Reserves/Resources

PROVEN AND PROBABLE MINERAL RESERVES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2016

(update prepared under the supervision of Ramon Mendoza Reyes, PEng, QP Mining for First Majestic)

Mine Category Mineral Type k tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag-Eq (g/t) Ag (k Oz) Ag-Eq (k Oz)
                     
LA ENCANTADA Proven Oxides 289 239 - - - 239 2,222 2,222
Probable Oxides 1,516 213 - - - 213 10,372 10,372
Probable Oxides - Flotation 809 147 - 2.35 - 196 3,817 5,093
Probable (Tailings) Oxides 4,138 110 - - - 110 14,633 14,633
Total Proven and Probable Oxides + Tailings 6,751 143 - 0.28 - 149 31,043 32,319
                     
LA PARRILLA Probable Oxides 645 137 0.06 - - 141 2,840 2,940
Probable Sulphides 832 211 0.05 1.65 1.42 316 5,640 8,450
  Total Proven and Probable Oxides + Sulphides 1,477 179 0.05 0.93 0.80 239 8,480 11,390
                     
SAN MARTÍN Proven Oxides 161 255 0.38 - - 285 1,317 1,473
Probable Oxides 2,119 201 0.29 - - 224 13,712 15,248
Total Proven and Probable Oxides 2,280 205 0.29 - - 228 15,029 16,721
                     
DEL TORO Proven Transition + Sulphides 20 155 0.12 1.25 0.34 203 100 131
Probable Transition + Sulphides 1,445 163 0.10 3.36 2.68 288 7,573 13,380
  Total Proven and Probable Transition + Sulphides 1,465 163 0.10 3.33 2.65 287 7,677 13,518
                     
LA GUITARRA Proven Sulphides 88 179 1.47 - - 273 509 775
Probable Sulphides 1,041 256 1.34 - - 341 8,577 11,423
Total Proven and Probable   Sulphides 1,129 250 1.35 - - 336 9,086 12,198
                     
SANTA ELENA Probable Sulphides 2,597 110 1.63 - - 215 9,208 17,927
Probable (PAD) Oxides Spent Ore 1,882 31 0.62 - - 71 1,857 4,275
  Total Probable Oxides + Sulphides 4,479 77 1.21 - - 154 11,065 22,202
                     
  Total Proven and Probable All mineral types 17,582 146 0.45 0.46 0.29 192 82,381 108,348
  1. Mineral Reserves have been classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards on Mineral Resources and Mineral Reserves, whose definitions are incorporated by reference into NI 43-101.
  2. Metal prices considered for Mineral Reserves estimates were $18.00 /oz Ag, $1,250 /oz Au, $1.00 /lb Pb, and $1.15 /lb Zn.
  3. The Mineral Reserves information provided above for La Encantada, Del Toro, San Martín, La Guitarra and Santa Elena is based on internal estimates prepared as of December 31, 2016. The information provided was reviewed and validated by the Company’s internal Qualified Person, Mr. Ramon Mendoza Reyes, P.Eng., who has the appropriate relevant qualifications, and experience in mining and reserves estimation practices.
  4. The Mineral Reserves information provided above for La Parrilla is based on estimates prepared as of December 31, 2016 by SRK Consulting, Inc.
  5. Silver-equivalent grade is estimated considering: metal price assumptions, metallurgical recovery for the corresponding mineral type/mineral process and the metal payable of the corresponding contract of each mine. Estimation details are listed in each mine section of the 2016 Annual Information Form.
  6. The cut-off grades and modifying factors used to convert Mineral Reserves from Mineral Resources are different for all mines. The cut-off grades and factors are listed in each mine section of the 2016 Annual Information Form.

