Reserves/Resources

PROVEN AND PROBABLE MINERAL RESERVES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2015

(update prepared under the supervision of Ramon Mendoza Reyes, PEng, QP Mining for First Majestic)

Mine Category Mineral
Type
k
tonnes
Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
Ag-Eq
(g/t)
Ag
(k Oz)
Ag-Eq
(k Oz)
                     
LA ENCANTADA Proven (UG) Oxides 251 247 - - - 247 1,991 1,991
Probable (UG) Oxides 1,473 214 - - - 214 10,120 10,120
Probable (UG) Oxides - Flotation 809 147 - 2.35 - 196 3,817 5,093
Probable (Tailings) Oxides 4,138 110 - - - 110 14,633 14,633
Total Proven and Probable (UG) Oxides + Tailings 6,670 143 - 0.29 - 148 30,561 31,837
                     
LA PARRILLA Proven (UG) Oxides 239 230 - - - 230 1,769 1,769
Probable (UG) Oxides 576 242 - - - 242 4,481 4,481
Total Proven and Probable (UG) Oxides 815 238 - - - 238 6,251 6,251
Proven (UG) Sulphides 676 212 - 2.15 2.27 331 4,610 7,210
Probable (UG) Sulphides 870 191 - 1.86 2.00 296 5,346 8,266
Total Proven and Probable (UG) Sulphides 1,546 200 - 1.99 2.12 311 9,956 15,475
  Total Proven and Probable (UG) Oxides + Sulphides 2,362 213 - 1.30 1.39 286 16,207 21,726
                     
SAN MARTÍN Proven (UG) Oxides 685 251 0.25 - - 269 5,523 5,915
Probable (UG) Oxides 1,074 269 0.10 - - 276 9,281 9,526
Total Proven and Probable (UG) Oxides 1,759 262 0.16 - - 273 14,804 15,440
                     
DEL TORO Proven (UG) Transition + Sulphides 870 199 0.07 3.58 1.94 319 5,555 8,911
Probable (UG) Transition + Sulphides 1,244 297 0.22 5.29 3.08 483 11,875 19,326
  Total Proven and Probable (UG) Transition + Sulphides 2,114 256 0.16 4.59 2.61 415 17,430 28,238
                     
LA GUITARRA Proven (UG) Sulphides 169 223 1.75 - - 333 1,210 1,808
Probable (UG) Sulphides 817 260 1.41 - - 349 6,820 9,157
Total Proven and Probable (UG) Sulphides 986 253 1.47 - - 346 8,030 10,965
                     
SANTA ELENA Probable (UG) Sulphides 3,210 107 1.57 - - 208 11,059 21,499
Probable (PAD) Oxides Spent Ore 2,299 33 0.65 - - 75 2,462 5,556
  Total Probable Oxides + Sulphides 5,509 76 1.19 - - 153 13,521 27,054
                     
  Total Proven and Probable All mineral types 19,399 161 0.44 0.76 0.45 217 100,554 135,260
  1. Mineral Reserves have been classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards on Mineral Resources and Mineral Reserves, whose definitions are incorporated by reference into National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”)
  2. Metal prices considered for Mineral Reserves estimates were $17.50 USD/oz Ag, $1,200 USD/oz Au, $0.85 USD/lb Pb, and $0.85 USD/lb Zn.
  3. The Mineral Reserves information provided above for La Encantada, La Parrilla, Del Toro, San Martín, La Guitarra and Santa Elena is based on internal estimates prepared as of December 31, 2015. The information provided was reviewed and validated by the Company’s internal Qualified Person, Mr. Ramon Mendoza Reyes, P.Eng., who has the appropriate relevant qualifications, and experience in mining and reserves estimation practices.
  4. Silver-equivalent grade is estimated considering: metal price assumptions, metallurgical recovery for the corresponding mineral type/mineral process and the metal payable of the corresponding contract of each mine. Estimation details are listed in each mine section of the 2015 Annual Information Form.
  5. The cut-off grades and modifying factors used to convert Mineral Reserves from Mineral Resources are different for all mines. The cut-off grades and factors are listed in each mine section of the 2015 Annual Information Form.

