First Majestic Updates 2019 Mineral Reserve and Resource Estimates
FIRST MAJESTIC SILVER CORP .
Suite 1800 – 925 West Georgia Street
Vancouver, B.C., Canada V6C 3L2
Telephone: (604) 688‐3033 Fax: (604) 639‐8873
Toll Free: 1‐866‐529‐2807
Web site: www.firstmajestic.com; E‐mail: [email protected]
NEWS RELEASE
New York ‐ AG March 30, 2020
Toronto – FR
Frankfurt – FMV
First Majestic Updates 2019 Mineral Reserve and Resource Estimates
FIRST MAJESTIC SILVER CORP . (the "Company" or “First Majestic”) is pleased to announce its updated Mineral
Reserve and Resource estimates for the San Dimas, Santa Elena and La Encantada producing mines as well as its
existing non‐material mineral assets in Mexico with an effective date of December 31, 2019.
2019 HIGHLIGHTS
Proven and Probable Mineral Reserves (“P&P”) at the Company’s three producing silver mines totaled 85.1
million ounces of silver and 733,000 ounces of gold, or 146.5 million silver equivalent ounces, representing
a 4% decrease compared to previous estimates
Consolidated P&P grades increased by 6% to 320 AgEq g/t (186 g/t silver and 1.6 g/t gold)
Excluded 16.6 million silver equivalent ounces from Mineral Reserves as a result of placing the San
Martin, La Parrilla and Del Toro operations on temporary suspension
Measured and Indicated Mineral Resources (“M&I”) for the Company’s seven properties increased by 3% to
267.8 million silver equivalent ounces primarily due to the upgrading of 3.3 million ounces of silver and
219,000 ounces of gold, or 21.6 million silver equivalent ounces, from Inferred to Indicated Resources at
Santa Elena’s Ermitaño project
Indicated grades at Ermitaño increased by 15% to 449 AgEq g/t (70 g/t silver and 4.59 g/t gold)
Inferred Mineral Resources at the Company’s seven properties increased by 8% to 228.7 million silver
equivalent ounces
“Our exploration efforts in 2019 were successful at replacing mine depletion at San Dimas and improving resources
at the Ermitaño project near Santa Elena,” stated Keith Neumeyer, President and CEO. “Reserves at San Dimas
remained relatively unchanged at 101.3 million silver equivalent ounces following robust production of 13.8 million
silver equivalent ounces in 2019. At the Ermitaño project, we significantly increased the Indicated Resource by 245%
to 30.4 million silver equivalent ounces and improved the grade by 15% to 449 AgEq g/t following a successful infill
drill program designed to improve the confidence of the deposit. With an updated total resource of 67.9 million
silver equivalent ounces, this project is expected to increase production and reduce costs at Santa Elena once
production commences in 2021.”
The following table shows the total tonnage mined from each of the Company’s producing properties during 2019,
including total ounces of silver, silver equivalent ounces and tonnage mined. A portion of the production from each
mine came from material other than Reserves, as set out below under the heading “Material Mined from Areas Not
in Reserves”.
2019 PRODUCTION TABLE
(1) Silver‐equivalent ounces are estimated considering: metal price assumptions, metallurgical recovery for the corresponding mineral type/mineral process
and the metal payable of the corresponding contract of each mine. Details as to the method of calculation can be found in the applicable tables in each
mine section of the 2019 Annual Information Form.
(2) Totals may not add up due to rounding.
Metal price assumptions used to estimate the 2019 Mineral Reserves were $17.00/oz for silver, $1,350/oz for gold
and $0.95/lb for lead. This compares to the previous metal price assumptions of $17.00/oz for silver, $1,250/oz for
gold and $1.00/lb for lead used to calculate the Company’s 2018 Mineral Reserves.
RESERVES AND RESOURCES UPDATE
As of December 31, 2019, Proven and Probable Mineral Reserves at the Company’s three operating mines (San
Dimas, Santa Elena and La Encantada) totaled 85.1 million ounces of silver and 733,000 ounces of gold, or 146.5
million silver equivalent ounces, representing a 4% decrease in metal content compared to prior estimates. This
variation takes into consideration the effect of mine depletion offset by the conversion of Mineral Resources to
Mineral Reserves. Additionally, consolidated P&P grades increased by 6% to 320 AgEq g/t (186 g/t silver and 1.6 g/t
gold) at the three operating mines.
