First Majestic Silver Corp. ("First Majestic" or the "Company") is
pleased to announce that production in the first quarter of 2011
reached 1,825,366 equivalent ounces of silver, representing a 13%
increase over the 1,619,403 equivalent ounces of silver produced in the
first quarter of 2010. Production during the quarter consisted of
1,769,209 ounces of silver, making First Majestic's first quarter
production 97% pure silver, the highest in the silver mining industry.
Silver production in the first quarter of 2011 represents a 25%
increase compared to the first quarter of the prior year, and a 1%
increase over the 1,757,332 silver ounces produced in the fourth
quarter of 2010. In addition to the 1,769,209 ounces of pure silver,
the Company produced 1,187,912 pounds of lead, representing a 53%
decrease from the first quarter of the previous year, and 351 ounces of
gold, representing a decrease of 59% compared to the first quarter of
2010.
Company guidance for 2011 released on January 11, 2011 stated,
"Production is anticipated to exceed 7.5 million ounces of silver in
2011". Results of the first quarter are within this guidance. As
previously announced, the increasing production for the balance of the
year will be achieved by; 1) increasing the blend of fresh ore at the
La Encantada operation to 1,250 tpd in the second quarter and to 1,500
tpd in the third and fourth quarters, and 2) the current expansion
program underway at La Parrilla is anticipated to result in the
flotation circuit running at 800 tpd in the third quarter compared to
the current production rate of 425 tpd.
During the first quarter of 2011 the total ore processed at the
Company's three operating silver mines, the La Encantada Silver Mine,
the La Parrilla Silver Mine and the San Martin Silver Mine, amounted to
456,505 tonnes milled in the quarter representing a 2% decrease over
the previous quarter.
During the quarter, the Company completed 7,025 metres of underground
development, compared to 5,100 metres of underground development
completed in the first quarter of 2010. Development continues to be
focused on increasing the reserves and resources and preparation ratios
at the three operating mines. Due to the expanding production levels
anticipated in 2011 and 2012, the Company's development budget was
increased to US$21.74 million in 2011 compared to $12.34 million in
2010.
Diamond drilling programs companywide amounted to 5,793 metres in the
first quarter consisting primarily of definition drilling, representing
an increase of 1,780% compared to the first quarter of 2010.
Some of the achievements from the first quarter included:
At the La Encantada Silver Mine:
. The cyanidation plant, which was initially inaugurated with a rated
capacity of 3,500 tpd has been able to reach an average throughput of
3,838 tpd during the first quarter of 2011, for a total of 314,712
tonnes processed in the quarter.
. The preparation of the Buenos Aires area was completed in the first
quarter which is expected to allow for the increased production of
fresh ore to 1,250 tpd during the second quarter and a further increase
to 1,500 tpd during the third and fourth quarters, versus the 1,000 tpd
of fresh ore which is currently being processed. This increase of fresh
ore throughput is expected to have a positive impact on the blended
head grades and silver recoveries.
. New areas of reserves and resources have been developed at the San
Francisco vein and at the hanging wall of the 660 ore body.
. During the quarter, an additional new power generator arrived at the
mine and has been consolidated into the modern generation plant. This
Caterpillar CAT 3516B is one of five identical units which make up this
generation plant. The addition of this new generator allows the Company
to replace the last old inefficient generator and to reap the resulting
substantial savings on spare parts, repairs and maintenance.
. The two new induction furnaces which began operation in December,
using the latest technology in smelting precipitates, are working
extremely well, resulting in a much more efficient operation, lower
costs and higher quality silver dor� bars.
At the La Parrilla Silver Mine:
. Accelerated development is underway at the four mines which make up
the La Parrilla mining operation. This increased activity is preparing
the mines for increased production planned in the flotation circuit for
the second half of the year and in the cyanidation circuit for the
first quarter of 2012. During the quarter, a total of 2,321 metres of
underground development were completed.
. The plant expansion program launched in December 2010 has made
substantial advances. The new crushing area, the new ball mill for the
sulphides circuit, the expansion of the flotation circuit and the new
thickeners and filters are all on schedule to be completed in June
2011, in time for third quarter start up. This expansion once completed
will result in the mill capacity reaching 1,600 tpd, from the current
850 tpd effectively doubling the current output of the La Parrilla
operation from approximately 1.5 million ounces to 3.0 million ounces
of silver equivalent annually for 2012.
At the San Martin Silver Mine:
. The Company is preparing to drive a 500 metre ramp into the Esperanza
vein that was discovered in 2008 and drill tested in 2010. A two
kilometre road to La Esperanza is approximately 95% complete. The
current program for 2011 is to drive this 500 metre ramp into the
structure, to open up the structure, to develop along strike, and to
drill at depth.
. The Company is continuing the underground drilling program launched
in 2009, to drill short holes systematically into the foot wall of the
Zuloaga vein. The results have been extremely favourable, allowing for
consistent production levels and head grades.
At the Del Toro Silver Mine:
. As previously announced on April 12, 2010, and January 11, 2011, all
permitting was received in late 2009 and early 2010 for the
construction of a 1,000 tonne per day flotation mill at the Company's
Del Toro Silver Mine. Commencing in late 2010, an extensive development
program was launched at the property, consisting of 1,650 metres of
ramp and crosscuts. This development program has three purposes: 1) to
gain access to each of the three defined ore bodies to upgrade the
current NI 43-101 Resources to Reserves; 2) to prepare the ore bodies
for mining; and 3) to build multiple underground drilling stations to
drill the ore bodies at depth to define additional resources.
. Currently, the ramp is now 1,100 metres in length and 186 metres in
vertical distance from surface. A crosscut was made at the 7th level
(176 metres from surface) where a drill rig was installed in February
2011. Two holes have been completed to date, with a total of 705 metres
drilled, and both holes have intersected the ore bodies as expected.
At the Real de Catorce Silver Project:
. During 2010, the Company evaluated and confirmed the geological data
obtained as a result of the acquisition of this project in late 2009.
In November 2010, First Majestic successfully completed the purchase of
the land underlying the Santa Ana Hacienda located within the Real de
Catorce property, together with all associated buildings and
infrastructure, the outstanding royalty, and certain historic
geological and proprietary mining information.
. The construction of a Thematic Park, including a mining museum,
announced previously, is underway. The final concept and plan will be
presented to the environmental and heritage authorities for approval in
the second quarter. Meanwhile, cleaning and rehabilitation of the
historic Santa Ana Hacienda commenced in early 2011. Also, the cleaning
of the impressive underground workings has commenced. The restoration
of the above-ground buildings to a suitable condition will be executed
later in the year in order to allow for tourist access. This new mining
museum will bring needed employment to the local community and will
also form part of the Sustainable Development project which will
provide permanent jobs to the local communities.
. During the quarter, the first Environmental Assessment works
commenced starting with the Baseline study. During the second quarter,
the Environmental Impact Statement, the Risk Study, and the Change of
use of Land Studies will all commence.
First Majestic is a producing silver company focused in Mexico and is
aggressively pursuing its business plan to become a senior silver
producer through the development of its existing assets and the pursuit
through acquisition of additional assets that contribute to achieving
its corporate growth objectives.
FOR FURTHER INFORMATION contact info@firstmajestic.com, visit our
website at www.firstmajestic.com or call our toll free number
1.866.529.2807.
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, 2010, 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. |
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