FR Frankfurt – FMV First Majestic Announces High-Grade Drill Results from its 2019 Exploration Program at the Ermitaño project within the Santa Elena land package
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 February 24, 2020
Toronto – FR
Frankfurt – FMV
First Majestic Announces High-Grade Drill Results from its 2019 Exploration Program
at the Ermitaño project within the Santa Elena land package
FIRST MAJESTIC SILVER CORP. (AG: NYSE; FR: TSX) (the "Company" or “First Majestic”) is ple ased to announce
the results from its 2019 explorat ion program at the Ermitaño p roject located approximately four kilometres
away from the Company’s producing Santa Elena operation in Sono ra, Mexico. The program focused on infill
drilling to upgrade a large existing Inferred Resource into Ind icated Resources to support detailed mine design
before construction.
“Today’s exploration results bring us another step closer to en suring a longer mine life for Santa Elena,” stated
Keith Neumeyer, President and CEO of First Majestic. “Not only has this program increased our confidence in the
resource but we also encountered significant intercepts of high ‐grade gold which we expect will improve the
overall grade of the resource. Next month we plan to announce a n updated resource estimate for the Ermitaño
project which will include these high‐grade drill results.”
Figure 1: Map of Santa Elena’s complex of land holdings
DRILLING HIGHLIGHTS
The 2019 exploration program totalled 33,767 metres in 103 drill holes primarily consisting of infill holes
designed to increase the confidence and overall size of the res ource. Highlights from the program include the
following high‐grade intercepts:
EW‐19‐67 – 10.8 metres grading 1,106 g/t AgEq (12.84 g/t Au and 46 g/t Ag)
EW‐19‐74 – 6.4 metres grading 1,164 g/t AgEq (9.46 g/t Au and 383 g/t Ag)
EW‐19‐85 – 2.4 metres grading 3,068 g/t AgEq (31.63 g/t Au and 459 g/t Ag)
EW‐19‐91 – 13.0 metres grading 1,003 g/t AgEq (11.61 g/t Au and 45 g/t Ag)
EW‐19‐103 – 7.7 metres grading 1,462 g/t AgEq (16.37 g/t Au and 111 g/t Ag)
EW‐19‐111 – 4.5 metres grading 1,562 g/t AgEq (17.98 g/t Au and 79 g/t Ag)
EW‐19‐113 – 9.1 metres grading 1,302 g/t AgEq (14.22 g/t Au and 130 g/t Ag)
As previously disclosed in the Company’s Annual Information Form (“AIF”) on March 31, 2019, the Ermitaño
project contains an Indicated Resource of 704,000 tonnes gradin g 389 g/t AgEq (4.05 g/t Au and 65 g/t Ag) for
8.8 million AgEq ounces and an Inferred Resource of 4,637,000 tonnes grading 329 g/t AgEq (3.36 g/t Au and 59
g/t Ag) for 49.0 million AgEq ounces. Furthermore, the Company is expecting to release an updated AIF and
resource estimate for the Ermitaño project at the end of the fi rst quarter of 2020 which will include the 2019
drill results with final assay cut‐off’s as of December 31, 2019.
