FR Frankfurt – FMV First Majestic Produces 7.6 million AgEq Oz in Q1 Consisting of 2.5 million Silver Ounces and 60,594 Gold Ounces; Announces VP Management Changes
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 April 20, 2023
Toronto – FR
Frankfurt – FMV
First Majestic Produces 7.6 million AgEq Oz in Q1 Consisting of 2.5 million Silver
Ounces and 60,594 Gold Ounces; Announces VP Management Changes
Vancouver, BC, Canada - First Majestic Silver Corp. (" First Majestic" or the "Company") announces that total
production from the Company’s four material proper ties; the San Dimas Silver/Gold Mine, the Santa Elena
Silver/Gold Mine, the La Encantada Silver Mine and the Jerritt Canyon Gold Mine reached 7.6 million silver
equivalent (“AgEq”) ounces in the first quarter of 2023, consisting of 2.5 million silver ounces and 60,594 gold
ounces. This represents a 6% increase in total production compared to the first quarter of 2022 and a 1% increase
compared to the prior quarter.
Q1 2023 HIGHLIGHTS
Strong Q1 Silver Production from Mexican Operations: The Company’s Mexican operations produced
2.5 million silver ounces and 44,252 gold ounces, or approximately 6.2 millio n AqEq ounces in the
quarter. Silver production increased 6% over the prior quarter primarily due to higher grades at both San
Dimas and La Encantada. Gold production in Mexi co decreased 4% as slightly lower grades were
processed at Santa Elena and San Dimas. At Jerritt Canyon in Nevada, USA, gold production reached
16,431 ounces, or a 3% decrease over the prior quarter primarily due to lower processed tonnes caused
by continued extreme winter weather conditions.
Ermitaño Achieves Full Quarterly Production at Santa Elena: In Q1 2023, Santa Elena transitioned full
mine production to Ermitaño ac hieving strong throughputs rates of 208,821 processed tonnes, or 26%
higher than the prior quarter.
Refocus of Resources at Jerritt Canyon: On March 20, 2023, the Company announced the temporary
suspension of all mining activities at Jerritt Canyon in order to reduce overall costs and refocus on mining
and exploration plans. For the rest of 2023, the Co mpany plans to shift the focus of its exploration
activities towards growth of the Inferred Resource and testing locations with favorable geologic settings
and large volume resource potential. Approximatel y 28,000 metres of drilling are planned to be drilled
in 2023 at Jerritt Canyon.
18 Drill Rigs Active: The Company began the 2023 exploration program during the quarter by completing
a total of 36,688 metres of drilling across all sites, re presenting a 128% increase over the prior quarter.
Throughout the quarter a total of 18 drill rigs were active consisting of seven rigs at San Dimas, five rigs
at Santa Elena, two rigs at La Encantada, and four rigs at Jerritt Canyon.
Safety: In Q1 2023, the consolidated Total Reportable Incident Frequency Rate (TRIFR) was 1.11 and the
Lost Time Incident Frequency Rate (LTIFR) was 0.45. To support a strong safety culture, the Company has
started several safety initiatives to maximize safety performance throughout the business. One key
deliverable was the establishment of the Rules to Live By program which is composed of 12 critical rules
that when lived, followed, and owned by employees, contractors, business partners, and visitors will lead
to lower incident rates and lower severity incidents.
“During the quarter, our Mexican operations saw strong production as a result of higher silver grades and overall
plant performance,” said Keith Neumeyer, President & CEO. “At our San Dimas and La Encantada mines, each
operation experienced double-digit increases in silver grades as well as higher plant throughputs. At Santa Elena,
significantly higher production levels at the Ermitaño mine were achieved following the Company’s decision to
transition away from the Main Vein and only process Ermitaño ores in 2023. In addition, Santa Elena’s new dual-
circuit processing plant completed its first operational quarter with solid recovery improvements following
increased leaching times and the processing of finer grind ores. Lastly, due to ongoing challenges at Jerritt Canyon
we decided to take a step back to complete a full reset of the operation. We are not walking away from Nevada
- but repositioning the project to be successful for when we decide to restart operations. The first quarter of
2023 will be an inflection point towards improving the cash flows and overall financial position of the Company
going forward.”
