FR Frankfurt – FMV Mexico ‐ AG First Majestic Produces 3.9M Silver Eqv. Oz in Second Quarter
FIRST MAJESTIC SILVER CORP.
Suite 1805 – 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 July 11, 2017
Toronto – FR
Frankfurt – FMV
Mexico ‐ AG
First Majestic Produces 3.9M Silver Eqv. Oz in Second Quarter
First Majestic Silver Corp. ("First Majestic" or the "Company") announces total production in the second quarter
of 2017 from its six operating silver mines reached 3.9 million equivalent ounces of silver. Total production
consisted of 2.3 million ounces of silver, 15,186 ounces of gold, 7.6 million pounds of lead and 0.9 million pounds
of zinc.
“During the quarter, silver production was impacted by unusual efforts by unionized workers to illegally disrupt
mining activities which caused minor stoppages at La Parrilla, Santa Elena and a more serious stoppage at our La
Encantada operation,” said Keith Neumeyer, President & CEO. “Pointing to a specific cause is difficult – whether
due to higher gasoline prices or higher taxes in Mexico ‐ but worker dissatisfaction among union employees
throughout the Mexican mining industry is at the highest levels witnessed in the Company’s fifteen year history.”
Mr. Neumeyer continued, “I am, however, pleased that our action s to clear the three blockades and resume
mining activities were successful. The National Union and Confe deration of Mexican Workers Union were both
supportive of the actions taken by the Company which are expect ed to lead to improvements in productivity at
each of the operations in the coming quarters. We anticipate production to be back on track in the third quarter
and will work to recoup lost tonnage over the remainder of 2017. It is important to note that the construction of
the new roaster at La Encantada was unaffected by the work stoppage and remains on schedule to be completed
in early 2018.”
Production Details Table:
Q2 Q2 Y/Y Q1 Q/Q
2017 2016 Change 2017 Change
Ore processed/tonnes milled 691,833 798,182 ‐13% 822,336 ‐16%
Total production ‐ ounces of silver equivalent 3,888,944 4,681,608 ‐17% 4,267,350 ‐9%
Total silver ounces produced 2,287,188 2,844,930 ‐20% 2,708,978 ‐16%
Silver grade (g/t) 130 148 ‐12% 136 ‐5%
Silver recovery (%) 79 75 6% 75 5%
Gold ounces produced 15,186 16,371 ‐7% 15,047 1%
Pounds of lead produced 7,625,328 8,825,234 ‐14% 7,453,972 2%
Pounds of zinc produced 860,939 3,837,301 ‐78% 871,596 ‐1%
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Quarterly Operational Review:
Total ore processed during the quarter at the Company's six ope rating silver mines: Santa Elena, La Encantada,
La Parrilla, Del Toro, San Martin and La Guitarra, amounted to 691,833 tonnes representing a 16% decrease
compared to the previous quarter. The decrease was primarily due to three illegal blockades in the quarter which
amounted to four days at La Parrilla, two days at Santa Elena and 42 days at La Encantada.
Silver grades in the quarter averaged 130 g/t compared to 136 g /t in the previous quarter. Silver grades remain
under budget primarily due to lower than expected grades at Santa Elena, La Encantada and La Parrilla.
Combined silver recoveries averaged 79%, up 5% compared to the previous quarter’s average of 75%. The
increase in silver recoveries was primarily due to the lower throughput rates and lower manganese grades at La
Encantada.
The Company's underground development in the second quarter con sisted of 15,121 metres, reflecting an 11%
increase compared to 13,571 metres completed in the previous quarter. Development focused on opening new
production areas, exploring high potential zones and new stope preparation. As of June 30, 2017, the Company
had completed approximately 38% of the 74,850 metres of underground development budgeted for 2017.
