San Martin Silver Mine



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 (in care and maintenance). The mine is currently undergoing an expansion program to 1,300 tpd

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 has never been explored using modern techniques. After acquiring the site in 2006, First Majestic identified an opportunity 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.


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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 running at full capacity. Production at San Martin consists of silver doré bars with gold credits. The mill at San Martin is currently undergoing an expansion process to increase the capacity to 1,300 tpd. 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 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.

For more detailed geological information, readers are encouraged to review the Company's most recent NI 43-101 report (PDF, 12.27 Mb) on the San Martin Silver Mine.

Reserves & Resources

Category Mineral Type Tonnes
(Mt)
Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
Ag Contained
(Moz)
AgEq Contained
(Moz)
Proven + Probable Oxides 4.3 160 - - - 22.0 22.0
Measured + Indicated (UG) Oxides + Sulphides 0.8 64 - 0.7 1.4 4.0 5.7
Inferred Oxides + Sulphides 11.2 159 - 0.1 0.1 58.6 60.2

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



Longitudinal Section of the Zuloaga Vein



Longitudinal Section of Rosario