MEASURED AND INDICATED MINERAL RESOURCES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2016

(update prepared under the supervision of Jesus M. Velador Beltran, MMSA, QP Geology for First Majestic)

Mine / Project Category Mineral Type k tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag-Eq (g/t) Ag (k Oz) Ag-Eq (k Oz)
                     
LA ENCANTADA Measured Oxides 305 269 - - - 269 2,637 2,637
Indicated Oxides 894 297 - - - 297 8,518 8,518
Indicated Oxides - Flotation 734 246 - 4.07 - 325 5,795 7,662
Indicated (Tailings) Oxides 4,222 110 - - - 110 14,931 14,931
Total Measured and Indicated Oxides + Tailings 6,154 161 - 0.49 - 171 31,881 33,748
                     
LA PARRILLA Indicated Oxides 787 167 0.08 - - 174 4,230 4,400
Indicated Sulphides 1,036 223 0.07 1.64 1.37 323 7,420 10,760
  Total Measured and Indicated Oxides + Sulphides 1,823 199 0.08 0.93 0.78 259 11,650 15,160
                     
SAN MARTÍN Measured Oxides 260 246 0.40 - - 275 2,054 2,297
Indicated Oxides 2,136 263 0.37 - - 290 18,028 19,869
Total Measured and Indicated Oxides 2,396 261 0.38 - - 288 20,081 22,166
                     
DEL TORO Measured Transition + Sulphides 47 228 0.43 4.04 0.92 383 346 581
Indicated Transition + Sulphides 1,234 219 0.14 4.55 3.51 388 8,694 15,393
  Total Measured and Indicated Transition + Sulphides 1,281 219 0.15 4.53 3.41 388 9,040 15,974
                     
LA GUITARRA Measured Sulphides 83 204 1.61 - - 305 547 818
Indicated Sulphides 992 291 1.51 - - 385 9,273 12,289
Total Measured and Indicated   Sulphides 1,075 284 1.52 - - 379 9,821 13,107
                     
  Indicated Sulphides 2,629 131 2.03 - - 259 11,083 21,859
SANTA ELENA Indicated (Pad) Oxides 1,882 31 0.62 - - 70 1,857 4,230
  Total Indicated (UG + Pad) Oxides + Sulphides 4,511 89 1.44 - - 180 12,940 26,089
                     
  Total Measured and Indicated All mineral types 17,240 172 0.54 0.61 0.34 228 95,413 126,244
  1. Mineral Resources have been classified in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves, whose definitions are incorporated by reference into NI 43-101.
  2. In all cases, metal prices considered for Mineral Resource estimates were $19.00 /oz Ag, $1,300 /oz Au, $1.00 /lb Pb, and $1.20 /lb Zn.
  3. The Mineral Resources information provided above for Del Toro and San Martín is based on internal estimates prepared as of December 31, 2016. The information provided was reviewed and validated by the Company’s internal Qualified Person, Mr. Jesus M. Velador Beltran, MMSA, QP Geology, who has the appropriate relevant qualifications, and experience in geology and resource estimation.
  4. Mineral Resource estimates for La Guitarra are based on information contained in the 2015 Technical Report compiled by First Majestic with contribution of Amec Foster Wheeler Americas Ltd. which were updated by First Majestic with information to 31 December, 2016.
  5. Mineral Resource estimates for La Encantada are based on information contained in the 2016 Technical Report compiled by First Majestic with contribution of Amec Foster Wheeler Americas Ltd. which were updated by First Majestic with information to 31 December, 2016.
  6. Mineral Resource estimates for Santa Elena are internal estimates based on the 2014 Update to Santa Elena Pre-Feasibility Study Technical Report compiled by SilverCrest and re-addressed to First Majestic in October, 2015. These estimates were reviewed and validated by the Company’s internal Qualified Person, Mr. Jesus M. Velador Beltran, MMSA, QP Geology and updated by First Majestic with information to 31 December, 2016.
  7. Mineral Resource estimates for La Parrilla are based on information contained in the 2016 Technical Report compiled by SRK Consulting Inc.
  8. Silver-equivalent grade is estimated considering: metal price assumptions, metallurgical recovery for the corresponding mineral type/mineral process and the metal payable of the corresponding contract of each mine. Estimation details are listed in each mine section of the 2016 Annual Information Form.
  9. The cut-off grades for Mineral Resources are different for all mines. The cut-off grades are listed in each mine section of the 2016 Annual Information Form.
  10. Measured and Indicated Mineral Resources are reported inclusive of Mineral Reserves.