During the quarter, a total of 17 diamond drill rigs were active across the Company’s properties consisting of 16
rigs at the six producing mines and one rig at the Plomosas Sil ver Project. A total of 29,070 metres in 164 drill
holes were completed on the seven properties. As of June 30, 2017, the Company had completed approximately
32% of the 183,000 metres of exploration drilling budgeted for 2017. The Company is planning to increase the
rig count to 25 rigs in the second half of 2017 in order to achieve program targets.
Mine by Mine Quarterly Production Table:
*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 eq uivalent ounces: Silver: $17.21 per ounce; Gold: $1,257 per oun ce; Lead: $0.98 per pound;
Zinc: $1.18 per pound.
At the Santa Elena Silver/Gold Mine:
During the quarter, Santa Elena produced 557,914 ounces of silver and 11,522 ounces of gold for a total
production of 1,399,940 silver equivalent ounces reflecting a 2% increase compared to the prior quarter.
The mill processed a total of 232,451 tonnes, consisting of 134,699 tonnes of underground ore and
97,752 tonnes from the above ground heap leach pad.
Silver and gold grades of underground ore averaged 115 g/t and 2.3 g/t, respectively. Whereas silver and
gold grades from the above ground heap leach pad averaged 40 g/t and 0.7 g/t, respectively.
In April, the Company successfully completed the connection of the San Salvador ramp to the Main Vein
along level 575 and began utilizing the additional mine access point to reduce trucking bottlenecks and
Mine
Ore
Processed
Tonnes
per Day
Silver Grade
(g/t)
Silver
Recovery (%)
Silver Oz
Produced
Gold Oz
Produced
Pounds of
Lead
Pounds of
Zinc
Equivalent
Silver Ounces
Santa Elena 232,451 2,554 83 90% 557,914 11,522 ‐ ‐ 1,399,940
La Encantada 148,039 1,627 120 66% 374,901 9 ‐ ‐ 375,563
La Parrilla 132,880 1,460 131 76% 425,060 235 1,632,165 860,939 593,852
Del Toro 81,843 899 173 80% 365,323 86 5,993,164 ‐ 712,714
San Martin 67,073 737 234 85% 425,645 2,080 ‐ ‐ 577,598
La Guitarra 29,547 325 188 77% 138,345 1,254 ‐ ‐ 229,276
Total 691,833 7,603 130 79% 2,287,188 15,186 7,625,328 860,939 3,888,944
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improve mine planning logistics. In addition, the new ramp is e xpected to support future exploration
activities around the Tortuga vein.
A total of 2,613 metres of underg round development was complete d in the second quarter compared
to 2,855 metres of development in the previous quarter.
A total of 2,608 metres of exploration drilling was completed i n the second quarter compared to 3,730
metres of drilling in the previous quarter.
At the La Encantada Silver Mine:
Production during the quarter was impacted by a 42 day work stoppage as a result of an illegal blockade
(previously announced on May 24, 2017) by a rogue group of unionized workers who disagreed with the
bonus that the Company and the National Union had previously ag reed to offer the miners in lieu of
profit sharing. The blockade was successfully cleared on May 25, 2017 following a favourable agreement
with the National Union. The operation restarted mining activities on June 27, 2017 and milling activities
on July 1, 2017 following a technical suspension period for administration and retraining of personnel.
As a result of the work stoppage, silver production for the qua rter was 374,901 ounces representing a
47% decrease over the previous quarter while tonnes milled decreased 44% over the same period.
Silver recoveries averaged 66% during the quarter, up from 60% in the prior quarter, primarily due to
the processing of ore with a 1% or less manganese content.
The manufacturing of the roasting project advanced in the secon d quarter with approximately 83% of
the major components now complet ed. Preliminary compression dri lling tests were completed in June
and foundations for the roaster are expected to be poured in Au gust. The Company will begin shipping
completed part modules to the mine site in the third quarter.
A total of 562 metres of underground development were completed in the second quarter compared to
587 metres of development in the previous quarter.
