FR Frankfurt – FMV First Majestic Announces 2021 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 31, 2022
Toronto – FR
Frankfurt – FMV
First Majestic Announces 2021 Mineral Reserve and Resource Estimates
FIRST MAJESTIC SILVER CORP. (the "Company" or “First Majestic”) is pleased to announce its 2021 Mineral
Reserve and Resource estimates for its material mineral property assets with an effective date of
December 31, 2021. The Company completed a record exploration program totalling 227,845 metres of
drilling at its operating mine properties in 2021, representing a 46% increase in metres drilled compared to
the prior year. Approximately 80% of this drilling was focused on near mine or brownfield targets while the
remainder was focused on greenfield targets looking for new discoveries. During 2021, the Company added
more ounces into Reserves than were depleted following a record 26.9 million silver equivalent ounces in
annual production.
2021 HIGHLIGHTS (compared to prior Mineral Reserve and Mineral Resource estimates on December 31,
2020)
Proven and Probable Mineral Reserves estimates (“P&P”) at the Company’s four producing material
assets totalled 177.4 million silver equivalent ounces consisting of 63.0 million ounces of silver and
1.32 million ounces of gold. Silver and gold ounces increased 1% and 118%, respectively, primarily
due to the addition of 440,000 ounces of gold at Jerritt Canyon, and the addition of 1.55 million
ounces of silver and 280,000 ounces of gold at Santa Elena following its previously reported pre‐
feasibility study in November 2021 which incorporated the Ermitaño Mine into the life of mine. In
addition, P&P at La Encantada increased 29% in silver ounces as a result of successful drilling at the
Ojuelas and Milagros Breccia deposits.
Measured and Indicated Mineral Resource estimates (“M&I”) for the Company’s four material
assets totalled 332.5 million silver equivalent ounces consisting of 111.0 million ounces of silver
and 2.89 million ounces of gold, representing a 1% decrease and a 130% increase, respectively.
Jerritt Canyon added 1.60 million ounces of gold in 8 different deposits over its large land package.
At Santa Elena, M&I totalled 18.8 million ounces of silver and 544,000 ounces of gold,
corresponding to 70.8 million ounces of silver equivalent representing an 11% increase.
Inferred Mineral Resource estimates for the Company’s material assets totalled 235.1 million silver
equivalent ounces consisting of 75.3 million ounces of silver and 2.08 million ounces of gold.
Inferred Mineral Resources increased significantly with the incorporation of Jerritt Canyon.
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2021 PRODUCTION TABLE
(1) Silver‐equivalent ounces in the table above are estimated considering: metal price assumptions, and the metal payable of the corresponding contract of each mine.
(2) Totals may not add up due to rounding.
Metal price assumptions used to estimate the December 31, 2021 Mineral Reserves were $22.50/oz for
silver and $1,750/oz for gold. This compares to the previous metal price assumptions of $17.50/oz for silver
and $1,700/oz for gold used to calculate the Company’s 2020 Mineral Reserves.
MINERAL RESERVE AND MINERAL RESOURCE UPDATE
As of December 31, 2021, Proven and Probable Mineral Reserves estimates at the Company’s material
assets totalled 177.4 million silver equivalent ounces consisting of 63.0 million ounces of silver and 1.32
million ounces of gold. The increase is primarily due to the acquisition of the Jerritt Canyon Gold Mine which
added 440,000 ounces of gold grading 5.41 g/t. At Santa Elena, P&P increased 160% to 54.3 million silver
equivalent ounces consisting of 11.8 million ounces of silver and 402,000 ounces of gold. The Ermitaño
Mine at Santa Elena added Mineral Reserves of 4.7 million ounces of silver and 328,000 ounces of gold
grading 52 g/t silver and 3.66 g/t gold. Consolidated tonnage at the material assets increased to 13.2 million
tonnes, representing a 57% increase compared to the previous year.
Measured and Indicated Mineral Resource estimates for the material assets totalled 332.5 silver equivalent
ounces consisting of 111.0 million ounces of silver and 2.89 million ounces of gold. The Jerritt Canyon
acquisition added 1.60 million ounces of gold grading 5.84 g/t gold. At Santa Elena, M&I Mineral Resource
estimates totalled 18.8 million ounces of silver and 544,000 ounces of gold. Consolidated tonnage at the
material assets increased to 25.6 million tonnes, representing a 54% increase compared to the previous
year. Measured and Indicated Mineral Resources estimates are reported inclusive of Mineral Reserves.
