San Martin Silver Mine



Overview



Tanks at San Martin
The San Martin Silver Mine is 100% owned by First Majestic Silver Corp. The mine holds 33 contiguous mining concessions in the San Martin de Bolaños mining district that cover mineral rights for 37,518 hectares. San Martin also has 1,295.8 hectares of surface land that cover the areas where the company has the mines access, mine installations, and part of the access roads as well as an additional 160 hectares of surface land where the processing plant, camp, office facilities, maintenance shops, and tailings dams are located. (Mineral rights and surface land rights are independent of each other.) The San Martin mill also underwent an expansion from 950 tpd to 1,300 tpd which was completed in October 2013. At full capacity of 1,300 tpd, San Martin's annual silver production is anticipated to increase by over 50% to approximately 1.4 - 1.6 million ounces of silver in the form of doré bars.




Location


Conveyor system from primary crusher

The San Martin Silver Mine is located 250 km north of Guadalajara city in Jalisco State, Mexico. Drive time from the city to the mine is approximately four to five hours, or about 45 minutes by charter plane. San Martin is also near the small town of San Martin de Bolanos, which is just 7.9 km to the east. San Martin de Bolanos has a population of about 3,500 and the mine is a major contributor to the economy of the community.

San Martín de Bolaños offers retail, medical (including General and Seguro Social hospitals), educational (including Jr. and High School), and communications facilities; however, major facilities, including an International Airport, are located in the cities of Guadalajara, Zacatecas and Aguascalientes.



Mining & Milling Operations

San Martin has undergone several improvements since the site was acquired by First Majestic in 2006. The most recent mill expansion (from 950 tpd to 1,300 tpd) was completed in October 2013. At full capacity of 1,300 tpd, San Martin's annual silver production is anticipated to increase by over 50% to approximately 1.4 - 1.6 million ounces of silver in the form of doré bars. Other elements of the modernization program included two new induction furnaces with two new filter presses, which were completed in 2011 and are now fully operational. These improvements are having a positive impact on overall production, quality of doré and total cash costs. Further improvements also included new leaching tanks and new thickeners.


Operating Highlights

San Martin Production Results
2013
2012
2011
Ore Processed/Tonnes Milled
322,618
286,206
286,758
Average Silver Grade (g/tonne)
153
136
147
Recovery (%)
79%
76%
78%
Total Silver Ounces Produced
1,250,774
957,195
1,055,745
Gold Ounces Produced
1,986
1,323
1,097
Total Production - Ounces Silver Equivalent
1,370,890
1,027,920
1,105,837
Underground Development (m)
10,118
8,473
7,831
Diamond Drilling (m)
8,667
35,037
19,569




Underground at San Martin

Local Geology, Mineralization & Ore Types

San Martin is situated above the base of the western graben escarpment. The mine is centered on the Zuloaga Vein, which is by far the most extensively developed vein in the district, having accounted for approximately one-half of all silver production.

For more detailed geological information, readers are encouraged to review the Company's most recent NI 43-101 report on the San Martin Silver Mine.

Reserves & Resources

Category Mineral Type Tonnes
(Mt)
Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
Ag
(Moz)
AgEq
(Moz) in situ
Proven + Probable Oxides 3.83 182 0.19 - - 22.43 23.78
Measured + Indicated Oxides + Sulphides 1.22 98 0.07 0.4 0.9 3.84 5.33
Inferred Oxides + Sulphides 11.01 161 0.17 0.1 0.1 57.04 62.44

*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.


Aerial View of San Martin

View of the operating ball mills

San Martin Silver Mine

Leaching tanks at San Martin

Underground Exploration

Induction Furnace



Longitudinal Section of the Zuloaga Vein



Longitudinal Section of Rosario



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