FR Frankfurt – FMV Mexico ‐ AG First Majestic Produces 4.3M Silver Eqv. Oz in First 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 April 20, 2017
Toronto – FR
Frankfurt – FMV
Mexico ‐ AG
First Majestic Produces 4.3M Silver Eqv. Oz in First Quarter
First Majestic Silver Corp. ("First Majestic" or the "Company") is pleased to announce that total production in the
first quarter of 2017 from its six operating silver mines reach ed 4.3 million equivalent ounces of silver. Total
production consisted of 2.7 million ounces of silver, 15,095 ou nces of gold, 7.5 million pounds of lead and 0.9
million pounds of zinc.
“ D u r i n g t h e f i r s t q u a r t e r , t o t a l p r o d u c t i o n f r o m o u r s i x p r o d u cing mines met our quarterly guidance
expectations,” said Keith Neumeyer, President & CEO. “With the renewed investment in underground
development and brownfields exploration, we continue to execute on our long‐term growth plan to have
additional production levels prepared in order to increase throughput rates and head grades at Del Toro, La
Parrilla and La Encantada. Our 2017 silver production guidance of 11.1 – 12.4 million ounces, or 16.6 – 18.5
million silver equivalent ounces, remains unchanged.”
Production Details Table:
Q1 Q1 Y/Y Q4 Q/Q
2017 2016 Change 2016 Change
Ore processed/tonnes milled 822,336 789,591 4% 844,155 ‐3%
Total production ‐ ounces of silver equivalent 4,270,715 5,083,095 ‐16% 4,380,477 ‐3%
Total silver ounces produced 2,708,978 3,074,173 ‐12% 2,819,708 ‐4%
Silver grade (g/t) 136 161 ‐15% 137 ‐1%
Silver recovery (%) 75 75 0% 76 ‐1%
Gold ounces produced 15,095 16,870 ‐11% 14,743 2%
Pounds of lead produced 7,453,972 8,637,429 ‐14% 7,684,876 ‐3%
Pounds of zinc produced 871,596 4,030,810 ‐78% 1,190,713 ‐27%
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 822,336 tonnes representing a 3% decrease
2
compared to the previous quarter. The slight decrease was primarily due to mechanical challenges at Santa Elena
causing a temporary reduction in the mill feed from the heap leach pad in the month of February.
Silver grades in the quarter averaged 136 g/t compared to 137 g/t in the previous quarter.
Combined silver recoveries averaged 75%, relatively unchanged c ompared to the previous quarter’s average of
76%.
The Company's underground development in the first quarter consisted of 13,571 metres, reflecting a 9%
decrease compared to 14,918 metres completed in the previous qu arter. The Company also completed 29,000
metres of diamond drilling in the quarter, representing an 18% decrease compared to 36,351 metres in the prior
quarter.
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: $17.42 per ounce; Gold: $1,219 per oun ce; Lead: $1.03 per pound;
Zinc $1.26 per pound.
At the Santa Elena Silver/Gold Mine:
During the quarter, Santa Elena produced 581,425 ounces of silver and 11,261 ounces of gold for a total
production of 1,369,875 silver equivalent ounces reflecting a 7% decrease compared to the prior quarter.
The mill processed a total of 230,050 tonnes, consisting of 144,328 tonnes of underground ore and
85,722 tonnes from the above ground heap leach pad, representin g an 11% decrease compared to the
prior quarter.
In February, mill feed from the heap leach pad was temporarily reduced by 50% to 500 tpd as a result of
a major breakdown with one of the four power generators on site causing the operation to run on limited
power for 10 days. The generator was successfully replaced in late February allowing the heap leach pad
to return to normal operations in March.
Silver and gold grades of underground ore averaged 110 g/t and 2.1 g/t, respectively. Whereas silver and
gold grades from the above ground heap leach pad averaged 51 g/t and 0.7 g/t, respectively.
At the end of the quarter, total development of the new San Sal vador ramp reached 2,155 metres, or
94% of a 2,300 metre development plan. The new ramp will connect to the Main Vein along level 575 by
April 2017. Once the ramp is completed, it is expected to improve underground productivity by reducing
trucking bottlenecks.
A total of 2,855 metres of underg round development was complete d in the first quarter compared to
3,029 metres of development in the previous quarter.
A total of 3,730 metres of exploration drilling was completed in the first quarter compared to 5,391
metres of drilling in the previous 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 230,050 2,556 88 89% 581,425 11,261 ‐ ‐ 1,369,875
La Encantada 266,510 2,961 137 60% 707,479 21 ‐ ‐ 708,959
La Parrilla 140,592 1,562 138 77% 479,875 231 1,826,931 871,596 667,431
Del Toro 79,108 879 163 82% 340,958 105 5,627,041 ‐ 682,219
San Martin 69,563 773 221 83% 410,082 1,662 ‐ ‐ 526,036
La Guitarra 36,514 406 210 77% 189,159 1,815 ‐ ‐ 316,195
Total 822,336 9,137 136 75% 2,708,978 15,095 7,453,972 871,596 4,270,715
3
At the La Encantada Silver Mine:
For the quarter, silver production reached 707,479 ounces representing a 25% increase over the previous
quarter. The increase in silver production was primarily due to a 13% increase in tonnes milled and a 6%
increase in recoveries.