Mineral Resources that are not Mineral Reserves do not have a demonstrated economic viability.
Inferred Mineral Resources at the material assets totalled 235.1 million silver equivalent ounces consisting
of 75.3 million ounces of silver and 2.08 million ounces of gold.
The complete 2021 Mineral Reserve and Mineral Resource estimates for all tonnage, metal grades, and
metal content are shown below in the following tables:
Units SAN
DIMAS
SANTA
ELENA
LA
ENCANTADA
JERRITT
CANYON TOTAL
Ore Processed Tonnes 822,791 879,060 1,004,144 633,400 3,339,394
Material from Reserves Mined and Processed Tonnes 768,829 873,151 255,262 171,000 2,068,242
Material Mined from Areas Not In Reserves Tonnes 53,962 5,909 748,882 462,400 1,271,153
Silver Produced Ounces 7,646,898 1,954,492 3,241,555 0 12,842,945
Gold Produced Ounces 81,237 42,088 460 68,567 192,353
Silver‐Equivalent Produced from Gold (1) Ounces 5,878,151 3,087,445 33,243 5,013,999 14,012,838
Silver‐Equivalent Produced Ounces 13,525,049 5,041,937 3,274,798 5,013,999 26,855,783
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Proven and Probable Mineral Reserve Estimates with an Effective Date of December 31, 2021
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 NI 43‐101.
2. The Mineral Reserve statement provided in the table above have an effective date of December 31, 2021. The Mineral Reserve estimates were prepared under the
supervision of Ramón Mendoza Reyes, P.Eng., and a Qualified Person ("QP") for the purposes of NI 43‐101 who has the appropriate relevant qualifications, and
experience in mining and mineral reserves estimation.
3. The Mineral Reserves were estimated from the Measured and Indicated portions of the Mineral Resource estimate. Inferred Mineral Resources were not considered
to be converted into Mineral Reserves.
4. Silver‐equivalent grade (Ag‐Eq) is estimated considering metal price assumptions, metallurgical recovery for the corresponding mineral type/mineral process and
the metal payable of the selling contract.
(a) The Ag‐Eq grade formula used was:
Ag‐Eq Grade = Ag Grade + Au Grade * (Au Recovery * Au Payable * Au Price) / (Ag Recovery * Ag Payable * Ag Price).
(b) Metal prices considered for Mineral Reserves estimates were $22.50/oz Ag and $1,750/oz Au for all sites. The silver‐equivalent factor used for Jerritt Canyon
was 77.8 g/t Ag‐Eq per 1 g/t Au.
(c) Other key assumptions and parameters include: metallurgical recoveries; metal payable terms; direct mining costs, processing costs, indirect and G&A costs and
sustaining costs. These parameters are different for each mine and mining method assumed and are presented in each mine section of the 2021 Annual Information
Form.
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, infrastructure and all sustaining costs. A second Incremental Cut‐Off Grade (IC) was considered to Include
adjacent mineralized material which recoverable value pays for all associated costs, including but not limited to the variable cost of mining and processing, indirect
costs, treatment, administration costs and plant sustaining costs but excludes the access development assumed to be covered by the block above the GC grade.
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 and are presented in each mine section in the 2021 Annual Information Form.
7. Modifying factors for conversion of resources to reserves include consideration for planned dilution which is based on spacial and geotechnical aspects of the
designed stopes and economic zones, additional dilution consideration due to unplanned events, materials handling and other operating aspects, and mining
recovery factors. Mineable shapes were used as geometric constraints.
8. Tonnage is expressed in thousands of tonnes; metal content is expressed in thousands of ounces. Metal prices and costs are expressed in USD.
9. Numbers have been rounded as required by reporting guidelines. Totals may not sum due to rounding.
10. The technical reports from which the above‐mentioned information is derived are cited under the heading "Technical Reports for Material Properties" in the 2021
Annual Information Form.