Production Table:
Q1 Q1 Y/Y Q4 Q/Q
2023 2022 Change 2022 Change
Ore processed/tonnes milled 845,868 877,118 -4% 851,564 -1%
Silver ounces produced 2,543,059 2,613,328 -3% 2,396,696 6%
Gold ounces produced 60,594 58,892 3% 63,039 -4%
Silver equivalent ounces produced 7,627,105 7,222,002 6% 7,558,791 1%
Quarterly Mine by Mine Production Table:
Mine
Ore
Processed
Tonnes
per Day
Ag
Grade
(g/t)
Au
Grade
(g/t)
Ag
Recovery
Au
Recovery
Ag Oz
Produced
Au Oz
Produced
AgEq Oz
Produced
San Dimas
219,367
2,284
241 2.98 94% 96%
1,602,483
20,124
3,296,367
Santa Elena
208,821
2,252
31 4.00 50% 90%
104,129
24,039
2,105,336
La Encantada
271,278
2,769
132 0.01 72% 90%
836,448 89
843,951
Jerritt Canyon
146,403
1,951 - 4.03 - 86% -
16,341
1,381,452
*Certain amounts shown may not add exactly to the total amount due to rounding differences.
*The following prices were used in the calculation of silver equivalent ounces: Silver: $22.55 per ounce; Gold: $1,890 per ounce.
At the San Dimas Silver/Gold Mine:
San Dimas produced 3,296,367 AgEq ounces during the quarter consisting of 1,602,483 ounces of silver
and 20,124 ounces of gold. Silver production increased 15% compared to the prior quarter primarily due
to a 10% increase in silver grades and a 4% increase in tonnes processed. Gold production was relatively
unchanged compared to the prior quarter.
The mill processed a total of 219,367 tonnes of ore wi th average silver and gold grades of 241 g/t and
2.98 g/t, respectively. Silver and gold grades from the Perez vein are expected to continue to improve in
the second quarter as long-hole open stoping began in early April.
Silver and gold recoveries during the quarter remain unchanged averaging 94% and 96%, respectively.
The Central Block and Sinaloa Graben areas contri buted approximately 80% a nd 20%, respectively, of
the total production during the quarter.
During the quarter, seven underground drill rigs comp leted a total of 14,145 metres of drilling on the
property.
At the Santa Elena Silver/Gold Mine:
Santa Elena produced 2,105,336 AgEq ounces during th e quarter consisting of 104,129 ounces of silver
and 24,039 ounces of gold. Total production decrease d 9% primarily due to processing slightly lower
grade silver and gold ores at the Santa Elena plant when compared to the prior quarter.
The mill processed a total of 208,821 tonnes of ore fr om Ermitaño containing average silver and gold
head grades of 31 g/t and 4.00 g/t, respectively.
Silver and gold recoveries from Ermitaño average d 50% and 90%, respectively, during the quarter. The
new 3,000 tpd filter press and dual-circuit reached co ntinuous performance in the quarter with good
results. Silver recoveries increased 18% and gold recoveries were mostly un changed compared to the
prior quarter despite lower head grades being processed.
During the quarter, five drill rigs consisting of fo ur surface rigs and one underground rig, completed
14,499 metres of drilling on the property.
At the La Encantada Silver Mine:
During the quarter, La Encantada produced 836,448 o unces of silver, representing a 4% increase
compared to the prior quarter. The increase was pr imarily due to higher tonnes milled and improved
silver grades offset by slightly lower recoveries.
The mill processed a total of 271,278 tonnes of ore with an average silver grade and recovery of 132 g/t
and 72%, respectively. During the quarter, the Company began production in the Southern portion of
the first level of Ojuelas, known as the Beca Zone, which delivered higher than expected silver grades.
The Northern portion of the Beca Zone is expected to begin stope production in the second quarter of
2023 and further improve overall production.
During the quarter, two underground rigs completed 1,863 metres of drilling on the property.
At the Jerritt Canyon Gold Mine:
During the quarter, Jerritt Canyon produced 16,3 41 ounces of gold, representing a 3% decrease
compared to the prior quarter. The slight decrease was primarily due to an 18% decrease in tonnes milled
partially offset by a 15% increase in gold grades. Throughput was below plan due to excessive downtime
in the crushing circuit driven by multiple failures in the dryer fines conveying system and issues with
processing wet and frozen ore resulting from severe , record winter conditions in northern Nevada.
