First Majestic Announces Restart Plan for Jerritt Canyon Gold Mine Targeting Production Restart in the Second Half of 2027
First Majestic Announces Restart Plan for
Jerritt Canyon Gold Mine
Targeting Production Restart in the Second Half of 2027
Vancouver, British Columbia--(Newsfile Corp. - April 2, 2026) - First Majestic Silver Corp. (NYSE: AG)
(TSX: AG) (FSE: FMV) (the "Company" or "First Majestic") is pleased to announce that it has
commenced a restart plan for its Jerritt Canyon Gold Mine ("Jerritt Canyon") located in Nevada, USA, as
a result of the new expanded Mineral Resource base combined with strengthened long-term gold price
assumptions and successful drilling results over the past 2 years.
As part of this plan, the Company has
engaged Stantec Consulting Services Inc. to complete a pre-feasibility level study on Jerritt Canyon (the
"Study") that is expected to be completed in Q4 of 2026.
The Company plans to invest $75 million in 2026 to support the restart of Jerritt Canyon, with production
expected to commence in the second half of 2027.
The 2025 year-end Mineral Resource Estimates, released on March 31, 2026, highlight Jerritt Canyon's
strong sensitivity to bulk-tonnage, low-cost open-pit mining opportunities. The Study will focus on defining
the optimal path to sustained, long term, production by leveraging this open-pit potential, complemented
by the existing underground mining operations.
"With the successful and seamless integration of Gatos Silver now complete, we are focusing our
attention on restarting Jerritt Canyon,"
said Keith Neumeyer, CEO of First Majestic
. "This fully
permitted gold mine is located in a premier, tier-one mining jurisdiction with all critical infrastructure in
place and is underpinned by a new expanded Mineral Resource base of 4.1 million gold ounces in
the Measured and Indicated categories, together with an additional 3.7 million gold ounces classified
as Inferred Mineral Resources.
In the current favourable metal price environment, Jerritt Canyon
represents a rare and compelling opportunity to generate meaningful shareholder value. We are now
commencing a restart plan through enhanced operations, including owner-operated mining and an
optimized mine plan. To support these efforts, First Majestic is committing $75 million in 2026 to
complete the necessary technical and operational work, with targeted production in the second half of
2027."
CAPITAL INVESTMENT
First Majestic will invest $75 million during 2026 to strategically position Jerritt Canyon for a restart of
gold production in the second half of 2027. This program is designed to advance the technical and
operational workstreams required to complete a restart plan and provide investors with visibility on the
asset's long-term economics.
Table 1: Jerritt Canyon Restart Program Capital Breakdown for 2026
Surface Support and Initial Mining Fleet Purchase
$13 million
Plant Upgrading and Winterization
$12 million
Underground Preparation and Development
$13 million
Exploration Program
$15 million
Various Technical Studies
$10 million
Workforce and Staffing
$7.5 million
Dewatering Upgrades
$4.5 million
TOTAL
$75 million
The Study will assess various open pit and underground mine designs & schedule scenarios. Trade-offs
of mining methods and mining sequences will be assessed against key constraints. The study will
develop an optimized mining plan to determine the optimal production schedule for 2027 and beyond.
In Q2 2026, the Company will commence work to open and rehabilitate the Smith and SSX underground
mines, while advancing targeted exploration activities. The program includes approximately 600 metres
("m") of underground expansionary development and 19,000 m of underground drilling at Smith-SSX,
along with an additional 23,000 m of surface drilling focused on defining near-surface open-pit mineral
resources, for a total of 42,000 m of drilling in 2026.
In parallel with pre-feasibility-level mine planning and ongoing exploration, the Company will advance
several key development initiatives, including procurement of the initial underground mining fleet,
upgrades to the processing plant and construction of a new deep well to supply fresh water to the
processing plant. The Company will also expand the mine's technical, administrative, human resources,
safety, and environmental teams, while completing detailed engineering and technical assessments of
Jerritt Canyon's mineral processing infrastructure.