The Company reclassified the San Martin, La Parrilla and Del Toro mines as non‐material properties following
management’s decision to place these operations on temporary suspension in 2019. As a result, a total of 16.6
million silver equivalent ounces were excluded from Mineral Reserves comprised of 5.6 million silver equivalent
ounces at San Martin, 2.3 million silver equivalent ounces at La Parrilla and 8.7 million silver equivalent ounces at
Del Toro. These excluded ounces will remain in M&I Resources subject to sufficient economic improvements at Del
Toro and La Parrilla, as well as a reduction in security concerns at San Martin, to justify a restart of operations.
The Company’s consolidated Measured and Indicated Mineral Resources have increased by 3% in terms of silver
equivalent metal content as the result of the exploration programs designed to sustain mineral resources in San
Dimas and Santa Elena. Indicated Mineral Resources at Santa Elena’s Ermitaño project increased by 245% to 4.7
million ounces of silver and 311,000 ounces of gold, or 30.4 million silver equivalent ounces. Furthermore, Indicated
Resource grades at Ermitaño increased by 15% to 449 AgEq g/t (70 g/t silver and 4.59 g/t gold) following another
successful exploration program in 2019 which primarily focused on infill drilling of the main ore body.
Consolidated Inferred Mineral Resources increased by 6% in terms of silver equivalent metal content as a result of
the exploration programs designed to identify new mineral resources. In addition, consolidated Inferred grades
increased by 2% to 405 AgEq g/t (224 g/t silver, 2.03 g/t gold, 0.31% lead and 0.31% zinc).
The complete 2019 Mineral Reserve and Resource estimates for all metals, tonnage and grades are shown below in
the following tables:
Proven and Probable Mineral Reserves with an effective date of December 31, 2019
(1) Mineral Reserves have been classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards on
Mineral Resources and Mineral Reserves, whose definitions are incorporated by reference into National Instrument 43‐101 (NI43‐101).
(2) The Mineral Reserves statement provided in the table above is based on internal estimates prepared as of December 31, 2019. The information provided
was reviewed and prepared under the supervision of Ramon Mendoza Reyes, PEng, and a Qualified Person ("QP") for the purposes of NI43‐101.
(3) Silver‐equivalent grade is estimated considering metal price assumptions, metallurgical recovery for the corresponding mineral type/mineral process and
the metal payable of the corresponding contract of each mine. Assumptions details are listed in each mine section of the 2019 Annual Information Form.
(4) Metal prices considered for Mineral Reserves estimates were $17.00/oz Ag, $1,350/oz Au and $0.95/lb Pb.
(5) A two‐step constraining approach has been implemented to estimate reserves for each mining method in use: A General Cut‐Off Grade (GC) was used to
delimit new mining areas that will require development of access and infrastructure and all sustaining costs. A second Incremental Cut‐Off Grade (IC) was
considered to include laterally adjacent mineralized material which recoverable value pays for the following costs: variable cost of mining and processing,
indirect costs, treatment costs, administration costs and plant sustaining costs, but excludes: fixed costs of mining and processing, and development
sustaining costs.
(6) The cut‐off grades, metallurgical recoveries, payable terms and modifying factors used to convert Mineral Reserves from Mineral Resources are different
for all mines. These cut‐off grades and economic parameters are listed in the applicable section describing each mine in the Company’s 2019 Annual
Information Form.
(7) Tonnage is expressed in thousands of tonnes; metal content is expressed in thousands of ounces.
(8) Totals may not add up due to rounding.
Mine Category Mineral Type Tonnage Grades Metal Content
k tonnes Ag (g/t) Au (g/t) Pb (%) Ag ‐Eq (g/t) Ag (k Oz) Au (k Oz) Ag ‐Eq (k Oz)
SAN DIMAS Proven (UG) Sulphides 1,918 313 4.38 ‐ 671 19,270 270 41,360
Probable (UG) Sulphides 3,199 327 3.12 ‐ 582 33,650 321 59,900
Total Proven and Probable (UG) Sulphides 5,117 322 3.59 ‐ 615 52,920 591 101,260
SANTA ELENA Proven (UG) Sulphides 819 120 1.57 ‐ 252 3,170 42 6,640
Probable (UG) Sulphides 1,900 91 1.34 ‐ 202 5,530 82 12,360
Probable (Pad) Oxides 898 32 0.64 ‐ 86 920 19 2,470
Total Proven and Probable (UG+Pad) Oxides + Sulphides 3,616 83 1.22 ‐ 185 9,620 142 21,470
LA ENCANTADA Probable (UG) Oxides 576 221 ‐ ‐ 221 4,090 ‐ 4,090
Probable (UG) Oxides ‐ Flotation 809 147 ‐ 2.35 196 3,820 ‐ 5,090
Probable (Tailings) Oxides 4,128 110 ‐ ‐ 110 14,600 ‐ 14,600
Total Probable (UG) Oxides + Tailings 5,513 127 ‐ 0.34 134 22,510 ‐ 23,780
Consolidated FMS Proven (UG) All mineral types 2,737 255 3.54 ‐ 546 22,440 312 48,000
Probable (UG) All mineral types 11,510 169 1.14 0.17 266 62,610 421 98,510
Total Proven and Probable All mineral types 14,246 186 1.60 0.13 320 85,050 733 146,510
Measured and Indicated Mineral Resources with an effective date of December 31, 2019
(1) Mineral Resources have been classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards on
Mineral Resources and Mineral Reserves, whose definitions are incorporated by reference into National Instrument NI 43‐101.