INFERRED MINERAL RESOURCES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2016

(update prepared under the supervision of Jesus M. Velador Beltran, MMSA, QP Geology for First Majestic)

Mine / Project Category Mineral Type k tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Cu (%) Ag-Eq (g/t) Ag (k Oz) Ag-Eq (k Oz)
                       
  Inferred Ojuelas Oxides - Flotation 35 292 - 0.78 - - 305 325 340
LA ENCANTADA Inferred other deposits  Oxides 728 232 - - - - 232 5,430 5,430
  Total Inferred Oxides 762 235 - 0.04 - - 235 5,756 5,770
                       
LA PARRILLA Inferred Oxides 922 212 0.07 - - - 218 6,290 6,450
Inferred Sulphides 2,664 186 0.04 1.86 1.71 - 302 15,960 25,910
Total Inferred Oxides + Sulphides 3,586 193 0.05 1.38 1.27 - 281 22,250 32,360
                       
SAN MARTÍN Total Inferred Oxides 3,113 226 0.36 - - - 251 22,588 25,155
                       
DEL TORO Total Inferred Transition + Sulphides 1,362 213 0.13 5.05 1.95 - 385 9,349 16,877
                       
LA GUITARRA Total Inferred Sulphides 679 290 1.44 - - - 380 6,322 8,285
                       
SANTA ELENA Total Inferred Sulphides 591 103 2.04 - - - 232 1,966 4,408
                       
LA JOYA Total Inferred (OP) Sulphides 27,927 58 0.28 - - 0.47 103 51,646 92,907
                       
  Total Inferred All mineral types 38,021 98 0.30 0.31 0.19 0.35 152 119,876 185,763
  1. Mineral Resources have been classified in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves, whose definitions are incorporated by reference into NI 43-101.
  2. In all cases, metal prices considered for Mineral Resource estimates were $19.00 /oz Ag, $1,300 /oz Au, $1.00 /lb Pb, and $1.20 /lb Zn.
  3. The Mineral Resources information provided above for Del Toro and San Martín is based on internal estimates prepared as of December 31, 2016. The information provided was reviewed and validated by the Company’s internal Qualified Person, Mr. Jesus M. Velador Beltran, MMSA, QP Geology, who has the appropriate relevant qualifications, and experience in geology and resource estimation.
  4. Mineral Resource estimates for La Parrilla are based on information contained in the 2016 Technical Report compiled by SRK Consulting Inc.
  5. Mineral Resource estimates for La Guitarra are based on information contained in the 2015 Technical Report compiled by First Majestic with contribution of Amec Foster Wheeler Americas Ltd. which were updated by First Majestic with information to 31 December, 2016.
  6. Mineral Resource estimates for La Encantada are based on information contained in the 2016 Technical Report compiled by First Majestic with contribution of Amec Foster Wheeler Americas Ltd. which were updated by First Majestic with information to 31 December, 2016.
  7. Mineral Resource estimates for Santa Elena are internal estimates based on the 2014 Update to Santa Elena Pre-Feasibility Study Technical Report compiled by SilverCrest and re-addressed to First Majestic in October, 2015. These estimates were reviewed and validated by the Company’s internal Qualified Person, Mr. Jesus M. Velador Beltran, MMSA, QP Geology
  8. Silver-equivalent grade is estimated considering: metal price assumptions, metallurgical recovery for the corresponding mineral type/mineral process and the metal payable of the corresponding contract of each mine. Estimation details are listed in the 2016 Annual Information Form.
  9. The cut-off grades for Mineral Resources are different for all mines. The cut-off grades are listed in the 2016 Annual Information Form.
  10. Inferred Mineral Resource estimates for La Joya Project are based on the 2013 Preliminary Economic Assessment Technical Report compiled for SilverCrest.