Mine / Category Mineral Type Tonnage Grades Metal Content
k tonnes Ag (g/t) Au (g/t) Ag ‐Eq (g/t) Ag (k Oz)Au (k Oz) Ag‐Eq (k Oz)
SAN DIMAS
Proven (UG) Sulphides 2,328 348 4.42 697 26,050 331 52,190
Probable (UG) Sulphides 1,506 265 3.02 504 12,820 146 24,390
Total Proven and Probable (UG) Sulphides 3,834 315 3.87 621 38,870 477 76,580
JERRITT CANYON
Proven (UG) Oxides 847 ‐ 5.23 407 ‐ 143 11,080
Probable (UG) Oxides 1,682 ‐ 5.50 428 ‐ 297 23,120
Total Proven and Probable (UG) Oxides 2,529 ‐ 5.41 421 ‐ 440 34,200
SANTA ELENA
Proven (UG ‐ Ermitano) Sulphides 162 45 4.70 569 240 25 2,970
Proven (UG ‐ Santa Elena) Sulphides 447 144 1.68 279 2,060 24 4,010
Probable (UG ‐ Ermitano) Sulphides 2,627 52 3.60 453 4,430 304 38,260
Probable (UG ‐ Santa Elena) Sulphides 1,133 134 1.26 236 4,870 46 8,600
Probable (Pad) Oxides 188 31 0.55 75 190 3 450
Total Proven and Probable (UG+Pad) Oxides + Sulphides 4,557 80 2.74 371 11,790 402 54,290
LA ENCANTADA
Probable (UG) Oxides 2,260 170 ‐ 170 12,350 ‐ 12,350
Total Probable (UG) Oxides 2,260 170 ‐ 170 12,350 ‐ 12,350
Consolidated FMS
Proven (UG) All mineral types 3,784 216 4.09 545 28,350 522 70,250
Probable (UG) All mineral types 9,397 122 2.72 368 34,660 797 107,170
Total Proven and Probable All mineral types 13,181 149 3.11 419 63,010 1,319 177,420
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Measured and Indicated Mineral Resource Estimates with an Effective Date of December 31, 2021
1. Mineral Resource estimates have been classified in accordance with the 2014 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 Resource estimates provided above have an effective date of December 31, 2021. The estimates were prepared 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, P.Eng., Internal QP for First Majestic.
3. Sample data was collected through a cut‐off date of December 31, 2021, for the Material Properties. All properties account for relevant technical information
and mining depletion through December 31, 2021.
4. Metal prices considered for Mineral Resources estimates were $25.00/oz Ag and $1,800/oz Au.
5. 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. Estimation details are listed in each mine section of the Annual Information Form (AIF).
6. The cut‐off grades and cut‐off values used to report Mineral Resources are different for all mines. The cut‐off grades, values and economic parameters are listed
in the applicable section describing each mine section of the AIF.
7. Measured and Indicated Mineral Resource estimates are inclusive of the Mineral Reserve estimates.
8. Tonnage is expressed in thousands of tonnes, metal content is expressed in thousands of ounces. Totals may not add up due to rounding.
9. The technical reports from which the above‐mentioned information for the material properties is derived are cited under the heading "Technical Reports for
Material Properties" of the AIF.
Mine / Project Mineral Type Tonnage
Category / Area k tonnes Ag (g/t) Au (g/t) Ag ‐Eq (g/t) Ag (k Oz) Au (k Oz) Ag ‐Eq (k Oz)
MATERIAL PROPERTIES
SAN DIMAS
Measured (UG) Sulphides 2,546 474 6.15 924 38,780 503 75,640
Indicated (UG) Sulphides 1,906 336 3.83 616 20,580 235 37,770
Total Measured and Indicated (UG) Sulphides 4,452 415 5.15 792 59,360 738 113,410
JERRITT CANYON ‐
Measured (UG) Sulphides 4,068 ‐ 5.85 421 ‐ 765 55,050
Indicated (UG) Sulphides 4,303 ‐ 5.90 425 ‐ 816 58,780
Indicated (OP) Sulphides 180 ‐ 4.00 288 ‐ 23 1,660
Total Measured and Indicated All Mineral Types 8,550 ‐ 5.84 420 ‐ 1,604 115,490
SANTA ELENA
Measured Ermitano (UG) Sulphides 119 56 5.54 627 210 21 2,400
Measured Santa Elena (UG) Sulphides 723 155 1.65 278 3,610 38 6,450
Indicated Ermitano (UG) Sulphides 2,498 68 4.75 558 5,440 382 44,790
Indicated Santa Elena (UG) Sulphides 2,276 127 1.35 228 9,320 99 16,680
Indicated (Leach Pad) Oxides Spent Ore 190 34 0.61 79 210 4 490
Total Measured and Indicated (UG+Pad) All Mineral Types 5,806 101 2.92 379 18,790 544 70,810 ‐ ‐
LA ENCANTADA
Indicated (UG) Oxides 4,308 169 ‐ 169 23,410 ‐ 23,410
Indicated Tailings Deposit No. 4 Oxides 2,459 119 ‐ 119 9,410 ‐ 9,410
Total Measured and Indicated (UG+Tailings) All Mineral Types 6,767 151 ‐ 151 32,820 ‐ 32,820 ‐ ‐
SUBTOTAL MATERIAL PROPERTIES
Total Measured All mineral types 7,456 178 5.54 582 42,600 1,327 139,540
Total Indicated All mineral types 18,120 117 2.68 331 68,370 1,559 192,990
Total Measured and Indicated All mineral types 25,575 135 3.51 404 110,970 2,886 332,530
Grades Metal Content
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Inferred Mineral Resource Estimates with an Effective Date of December 31, 2021
1. Mineral Resource estimates have been classified in accordance with the 2014 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 Resource estimates provided above have an effective date of December 31, 2021, for the Material Properties. The estimates were prepared 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, P.Eng., Internal QP for First Majestic.
