FR Frankfurt – FMV Mexico ‐ AG First Majestic Provides Review of 2017 Exploration Program and Plans for 2018
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 January 9, 2018
Toronto – FR
Frankfurt – FMV
Mexico ‐ AG
First Majestic Provides Review of 2017 Exploration Program and Plans for 2018
FIRST MAJESTIC SILVER CORP. (AG: NYSE; FR: TSX) (the "Company" or “First Majestic”) is pleased to announce a
year‐end review of its 2017 exploration program and plans for its 2018 exploration program.
2017 HIGHLIGHTS
Completed over 156,500 metres of diamond drilling consisting of 807 holes, a new Company record,
across the six operating mines and the Plomosas silver project
New discovery at Ermitaño West near the Santa Elena Silver/Gold mine:
EW‐16‐09 intersected 3.0 g/t gold and 50 g/t silver over 37.0 metres (est. true width)
EW‐16‐06 intersected 4.7 g/t gold and 277 g/t silver over 12.9 metres (est. true width)
New discoveries and relevant extensions at:
Santa Elena – Main Vein extension to the west
La Encantada – new La Fe replacement ore body discovery
La Parrilla – discovery of the Cerro de Santiago vein parallel to Rosario
Del Toro – Santa Teresa vein south extension continues
San Martin – Hedionda vein extension continues
La Guitarra –Nazareno north‐west extension and Nazareno de Ancas finding
Plomosas – Plomosas vein extension and finding of a new stockwork system
Advanced optimization program designed to improve metallurgical recoveries with concentrate
cleaning upgrades across all processing plants
An initial resource estimate for the Plomosas silver project expected to be released by the end of 2018
with over 17,500 metres drilled in 2017 and an estimated 22,000 metres planned in 2018
Updated Mineral Reserve and Resource estimates across all mines being prepared now and scheduled
for release by end of Q1 2018
Keith Neumeyer, CEO and Presid ent, states: “2017 was an excepti onal year for exploration and technological
innovations. Across seven of our assets, we had up to 24 active rigs and drilled over 156,500 metres resulting in
a new exploration record for First Majestic. The Company is now working diligently to incorporate these
successful results into an updated Reserve and Resource estimat e which is expected to be released by the end
of the first quarter of 2018. Our two major discoveries for 201 7 were the Cerro de Santiago vein at La Parrilla
and the Ermitaño vein at Santa Elena. It is also becoming evide nt that there is a significant opportunity around
Santa Elena and La Parrilla to expand the size of the known mine r a l r e s o u r c e s . A s a r e s u l t o f t h e r e c e n t
discoveries, we are allocating additional exploration resources in 2018 in order to improve Life of Mine at both
operations.”
2017 Drilling Program
The objectives of the 2017 drill program were to:
1) upgrade Resources to Reserves at La Parrilla, Del Toro, La Guit arra, San Martin, La Encantada and Santa
Elena;
2) increase or add new Mineral Resources at the six operating mines, with a focus at Nazareno in La Guitarra
and the Ermitaño West project in Santa Elena; and
3) Continue the aggressive exploration program at the Plomosas silver project which commenced in 2016.
The Company completed over 156, 500 metres of diamond drilling i n 2017 consisting of approximately 21,210
metres at Santa Elena, 15,370 metres at La Encantada, 28,840 me tres at La Parrilla, 19,550 metres at Del Toro,
26,075 metres at San Martin, 27,880 metres at La Guitarra and 17,610 metres at Plomosas. Major milestones in
2017 were the acquisition of El Gachi property (48,157 hectares) and the option agreement to explore and
acquire the Los Hernandez proper ty (5,802 hectares), both adjoi ning to the north of the Santa Elena property
package, as well as the finding and extension of additional resources at the six operating mines and the Plomosas
silver project:
Santa Elena – Main Vein extension to the west, Tortuga vein extension at depth and Alejandra veins
extensions at depth
La Encantada – El Conejo vein and La Fe replacement findings
La Parrilla – Discovered the Cerro de Santiago vein, North‐South vein and Rosarios west extension
Del Toro – Santa Teresa south extension and Dolores at depth
San Martin – La Veladora and Hedionda veins extension
La Guitarra – Coloso extension to the south‐east, Nazareno nort h‐west extension and Nazareno de
Ancas finding
Plomosas – Plomosas vein extension and finding of a new stockwork system
The Company is now preparing to release updated Mineral Reserve and Resource estimates at the end of March
2018. It should be noted that none of the drilling that occurre d in 2017 has been included in any of the current
Mineral Reserve or Resource estimates released in any of the Company’s National Instrument (NI) 43‐101
Technical Reports. Efforts will be made to include as much as p ossible in the March 2018 update with a cut‐off
of December 31, 2017. However, due to lengthy time requirements for assay results and block modelling, some
of the 2017 drilling results may not be available until the Company’s March 2019 update with a cut‐off of
December 31, 2018.
Exploration Outlook for 2018
Following the successful exploration results in 2017, the Compa ny is planning to continue with an aggressive
exploration budget in 2018 with an estimated 183,000 metres of planned drilling across its six producing mines
and the Plomosas Silver Project. A mine‐by‐mine breakdown of th e 2018 exploration program is included in the
table below.
