FR Frankfurt – FMV Mexico ‐ AG First Majestic Produces 4.0M Silver Eqv. Oz in Third Quarter
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 October 17, 2017
Toronto – FR
Frankfurt – FMV
Mexico ‐ AG
First Majestic Produces 4.0M Silver Eqv. Oz in Third Quarter
First Majestic Silver Corp. ("First Majestic" or the "Company") announces total production in the third quarter of
2017 from its six operating silver mines reached 4.0 million equivalent ounces of silver. Total production
consisted of 2.4 million ounces of silver, 15,414 ounces of gold, 5.2 million pounds of lead and 0.9 million pounds
of zinc.
“Consolidated production in the third quarter returned to higher levels compared to the prior quarter,” said
Keith Neumeyer, President & CEO. “At La Encantada, improvements in throughput and silver grades allowed for
a 62% increase in silver production. At Santa Elena and San Mart i n , t o t a l p r od u c t i o n a t e ac h o p e r a t i o n b e at
guidance due to continued strong grades and higher recoveries. At La Parrilla, oxide production improved due to
higher grade ore being sourced from the San Marcos mine. Lastly , as a safety precaution following two major
earthquakes that struck near the La Guitarra mine in September, we temporarily suspended production for a
total of eight days to allow for a full inspection of the opera tion. The inspection revealed no significant risks or
damages allowing for the restart of production.”
Production Details Table:
Q3 Q3 Y/Y Q2 Q/Q
2017 2016 Change 2017 Change
Ore processed/tonnes milled 730,652 838,233 ‐13% 691,833 6%
Total production ‐ ounces of silver equivalent 3,986,274 4,524,619 ‐12% 3,888,944 3%
Total silver ounces produced 2,415,962 3,114,627 ‐22% 2,287,188 6%
Silver grade (g/t) 131 150 ‐12% 130 1%
Silver recovery (%) 78 77 2% 79 ‐1%
Gold ounces produced 15,414 14,452 7% 15,186 2%
Pounds of lead produced 5,171,533 8,038,206 ‐36% 7,625,328 ‐32%
Pounds of zinc produced 922,666 1,519,143 ‐39% 860,939 7%
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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 730,652 tonnes, representing a 6% increase
compared to the previous quarter. The most significant improvem ent occurred at the La Encantada operation
which recorded a 43% increase in mill throughput as production rates returned to normal levels following the 42
day work stoppage in the prior quarter.
Consolidated silver grades in the quarter averaged 131 g/t comp ared to 130 g/t in the previous quarter. Higher
silver grades were mined and processed at La Encantada and San Martin, however, consolidated silver grades
w e r e o f f s e t b y l o w e r g r a d e s a t D e l T o r o . S i l v e r g r a d e s a t S a n t a Elena, La Parrilla and La Guitarra remained
relatively consistent with the prior quarter.
Consolidated silver recoveries averaged 78%, relatively consistent with the previous quarter. During the quarter,
the Company began testing microbubble flotation technology at i ts Central Lab at La Parrilla. Ore samples from
La Guitarra were shipped to site and tested in a six‐inch diameter microbubble column. Preliminary results show
metallurgical recoveries improved by up to 4% in addition to producing higher concentrate grades. Ore samples
from La Parrilla, Del Toro and San Martin are expected to start pilot testing in the fourth quarter of 2017. Pending
successful results, the Company will begin installing full scal e microbubble columns at each of the four mines in
2018.
The Company's underground development in the third quarter consisted of 14,931 metres, reflecting a 1%
decrease compared to 15,121 metres completed in the previous quarter. Development focused on opening new
production areas, exploring high potential zones and new stope preparation. The most significant increase in
underground development occurred at La Encantada in areas of th e mine known to have higher grades, most
notably the San Javier and 990 areas, and the San Francisco dyke.
During the quarter, a total of 19 diamond drill rigs were active across the Company’s properties consisting of 16
rigs at the six producing mines and three rigs at the Plomosas Silver Project. A total of 48,638 metres in 302 drill
holes were completed on the seven properties, representing a 67 % increase in drilled metres in the previous
quarter. The most significant increases in drilled metres was at Santa Elena, La Guitarra, La Parrilla and La
Encantada to catch up with annual program targets. Additional details are stated in their respective mine sections
below.