The Company will be providing additional progress updates throughout the year on the restart plan and
initial production targets, as well as a revised capital budget as part of its H2 guidance update planned
for July 2026.
Figure 1: Location of the Jerritt Canyon Mines and Gold Mineral Deposits, Underground and Open Pit
Mineral Resource Estimates, Plan View
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/1475/290962_32cb44ca946fb893_002full.jpg
Figure 2: Plan View and Vertical Section of 2025 Year-End Underground and Open Pit Resources in
the Saval / SSX / Mahala / Javelin / Smith Mine Zones with Areas of Interest ("AOI") for Targeted
Exploration Drilling
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/1475/290962_32cb44ca946fb893_003full.jpg
ABOUT JERRITT CANYON GOLD MINE
The Jerritt Canyon Gold mine is located in Elko County, Nevada, United States. Jerritt Canyon was
discovered in 1972 and since the commencement of mining in 1981 to March 2023, approximately 9.85
million ounces of gold were produced at an average grade of 6.6 g/t Au.
Open pit mining at Jerritt
Canyon produced a total of approximately 5.2 million ounces of gold at an average grade of 5.9 g/t Au
while underground mining produced a total of approximately 4.65 million ounces Au at an average grade
of 7.7 g/t Au. Since 2010, most of the production has come from the SSX and Smith gold deposits.
The mine was purchased by First Majestic in April 2021 and operated as an underground mine until it
was temporarily placed in care and maintenance in March 2023, during a period when gold prices
ranged between $1,600 and $1,900 per ounce, due to ongoing challenges including high contractor
costs and multiple extreme weather events affecting northern Nevada during the winter of 2022/23.
During the care and maintenance period, First Majestic has ensured all environmental, permitting and
compliance requirements have been maintained and remain in good standing for a potential restart.
Jerritt Canyon is a 100%-owned property of First Majestic and hosts one of only three permitted gold
processing facilities in Nevada that utilize roasting as part of the ore treatment process. The processing
plant has a nominal capacity of approximately 4,000 metric tonnes per day and is supported by a large,
contiguous land package totaling 30,821 hectares (119 square miles), of which approximately 85%
remains underexplored.
The Jerritt Canyon property hosts a substantial gold mineral endowment. With an effective date of
December 31, 2025, Measured and Indicated Mineral Resources are estimated to total 4.1 million
ounces of gold, with an additional 3.7 million ounces of gold classified as Inferred Mineral Resources, as
summarized in the tables below. The Mineral Resource estimates have been prepared in accordance
with the CIM Definition Standards and disclosed in compliance with National Instrument 43-101 -
Standards of Disclosure for Mineral Projects. Mineral Resources that are not Mineral Reserves do not
have demonstrated economic viability.
Table 2: Measured and Indicated Mineral Resource Estimates for Jerritt Canyon with an Effective
Date of December 31, 2025
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/1475/290962_32cb44ca946fb893_004full.jpg
Table 3: Inferred Mineral Resource Estimates for Jerritt Canyon with an Effective Date of December
31, 2025
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/1475/290962_32cb44ca946fb893_005full.jpg
1
.
Mineral Resource estimates are classified per CIM Definition Standards and NI 43-101.
2
.
Mineral Resource estimates are based on internal estimates with an effective date of December 31, 2025.
3
.
The Mineral Resource estimates were prepared under the supervision of, or were reviewed by, David Rowe, CPG, the Company's Director
of Mineral Development and the "Qualified Person" (as such term is defined in NI 43-101) responsible for the above Mineral Resource
estimates.
4
.
All mineral resource estimates are for deposits considered amenable to underground mining (UG) or by open pit mining (OP).
5
.
AgEq grade was calculated using the ratio of gold and silver prices.
6
.
Metal prices for Mineral Resources estimates were $38.5/oz Ag and $3,400/oz Au.
7
.
The cut-off grade considered to constrain resources assuming an underground operation was of 1.13g/t Au based on actual and budgeted
operating and sustaining costs.