Figure 2: Ermitaño Splay Grade x Thickness Long Section
SUMMARY OF COMPOSITES
At the end of 2019, 157 holes were completed totalling 55,719 m etres on the property. The following table
summarizes the most significant drill intercepts of the 2019 exploration program:
Hole ID From To Length
(m)
Estimated
True Length
(m)
Ag g/t Au g/t Ag Eq g/t
EW‐19‐53 216.7 225.6 8.9 8.2 73 4.19 419
EW‐19‐55 99.7 114.1 14.4 9.6 57 8.20 734
including 101.7 104.7 3.1 2.0 190 30.82 2,733
EW‐19‐57 456.8 457.7 0.9 0.6 287 8.91 1,022
EW‐19‐62 394.5 396.3 1.8 1.3 65 7.23 662
EW‐19‐66 83.9 89.2 5.2 4.2 18 6.03 515
including 87.6 89.2 1.6 1.3 53 20.23 1,722
EW‐19‐67 96.0 122.3 26.3 10.8 46 12.84 1,106
including 102.5 103.5 1.0 0.4 86 41.47 3,508
including 108.7 109.4 0.7 0.3 73 27.40 2,333
including 112.9 113.9 1.0 0.4 85 29.12 2,487
including 113.9 114.9 1.0 0.4 88 29.55 2,526
EW‐19‐72 173.2 179.8 6.6 4.1 38 5.99 532
including 174.9 175.7 0.8 0.5 68 18.41 1,587
EW‐19‐74 360.1 369.3 9.2 6.4 383 9.46 1,164
including 360.9 361.6 0.7 0.5 865 16.75 2,247
including 361.6 362.4 0.8 0.6 982 21.03 2,717
including 368.6 369.3 0.7 0.5 301 16.48 1,661
EW‐19‐75 304.3 305.3 1.1 0.9 100 10.17 939
EW‐19‐77 212.8 214.2 1.4 1.2 102 5.46 552
EW‐19‐78 236.2 244.1 7.9 5.1 200 2.76 428
EW‐19‐80 225.6 234.5 9.0 5.3 156 5.11 578
EW‐19‐85 232.2 236.1 3.9 2.4 459 31.63 3,068
including 232.2 233.2 1.0 0.6 1,224 88.40 8,517
including 233.2 233.7 0.5 0.3 584 33.51 3,349
EW‐19‐87 198.5 202.6 4.2 2.9 95 6.99 672
EW‐19‐91 113.8 138.0 24.3 13.0 45 11.61 1,003
including 117.4 126.4 8.9 4.8 79 27.54 2,350
EW‐19‐92 124.6 132.8 8.3 4.6 69 7.72 706
including 125.6 129.4 3.8 2.1 98 13.32 1,196
EW‐19‐93 168.2 173.1 4.9 3.7 84 4.50 456
EW‐19‐96 104.9 107.0 2.1 1.9 75 29.15 2,480
including 104.9 106.2 1.3 1.2 83 41.92 3,542
EW‐19‐98 148.0 156.8 8.8 5.9 111 9.43 889
including 150.3 150.9 0.5 0.4 245 35.81 3,199
EW‐19‐99 84.0 87.5 3.5 2.1 64 9.11 816
including 85.0 86.6 1.6 1.0 103 18.67 1,643
including 180.6 182.5 1.9 1.2 145 14.06 1,305
EW‐19‐102 226.1 235.1 9.0 5.0 115 4.50 487
EW‐19‐103 112.4 125.9 13.5 7.7 111 16.37 1,462
including 114.5 114.9 0.4 0.2 90 33.49 2,853
EW‐19‐109 133.0 145.4 12.4 9.5 45 5.18 472
including 134.6 135.5 0.9 0.7 53 11.57 1,008
including 136.3 137.5 1.2 0.9 57 12.77 1,111
including 142.4 143.0 0.5 0.4 81 11.17 1,003
EW‐19‐111 82.2 88.3 6.2 4.5 79 17.98 1,562
including 82.7 83.5 0.8 0.6 182 32.32 2,848
including 83.5 84.5 1.0 0.7 107 40.48 3,447
EW‐19‐113 104.4 121.5 17.1 9.1 130 14.22 1,302
including 109.9 110.4 0.5 0.3 1,030 150.72 13,465
including 113.0 118.9 5.9 3.1 187 23.17 2,099
EW‐19‐114 109.5 128.5 19.0 8.0 71 5.85 554
including 111.4 112.1 0.7 0.3 81 10.67 961
EW‐19‐115 254.6 265.7 11.2 7.4 103 7.45 717
including 254.6 255.6 1.0 0.7 294 25.75 2,418
including 260.5 262.3 1.8 1.2 104 17.28 1,529
EW‐19‐116 233.4 239.4 6.0 3.9 232 4.32 589
including 236.7 237.4 0.8 0.5 152 11.42 1,094
EW‐19‐117 257.8 262.7 5.0 3.2 337 4.99 749
EW‐19‐119A 226.8 233.8 7.0 5.4 70 10.81 962
including 227.2 228.0 0.8 0.7 180 47.66 4,111
including 229.1 230.1 1.0 0.8 65 14.09 1,227
EW‐19‐120 135.8 148.7 13.0 8.0 109 7.64 739
including 136.5 141.9 5.3 3.3 176 16.88 1,569
EW‐19‐123 212.0 221.3 9.4 4.6 144 6.60 689
including 213.4 216.0 2.5 1.2 198 13.24 1,290
including 220.5 221.3 0.9 0.4 205 16.20 1,541
EW‐19‐124 270.5 279.0 8.5 3.0 266 7.10 852
including 272.3 274.2 1.8 0.7 967 25.81 3,097
EW‐19‐127 273.3 284.3 11.0 7.2 209 7.93 863
including 282.9 283.7 0.8 0.5 597 25.36 2,689
EW‐19‐129 345.0 349.5 4.5 2.6 177 5.12 600
including 456.8 457.2 0.4 0.2 139 28.97 2,529
including 362.1 362.9 0.8 0.5 753 25.50 2,856
ESTW‐19‐04 392.8 409.3 16.5 9.7 53 5.32 492
including 397.5 398.5 1.0 0.6 63 12.65 1,106
ESTW‐19‐05 483.0 506.0 23.0 11.0 86 6.21 599
including 501.9 504.2 2.3 1.1 213 35.69 3,157
Silver equivalent (AgEq) is calculated using a gold to silver ratio of 1:82.5 and takes into consideration metal prices and metallurgical
