La Parrilla Silver Mine



Overview

La Parrilla Land Package

The La Parrilla Silver Mine is 100% owned by First Majestic Silver Corp. It is comprised of mining concessions that total 69,440 hectares, which makes it the Company's single largest land package. The property has known mineralization throughout, with a complex of five underground mines surrounding the mill including Los Rosarios, La Rosa, San Jose, Quebradillas and San Marcos.

The property began operations in October 2004 at a rate of 180 tpd. It recently underwent a fifth major development project that further expanded the mill to 2,000 tpd (from the previous 850 tpd). The expansion was deemed commercially effective on March 1, 2012 and the new parallel 1,000 tpd flotation and 1,000 tpd cyanidation circuits became fully operational. At the newly designed run rate of 2,000 tpd, La Parrilla will produce in the range of 3.3 to 3.4 million ounces of silver equivalent annually.





Location

The La Parrilla Silver Mine is conveniently located 65 km southeast of Durango in the western part of the Mexican Altiplano at 23 degrees 44'16" north latitude and 104 degress 06'26" west longitude. Nearby towns include San Jose de La Parrilla, 1.5 km to the north of the property, and the larger Vicente Guerrero, which is 16 km to the southeast. Strong infrastructure also exists in the area as the mine is in close proximity (4 km) to the main highway linking Durango and Zacatecas.


Mining & Milling Operations

Production at the La Parrilla Silver Mine consists of three separate products: silver doré bars and lead concentrate, which can also contain silver and zinc concentrate.

As a continuation of the expansion program at La Parrilla, an intensive underground development program is also under construction. This includes a new ramp system and a new production shaft. Upon completion, all underground mining areas will be connected and ore haulage will be done via underground trains that will tram the ore from the ore passes to the new shaft. This investment is expected to dramatically improve efficiencies and mine logistics and reduce cash costs.



Sulfide ball mill at La Parrilla


Fully automated control systems


Ore conveyer belt


Operating Highlights

La Parrilla Production Results
2013
2012
2011
Ore Processed/Tonnes Milled
788,335
679,788
362,947
Average Silver Grade (g/tonne)
162
170
200
Recovery (%)
76%
77%
76%
Total Silver Ounces Produced
3,115,997
2,876,810
1,793,728
Gold Ounces Produced
1,051
923
344
Pounds of Lead Produced
18,503,451
13,240,889
7,888,943
Pounds of Zinc Produced
6,723,878
4,952,899
178,767
Total Production - Ounces Silver Equivalent
4,219,374
3,487,392
2,057,172
Underground Development (m)
12,004
20,606
13,242
Diamond Drilling (m)
10,974
26,204
14,447


Local Geology, Mineralization & Ore Types


Among the several large vein systems located within the La Parrilla property boundaries, the Company has historically focused its exploration efforts on the Quebradillas, Vacas, San Marcos, La Blanca mines and the Cerro Santiago, Viboras, San Nicolás and Sacramento areas.

The region surrounding Durango and Zacatecas is known for its world-class silver deposits, hence its designation as the 'Mexico Silver Belt'; however, large tonnages of lead, zinc, copper and gold have also been mined in the region.

For more detailed geological information readers are encouraged to review the Company's most recent NI 43-101 Technical Report (PDF).


Reserves & Resources

Category Mineral Type Tonnes
(Mt)
Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
Ag
(Moz)
AgEq
(Moz) in situ
Proven + Probable Oxides + Sulphides 4.19 172 0.03 1.2 1.5 23.14 31.73
Measured + Indicated Oxides + Sulphides 1.71 144 0.04 0.6 0.5 7.92 9.43
Inferred Oxides + Sulphides 13.3 172 0.02 1.3 1.5 73.35 102.96

*In all cases, the metal prices considered were $24.00USD/Oz - Ag, $1,400.00USD/Oz - Au, $0.95 USD/lb - Pb, and $0.90USD/lb - Zn. The Reserve and Resources information provided above is based on internal qualified persons' (QPs) reporting as at December 31, 2013. The information provided was reviewed and validated by the Company's internal QP Mr. Ramon Davila, who has the appropriate relevant qualifications, and experience in mining and resource geology. The modification factors for Reserves and Resources are different, and are different for all mines.

The Reserves/Resources inventories are reported in NI 43-101 Technical Reports published periodically by the Company. The complete report can be viewed in the Reserves/Resources section or on SEDAR.


Cross-Section of the Los Rosarios Mine

Mines and Projects

Local Geology

La Parrilla Geologic Model

Surrounding Mining Districts