Intermittent power outages continued for most of January and February which impacted production
from all the underground mines.
The mill processed a total of 146,403 tonnes of ore with an average gold grade and recovery of 4.03 g/t
and 86%, respectively. As prev iously announced on March 20, 2023, the Company temporarily
suspended all mining activities at Jerritt Canyon to reduce overall costs and refocus the mining and
exploration plans.
As the remaining stockpiles are processed in the second quarter, employees and onsite activities will be
reduced and milling operations will begin moving to temporary care and maintenance. The Company
recently held a two-day reverse career job fair enabling Jerritt Canyon employees being impacted by the
workforce reduction to meet with over 30 local companies that are looking to hire.
During the quarter, four underground drill rigs comple ted 6,181 metres of drilling on the property. For
the remainder of 2023, exploration will shift focus towards growth of the Inferred Resource and testing
locations with favorable geologic setting and larg e volume potential. Approximately 28,000 metres of
drilling are planned for 2023. Drilling is planned to focus on testing geologic targets, such as structural
intersections and stratigraphic horizons, that have historically been known to contain significant volume
of resources.
Q1 2023 EARNINGS AND DIVIDEND ANNOUNCEMENT
The Company is planning to release its first quarter 2023 unaudited financial results, and to announce the first
quarter dividend payment, and shareholder record and payable dates on May 4, 2023.
MANAGEMENT UPDATE
In support of the ongoing changes and future growth of the Company, the Exploration and Technical Services
Groups have been combined into a single entity under the leadership of Gonzalo Mercado, who has been
promoted to Vice President of Exploration and Technica l Services. This restructured Exploration and Technical
Services Group will focus on cost effective and efficient exploration, modeling, mine planning, ore control, capital
project and land management for the Company. Ramon Mendoza has left the Company after nine years of
service and we thank Ramon for his work in advancing Fi rst Majestic through almost a decade of growth. In
addition, Michael Deal has been promoted to Vice Pres ident of Metallurgy and Innovation and will take on the
additional responsibilities of Processi ng and Innovation within First Majestic . Persio Rosario has also left the
Company and we thank him for his efforts over the past two years.
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 Sa n Dimas Silver/Gold Mine, the Santa Elena Silver/Gold
Mine, the La Encantada Silver Mine and the Jerritt Canyon Gold 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 premiums available.
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 futu re developments. Forward-looking statements include, but are not
limited to, statements with respect to: release of the Compan y’s financial statements; dividends; the Company’s business strate gy; future planning
processes; commercial mining op erations; decommissioning activities at Jerritt Ca nyon; the timing and amount of estimated futur e production; ore feed
and grades; recovery rates; mine plans and mine life; costs and timing of development at the Company's projects; capital projects and exploration activities
and the possible results thereof. Assumptions may prove to be incorrect and actual results may differ materially from those an ticipated. Consequently,
guidance cannot be guaranteed. As such, investors are cautione d not to place undue reliance upon guidance and forward-looking s tatements as there can
be no assurance that the plans, assumptions or expectations upo n which they are placed will occur. All statements other than st atements 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 estimates of the mineralization that will be encountered as and if the property is
developed, and in the case of measured and indicated mineral re sources or proven and probable mineral reserves, such statements reflect the conclusion
based on certain assumptions that the mineral deposit can be econ omically exploited. Any statemen ts that express or involve dis cussions with respect to
predictions, expectations, beliefs , plans, projections, objectives or future ev ents or performance (often, but not always, usin g words or phrases such as
“seek”, “anticipate”, “plan”, “continue”, “e stimate”, “expect”, “may”, “w ill”, “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. Forwar d-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 statements, including but not limited to:
the duration and effects of the coronavirus and COVID-19, and any other pandemics or epidemics on our operations and workforce, and the effects on global
economies and society; general economic co nditions including inflation risks; 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; requireme nts for additional capital; gove rnment regulation; environment al risks; reclamation
expenses; outcomes of pending litigation; lim itations on insurance coverage as well as those factors discussed in the section e ntitled "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 b e as anticipated, estimated
or intended.
The Company believes that the expectations reflected in these forward-looking statemen ts are reasonable, but no assurance can b e 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 no t assume any obligation, to update these forward-looking statements, except as required
by applicable laws.