A total of 2,899 metres were drilled in the second quarter comp ared to 2,805 metres of drilling in the
previous quarter.
At the La Parrilla Silver Mine:
During the quarter, the flotation circuit processed 74,748 tonn es (821 tpd) with an average silver grade
of 123 g/t and a 79% recovery while the cyanidation circuit pro cessed 58,132 tonnes (639 tpd) with an
average silver grade of 140 g/t and a 73% recovery for total production of 593,852 silver equivalent
ounces.
The lead circuit processed an average lead grade of 1.4% with recoveries of 73% for total lead production
of 1.6 million pounds, representing an 11% decrease compared to the previous quarter.
The zinc circuit processed an average zinc grade of 1.1% with recoveries of 48% for total zinc production
of 0.9 million pounds, representing a 1% decrease compared to the previous quarter.
The Company’s central lab at La Parrilla completed and passed its second surveillance audit following its
ISO 9001:2008 certification in May 2015. The audit determined t he facility was fully compliant with the
management system quality standards for sample preparation, geochemical and assay services. The lab
is expected to undergo certification testing for the ISO9001:2015 standard in 2018.
Underground development complet ed in the quarter totaled 3,233 metres compared to 2,827 metres
developed in the previous quarter.
A total of 6,368 metres were drilled in the second quarter comp ared to 4,867 metres of drilling in the
previous quarter.
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At the Del Toro Silver Mine:
During the quarter, Del Toro produced a total of 712,714 silver equivalent ounces reflecting a 4%
increase compared to the prior quarter.
Silver grades and recoveries during the quarter averaged 173 g/t and 80%, respectively.
Lead grades and recoveries averaged 4.8% and 70%, respectively, producing a total of 6.0 million pounds
of lead representing a 7% increase compared to the previous quarter.
Underground development complet ed in the quarter totaled 3,222 metres compared to 2,710 metres
developed in the previous quarter.
Total exploration metres drilled in the quarter amounted to 4,078 metres compared to 3,589 metres of
drilling in the previous quarter.
The Company is planning to release an updated NI 43‐101 Technical Report in the third quarter.
At the San Martin Silver Mine:
During the quarter, San Martin produced 425,645 ounces of silver and a record 2,080 ounces of gold for
a total production of 577,598 silver equivalent ounces, reflecting an 11% increase compared to the prior
quarter.
Silver grades and recoveries averaged 234 g/t and 85%, respectively, during the quarter. In addition, gold
grades and recoveries averaged 1.0 g/t and 94%, respectively.
The dry stack filter presses were successfully installed during the quarter, with only minor electrical and
piping work remaining to be completed before the system can be tested. The filter presses, which are
designed to recover and re‐use tailings solution and to save on w a t e r c o n s u m p t i o n , a r e e x p e c t e d t o
undergo testing at the end of July 2017.
Underground development completed in the quarter totaled 3,224 metres compared with 2,127 metres
of development in the previous quarter.
Total exploration metres drilled in the quarter amounted to 7,3 52 metres compared to 4,136 metres of
drilling in the previous quarter.
At the La Guitarra Silver Mine:
During the quarter, La Guitarra produced 138,345 ounces of silv er and 1,254 ounces of gold for a total
production of 229,276 silver equivalent ounces.
Silver grades and recoveries averaged 188 g/t and 77%, respectively, during the quarter. In addition, gold
grades and recoveries averaged 1.8 g/t and 74%, respectively.
A total of 2,093 metres of development were completed in the second quarter compared to 2,279
metres of development in the previous quarter.
Total exploration metres drilled in the quarter amounted to 3,0 92 metres compared to 7,416 metres
drilled in the previous quarter.
Q2 Earnings Announcement and Conference Call
The Company is planning to rel ease its second quarter 2017 unau dited financial results on Thursday, August 3,
2017.
Furthermore, the Company will be holding a conference call and webcast on Friday, August 4, 2017 at 10 am PDT
(1 pm EDT).