MEASURED AND INDICATED MINERAL RESOURCES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2015

(update prepared under the supervision of Jesus M. Velador Beltran, MMSA, QP Geology for First Majestic)

Mine / Project Category Mineral
Type
k
tonnes
Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
Cu
(%)
Ag-Eq
(g/t)
Ag
(k Oz)
Ag-Eq
(k Oz)
                       
LA ENCANTADA Measured (UG) Oxides 283 267 - - - - 267 2,433 2,433
Indicated (UG) Oxides 854 299 - - - - 299 8,198 8,198
Indicated (UG) Oxides - Flotation 734 246 - 4.07 - - 325 5,795 7,662
Indicated (Tailings) Oxides 4,222 110 - - - - 110 14,931 14,931
Total Measured and Indicated (UG) Oxides + Tailings 6,093 160 - 0.49 - - 170 31,357 33,224
                       
LA PARRILLA Measured (UG) Oxides 281 254 - - - - 254 2,295 2,295
Indicated (UG) Oxides 678 256 0.03 - - - 258 5,569 5,615
Total Measured and Indicated (UG) Oxides 958 255 0.02 - - - 257 7,863 7,909
Measured (UG) Sulphides 671 243 - 2.39 2.44 - 381 5,236 8,223
Indicated (UG) Sulphides 773 222 - 2.17 2.33 - 343 5,517 8,532
Total Measured and Indicated (UG) Sulphides 1,443 232 - 2.27 2.38 - 361 10,753 16,755
  Total Measured and Indicated (UG) Oxides + Sulphides 2,402 241 0.01 1.36 1.43 - 319 18,617 24,664
                       
SAN MARTÍN Measured (UG) Oxides 847 274 0.25 - - - 292 7,474 7,966
Indicated (UG) Oxides 1,465 270 0.09 - - - 276 12,714 13,020
Total Measured and Indicated (UG) Oxides 2,313 272 0.15 - - - 282 20,188 20,986
                       
DEL TORO Measured (UG) Transition + Sulphides 1,054 201 0.07 3.54 2.04 - 327 6,823 11,090
Indicated (UG) Transition + Sulphides 1,636 268 0.25 4.78 3.56 - 454 14,077 23,863
  Total Measured and Indicated (UG) Transition + Sulphides 2,691 242 0.18 4.29 2.96 - 404 20,900 34,953
                       
LA GUITARRA Measured (UG) Sulphides 203 265 2.01 - - - 394 1,726 2,574
Indicated (UG) Sulphides 737 339 1.83 - - - 456 8,032 10,810
Total Measured and Indicated (UG) Sulphides 940 323 1.87 - - - 443 9,758 13,384
                       
  Indicated (UG) Sulphides 2,969 125 1.86 - - - 247 11,887 23,545
SANTA ELENA Indicated (Pad) Oxides 2,299 33 0.65 - - - 76 2,462 5,613
  Total Indicated (UG + Pad) Oxides + Sulphides 5,268 85 1.33 - - - 172 14,349 29,159
                       
  Total Measured and Indicated All mineral types 19,707 182 0.49 0.90 0.58 - 247 115,168 156,370
  1. Mineral Resources have been classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards on Mineral Resources and Mineral Reserves, whose definitions are incorporated by reference into National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”)Resources and Mineral Reserves, whose definitions are incorporated by reference into National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”)
  2. In all cases, metal prices considered for Mineral Resource estimates were $18.50 USD/oz Ag, $1,300 USD/oz Au, $0.95 USD/lb Pb, and $0.95 USD/lb Zn.
  3. The Mineral Resources information provided above for La Parrilla, Del Toro and San Martín is based on internal estimates prepared as of December 31, 2015. The information provided was reviewed and validated by the Company’s internal Qualified Person, Mr. Jesus M. Velador Beltran, MMSA QP Geology, who has the appropriate relevant qualifications, and experience in geology and resource estimation.
  4. Mineral Resource estimates for La Guitarra Silver Mine are updates as of December 31, 2015, based on information contained in the 2015 Technical Report compiled by First Majestic.
  5. Mineral Resource estimates for La Encantada Silver Mine are based on the 2016 Technical Report compiled by First Majestic.
  6. Silver-equivalent grade is estimated considering: metal price assumptions, metallurgical recovery for the corresponding mineral type/mineral process and the metal payable of the corresponding contract of each mine. Estimation details are listed in each mine section of the 2015 Annual Information Form.
  7. The cut-off grades for Mineral Resources are different for all mines. The cut-off grades are listed in each mine section of the 2015 Annual Information Form.
  8. Santa Elena Underground Probable Reserves are based on a cut-off grade of 2.49 g/t Au-Eq with an average estimated dilution of 10% and 90% mine recovery.
  9. Measured and Indicated Mineral Resources are reported inclusive of Mineral Reserves.

