VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 13, 2016) - First Majestic Silver Corp. ("First Majestic" or the "Company") (NYSE:AG)(TSX:FR)(FRANKFURT:FMV)(BVM:AG) is pleased to announce that total production in the third quarter of 2016 from its six operating silver mines reached 4.5 million silver equivalent ounces. Total production consisted of 3.1 million ounces of silver, 14,452 ounces of gold, 8.0 million pounds of lead and 1.5 million pounds of zinc.
"Higher silver grades, throughput rates and recoveries propelled silver production to a new Company record of over 3.1 million ounces during the quarter," said Keith Neumeyer, President & CEO. "We saw significant grade improvements, particularly at Santa Elena, La Guitarra and San Martin, as a result of improved mine sequencing and dilution control. Due to the improved operational cash flows, we've significantly expanded our exploration programs resulting in 19 drill rigs currently active on our properties which will allow us to release updated Reserve and Resource estimates for Del Toro, La Parrilla and San Martin in the first quarter of 2017. At La Encantada, detailed engineering has been completed and furnace manufacturing has started for the construction of our new roasting circuit planned for final completion in the fourth quarter of 2017."
Production Details Table:
Q3 2016 |
Q3 2015 |
Y/Y Change |
Q2 2016 |
Q/Q Change |
|
Ore processed/tonnes milled | 838,233 | 675,032 | 24% | 798,182 | 5% |
Total production - ounces of silver equivalent | 4,524,619 | 3,558,035 | 27% | 4,681,608 | -3% |
Total silver ounces produced | 3,114,627 | 2,593,309 | 20% | 2,844,930 | 9% |
Silver grade (g/t) | 150 | 167 | -10% | 148 | 1% |
Silver recovery (%) | 77 | 72 | 7% | 75 | 3% |
Pounds of lead produced | 8,038,206 | 8,743,453 | -8% | 8,825,234 | -9% |
Pounds of zinc produced | 1,519,143 | 3,122,498 | -51% | 3,837,301 | -60% |
Gold ounces produced | 14,452 | 4,434 | 226% | 16,371 | -12% |
Quarterly Operational Review:
Total ore processed during the quarter at the Company's six operating silver mines: Santa Elena, La Encantada, La Parrilla, Del Toro, San Martin and La Guitarra, amounted to 838,233 tonnes, reflecting a 5% increase compared to the previous quarter. In the month of August, processing rates at Del Toro, La Parrilla, San Martin and La Guitarra were affected by the heavy seasonal rains causing temporary clogging of ore in the crushing areas.
Average silver grades in the quarter increased to 150 g/t compared to 148 g/t in the previous quarter. Higher silver grades were achieved at Santa Elena, La Guitarra and San Martin due to improved mine sequencing and dilution control - however, offset by lower grades at La Encantada due to the blending of ore from old stopes, stockpiles and the recovery of pillars.
Combined silver recoveries averaged 77%, representing a 3% increase compared to the previous quarter. La Encantada, Del Toro, La Guitarra and Santa Elena all achieved higher silver recoveries during the quarter. Furthermore, silver recoveries at Santa Elena achieved a new operating record of 91% primarily due to the higher silver grades being mined from underground.
The Company's underground development in the third quarter consisted of 12,764 metres, reflecting a 9% increase compared to 11,738 metres completed in the previous quarter. The Company also completed 36,290 metres of diamond drilling in the quarter compared to 19,342 metres in the prior quarter, representing an 88% increase. A substantial portion of the current drilling and development is for the purpose of updating Mineral Reserves and Resources at Del Toro, La Parrilla and San Martin. Updated NI 43-101 Technical Reports for each of these three mining units are expected to be released in the first quarter of 2017.
Mine by Mine Quarterly Production Table:
Mine | Ore Processed |
Tonnes per Day |
Silver Grade (g/t) |
Silver Recovery % |
Silver Oz Produced |
Gold Oz Produced |
Pounds of Lead |
Pounds of Zinc |
Equivalent Silver Ounces |
Santa Elena | 241,996 | 2,630 | 95 | 91% | 671,423 | 11,156 | - | - | 1,430,506 |
La Encantada | 247,858 | 2,694 | 145 | 59% | 685,478 | 35 | - | - | 687,841 |
La Parrilla | 147,414 | 1,602 | 146 | 79% | 547,913 | 296 | 2,129,908 | 1,519,143 | 739,026 |
Del Toro | 86,646 | 942 | 195 | 82% | 446,137 | 81 | 5,908,297 | - | 707,524 |
San Martin | 75,228 | 818 | 246 | 84% | 500,441 | 907 | - | - | 562,096 |
La Guitarra | 39,092 | 425 | 252 | 83% | 263,235 | 1,977 | - | - | 397,627 |
Total | 838,233 | 9,111 | 150 | 77% | 3,114,627 | 14,452 | 8,038,206 | 1,519,143 | 4,524,619 |
* Certain amounts shown in this news release may not add exactly to the total amount due to rounding differences. |
* The following prices were used in the calculation of silver equivalent ounces: Silver: $19.61 per ounce; Gold: $1,334 per ounce; Lead: $0.85 per pound; Zinc: $1.02 per pound. |
At the Santa Elena Gold/Silver Mine:
At the La Encantada Silver Mine:
At the La Parrilla Silver Mine:
At the Del Toro Silver Mine:
At the San Martin Silver Mine:
At the La Guitarra Silver Mine:
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.
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, 2015, 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.
First Majestic Silver Corp.
Toll Free: 1.866.529.2807
[email protected]
www.firstmajestic.com