3. Sample data was collected through a cut‐off date of December 31, 2021, for the material properties. All properties account for relevant technical information
and mining depletion through December 31, 2021.
4. Metal prices considered for Mineral Resources estimates were $25.00/oz Ag and $1,800/oz Au.
5. 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. Estimation details are listed in each mine section of the 2021 Annual Information Form.
6. The cut‐off grades and cut‐off values used to report Mineral Resources are different for all mines. The cut‐off grades, values and economic parameters are listed
in the applicable section describing each mine section of the 2021 Annual Information Form.
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. The technical reports from which the above‐mentioned information for the material properties is derived are cited under the heading "Technical Reports for
Material Properties" of the 2021 Annual Information Form.
The Company also announces that its 2021 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 and 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, P.Eng., Vice President 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.
Mine / Project Mineral Type Tonnage
Category / Area k tonnes Ag (g/t) Au (g/t) Ag ‐Eq (g/t) Ag (k Oz) Au (k Oz) Ag‐Eq (k Oz)
MATERIAL PROPERTIES
SAN DIMAS
Inferred Total (UG) Sulphides 4,073 310 3.54 570 40,660 463 74,630
JERRITT CANYON
Inferred Total (UG) Sulphides 6,778 ‐ 5.65 407 ‐ 1,231 88,600
Inferred Total (OP) Sulphides 150 ‐ 3.89 280 ‐ 19 1,350
Inferred Total (UG & OP) Sulphides 6,927 ‐ 5.61 404 ‐ 1,249 89,950
SANTA ELENA
Inferred Ermitaño (UG) Sulphides 3,157 78 2.99 386 7,900 304 39,180
Inferred Santa Elena (UG) Sulphides 1,674 114 1.16 200 6,160 62 10,790
Inferred Total (UG) Sulphides 4,831 91 2.36 322 14,060 366 49,970
LA ENCANTADA
Inferred Total (UG) Oxides 3,470 170 ‐ 170 18,930 ‐ 18,930
Inferred Inferred Tailings Deposit No. 4 Oxides 428 118 ‐ 118 1,620 ‐ 1,620
Inferred Total (UG + Tailings) All Mineral Types 3,898 164 ‐ 164 20,550 ‐ 20,550
Total Inferred Material Properties All mineral types 19,730 119 3.28 371 75,270 2,078 235,100
Grades Metal Content
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ABOUT THE COMPANY
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 the San Dimas Silver/Gold Mine, the Jerritt
Canyon Gold Mine, the Santa Elena Silver/Gold Mine and the La Encantada Silver Mine.
First Majestic is proud to offer a portion of its silver production for sale to the public. Bars, ingots, coins
and medallions are available for purchase online at its Bullion Store at some of the lowest possible
premiums.
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
Cautionary Note Regarding Forward Looking Statements
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; commercial mining operations; cash flow;
budgets; the timing and amount of estimated future production; ore grades; recovery rates; and costs; 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 or public health crises on our operations and
workforce, and the effects on global economies and society, 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; fluctuations in costs; labour relations; availability and
performance of contractors; 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
including appeals of judgments; resolutions of claims and arbitration proceedings; negotiations and regulatory proceedings; 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
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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.