Peņasco Quemado Silver Project



Overview



Penasco Quemado Silver Project Mining Claims
The Peñasco Quemado project is 100% owned by First Majestic Silver Corp. as the project was acquired in 2012 as a result of the acquisition of Silvermex Resources. The property consists of 22,998 hectares of mining claims and is located in north-central Sonora, Mexico.

Historically, mining at Peñasco Quemado was done on a small scale prior to 1910; however, no details are available regarding this early activity. Only recently has exploration for silver in this region intensified due to high silver prices on the world market and the geological redefinition of important silver targets within the old mining districts of northwestern Sonora.

First Majestic is currently assessing Peñasco Quemado to determine if the property fits within the Company's portfolio.


Location

The project is located in north-central Sonora, Mexico. It lies within the Sierra Madre Occidental metallogenic province, which extends along western Mexico from the border of the Mexican and American states of Sonora and Arizona, respectively, and south to the state of Jalisco.


Local Geology

The Peñasco Quemado project is primarily a silver occurrence with minor amounts of gold and copper hosted in structurally-controlled fissure fillings in granite and disseminated in sheared polyclastic sedimentary breccia. (It is believed that oxidizing, relatively low-temperature hydrothermal fluids that were under-saturated in silica and carbonates deposited the disseminated silver mineralization at Peñasco Quemado.)

Within the exploration area on the property, two structural features can be recognized:
  1. A shear zone with dynamic metamorphism as evidenced by the felsite, a sheared rock emplaced in the contact between the gneissic granite and the upper sequence of volcanics and the red conglomerate.
  2. Normal faulting developed along northwest, northeast and west-east striking structures, with lateral displacement that formed a basin and range morphology, which has suffered erosion and re-depositional filling of the basins with recent materials.
For more detailed information, readers are encouraged to review the Company's NI 43-101 report (PDF 5.1MB) on the Penasco Quemado Silver Project.

Reserves & Resources

Category Mineral Type Tonnes
(Mt)
Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
Ag
(Moz)
AgEq
(Moz) in situ
Measured + Indicated (UG) Oxides 2.57 117 - - - 9.65 9.65
Inferred (UG) Oxides 0.10 41 - - - 0.13 0.13


*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.