First Majestic - Silver Corp.

Overview

Tanks at San Martin

The San Martin Silver Mine is 100% owned by First Majestic Silver Corp. The mine comprises approximately 7,841 hectares of mineral rights, including 1,454 hectares of surface rights, with a 950 tpd cyanidation mill and a 500 tpd flotation circuit (currently in care and maintenance). An expansion program began at the end of 2012 to expand the San Martin mill to 1350 tpd. This expansion is anticipated to be completed by July 2013.

Although the mine has been in continuous production since 1983, with an annual production of approximately 1.1 million silver ounces (in the form of doré bars), the area was never previously explored using modern techniques. Since acquiring the property in 2006, First Majestic began to make the necessary investments in development, exploration and mill improvements to increase the NI 43-101 compliant silver resources and to increase silver production from current levels.


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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

Having undergone several improvements since the site was acquired in 2006, San Martin's 950 tpd cyanidation mill is currently running at around 850 to 900 tpd. Production at San Martin consists of silver doré bars with gold credits. The focus at San Martin is on increasing silver reserves and resources in order to justify possible future expansions. The mill has been undergoing a modernization program that includes 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 include new leaching tanks and new thickeners.


Operating Highlights

San Martin Production Results	2012	2011	2010
Ore Processed/ Tonnes Milled	286,206	286,758	264,449
Average Silver Grade (g/tonne)	136	147	168
Recovery (%)	76%	78%	79%
Total Silver Ounces Produced	957,195	1,055,745	1,125,514
Gold Ounces Produced	1,323	1,097	1,665
Total Production - Ounces Silver Equivalent	1,027,920	1,105,837	1,230,037
Underground Development (m)	8,473	7,831	5,840
Diamond Drilling (m)	35,037	19,569	8,483

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. Currently First Majestic is developing La Esperanza, Rosarios and Huichola areas in preparation for increasing head grades and resource estimates.

For more detailed geological information, readers are encouraged to review the Company's most recent NI 43-101 report (PDF, 9.34 Mb) on the San Martin Silver Mine. An updated NI 43-101 Technical Report is expected to be released in early 2013.

Reserves & Resources

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.

View of the operating ball mills	San Martin Silver Mine	Mining Claims
Leaching tanks at San Martin	Underground Exploration	Induction Furnace