 33,710,170
                   
PEÑASCO QUEMADO Total Measured & Indicated (UG) Oxides 2,565,000 117 - - - 9,648,598 9,648,598
                   
LA FRAZADA Total Measured & Indicated (UG) Sulphides 583,000 251 0.17 0.9 2.4 4,695,342 6,499,887
  Total Measured and Indicated Resources Oxides + Sulphides 16,654,381 174 0.02 0.8 1.3 93,320,430 102,309,851
                   
                   
INFERRED RESOURCES 2013                
Mine/Project Category Mineral type Tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag (Oz) AgEq (Oz) in situ
LA ENCANTADA Total Inferred (UG) Oxides + Sulphides 4,348,724 156 - 1.1 1.5 21,822,446 21,822,446
                   
LA PARRILLA Inferred (UG) Oxides 4,928,449 178 0.06 0.4 0.3 28,251,697 28,795,192
Inferred (UG) Sulphides 8,325,556 168 - 1.9 2.3 45,094,192 74,162,354
Total Inferred (UG) Oxides + Sulphides 13,254,005 172 0.02 1.3 1.5 73,345,889 102,957,546
                   
SAN MARTIN Inferred (UG) Oxides 10,010,526 172 0.19 - - 55,316,021 58,819,635
Inferred (UG) Sulphides 993,661 54 - 0.7 1.6 1,722,204 3,622,607
Total Inferred (UG)  Oxides + Sulphides 11,004,187 161 0.17 0.1 0.1 57,038,225 62,442,241
                   
DEL TORO Inferred (UG) Oxides 1,602,922 167 0.04 2.4 2.1 8,589,178 8,701,325
Inferred (UG) Sulphides 5,283,964 174 0.12 3.5 5.4 29,500,830 70,594,560
Total Inferred (UG & Zn body) Oxides + Sulphides 6,886,886 172 0.10 3.3 4.6 38,090,008 79,295,885
                   
LA LUZ Total Inferred (UG) Oxides + Sulphides 1,854,964 220 - - - 13,120,462 13,120,462
                   
PEÑASCO QUEMADO Total Inferred (UG) Oxides 100,000 41 - - - 131,818 131,818
                   
LA FRAZADA Total Inferred (UG) Sulphides 534,000 225 0.17 0.9 2.6 3,862,911 5,618,554
                   
  Total Inferred Resources Oxides + Sulphides 37,982,766 170 0.08 1.2 1.6 207,411,760 285,388,953
                   
                   
                   
DEL TORO Other (Inferred Zn body) Sulphides 4,181,904 7 0.01 0.2 3.1 991,969 12,522,062
                   
PLOMOSAS Historic reserves (UG) Sulphides 895,512 191 0.80 2.1 3.4 5,499,152 11,001,048
(1) In all cases, the metal prices considered were $24.00 USD/Oz - Ag, $1,400.00 USD/Oz - Au, $0.95 USD/lb - Pb, and $0.90 USD/lb - Zn.
(2) For the La Luz Silver Project, there have been no changes since the Technical Report dated July 25, 2008, except an update of Ag eq. according to recent metal prices.
(3) Management of First Majestic is not confident that the open pit mining plan contained in the technical reports commissioned by Silvermex for the La Guitarra Silver Mine is feasible.  Accordingly, the Reserve and Resource calculations contained in the La Guitarra Silver Mine technical reports will need to be recalculated on the basis of an underground only mine.  The results of this review may result in a revised mine plan which may necessitate the filing of a new technical report.  Accordingly, the Resource and Reserve calculations contained in the technical reports commissioned by Silvermex for the La Guitarra Silver Mine have not been included in this Table.  Readers are cautioned against relying on the previously filed technical reports relating to the La Guitarra Silver Mine and upon the Resource and Reserve calculations therein.
(4) The Reserve and Resources information provided above is based on internal qualified persons' (QPs) reporting as at December 31, 2013. The information provided was reviewed and validated by the Company's internal QP Mr. Ramon Davila, who has the appropriate relevant qualifications, and experience in mining and resource geology.
(5) The modification factors for Reserves and Resources are different, and are different for all mines.

The following table shows the total tonnage mined from each of the Company's five producing properties during 2013, including total ounces of silver and silver equivalent ounces produced from each property and the tonnage mined from within and outside of delineated Reserves and Resources at each property.

TONNAGE AND OUNCES MINED IN 2013

             
  LA ENCANTADA LA PARRILLA DEL TORO SAN MARTIN LA GUITARRA TOTAL
TONNES OF ORE
PROCESSED
1,139,241 788,335 319,861 322,618 171,662 2,741,717
OZ OF SILVER
PRODUCED
4,081,094 3,115,997 1,484,598 1,250,774 709,002 10,641,465
OZ OF SILVER EQ.
PRODUCED
81,440 1,103,377 452,538 120,116 392,591 2,150,062
TOTAL OZ OF SILVER
EQ. PRODUCED
4,162,534 4,219,374 1,937,136 1,370,890 1,101,593 12,791,527
TONNES MINED FROM
RESERVES
954,864 740,726 319,861 255,171 152,487 2,423,109
TONNES MINED FROM
OUTSIDE RESERVES
184,378 47,609 0 67,447 19,175 318,609

 

First Majestic is a mining company focused on silver production in México and is aggressively pursuing the development of its existing mineral property assets and the pursuit through acquisition of additional mineral assets which contribute to the Company achieving its corporate growth objectives.

FIRST MAJESTIC SILVER CORP.
"signed"
Keith Neumeyer, President & CEO

Cautionary Note Regarding Forward Looking Statements

This press release contains "forward-looking statements", within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of First Majestic Silver Corp.  Forward-looking statements include, but are not limited to, statements with respect to the future price of silver and other metals, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, hedging practices, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, timing and possible outcome of pending litigation, title disputes or claims and limitations on insurance coverage.  Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".  Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of First Majestic Silver Corp. to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the integration of acquisitions; risks related to international operations; risks related to joint venture operations; actual results of current exploration activities; actual results of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of metals; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "Description of the Business - Risk Factors" in First Majestic Silver Corp.'s Annual Information Form for the year ended December 31, 2013, available on www.sedar.com, and Form 40-F on file with the United States Securities and Exchange Commission in Washington, D.C.  Although First Majestic Silver Corp. has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.  There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.  Accordingly, readers should not place undue reliance on forward-looking statements.  First Majestic Silver Corp. does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws. 

SOURCE First Majestic Silver Corp.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
Have you ever noticed how some IT people seem to lead successful, rewarding, and satisfying lives and careers, while others struggle? IT author and speaker Don Crawley uncovered the five principles that successful IT people use to build satisfying lives and careers and he shares them in this fast-paced, thought-provoking webinar. You'll learn the importance of striking a balance with technical skills and people skills, challenge your pre-existing ideas about IT customer service, and gain new in...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
VeriStor Systems has announced that CRN has named VeriStor to its 2017 Managed Service Provider (MSP) 500 list in the Elite 150 category. This annual list recognizes North American solution providers with cutting-edge approaches to delivering managed services. Their offerings help companies navigate the complex and ever-changing landscape of IT, improve operational efficiencies, and maximize their return on IT investments. In today’s fast-paced business environments, MSPs play an important role...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...