recoveries.
After detailed geological logging, all drill core samples were cut in half on site by diamond saw. One half of the
core was submitted to SGS Laboratories in Hermosillo, Mexico fo r sample preparation and SGS Laboratories in
Durango, Mexico for sample analysis. The remaining half core is retained on‐site for verification and reference
purposes.
PREPARING FOR DETAILED MINE DESIGN AND INITIAL PRODUCTION
In 2020, the Company is planning to drill approximately 15,000 metres in 50 drill holes. This drilling will focus on
infill of the main resource area, including resource expansion in the eastern Ermitaño vein area, the Aitana vein,
and several nearby newly identified targets.
In addition, the Company is currently working on several engine ering studies, including geotechnical and
geohydrological investigations, a detailed metallurgical testin g and a series of trade‐offs analysis to define the
materials handling infrastructure. These studies will support a pre‐feasibility study expected to be released in
the fourth quarter of 2020.
Furthermore, the Company is expected to complete 3,800 metres o f underground development in 2020. This
development program, which began in late 2019, is designed to c omplete the main access ramp to reach the
mineralized area and prepare five production levels (shown above in Figure 2) with all associated mining
infrastructure. Production from Ermitaño is expected to displace the current feed from the old heap pads which
is currently making up approximately 40% of the feed to the mill.
Mr. Ramon Mendoza Reyes, Vice President of Operations and Technical Services for First Majestic, is a "qualified
person" as such term is defined under NI 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 Compan y presently owns and operates the San Dimas
Silver/Gold Mine, the Santa Elena Silver/Gold Mine and the La E ncantada Silver Mine. Production from these
mines are projected to be between 11.8 to 13.2 million silver o unces 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
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 r e l a t e t o f u t u r e e v e n t s o r t h e 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 depos its; capital projects and explor ation activities and the possib le 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 forwar d‐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 th e extent that they involve esti mates 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 t he 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 e v e n t s o r p e r f o r m a n c e ( o f t e n , b u t n o t a l w a y s , u s i n g w o r d s o r phrases such as “seek”,
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“should”, “believe” and similar expressions) are not statements of historical fact and may be “forward‐looking statements”.
Actual results may vary from for ward‐looking statements. Forward‐looking statements are subject to known and unknown risks, un certainties 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:
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 obt aining approvals or financing or in the completion of developme nt or construction activities;
exchange rate fluctuations; requirements for additional capital; government regulation; environmental risks; reclamation expenses; outcomes of pending
litigation; limitations on insura nce coverage as well as those factors discussed in the section entitled "Description of the B usiness ‐ 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 Securi ties and Exchange
Commission in Washington, D.C. Al though First Majestic has att empted to identify important factors that could cause actual re sults 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 giv e n th a t th ese
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.