(2) The Mineral Resources information provided above is based on mineral resource estimates prepared as of December 31, 2019 by FMS Internal QPs, who
have the appropriate relevant qualifications, and experience in geology and resource estimation. The information provided was compiled by David Rowe,
CPG, Internal QP for First Majestic, and reviewed by Ramon Mendoza Reyes, PEng, Internal QP for First Majestic.
(3) Metal prices considered for Mineral Resources estimates were $18.50/oz Ag, $1,450/oz Au, $1.05/lb Pb and $1.30/lb Zn.
(4) Silver‐equivalent grade is estimated considering: metal price assumptions, metallurgical recovery for the corresponding mineral type/mineral process and
the metal payable of the corresponding contract of each mine. Assumptions details are listed in each mine section of the 2019 Annual Information Form.
(5) The cut‐off grades used to estimate Mineral Resources are different for all mines. The cut‐off grades and economic parameters are listed in the applicable
section describing each mine section of the 2019 Annual Information Form.
(6) Measured and Indicated Mineral Resources are inclusive of the Mineral Reserves.
(7) Tonnage is expressed in thousands of tonnes; metal content is expressed in thousands of ounces. Totals may not add up due to rounding.
(8) San Martin, La Parrilla, Del Toro and La Guitarra are currently in temporary suspension of production activities and are considered non‐material properties.
Mine Category Mineral Type Tonnage
k tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag ‐Eq (g/t) Ag (k Oz) Au (k Oz) Ag ‐Eq (k Oz)
MATERIAL PROPERTIES
SAN DIMAS Measured (UG) Sulphides 1,860 487 6.99 ‐ ‐ 1,050 29,110 418 62,810
Indicated (UG) Sulphides 2,957 438 4.26 ‐ ‐ 782 41,620 405 74,290
Total Measured and Indicated (UG) Sulphides 4,816 457 5.32 ‐ ‐ 885 70,730 823 137,100
SANTA ELENA Measured Santa Elena (UG) Sulphides 757 165 2.19 ‐ ‐ 346 4,020 54 8,420
Indicated Santa Elena (UG) Sulphides 2,050 113 1.58 ‐ ‐ 244 7,450 104 16,080
Indicated Ermitano (UG) Sulphides 2,107 70 4.59 ‐ ‐ 449 4,730 311 30,390
Indicated (Leach Pad) Oxides 919 36 0.74 ‐ ‐ 97 1,070 22 2,870
Total Measured and Indicated (UG+Pad) Oxides + Sulphides 5,833 92 2.62 ‐ ‐ 308 17,270 491 57,760
LA ENCANTADA Indicated Veins Systems (UG) Oxides 691 326 ‐ ‐ ‐ 326 7,250 ‐ 7,250
Indicated Breccias (UG) Oxides 213 200 ‐ ‐ ‐ 200 1,370 ‐ 1,370
Indicated Ojuelas (UG) Oxides ‐ Sulphides 854 216 ‐ 2.90 8.93 314 5,950 ‐ 8,630
Indicated (Tailings) Oxides 4,121 111 ‐ ‐ ‐ 111 14,730 ‐ 14,730
Total Measured and Indicated (UG) Oxides + Tailings 5,880 155 ‐ 0.42 1.30 169 29,300 ‐ 31,980
MATERIAL Total Measured All mineral types 2,617 394 5.60 ‐ ‐ 847 33,130 472 71,230
PROPERTIES Total Indicated All mineral types 13,913 188 1.88 0.18 0.55 348 84,170 843 155,610
Total Measured and Indicated All mineral types 16,529 221 2.47 0.15 0.46 427 117,300 1,315 226,840
NON‐MATERIAL PROPERTIES
SAN MARTÍN Measured (UG) Oxides 44 293 0.24 ‐ ‐ 312 410 0 440
Indicated (UG) Oxides 719 321 0.61 ‐ ‐ 369 7,390 14 8,530
Total Measured and Indicated (UG) Oxides 763 319 0.58 ‐ ‐ 366 7,800 14 8,970
LA PARRILLA Indicated (UG) Sulphides 944 187 0.08 1.98 1.83 321 5,680 2 9,720
Indicated (UG) Oxides 145 272 0.15 ‐ ‐ 284 1,270 1 1,320