Mineral Resources amenable to open pit mining methods are reported above a cut-off grade of 0.43 g/t Au.
8
.
Underground Mineral Resources are reported within mineable stope shapes using the cut-off grades calculated using the stated metal
prices and metal recoveries.
Open pit Mineral Resources are reported within a mineable pit shape and the cut-off grade for open pits.
9
.
No dilution was applied to the Mineral Resources which are reported on an in-situ basis.
10
.
Tonnage is expressed in millions of tonnes; metal content is expressed in millions of ounces.
Totals may not add up due to rounding.
11
.
Measured and Indicated Mineral Resources do not have demonstrated economic viability.
DATA VERIFICATION
First Majestic's drilling programs follow established quality assurance and quality control ("QA/QC")
protocols, including the routine insertion of certified reference standards, blanks, and duplicate samples.
Drill core is geologically logged and cut in half, with one half submitted for laboratory analysis and the
remaining half retained on site for verification, reference, or future metallurgical testing. Core samples
were analyzed using industry standard fire assay and atomic absorption analytical methods, with
gravimetric finishes applied to over limit results. QA/QC results are routinely reviewed by site and
corporate technical personnel and demonstrate acceptable accuracy and precision. The Qualified
Person responsible for the Mineral Resource estimates disclosed in this news release is of the opinion
that the sample preparation, analytical, and security procedures followed are sufficient and reliable for
the purposes of the estimates disclosed herein.
For further information regarding QA/QC and data verification procedures, key assumptions,
parameters, and methods used to estimate the Mineral Resource estimates disclosed in this news
release, and for a discussion of known risks that could materially affect the Company's business and the
potential development of Mineral Resources, refer to the sections entitled "
General Development of the
Business - Material Mineral Properties
" and "
Risk Factors
" in the Company's annual information form
for the financial year- ended December 31, 2025 (the "2025 AIF"), a copy of which is available under the
Company's SEDAR+ profile at
www.sedarplus.ca
, and in the Company's Annual Report on Form 40-F
for the financial year ended December 31, 2025 (the "40-F Annual Report") filed on EDGAR at
www.sec.gov/edgar
.
QUALIFIED PERSONS
Scientific and technical disclosure for the material properties is based on technical reports prepared in
accordance with NI 43-101 (collectively, the "Technical Reports").
The Technical Reports have been filed
on SEDAR+ at
www.sedarplus.ca
, and are also available of the Company's website at
www.firstmajestic.com
. The technical information has been updated with more current information where
appropriate.
Gonzalo Mercado, P.Geo., the Company's Vice-President of Exploration & Technical Services, has
reviewed and approved the scientific and technical information contained in this news release and has
verified the underlying data. Mineral Resource estimates set out in this news release were prepared
under the supervision of, or were reviewed by, David Rowe, CPG, the Company's Director of Mineral
Development.
ABOUT FIRST MAJESTIC
First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and
the United States. The Company presently owns and operates four producing underground mines in
Mexico: the Santa Elena Silver/Gold Mine, the Los Gatos Silver Mine (the Company holds a 70%
interest in the Los Gatos Joint Venture that owns and operates the mine), the San Dimas Silver/Gold
Mine, and La Encantada Silver Mine, as well as a portfolio of development and exploration assets,
including the Jerritt Canyon Gold Mine, which is an advanced-stage development asset that was placed
on temporary suspension in March 2023.
First Majestic is proud to own and operate its own minting facility, First Mint, LLC, and to offer a portion
of its silver production for sale to the public. Bars, ingots, coins, and medallions are available for
purchase online at
www.firstmint.com
, at some of the lowest premiums available.
For further information, contact
visit our website at
www.firstmajestic.com
or call
our toll-free number 1.866.529.2807.
FIRST MAJESTIC SILVER CORP.