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: $16.84 per ounce; Gold: $1,279 per oun ce; Lead: $1.06 per pound;
Zinc: $1.34 per pound.
At the Santa Elena Silver/Gold Mine:
During the quarter, Santa Elena produced 560,054 ounces of silver and 12,422 ounces of gold for a total
production of 1,503,376 silver equivalent ounces reflecting a 7% increase compared to the prior quarter.
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 232,662 2,529 83 90% 560,054 12,422 ‐ ‐ 1,503,376
La Encantada 212,092 2,305 136 66% 609,138 15 ‐ ‐ 610,307
La Parrilla 132,389 1,439 132 76% 424,358 279 1,476,346 922,666 612,116
Del Toro 60,501 658 149 81% 233,015 86 3,695,186 ‐ 472,804
San Martin 69,113 751 243 87% 471,893 1,750 ‐ ‐ 604,686
La Guitarra 23,896 260 187 82% 117,504 862 ‐ ‐ 182,986
Total 730,652 7,942 131 78% 2,415,962 15,414 5,171,533 922,666 3,986,274
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The mill processed a total of 232,662 tonnes, consisting of 141,435 tonnes of underground ore and
91,227 tonnes from the above ground heap leach pad.
Silver and gold grades of underground ore averaged 112 g/t and 2.4 g/t, respectively. Whereas silver and
gold grades from the above ground heap leach pad averaged 39 g/t and 0.7 g/t, respectively.
A total of 2,724 metres of underground development was complete d in the third quarter compared to
2,613 metres of development in the previous quarter.
A total of 7,406 metres of exploration drilling was completed i n the third quarter, consisting of 6,673
metres of diamond drilling and 733 metres of rotary drilling. This represents a significant 184% increase
compared to the previous quarter. The increase was primary rela ted to the start of a new drill program
at the Cumobabi property as well as confirmation drilling of the heap leach pad.
At the La Encantada Silver Mine:
For the quarter, silver production reached 609,138 ounces representing a 62% increase over the previous
quarter. The increase in silver production was due to a 43% increase in tonnes milled and a 13% increase
in silver grade compared to the prior quarter.
Silver recoveries averaged 66% during the quarter, consistent w ith the prior quarter, primarily due to
the processing of ore with a 1% or less manganese content.
The roasting project advanced in the third quarter with approxi mately 93% of the major components
now manufactured. During the quarter, detailed design for the ore and reagents feeding systems as well
a s t h e r o a s t e d o r e d i s c h a r g e s y s t e m a n d c o a l s t o r a g e w e r e c o m p leted. Site preparations, including
excavations and pouring of concrete pads for foundations were approximately 90% complete at quarter
end. The shipment of component modules to site is expected to start in late October.
Development and reinforcement for c a v i n g i n t h e S a n J a v i e r a r e a w a s c o m p l e t e d d u r i n g t h e t h i r d
quarter. Vertical raises are planned to be completed in the fourth quarter followed by initial production
in the first quarter of 2018. The San Javier area is known to c ontain silver grades ranging between 150
to 200 g/t.
A total of 1,173 metres of underground development were completed in the third quarter compared to
562 metres of development in the previous quarter. The 99% incr ease in development was primarily
related to stope development in San Francisco dyke, San Javier and 990 areas which are known to contain
higher silver grades.
A total of 6,793 metres of exploration drilling was completed i n the third quarter compared to 2,899
metres of drilling in the previous quarter.
At the La Parrilla Silver Mine:
During the quarter, the flotation circuit processed 69,200 tonn es (752 tpd) with an average silver grade
of 122 g/t and a 79% recovery while the cyanidation circuit pro cessed 63,189 tonnes (687 tpd) with an
average silver grade of 142 g/t and a 73% recovery for total production of 612,116 silver equivalent
ounces.
The lead circuit processed an average lead grade of 1.3% with recoveries of 73% for total lead production
of 1.5 million pounds, representing a 10% decrease compared to the previous quarter.
The zinc circuit processed an average zinc grade of 1.2% with recoveries of 50% for total zinc production
of 0.9 million pounds, representing a 7% increase compared to the previous quarter.
Underground development complet ed in the quarter totaled 3,186 metres compared to 3,233 metres
developed in the previous quarter.
