FR Frankfurt – FMV First Majestic Announces 2022 Mineral Reserve and Mineral 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, 2023
Toronto – FR
Frankfurt – FMV
First Majestic Announces 2022 Mineral Reserve and Mineral Resource Estimates
FIRST MAJESTIC SILVER CORP. (the "Company" or “First Majestic”) is pleased to announce the 2022 Mineral
Reserve and Mineral Resource estimates for its four mate rial mineral properties with an effective date of
December 31, 2022. Three material properties are currently in production: the San Dimas Silver/Gold Mine,
the Santa Elena Silver/Gold Mine, and the La Encantada Silver Mine. The fourth material property, the Jerritt
Canyon Gold Mine, was recently placed in temporary suspension to focus on ex ploration, definition, and
expansion of the mineral resources and optimization of mine planning and plant operations.
During 2022, the Company completed a total of 249,201 me tres of exploration drilling representing a 9%
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. In 2022, the Company’s Mineral Resource estima tes show an increase in contained silver
equivalent ounces more than offsetting mine depl etion following a record 31.3 million silver equivalent
ounces in annual production.
2022 HIGHLIGHTS (compared to prior Mineral Reserve and Mineral Resource estimates on December 31,
2021)
Proven and Probable (“P&P”) Mineral Reserves estimates at the Company’s three producing
material assets totalled 136.8 million silver equi valent (“Ag-Eq”) ounces consisting of 61.5 million
ounces of silver and 781,000 ounces of gold. Si lver ounces remained relatively unchanged,
decreasing only 2% after the exploration programs successfully offset depletion due to production
during the year. Gold ounces decreased 41%, primar ily due to the Company’s decision to report
only Mineral Resource estimates for the Jerritt Canyon property after temporarily suspending
production and the record production at Santa Elena with the Ermitaño mine surpassing its
budgeted metal output in 2022.
Measured and Indicated (“M&I”) Mineral Resource estimates for the four material assets totalled
351.5 million Ag-Eq ounces consisting of 101.7 million ounces of silver and 2.82 million ounces of
gold, representing an 8% and 2% decrease in silver and gold, respectively. Jerritt Canyon added
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67,000 ounces of gold to its M&I Mineral Resource estimates at the SSX and Smith mines, which
were identified by the 2022 drilling program.
Inferred Mineral Resource estimates for the Comp any’s four material assets totalled 280.8 million
Ag-Eq ounces consisting of 73. 6 million ounces of silver and 2.36 million ounces of gold.
Expansionary drilling completed during 2022 at Jerri tt Canyon significantly increased the Inferred
Mineral Resource estimates with the addition of 307,000 ounces of gold at the SSX, Smith, and
West Generator mines. Drilling during the past ye ar at San Dimas also increased the Inferred
Resource estimates, adding 8.6 million Ag-Eq ounces consisting of 1.3 million ounces of silver and
25,000 ounces of gold.
2022 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 Company’s 2022 Annual Information Form.
Metal price assumptions used to estimate the Dece mber 31, 2022 Mineral Reserves were $21.50/oz for
silver and $1,750/oz for gold. This compares to the previous metal price assumptions of $22.50/oz for silver
and $1,750/oz for gold used to calculate the Company’s 2021 Mineral Reserves.
MINERAL RESERVE AND MINERAL RESOURCE UPDATE
As of December 31, 2022, P&P Mineral Reserve estimates at the Company’s three producing material assets
totalled 61.5 million ounces of silver and 781,000 ounces of gold, which represents a total of 136.8 million
Ag-Eq ounces. At the San Dimas and La Encantada mi nes, the P&P Mineral Reserve estimates remained
relatively unchanged as a result of the exploration programs offsetting the production depletion. At Santa
Elena, P&P Mineral Reserve estimates decreased 14% to 47.0 million Ag-Eq ounces consisting of 10.1 million
ounces of silver and 320,000 ounces of gold. The decrea se at Santa Elena is the result of depletion after
record production in the Ermitaño mine during 2022. Consolidated tonnage at the three material assets
was 11.3 million tonnes, with estimated grades of 169 g/ t silver and 2.14 g/t gold. The decrease of 14% in
the consolidated tonnage is primarily due to the depletion in Mineral Reserve estimates at Santa Elena and
the exclusion of the Mineral Reserve estimates for Jerritt Canyon following the Company’s decision to
report only Mineral Resources at that property after temporarily suspending production. This decrease was
partially offset by increases in tonnage at the San Dimas and La Encantada mines.