"signed"
Keith Neumeyer, CEO
Cautionary Note Regarding Forward Looking Statements
This news release contains "forward-looking information" and "forward-looking statements" under
applicable Canadian and U.S. securities laws (collectively, "forward-looking statements"). These
statements relate to future events or the Company's future performance, business prospects or
opportunities that are based on forecasts of future results, estimates of amounts not yet determinable
and assumptions of management made in light of management's experience and perception of historical
trends. Forward-looking statements in this news release include but are not limited to statements with
respect to: the potential restart of Jerritt Canyon in the second half of 2027; timing for completion of the
Study and the other work streams being conducted by the Company in 2026 to support a restart of Jerritt
Canyon; and the Company's anticipation that the 2026 drilling program at Jerritt Canyon will translate
into significant Mineral Resource additions for the property. These statements, including but not limited
to, statements relating to a potential restart of Jerrit Canyon, are not based on a preliminary economic
assessment, pre-feasibility study or feasibility study of mineral reserves that demonstrate the economic
and technical viability of the mine. As a result, there is increased uncertainty related to the economics of
the mine and increased technical risks of failure associated with restarting the mine prior to completing
the pre-feasibility level study for Jerritt Canyon. Assumptions may prove to be incorrect and actual results
and future events may differ materially from those anticipated. As such, investors are cautioned not to
place undue reliance upon forward-looking statements as there can be no assurance that the plans,
assumptions, or expectations upon which they are placed will occur. Any statements that express or
involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives or
future events or performance (often, but not always, using words or phrases such as "seek", "anticipate",
"plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "forecast", "potential", "target",
"intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical
fact and may be "forward-looking statements". Statements concerning proven and probable mineral
reserves and mineral resource estimates may also be deemed to constitute forward-looking statements
to the extent that they involve estimates of the mineralization that will be encountered as and if the
property is developed, and in the case of measured and indicated mineral resources or proven and
probable mineral reserves, such statements reflect the conclusion based on certain assumptions that the
mineral deposit can be economically exploited.
Actual results may vary from forward-looking statements. Forward-looking statements are subject to
known and unknown risks, uncertainties and other factors that may cause actual results to materially
differ from those expressed or implied by such forward-looking statements, including but not limited to:
material adverse changes; general economic conditions including inflation risks; labour relations;
relations with local communities; changes in national or local governments; exchange rate fluctuations;
environmental risks; requirements for additional capital; outcomes of pending litigation; unexpected
changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties
to contracts with the company to perform as agreed; social or labour unrest; changes in commodity
prices; and the failure of exploration programs or studies to deliver anticipated results or results that
would justify and support continued exploration, studies, development or operations as well as those
factors discussed in the section entitled "
Risk Factors
" in the 2025 AIF filed with the Canadian securities
regulatory authorities under the Company's SEDAR+ profile at
www.sedarplus.ca
and in the 40-F Annual
Report filed with the United States Securities and Exchange Commission on EDGAR at
www.sec.gov/edgar
. Although the Company 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.
The Company believes that the expectations reflected in these forward-looking statements are
reasonable, but no assurance can be given that these expectations will prove to be correct and such
forward-looking statements included herein should not be unduly relied upon. These statements speak
only as of the date hereof. The Company does not intend, and does not assume any obligation, to
update these forward-looking statements, except as required by applicable laws.
Cautionary Note to United States Investors
The Company is a "foreign private issuer" as defined in Rule 3b-4 under the United States Securities
Exchange Act of 1934, as amended, and is eligible to rely upon the Canada-U.S. Multi-Jurisdictional
Disclosure System, and is therefore permitted to prepare the technical information contained herein in
accordance with the requirements of the securities laws in effect in Canada, which differ from the
requirements of the securities laws currently in effect in the United States. Accordingly, information
concerning mineral deposits set forth herein may not be comparable with information made public by
companies that report in accordance with U.S. standards.
Technical disclosure contained in this news release has not been prepared in accordance with the
requirements of United States securities laws and uses terms that comply with reporting standards in
Canada with certain estimates prepared in accordance with NI 43-101.
NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for
all public disclosure an issuer makes of scientific and technical information concerning the issuer's
material mineral projects.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/290962