Total Measured and Indicated (UG) Oxides + Sulphides 1,089 198 0.09 1.72 1.59 316 6,950 3 11,040
DEL TORO Indicated (UG) All Mineral Types 660 215 0.36 4.32 4.82 506 4,560 8 10,730
Total Measured and Indicated (UG) All Mineral Types 660 215 0.36 4.32 4.82 506 4,560 8 10,730
LA GUITARRA Measured (UG) Sulphides 384 292 1.84 ‐ ‐ 434 3,610 23 5,360
Indicated (UG) Sulphides 398 270 1.40 ‐ ‐ 378 3,460 18 4,840
Total Measured and Indicated (UG) Sulphides 782 281 1.62 ‐ ‐ 406 7,070 40 10,200
NON‐MATERIAL Total Measured All mineral types 428 292 1.67 ‐ ‐ 421 4,020 23 5,800
PROPERTIES Total Indicated All mineral types 2,866 243 0.46 1.65 1.72 382 22,360 42 35,140
Total Measured and Indicated All mineral types 3,294 249 0.62 1.43 1.49 387 26,380 65 40,940
CONSOLIDATED Total Measured All mineral types 3,045 379 5.05 ‐ ‐ 787 37,150 495 77,030
FMS Total Indicated All mineral types 16,779 198 1.64 0.43 0.75 354 106,530 885 190,750
Total Measured and Indicated All mineral types 19,824 225 2.16 0.36 0.63 420 143,680 1,380 267,780
Grades Metal Content
Inferred Mineral Resources with an effective date of December 31, 2019
(1) Mineral Resources have been classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards on
Mineral Resources and Mineral Reserves, whose definitions are incorporated by reference into National Instrument NI 43‐101.
(2) The Mineral Resources information provided above is based on mineral resource estimates prepared as of December 31, 2019 by FMS Internal QPs, who
have the appropriate relevant qualifications, and experience in geology and resource estimation. The information provided was compiled by David Rowe,
CPG, Internal QP for First Majestic, and reviewed by Ramon Mendoza Reyes, PEng, Internal QP for First Majestic.
(3) Metal prices considered for Mineral Resources estimates were $18.50/oz Ag, $1,450/oz Au, $1.05/lb Pb and $1.30/lb Zn.
(4) Silver‐equivalent grade is estimated considering: metal price assumptions, metallurgical recovery for the corresponding mineral type/mineral process and
the metal payable of the corresponding contract of each mine. Assumptions details are listed in each mine section of the 2019 Annual Information Form.
(5) The cut‐off grades used to estimate Mineral Resources are different for all mines. The cut‐off grades and economic parameters are listed in the applicable
section describing each mine section of the 2019 Annual Information Form.
(6) Tonnage is expressed in thousands of tonnes; metal content is expressed in thousands of ounces. Totals may not add up due to rounding.
(7) San Martin, La Parrilla, Del Toro and La Guitarra are currently in temporary suspension of production activities and are considered non‐material properties.
The Company also announces that its 2019 Annual Information Form has 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 Annual Report which includes the audited financial
statements, without charge, upon request to First Majestic, Suite 1800 ‐ 925 West Georgia Street Vancouver, B.C.,
Canada, V6C 3L2 or to [email protected].
Mr . Ramon Mendoza Reyes, Vice President Operations and Technical Services for First Majestic, is a "Qualified
Person" as such term is defined under National Instrument 43‐101 and has reviewed and approved the technical
information disclosed in this news release.