Units SAN
DIMAS
SANTA
ELENA
LA
ENCANTADA
JERRITT
CANYON TOTAL
Ore Processed Tonnes 787,636 851,973 1,025,172 804,206 3,468,987
Material from Reserves Mined and Processed Tonnes 671,888 851,720 11,377 217,106 1,752,091
Material Mined from Areas Not In Reserves Tonnes 115,748 253 1,013,795 587,100 1,716,896
Silver Produced Ounces 6,201,090 1,229,612 3,091,349 0 10,522,051
Gold Produced Ounces 80,814 94,684 413 72,483 248,394
Silver-Equivalent Produced from Gold (1) Ounces 6,756,736 7,917,603 34,412 6,022,118 20,730,869
Silver-Equivalent Produced Ounces 12,957,826 9,147,215 3,125,761 6,022,118 31,252,920
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Proven and Probable Mineral Reserve Estimates with an Effective Date of December 31, 2022
(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, 2022. The Mineral Reserve estimates were prepared under the
supervision of Ramón Mendoza Reyes, PEng, 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 Paya ble * Au Price) / (Ag Recovery * Ag Payable * Ag Price).
(b) Metal prices considered for Mineral Reserves estimates were $21.50/oz Ag and $1,750/oz Au for all sites.
(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 2022 AIF.
(5) A two-step constraining approach has been implemented to estimate reserves for each mine and mining method in use: A Genera l Cut-Off Grade (GC) was used to
delimit new mining areas that will require development of access, infrastructure and 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 2022 AIF.
(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 as pects, 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 2022
AIF.
M&I Mineral Resource estimates for the four material assets totalled 351.5 million Ag-Eq ounces consisting
of 101.7 million ounces of silver and 2.82 million ounces of gold. The consolidated tonnage was 25.3 million
tonnes with estimated grades of 125 g/t silver and 3.47 g/t gold. The M&I tonnes were relatively unchanged
with a 1% decrease over 2021. M&I Mineral Resources at Jerritt Canyon increased by 67,000 ounces of gold
primarily due to a successful near-mine drilling prog ram at the SSX and Smith mines that outlined new
mineral deposits. M&I Mineral Resources estimates are reported inclusive of Mineral Reserves.
Mine Mineral Tonnage Grades Metal Content
Category Type 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 2,612 278 3.51 571 23,330 295 47,910
Probable (UG) Sulphides 1,699 265 3.03 518 14,470 166 28,270
Total Proven and Probable (UG) Sulphides 4,311 273 3.32 550 37,800 460 76,180
SANTA ELENA
Proven (UG - Ermitano) Sulphides 274 36 3.40 453 310 30 3,990
Proven (UG - Santa Elena) Sulphides 222 134 1.31 228 960 9 1,620
Probable (UG - Ermitano) Sulphides 2,265 59 3.35 470 4,280 244 34,200
Probable (UG - Santa Elena) Sulphides 890 152 1.17 235 4,350 34 6,730
Probable (Pad) Oxides 188 31 0.55 70 190 3 420
Total Proven and Probable (UG+PaOxides + Sulphide 3,839 82 2.59 381 10,090 320 46,960
LA ENCANTADA
Probable (UG) Oxides 3,192 133 - 133 13,610 - 13,610
Total Probable (UG) Oxides 3,192 133 - 133 13,610 - 13,610
Consolidated FMS
Proven (UG) All mineral types 3,107 246 3.35 536 24,600 334 53,520
Probable (UG) All mineral types 8,235 139 1.69 314 36,900 446 83,230
Total Proven and Probable All mineral types 11,342 169 2.14 375 61,500 781 136,750
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Inferred Mineral Resource estimates for the four ma terial assets totalled 280.8 million Ag-Eq ounces
consisting of 73.6 million ounces of silver and 2.36 m illion ounces of gold. The consolidated tonnage was
21.2 million tonnes with estimated gr ades of 108 g/t silver and 3.47 g/t gold. Successful near mine
exploration drilling at Jerritt Canyon outlined new Inferred Resources at the SSX, Smith, and West Generator
mines totalling 307,000 ounces of gold . Most of these ounces were discovered along the newly opened
mine corridor connecting the SSX and Smith mines a nd extend north of the Mahala gold mineralization
(Zon e s 1- 9 of t h e S S X m ine t o Zon e 10 of t h e S m it h Min e ). T he m in e raliz at ion re m ain s ope n in se ve ral
directions and the Company plans to conduct further exploration in 2023.