To participate in the conference call, please dial the following:
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Toll Free Canada & USA: 1‐800‐319‐4610
Outside of Canada & USA: 1‐604‐638‐5340
Toll Free Germany: 0800 180 1954
Toll Free UK: 0808 101 2791
Participants should dial in 10 minutes prior to the conference.
Click on WEBCAST on the First Majestic homepage as a simultaneo us audio webcast of the conference call will
be posted at www.firstmajestic.com.
The conference call will be recorded and you can listen to an archive of the conference by calling:
Canada & USA Toll Free: 1‐800‐319‐6413
Outside Canada & USA: 1‐604‐638‐9010
Access Code: 1572 followed by the # sign
The replay will be available approximately one hour after the c onference and will available for 7 days following
the conference. The replay will also be available on the Company’s website for one month.
About the Company
First Majestic is a mining compan y f o c u s e d o n s i l v e r p r o d u c t i o n in Mexico and is aggressively pursuing the
development of its existing mineral property assets. The Compan y presently owns and operates six producing
silver mines; the La Parrilla Silver Mine, the San Martin Silver Mine, the La Encantada Silver Mine, the La Guitarra
Silver Mine, Del Toro Silver Mine and the Santa Elena Silver/Gol d M i n e . P r o d u c t i o n f r o m t h e s e s i x m i n e s i s
projected to be between 11.1 to 12.4 million ounces of pure silver or 16.6 to 18.5 million ounces of silver
equivalents in 2017.
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 statements", within the meaning of the United States Private Securities Litigatio n Reform Act of
1995 and applicable Canadian securit ies legislation, concerning the business, operations and financial performance and conditi on of First
Majestic Silver Corp. Forward-looking statements include, but are not limited to, statements with respect to the future price of silver and other
metals, the estimation of mineral reserves and resources, the r ealization of mineral reserve e stimates, the timing and amount of estimated
future production, costs of pr oduction, capital expenditures, c osts and timing of the development of new deposits, success of exploration
activities, permitting time li nes, hedging practices, currency exchange rate fluctuations, requi rements for additional capital , government
regulation of mining operations , environmental risks, unanticip ated reclamation expenses, timing and possible outcome of pendi ng litigation,
title disputes or cl aims and limitations on insurance coverage. Generally, these forward-look ing statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", " budget", "scheduled", "estimates" , "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certai n actions, events or
results "may", "could", "would", "might" or "will be taken", "o ccur" or "be achieved". Forward- looking statements are subject to known and
unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of First Majestic
Silver Corp. to be materially di fferent from those expressed or implied by such forward-looking statements, including but not limited to: risks
related to the integration of acquisitions; risks related to in ternational operations; risks related to joint venture operatio ns; actual results of
current exploration activities; actual results of current recla mation activities; conclusions of economic evaluations; changes in project
parameters as plans continue to be refined; future prices of metals; possible variations in ore reserves, grade or recovery rates; failure of plant,
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equipment or processes to operate as anticipated; accidents, la bour disputes and other risks of the mining industry; delays in obtaining
governmental approvals or financing or in the completion of dev elopment or construction activiti es, as well as those factors d iscussed in the
section entitled "Description of the Business - Risk Factors" i n First Majestic Silver Corp.'s Annual Information Form for the year ended
December 31, 2016, available on www.sedar.com, and Form 40-F on file with the United States Securities and E xchange Commission in
Washington, D.C. Although First Majestic Silver Corp. has atte mpted to identify important facto rs that could cause actual res ults 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. There can be no assurance that such statements wi ll prove to be accurate, as actual results and future events co uld differ
materially from those anticipated in such statements. Accordin gly, readers should not place undue reliance on forward-looking
statements. First Majestic Silver Corp. does not undertake to update any forward-looking statements that are incorporated by reference herein,
except in accordance with applicable securities laws.