INFERRED MINERAL RESOURCES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2015

(update prepared under the supervision of Jesus M. Velador Beltran, MMSA, QP Geology for First Majestic)

Mine / Project Category Mineral
Type
k
tonnes
Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
Cu
(%)
Ag-Eq
(g/t)
Ag
(k Oz)
Ag-Eq
(k Oz)
                       
  Inferred Ojuelas (UG) Oxides 35 292 - 0.78 - - 305 325 340
LA ENCANTADA Inferred other deposits (UG) Oxides 871 244 - - - - 244 6,829 6,829
  Inferred Total (UG) Oxides 905 246 - 0.03 - - 246 7,154 7,169
                       
LA PARRILLA Inferred (UG) Oxides 2,841 266 - - - - 266 24,281 24,281
Inferred (UG) Sulphides 4,078 215 0.08 2.50 2.47 - 355 28,219 46,573
Inferred Total (UG) Oxides + Sulphides 6,918 236 0.05 1.47 1.45 - 319 52,500 70,854
                       
SAN MARTÍN Inferred Total (UG) Oxides 4,212 262 0.08 - - - 268 35,474 36,272
                       
DEL TORO Inferred Total (UG) Transition + Sulphides 5,322 175 0.12 3.37 3.66 - 309 29,867 52,955
                       
LA GUITARRA Inferred Total (UG) Sulphides 778 297 1.29 - - - 379 7,424 9,478
                       
SANTA ELENA Inferred Total (UG) Sulphides 286 92 1.41 - - - 184 841 1,691
                       
LA JOYA Inferred Total (OP) Sulphides 27,927 58 0.28 - - 0.47 103 51,646 92,907
                       
  Total Inferred All mineral types 46,349 124 0.23 0.61 0.64 0.28 1,809 184,906 271,326
  1. Mineral Resources have been classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards on Mineral Resources and Mineral Reserves, whose definitions are incorporated by reference into National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”)
  2. In all cases, metal prices considered for Mineral Resource estimates were $18.50 USD/oz Ag, $1,300 USD/oz Au, $0.95 USD/lb Pb, and $0.95 USD/lb Zn.
  3. The Mineral Resources information provided above for La Parrilla, Del Toro and San Martín is based on internal estimates prepared as of December 31, 2015. The information provided was reviewed and validated by the Company’s internal Qualified Person, Mr. Jesus M. Velador Beltran, MMSA QP Geology, who has the appropriate relevant qualifications, and experience in geology and resource estimation.
  4. Mineral Resource estimates for La Guitarra Silver Mine are updates as of December 31, 2015, based on information contained in the 2015 Technical Report compiled by First Majestic.
  5. Mineral Resource estimates for La Encantada Silver Mine are based on the 2016 Technical Report compiled by First Majestic.
  6. Inferred Mineral Resource estimates for La Joya Project are based on the 2013 Technical Report prepared for Silvercrest.
  7. Silver-equivalent grade is estimated considering: metal price assumptions, metallurgical recovery for the corresponding mineral type/mineral process and the metal payable of the corresponding contract of each mine. Estimation details are listed in each mine section of the 2015 Annual Information Form.
  8. The cut-off grades for Mineral Resources are different for all mines. The cut-off grades are listed in each mine section of the 2015 Annual Information Form.

    Cautionary Notes to U.S. Investors Concerning Reserve and Resource Estimates

The definitions of Proven and Probable Reserves used in National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") differ from the definitions in the United States Securities and Exchange Commission ("SEC") Industry Guide 7. Under SEC Guide 7 standards, a "Final" or "Bankable" feasibility study is required to report reserves, the three year history average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.

In addition, the terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource" and "Inferred Mineral Resource" are defined in and required to be disclosed by NI 43-101; however, these terms are not defined terms under SEC Industry Guide 7 and normally are not permitted to be used in reports and registration statements filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into Reserves. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases.

Accordingly, information contained in this website containing descriptions of First Majestic's mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations there under.

NI 43-101 Technical Reports

La Guitarra Silver Mine
La Parrilla Silver Mine
San Martin Silver Mine
La Encantada Silver Mine
Del Toro Silver Mine
Santa Elena Silver Mine