Silver grades averaged 137 g/t during the quarter, or a 4% increase compared to the prior quarter
primarily due to the continued blending of ore from old stopes, stockpiles and the recovery of pillars.
Grades are expected to improve towards the end of 2017 following the start of block caving production
within the San Javier Breccia.
The manufacturing of the roasting project advanced in the first quarter with approximately 62% of the
major components now completed. The finished components will now be assembled into larger modules
in order to reduce shipping and installation times. The Company expects the manufacturing process to
be complete in the third quarter at which time the modules will begin shipping to site for final assembly.
A total of 587 metres of underground development were completed in the first quarter compared to
1,015 metres of development in the previous quarter.
A total of 2,805 metres were drilled in the first quarter compared to 4,197 metres of drilling in the
previous quarter.
At the La Parrilla Silver Mine:
During the quarter, the flotation circuit processed 85,984 tonn es (955 tpd) with an average silver grade
of 132 g/t and an 82% recovery while the cyanidation circuit processed 54,608 tonnes (607 tpd) with an
average silver grade of 147 g/t and a 70% recovery for total production of 667,431 silver equivalent
ounces.
The lead circuit processed an average lead grade of 1.2% with recoveries of 78% for total lead production
of 1.8 million pounds, representing a 2% decrease compared to the previous quarter.
The zinc circuit processed an average zinc grade of 1.0% with recoveries of 47% for total zinc production
of 0.9 million pounds, representing a 27% decrease compared to the previous quarter. The decrease in
zinc production was primarily due to a 13% decrease in mill throughput and a 12% decrease in zinc
recoveries. Due to recent developments in delineation drilling in the Quebradillas and Rosarios areas,
the Company expects to see a moderate increase in the zinc grades in the next 2 to 3 months.
Underground development complet ed in the quarter totaled 2,827 metres compared to 3,181 metres
developed in the previous quarter.
A total of 4,867 metres was drilled in the first quarter compared to 5,665 metres of drilling in the previous
quarter.
At the Del Toro Silver Mine:
During the quarter, Del Toro produced a total of 682,219 silver equivalent ounces reflecting consistent
production levels compared to the prior quarter.
Silver grades and recoveries during the quarter averaged 163 g/t and 82%, respectively.
Lead grades and recoveries averaged 4.8% and 68%, respectively, producing a total of 5.6 million pounds
of lead, relatively consistent with the previous quarter.
Underground development complet ed in the quarter totaled 2,710 metres compared to 2,377 metres
developed in the previous quarter.
Total exploration metres drilled in the quarter amounted to 3,589 metres compared to 3,614 metres of
drilling in the previous quarter.
4
At the San Martin Silver Mine:
During the quarter, San Martin produced 410,082 ounces of silve r and 1,662 ounces of gold for a total
production of 526,036 silver equivalent ounces. Silver production decreased 20% compared to the prior
q u ar t e r p r imar i l y d u e t o a 13% d e c r ease i n si l ve r g r ad e s an d a 9% decrease in mill throughput. Gold
production increased 87% compared to the prior quarter primarily due to an 87% increase in gold grades
and a 7% increase in gold recoveries offset by lower mill throughput.
Silver grades and recoveries averaged 221 g/t and 83%, respectively, during the quarter. In addition, gold
grades and recoveries averaged 0.8 g/t and 93%, respectively.
The construction project for the dry stack filter press install ation continued during the quarter with the
completion of the civil works and the buildings structural column s. At of th e e n d of t h e qu ar t e r , t h e
project was 63% complete. The filter presses, which are designed to recover and re‐use tailings solution
and to save on water consumption, are now expected to be installed and undergo testing by June 2017.
Underground development completed in the first quarter totaled 2,127 metres compared with 2,696
metres of development in the previous quarter.
Total metres drilled in the first quarter amounted to 4,136 met res compared to 7,069 metres of drilling
in the previous quarter.
At the La Guitarra Silver Mine:
During the quarter, La Guitarra produced 189,159 ounces of silv er and 1,815 ounces of gold for a total
production of 316,195 silver equivalent ounces. Silver productio n d e c r e a s e d 2 1 % c o m p a r e d t o t h e
previous quarter primarily due to a 15% decrease in silver grade and a 5% decrease in mill throughput.
Silver grades and recoveries averaged 210 g/t and 77%, respectively, during the quarter. In addition, gold
grades and recoveries averaged 2.1 g/t and 73%, respectively.
During the quarter, the Company began the development of a 2.4 kilometre underground haulage drift
to connect the El Coloso and La G uitarra mines. Mine ore from C oloso is currently being transported
approximately 9 kilometres aboveground via trucks to the La Guitarra processing plant. Once completed,
the new drift is expected to reduce haulage transportation costs by eliminating the need of above ground
trucks. In addition, the Company plans to use the new drift for future exploration activities.
A total of 2,279 metres of development were completed in the fi rst quarter compared to 2,620 metres
of development in the previous quarter.
Total metres drilled in the quarter amounted to 7,416 metres co mpared to 9,315 metres drilled in the
previous quarter.
Q1 Earnings Announcement
The Company is planning to release its first quarter 2017 unaudited financial results on Thursday, May 4, 2017.
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.
5
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.