Mine 2018E metres Y/Y change
Santa Elena 38,000 79%
La Encantada 20,000 30%
La Parrilla 28,000 ‐3%
Del Toro 28,000 43%
San Martin 24,000 ‐8%
La Guitarra 23,000 ‐18%
Plomosas 22,000 25%
Total 183,000 17%
The objectives of the 2018 exploration program will be to continue exploration and infill drilling of the Ermitaño
vein at Santa Elena; Cerro de Santiago and Rosario north‐west veins at La Parrilla; Nazareno, Nazareno de Ancas
and Coloso south‐east veins at L a Guitarra; north extensions of Rosario and Hedionda veins at San Martin; El
Conejo and Los Angeles veins at La Encantada; Navidad vein north of Dolores mine at Del Toro and the Plomositas
and San Juan veins at Plomosas. Furthermore, the Company is pla nning to release an updated NI 43‐101 on its
Santa Elena Silver/Gold mine by mid‐2018 followed by an initial resource estimate on the Plomosas silver project
by year end 2018.
A full description of the 2018 guidance including production, co s t s a n d c a p i t a l e x p e n d i t u r e e s t i m a t e s a r e
expected to be released by mid‐January.
Continued Optimization Programs
Throughout 2017, the Company continued investing in new research and development technologies in order to
increase and optimize milling effi ciencies at its operations. T wo primary areas of focus included the
implementation of microbubble flotation cells and the application of high intensity fine‐grinding technologies. In
late November, the Board of Directors, along with senior manage ment, visited the microbubble flotation pilot
plant installation at La Parrilla and observed the work being performed. Test work continues to show successful
metallurgical improvements in the treatment of sulphide ore within the silver/lead and zinc circuits at La Parrilla.
To date, the Company has placed orders for two full‐scale micro bubble flotation cells and expects delivery and
installation to begin in the second half of 2018.
In addition, the operational status of the natural gas generators at the La Encantada mine improved throughout
2017 with the generators currently supplying over 90% of the required power requirements to the operation. As
a result of the success at La Encantada, the Company is in discussions with suppliers to install natural gas
generators in 2018 at its Santa Elena operation in order to further reduce energy costs.
Mr. Ramon Mendoza Reyes, Vice President 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.
First Majestic is a mining company focused on silver production in México and is aggressively pursuing the
development of its existing mineral property assets and the pur suit through acquisition of additional mineral
assets which contribute to the Company achieving its corporate growth objectives.
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
This news release includes certain "Forward‐Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995
and applicable Canadian securities laws. When used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target”, “plan”,
“forecast”, “may”, “schedule” and similar words or expressions, identify forward‐looking statements or information. These forward‐looking statements or
information relate to, among other things: the price of silver and other metals; the accuracy of mineral reserve and resource estimates and estimates of
future production and costs of production at our properties; estimated production rates for silver and other payable metals produced by us, the estimated
cost of development of our development projects; the effects of laws, regulations and government policies on our operations, including, without limitation,
the laws in Mexico which currently have significant restrictions related to mining; obtaining or maintaining necessary permits, licences and approvals from
government authorities; and cont inued access to necessary infra structure, including, without lim itation, access to power, land , water and roads to carry
on activities as planned.
These statements reflect the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and
estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competit ive, political and social
uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially
different from the results, performance or achievements that are or may be expressed or implied by such forward‐looking statements or information and
the Company has made assumptions and estimates based on or rela ted to many of these factors. Such factors include, without lim itation: fluctuations in
the spot and forward price of silver, gold, base metals or certain other commodities (such as natural gas, fuel oil and electricity); fluctuations in the currency
markets (such as the Canadian dollar and Mexican peso versus th e U.S. dollar); changes in national and local government, legis lation, taxation, controls,
regulations and political or economic developments in Canada, Mexico; operating or technical difficulties in connection with mining or development
activities; risks and hazards a ssociated with the business of m ineral exploration, development and mining (including environme ntal hazards, industrial
accidents, unusual or unexpected formations, pressures, cave‐ins and flooding); risks relating to the credit worthiness or fin ancial condition of suppliers,
refiners and other parties with whom the Company does business; inability to obtain adequate insurance to cover risks and haza rds; and the presence of
laws and regulations that may impose restrictions on mining, in cluding those currently enacted i n Mexico; employee relations; relationships with and
claims by local communities and indigenous populations; availability and increasing costs associated with mining inputs and labour; the speculative nature
o f m i n e r a l e x p l o r a t i o n a n d d e v e l opment, including the risks of obtaining necessary licenses, permits and approvals from government authorities;
diminishing quantities or grades of mineral reserves as properties are mined; the Company’s title to properties; and the factors identified under the caption
“Risk Factors” in the Company’s Annual Information Form, under the caption “Risks Relating to First Majestic's Business”.
Investors are cautioned against attributing undue certainty to forward‐looking statements or information. Although the Company has attempted to identify
important factors that could cause actual results to differ mat erially, there may be other factors that cause results not to b e anticipated, estimated or
intended. The Company does not intend, and does not assume any obligation, to update these forward‐looking statements or information to reflect
changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable
law.