La Encantada Silver Mine
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The La Encantada Silver Mine is 100% owned and is located in the "Sierra Madre Oriental" physiographic province of México. The mine includes a newly completed 4000 tpd plant, all the infrastructures; airstrip, housing, offices, ancillary buildings, laboratory, restaurant, general store, recreation facility and a land package of approximately 4000 hectares. The mine is in the state of Coahuila and the access is through the road from Muzquiz to Boquillas del Cármen, Coah., through a 165 kilometres paved road and a branch of 45 kilometres dirt road, taking approximately 2.5 hours to travel.
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MINE AND PLANT OPERATION
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The construction of a new 4000 tpd cyanidation mill commenced in July 2008 and was completed in November 2009. The mill reached commercial production on April 1, 2010 and is currently running at full capacity. Silver production has significantly increased from 2009 levels. At full capacity, production is estimated to reach 4.5 million ounces of silver annually in the form of silver dore bars.
A fully functional 1000tpd flotation mill is also located at La Encantada. This flotation mill has been the primary method of silver production for over the past 30 years. However, now with the cyanidation plant is operating at full capacity, a decision was made in June 2010 to suspend production of lead concentrate through the flotation circuit and focus on silver Doré production only, thereby dramatically reducing smelting and refining costs. The old flotation mill is being kept in care-and-maintanence and can be turned on at any time.
GEOLOGY
La Encantada mining district is represented by a skarn type deposit with values of Ag and Pb in ore bodies of different morphology. Historically, the strategy was to obtain greater grades of silver while maintaining low tonnage. This strategy is changing with the construction of the new 3750 tpd mill. Current mining is taking place in the San Javier area, of "mantos" 314 and the Ojitos structure, between levels 635 to 680.
In the upper section by veins and "mantos" related to bodies mineralized at depth. The mining activity in this district began in a low scale in 1950 up to 1969 and at the beginning of the 1970's until the year 2003 with Grupo Peñoles/Lacana Corp. exploiting the ore-bodies of; La Prieta, 660, Ojuelas, Escondida, San Javier Breccia, Milagros and some of the irregular veins in the San Javier zone. It is estimated that around 6.0 million tons with a grade of 418 g/ton silver and 9.83% lead had been extracted (P. Trejo and E. Chico).
In the mid section the existence of chimney type bodies, "mantos" and irregular bodies with partial replacement and open space filled.
 Board of Directors trip underground |
In the lower part metasomatic ore bodies in contact with horfels and skarn development, originating "manto" type bodies and stockwork zones.
They are hosted mainly in calcareous Cretaceous rocks of the Aurora formation, which is intruded by dike type bodies, sills and intrusive of dioritic and granodioritic composition related to the mineralization, producing silicate aureoles (garnet-diopside) in contact with the calcareous sediments.
Structurally, La Encantada is located in the western flank of an anticline of regional dimensions, affected by faulting mainly of NW-SE and NE-SW trend, as a result of a stage of deformation in the Oligocene. These areas of weakness have been the channels of emplacement of intrusive bodies, preparing the ground for the subsequent stages of mineral body formation.
The mineralogy of the deposits is predominantly Fe oxides, carbonates and lead sulphates with high concentrations of silver (argentite and native silver) values as the result of an oxidation process and enrichment in a known vertical range of more than 400 meters; from an elevation of 2,035 to 1,600 m.a.s.l. Beneath the elevation 1,600, there is a presence of sulphides of Pb-Ag-Zn in the south-western part of the La Encantada mine (La Morena ore-bodie).
The brecciated chimney type ore bodies are the ones where most of the tonnage has been extracted to date (La Prieta, Escondida, Milagros and San Javier breccias). The replacement contact ore-bodies,include the 660 level and Ojuelas ore-bodies, and the vein type structures and "mantos" are generally within the San Javier area. The highest silver grades have been exploited in the nucleus of the brecciated columns and in the "mantos" areas with assayed values in selected areas reaching over 10kg/t of silver and more than 25% of lead.
 The flotation circuit within the mill |
The Resource/Reserve inventories are reported in NI 43-101 Technical Reports published periodically by the Company. This complete report can be viewed in the Reserve/Resource Section (link below) or on SEDAR (www.sedar.com).
A continuous program of mine & resource development, exploitation and exploration drilling is underway to continually improve mining operations and upgrade data to NI 43-101 compliance.
Additional potential within the property on a regional level exists in several zones defined by airborne magnetometry carried out by Peñoles and recently confirmed by First Majestic during an extensive geophysical program. Additional exploration focus will be carried out on these areas in future programs.
CONCLUSIONS
Silver production has significantly increased from 2009 levels. The new 4000 tpd cyanidation plant is currently running at full capacity and production is estimated to reach 4.5 million ounces of silver annually in the form of silver dore bars.
For more detailed geological information, readers are encouraged to review the Company's most recent NI 43-101 report (PDF, 21.7 Mb).
) La Encantada Silver Mine Mining Claims |
) Vein structures at the La Encantada Silver Mine |
) Long Section of the La Encantada Silver Mine |
VIDEO GALLERY Click to View
 Filter Presses at the La Encantada |
 Final tailings from the new mill |