PLOMOSAS HISTORICAL ESTIMATES

Project Category Mineral Type k tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag (k Oz) Ag-Eq (k Oz)
                   
PLOMOSAS Not in accordance with
CIM Standards
Sulphides 896 192 0.8 2.1 3.4 5,500 11,000
                   
  1. Plomosas historical estimates figures are taken from Grupo México’s estimates prepared in 2001.
  2. Tonnage is expressed in thousands of tonnes, metal content is expressed in thousands of ounces.
  3. The Company’s Qualified Persons have not done sufficient work to classify the historical estimates as current Mineral Resources or Mineral Reserves and have been coordinating the work for the verification of the information supporting the historical estimates at Plomosas. The historical estimates at Plomosas do not conform to NI 43-101 for reporting purposes; as such, the Company is not treating these historical estimates as current Mineral Reserves or Mineral Resources. Since the historical estimates do not have demonstrated current economic viability, these estimates should not be relied upon until the verification process and due diligence in progress by the Company's Qualified Person is completed.
  4. In order to verify or upgrade the historical estimates, the Company has started a diamond drilling program at the Rosario and San Juan mines. The drilling program is designed to confirm the historical estimates reported by Grupo México and will allow the Company to plan a second exploration program focused on locating extensions of the known mineralization. Other work required to verify the historical estimates as current includes, but it is not limited to: re-survey of underground workings, re-survey of available exploration drill-hole monuments, review of drilling, sampling and assays databases, and the re-assessment of the estimates following CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines and CIM Definition Standards on Mineral Resources and Mineral Reserves.

LA LUZ HISTORICAL ESTIMATES

Project Category Mineral Type k tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag-Eq (g/t) Ag (k Oz) Ag-Eq (k Oz)
                     
LA LUZ Not in accordance with
current CIM standards
Oxides and Sulphides 5,005 204 - - - 204 32,836 32,836
                     
  1. The La Luz resource estimates are taken from the Real de Catorce Property Technical Report dated July 25, 2008 and the Real de Catorce Property Technical Report dated July 30, 2007. The Company’s Qualified Persons consider that those reports do not reflect current economic conditions and are working on applying similar economic inputs to the La Luz Silver Project to those applied to the other properties.
  2. Tonnage is expressed in thousands of tonnes, metal content is expressed in thousands of ounces.
  3. The Company’s Qualified Persons have not done sufficient work to classify the historical estimates as current Mineral Resources or Mineral Reserves and have been coordinating the work for the verification of the information supporting the historical estimates at La Luz. The historical estimates at La Luz do not conform to NI 43-101 for reporting purposes; as such, the Company is not treating these historical estimates as current Mineral Reserves or Mineral Resources. Since the historical estimates do not have demonstrated current economic viability, these estimates should not be relied upon until the verification process and due diligence in progress by the Company's Qualified Person is completed.
  4. In order to verify or upgrade the historical estimates, the Company will need to implement a diamond drilling program at the La Luz mines. The drilling program is designed to confirm the historical estimates reported in previous Technical reports and will allow the Company to plan a second exploration program focused on locating extensions of the known mineralization. Other work required to verify the historical estimates as current includes, but it is not limited to: re-survey of underground workings, re-survey of available exploration drill-hole monuments, review of drilling, sampling and assays databases, and the re-assessment of the estimates following CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines and CIM Definition Standards on Mineral Resources and Mineral Reserves.

 

Cautionary Notes to U.S. Investors Concerning Reserve and Resource Estimates

The definitions of Proven and Probable Reserves used in National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") differ from the definitions in the United States Securities and Exchange Commission ("SEC") Industry Guide 7. Under SEC Guide 7 standards, a "Final" or "Bankable" feasibility study is required to report reserves, the three year history average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.

In addition, the terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource" and "Inferred Mineral Resource" are defined in and required to be disclosed by NI 43-101; however, these terms are not defined terms under SEC Industry Guide 7 and normally are not permitted to be used in reports and registration statements filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into Reserves. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases.

Accordingly, information contained in this website containing descriptions of First Majestic's mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations there under.

 

NI 43-101 Technical Reports

La Guitarra Silver Mine
La Parrilla Silver Mine
San Martin Silver Mine
La Encantada Silver Mine
Del Toro Silver Mine
Santa Elena Silver Mine