Measured and Indicated Mineral Resource Estimates with an Effective Date of December 31, 2022
1. Mineral Resource estimates have been classified in accordance with the 2014 Canadian Institute of Mining, Metallurgy and Pet roleum (“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 effect ive date of December 31, 2022. The estimates were prepared by the Company’s Internal QPs, who
have the appropriate relevant qualifications, and experience in geology and resource estimation. The information provided was c ompiled 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, 2022, for the Material Properties. All properties account for relevant technical information and
mining depletion through December 31, 2022.
4. Metal prices considered for Mineral Resources estimates were $23.00/oz Ag and $1,900/oz Au.
5. Silver-equivalent grade is estimated considering: metal pric e 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 2022 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, valu es 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. Mineral Resources that are not Mineral Reserves do not have
a demonstrated economic viability.
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" in the 2022 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 2,391 444 5.85 940 34,160 450 72,220
Indicated (UG) Sulphides 1,895 334 3.79 654 20,320 231 39,840
Total Measured and Indicated (UG) Sulphides 4,285 395 4.94 813 54,480 681 112,060
SANTA ELENA
Measured Ermitano (UG) Sulphides 354 40 4.11 552 460 47 6,280
Measured Santa Elena (UG) Sulphides 483 135 1.52 263 2,090 24 4,080
Indicated Ermitano (UG) Sulphides 2,501 67 4.01 566 5,370 322 45,510
Indicated Santa Elena (UG) Sulphides 1,490 157 1.47 280 7,510 70 13,440
Indicated (Leach Pad) Oxides Spent Ore 190 34 0.61 85 210 4 520
Total Measured and Indicated (UG+Pad) All Mineral Types 5,018 97 2.89 433 15,640 467 69,830 - -
LA ENCANTADA
Indicated (UG) Oxides 4,176 165 - 165 22,200 - 22,200
Indicated Tailings Deposit No. 4 Oxides 2,459 119 - 119 9,410 - 9,410
Total Measured and Indicated (UG+Tailin All Mineral Types 6,635 148 - 148 31,610 - 31,610 - -
JERRITT CANYON -
Measured (UG) Sulphides 4,988 - 5.61 463 - 900 74,320
Indicated (UG) Sulphides 4,171 - 5.58 461 - 748 61,790
Indicated (OP) Sulphides 180 - 4.00 330 - 23 1,910
Total Measured and Indicated (UG+OP) All Mineral Types 9,339 - 5.57 460 - 1,671 138,020 -
SUBTOTAL MATERIAL PROPERTIES
Total Measured All mineral types 8,215 139 5.38 594 36,710 1,420 156,900
Total Indicated All mineral types 17,061 119 2.55 355 65,020 1,398 194,620
Total Measured and Indicated All mineral types 25,277 125 3.47 433 101,730 2,818 351,520
Grades Metal Content
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Inferred Mineral Resource Estimates with an Effective Date of December 31, 2022
1. Mineral Resource estimates have been classified in accordance with the 2014 Canadian Institute of Mining, Metallurgy and Pet roleum (“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 effe ctive date of December 31, 2022, for the Material Properties. The estimates were prepared by the
Company’s Internal QPs, who have the appropriate relevant qualifications, and experience in geology and resource estimation. Th e 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 Decemb er 31, 2022, for the material properties. All properties account for relevant technical information and
mining depletion through December 31, 2022.