A total of 9,138 metres of exploration drilling was completed i n the third quarter compared to 6,368
metres of drilling in the previous quarter. During the third qu arter, drilling commenced at the Cerro de
Santiago epithermal‐style target located east of the San Marcos mine.
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At the Del Toro Silver Mine:
During the quarter, Del Toro produced a total of 472,804 silver equivalent ounces reflecting a 34%
decrease compared to the prior quarter primarily due to a 26% decrease in throughput. The decrease in
throughput was related to delays for land access around the Dolores mine and a lack of available stopes
in the San Juan and Perseverancia mines.
Silver grades and recoveries during the quarter averaged 149 g/t and 80%, respectively.
Lead grades and recoveries averaged 4.0% and 69%, respectively, producing a total of 3.7 million pounds
of lead representing a 38% decrease compared to the previous quarter.
Underground development complet ed in the quarter totaled 2,989 metres compared to 3,222 metres
developed in the previous quarter.
Total exploration metres drilled in the quarter amounted to 6,673 metres compared to 4,078 metres of
drilling in the previous quarter.
At the San Martin Silver Mine:
During the quarter, San Martin produced 471,893 ounces of silve r and 1,750 ounces of gold for a total
production of 604,686 silver equivalent ounces, reflecting a 5% increase compared to the prior quarter.
The increase in production was attributed to higher tonnage, recoveries and silver grades.
Silver grades and recoveries averaged 243 g/t and 87%, respectively, during the quarter. In addition, gold
grades and recoveries averaged 0.8 g/t and 93%, respectively.
Underground development completed in the quarter totaled 2,781 metres compared with 3,224 metres
of development in the previous quarter.
Total exploration metres drilled in the quarter amounted to 7,7 63 metres compared to 7,352 metres of
drilling in the previous quarter.
At the La Guitarra Silver Mine:
During the quarter, La Guitarra produced 117,504 ounces of silv er and 862 ounces of gold for a total
production of 182,986 silver equivalent ounces reflecting a 20% decrease compared to the prior quarter.
Silver grades and recoveries averaged 187 g/t and 82%, respectively, during the quarter. In addition, gold
grades and recoveries averaged 1.4 g/t and 78%, respectively.
In September, two large earthquakes registering magnitudes of 8.2 and 7.1 struck the southern states of
Mexico. The La Guitarra mine, located in the state of Mexico, was evacuated for a total of eight days for
safety precautions. A full inspection of the underground mine, tailings dam and mill was immediately
implemented to assess any potential damages. The Company found no evidence of significant damage
to the mine, mill nor its facilities. Following the safety review, the operation successfully restarted mining
activities on September 24, 2017.
A total of 1,976 metres of development were completed in the third quarter compared to 2,093 metres
of development in the previous quarter.
Total exploration metres drilled in the quarter amounted to 6,3 45 metres compared to 3,092 metres
drilled in the previous quarter. An additional surface rig was added to aggressively explore the Nazareno
de Ancas area to the west and at depth.
Management Update
The Company is pleased to announce that, effective November 1, 2017, Todd Anthony will be appointed as Vice‐
President, Corporate Development. Mr. Anthony, who previously held the position of Vice‐President of Investor
R e l a t i o n s , h a s o v e r 1 1 y e a r s o f e x p e r i e n c e w i t h i n t h e i n v e s t m e nt community and financial markets. Prior to
joining First Majestic in May 2010, he served in various capacities at U.S. Global Investors, a boutique investment
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management firm with a longstanding history of expertise in pre c i o u s m e t a l s a n d n a t u r a l r e s o u r c e s . H e
graduated with a bachelor’s degree in business administration from Stephen F. Austin State University along with
an MBA from Texas A&M University‐Kingsville.
Q3 Earnings Announcement
The Company is planning to release its third quarter 2017 unaudited financial results on Thursday, November 2,
2017.
About the Company
First Majestic is a mining company focused on growing primary s ilver production in Mexico and is aggressively
pursuing the development of its existing mineral property assets. The Company 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 Ele na Silver/Gold Mine. Production from these six
mines is projected to be between 10.0 to 10.6 million ounces of pure silver or 15.7 to 16.6 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,
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.