ABOUT THE COMPANY
First Majestic is a mining company focused on silver production in Mexico and is aggressively pursuing the
development of its existing mineral property assets. The Company presently owns and operates the San Dimas
Mine / Project Category Mineral Type Tonnage
k tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag ‐Eq (g/t) Ag (k Oz) Au (k Oz) Ag ‐Eq (k Oz)
MATERIAL PROPERTIES
SAN DIMAS Inferred Total (UG) Sulphides 5,871 341 3.58 ‐ ‐ 630 64,350 676 118,840
SANTA ELENA Inferred Santa Elena (UG) Sulphides 1,409 97 1.21 ‐ ‐ 197 4,400 55 8,910
Inferred Ermitaño (UG) Sulphides 3,733 58 3.08 ‐ ‐ 312 6,980 370 37,490
Inferred Total (UG) Sulphides 5,142 69 2.57 ‐ ‐ 281 11,380 425 46,400
LA ENCANTADA Inferred Veins Systems (UG) Oxides 794 321 ‐ ‐ ‐ 321 8,190 ‐ 8,190
Inferred Breccias (UG) Oxides 663 262 ‐ ‐ ‐ 262 5,580 ‐ 5,580
Inferred Ojuelas (UG) Oxides ‐ Sulphides 217 179 ‐ 2.05 8.22 248 1,250 ‐ 1,730
Inferred Total (UG) Oxides + Tailings 1,675 279 ‐ 0.27 1.07 288 15,020 ‐ 15,500
Total Inferred Material Properties All mineral types 12,687 222 2.70 0.04 0.14 443 90,750 1,101 180,740
NON‐MATERIAL PROPERTIES
SAN MARTÍN Inferred Total (UG) Oxides 2,078 229 0.43 ‐ ‐ 263 15,270 29 17,570
LA PARRILLA Inferred (UG) Sulphides 466 250 0.07 ‐ ‐ 256 3,750 1 3,830
Inferred (UG) Oxides 898 191 0.10 1.80 2.25 329 5,510 3 9,500
Inferred Total (UG) Oxides + Sulphides 1,364 211 0.09 1.18 1.48 304 9,260 4 13,330
DEL TORO Inferred Total (UG) All Mineral Types 824 201 0.17 4.04 2.04 397 5,340 4 10,510
LA GUITARRA Inferred Total (UG) Sulphides 610 288 0.60 ‐ ‐ 334 5,640 12 6,530
Total Inferred Non‐Material Properties All mineral types 4,876 227 0.31 1.01 0.76 306 35,510 49 47,940
Total Inferred Consolidated FMS All mineral types 17,563 224 2.03 0.31 0.31 405 126,260 1,150 228,680
Grades Metal Content
Silver/Gold Mine, the Santa Elena Silver/Gold Mine and the La Encantada Silver Mine. Production from these mines
are projected to be between 11.8 to 13.2 million silver ounces or 21.5 to 24.0 million silver equivalent ounces in
2020.
FOR FURTHER INFORMATION contact [email protected], 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
SPECIAL NOTE REGARDING FORWARD‐LOOKING INFORMATION
This press 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, current conditions and expected future developments. Forward‐looking statements include, but are not limited to,
statements with respect to: the Company’s business strategy; future planning processes; commercial mining operations; cash flow; budgets; the timing and
amount of estimated future production; recovery rates; mine plans and mine life; the future price of silver and other metals; costs of production; costs and
timing of the development of new deposits; capital projects and exploration activities and the possible results thereof. Assumptions may prove to be incorrect
and actual results may differ materially from those anticipated. Consequently, guidance cannot be guaranteed. As such, investors are cautioned not to place
undue reliance upon guidance and forward‐looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are
placed will occur. All statements other than statements of historical fact 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. 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”.
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: the duration
and effects of the coronavirus and COVID‐19, and any other pandemics on our operations and workforce, and the effects on global economies and society;
risks related to the integration of acquisitions; actual results of exploration activities; conclusions of economic evaluations; changes in project parameters as
plans continue to be refined; commodity prices; variations in ore reserves, grade or recovery rates; actual performance of plant, equipment or processes
relative to specifications and expectations; accidents; labour relations; relations with local communities; changes in national or local governments; changes in
applicable legislation or application thereof; delays in obtaining approvals or financing or in the completion of development or construction activities; exchange
rate fluctuations; requirements for additional capital; government regulation; environmental risks; reclamation expenses; outcomes of pending litigation;
limitations on insurance coverage as well as those factors discussed in the section entitled "Description of the Business ‐ Risk Factors" in the Company's most
recent Annual Information Form, 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 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.