4. Metal prices considered for Mineral Resources estimates were $23.00/oz Ag and $1,900/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 2022 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, valu es and economic parameters are listed in
the applicable section describing each mine section of the 2022 AIF.
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" in the 2022 AIF.
The Company also announces that its 2022 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, Su ite 1800 - 925 West Georgia Street
Vancouver, B.C., Canada, V6C 3L2 or to [email protected].
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 4,256 306 3.57 609 41,930 489 83,300
SANTA ELENA
Inferred Ermitaño (UG) Sulphides 2,851 84 2.93 449 7,720 269 41,190
Inferred Santa Elena (UG) Sulphides 1,005 146 1.36 261 4,710 44 8,420
Inferred Total (UG) Sulphides 3,856 100 2.52 400 12,430 313 49,610
LA ENCANTADA
Inferred Total (UG) Oxides 3,071 179 - 179 17,660 - 17,660
Inferred Inferred Tailings Deposit No. 4 Oxides 428 118 - 118 1,620 - 1,620
Inferred Total (UG + Tailings) All Mineral Type s 3,499 171 - 171 19,280 - 19,280
JERRITT CANYON
Inferred Total (UG) Sulphides 9,398 - 5.09 421 - 1,538 127,080
Inferred Total (OP) Sulphides 150 - 3.89 322 - 19 1,550
Inferred Total (UG & OP) Sulphides 9,547 - 5.07 419 - 1,557 128,630
Total Inferred Material Properties All mineral type s 21,159 108 3.47 413 73,640 2,359 280,820
Grades Metal Content
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Mr. Ramon Mendoza Reyes, P.Eng., Vice President Tec hnical 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 publicly traded mining company focused on silver and gold production in Mexico and the
United States. The Company owns and operates the Sa n Dimas Silver/Gold Mine, the La Encantada Silver
Mine, the Santa Elena Silver/Gold Mine and the Jerritt Canyon Gold Mine.
First Majestic is proud to offer a port ion of its silver production for sale to the public. Bars, ingots, coins
and medallions are available for purchase online at it s Bullion Store at some of the lowest premiums
available.
FOR FURTHER INFORMATION contact info@fir stmajestic.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-lookin g information” and "forward-looking statemen ts” under applicable Canadian and U.S. s ecurities laws
(collectively, “forward-looking statements”). These statements relate to future events or the Company's future performance, bus iness prospects or
opportunities that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of manag ement made in
light of management's experience and perception of historical trends, current conditions and expected future developments. Forw ard-looking
statements include, but are not limited to, statements with respect to: the Company’s business strategy; commercial mining operations; exploration
programs; 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 relianc e 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 hist orical fact may be forward-look ing statements.
Statements concerning proven and probable mineral reserves and mineral resource estima tes may also be deemed to constitute forw ard-looking
statements to the extent that they involve estimates of the mine ralization that will be encountered as and if the property is d eveloped, 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, ob jectives or future events or performanc e (often, but not always, using words or ph rases 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-look ing statements. Forward-looking statements are subject to known and unknown risks, unc ertainties and
other factors that may cause actual results to materially differ from those expressed or implied by such forward-looking statem ents, including but
not limited to: the duration and effects of the coronavirus and CO VID-19, and any other pandemics or public health crises on ou r 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; actu al performance of
plant, equipment or processes rela tive to specifications and expectations; accident s; fluctuations in costs; labour relations; availability and
performance of contractors; relations with local communities; chan ges in national or local govern ments; changes in applicable l egislation or
application thereof; delays in obtaining approvals or financing or in the completion of developm ent 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.s edar.com, and Form 40-F on file with the United States Securities and Exchange Commission i n 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.