First Majestic Silver Corp.: 1st Quarter Production Results
April 29, 2008First Majestic Silver Corp. (“First Majestic” or the “Company”) is pleased to announce that production in the first quarter ending March 31st 2008 increased again to a record 1,061,720 equivalent ounces of silver representing a 5% increase over the prior quarter production and an increase of 36% over the same quarter in the prior year.
The equivalent silver production for the quarter consisted of 895,358 ounces of silver representing a 5% increase from the prior quarter, 1,857,897 pounds of lead representing a 68% increase over the previous quarter, 240 ounces of gold representing a decrease of 49% and 318,539 pounds of zinc which represents the first zinc concentrates produced by the Company. During the quarter the combined recoveries of silver at the three different mills showed a decrease from 77% to 71% due to the start up of the Flotation circuit at San Martin, metallurgy and head grades. The overall average silver head grade in the quarter improved for the three mines increasing to 248 g/t of silver compared to the previous quarter of 240 g/t of silver.
The ore processed during the quarter at the Company’s three operating silver mines; the La Parrilla Silver Mine, the San Martin Silver Mine and the La Encantada Silver Mine, amounted to 158,398 tonnes representing an 8% increase over the previous quarter and an increase of 16% over the same quarter of 2007.
The Company’s aggressive development program continues at all three mines. This activity is ongoing for the purpose of opening up additional producing stopes, improving grade control, and increasing resource development and exploration. A total of 6,006 meters of development was completed in the quarter compared with 5,346 metres of underground development completed in the previous quarter. This program is important as it provides access to new areas within the different mines and prepares the mines for continued growth of silver production in 2008.
Reserve and Resource development remains to be a top priority for the Company. Presently sixteen drill rigs are operating; four rigs at La Parrilla and three at the Chalchihuites, six rigs at San Martin and three rigs at La Encantada. Two additional rigs are being added at the San Martin, one additional rig is being deployed at La Parrilla, and one drill rig at the La Encantada, bringing the total to twenty rigs operating across the Company’s properties by the end of May. Also, in line with the Company’s aggressive resource development strategy, 10,256 meters of diamond drilling was completed during the quarter, covering a total of 47 holes. Plans for 2008 include the completion of over 82,000 metres of drilling and over 46,000 metres of underground development.
As a result of the recently completed equity offering of $45 million, the Company has been able to expand both its development and exploration programs, which will continue for the foreseeable future and will assist the Company in meeting its performance objectives. Furthermore, expansion programs at each mill are presently in the planning stage and will be announced as equipment is sourced and permitting is in place.
Management at First Majestic is focused on executing the Company’s business plan by continuing the ongoing improvements at each mine and mill and achieving its production and resource targets. Management remains very encouraged by the continued progress occurring within the Company and thus is presently anticipating 5.3 million ounces of silver equivalent production for 2008.
First Majestic is a producing silver company focused in Mexico and is aggressively pursuing its business plan to become a senior silver producer through the development of its existing assets and the pursuit through acquisition of additional assets that contribute to achieving its corporate growth objectives.
FOR FURTHER INFORMATION contact firstname.lastname@example.org, visit our website at www.firstmajestic.com or call our toll free number 1.866.529.2807.
FIRST MAJESTIC SILVER CORP.
President & CEO
This press release includes certain “Forward-Looking Statements” within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of First Majestic Silver Corp. are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.