Update on the Chalchihuites Group of Properties
December 3, 2007
Majestic Silver Corp. (the “Company” or “First Majestic”) is pleased to
announce preliminary results from its ongoing surface and underground
exploration and diamond drilling program at the Chalchihuites Group of
Properties located in the State of Zacatecas, México.
The Chalchihuites Group of Properties is strategically located 60 km to
the southeast from the Company’s flagship La Parrilla Silver Mine and
consists of 293 hectares of contiguous mining claims which cover the
Perseverancia Silver Mine and the San Juan Silver Mine. In 2004, the
Company signed several option agreements which covered a total of 487
hectares of land located in the Chalchihuites mining district in the
Western portion of Zacatecas State in the municipality of Chalchihuites,
and 150 km to the northwest from Zacatecas City. After the completion
of a geological program that included surface geology, geochemical and
geophysical surveying, diamond drilling, underground rehabilitation,
development and channel sampling, First Majestic exercised its options
in January 2007 to acquire the San Juan Silver Mine and in June 2007 to
acquire the Perseverancia Silver Mine. The Company now owns 100% of both
of these promising mines which are approximately one kilometre apart.
In addition, the Company recently acquired 100 hectares of surface
rights from a local land owner.
The Chalchihuites mining district comprises a regional metasomatic
system of mineralization that includes: replacement mantos, breccia
pipes, chimneys, vein type structures, dissemination and skarn deposits
which occur in association with igneous dikes and stocks intruding a
sequence of cretaceous sedimentary rocks. The Chalchihuites area hosts
mineral deposits with high silver mineralization such as the nearby La
Colorada mine owned by Pan American Silver Corp. and other regional
mines, such as, the San Martín and Sabinas mines owned and operated by
Grupo México and Peñoles.
San Juan Silver Mine
The San Juan Silver Mine is one of the oldest mines in the district and
was partially mined to a depth of 150 meters over nine levels and
consists of eight mining claims totalling 204 hectares. The mine has not
been in operation since the 1950’s. The previous owner constructed a
90-metre shaft which has been used to access the old workings. First
Majestic’s exploration program consisted of mapping, sampling,
rehabilitation and development of old workings. A diamond drilling
program from surface totalled six holes. Based on drilling results, 670
meters of ramps have been developed to date. This includes 250 meters
of access ramps into the foot wall of the ore body and 420 meters at
different levels to access the mine and build underground drill
stations. Another 250 meters of ramps are in process to prepare drilling
sites from the underground workings.
Aside from the access ramps, four crosscuts that total 307 meters were
developed into the ore body in order to delineate the projected
mineralization. The mineralized structure was then sampled by
continuous channels and bulk sampling from development ore. The
crosscuts were developed at an elevation of about 70 meters from the
outcroppings and based on assay results received to date the ore body
may lend to a high volume operation in the future..
The San Juan deposit has been partially exposed within a length of 105
meters by a width of 20 meters. The mineralized structure remains open
at depth and along strike. It is important to note from the current
program, that high grade silver, common to this historic mine, is
proving to continue at depth and is associated to high grade lead and
zinc sulphides mineralization.
Assay results of samples from some of the drill holes have reported the following results;
Continuous channel sampling from the crosscuts 70 metres below surface showed the following results;
Additional assay results from seven underground drill holes totalling
1,556 metres are pending from Inspectorate America Lab in Sparks,
Nevada. These drill holes were directed to test continuity of
mineralization at approximately 100 metres below the present crosscuts.
Logging of the core indicates that the drill intercepts appear to
confirm the ore bodies extension to at least 170 meters below the
present mine workings. First Majestic will release these results as soon
as they are reported by the lab.
Keith Neumeyer, President and CEO states; “our drilling and development
program into this ore body continues to confirm the existence of
considerable mineralization beyond what was previously known. The
mineralization that’s been exposed and drilled to depth is a new and
very exciting development at the San Juan Silver Mine”.
La Perseverancia Silver Mine
The La Perseverancia Silver Mine consists of six mining claims totalling
89 hectares and has been historically the most important mine in the
Chalchihuites area due to its production and high grades. The mine
workings have proven the occurrence of two adjacent high-grade silver
mineralized chimneys. Limited mining records of this mine exist;
however, smelter receipts have confirmed monthly shipments by the
previous owner of approximately 150 to 300 tonnes of ore with grades of
1.5 to 3 kg/tonne Silver (1500-3000 g/tonne-Ag) and 20% to 40% Lead,
during the period of 1975 to 1994.
The two chimneys are hosted by skarn at the contact with the intrusive
igneous rock. The chimneys are elongated bodies controlled by
pre-mineral fractures striking N60°- 85°E, with near vertical dipping.
The sizes of both chimneys are 15 - 30 meters long by 6 - 10 meters wide
and are known for 195 meters to depth. The mineralization occurs within
a breccia filled by a mixture of oxidized minerals including cerussite,
limonites, galena, sphalerite and argentite in a gangue of quartz and
calcite with sulphides mineralization increasing at depth. The breccia
is mostly composed of igneous rocks fragments.
A geophysical survey conducted in 2005 appears to have outlined the
existence of an extension to depth of the main chimney structure. An
ongoing drill program from both surface and underground was launched in
mid 2006 to determine mineralization, size and depth of these structures
and to investigate if other similar breccias may exist.
Due to topography, only drill hole PRV-03 was attempted to reach the
projections at depth of the chimneys from surface. Its results appear
to indicate intersection of a vein or manto off-shorting from the main
chimney. Results of this intercept are indicated in the following
Due to topographic constrains it was determined that drilling from
underground would allow for better angle to intersect the chimneys and
investigate deeper projected areas of mineralization below the lowest
known Level 31 (195 metres from surface). A 50 metre adit was
constructed in Level 27 where three holes were drilled towards the
chimneys. Also, a 100 metre adit was constructed from surface into the
side of an adjacent hill where one long hole was drilled. The results
below show that at least one of the two known chimneys extends to depth.
First Majestic is presently developing a 200 meter underground adit in
Level 21 to more effectively achieve a convenient angle to intersect the
chimney at further depths.
Keith Neumeyer, President and CEO states; “these two known mineralized
chimneys at Perseverancia appear to be related within a structural
trend. Now that we have proven the existence of these chimneys to depth,
not only will we try to define their size, but also we’ll look for
additional similar structures along trend”.
In addition to the ongoing exploration program at Perseverancia, during
the rehabilitation and development of the old mine workings, the last
three months First Majestic has extracted 460 tonnes of ore at an
average grade of 962 Ag g/t and 24.52% Pb. Some of this ore was shipped
to La Parrilla mill and some was directly shipped to Peñoles smelter in
Torreón, México. These shipments are expected to continue and increase
as the mine undergoes further development.
All sampling and sample assays, for both the Perseverancia Silver Mine
and San Juan Silver Mine, have followed strict QA/QC protocols. All
samples are shipped to Inspectorate laboratory in Durango, México for
sample preparation. Inspectorate México then sends the pulps by
air-freight to Inspectorate America Corporation in Sparks, Nevada for
assaying. Systematic assaying of standards and blanks are inserted for
assay checks. All assays are regularly conducted by inspectorate
America Corporation and they include Inspectorate’s own QC protocols.
Leonel López, Principal Geologist of the consulting firm Pincock, Allen
and Holt, Denver, Colorado is the Qualified Person under NI 43-101 for
the Perseverancia and San Juan Silver Mines and has reviewed and
approved the statements in this Press Release.
First Majestic is a producing silver company focused in México and is
aggressively pursuing its business plan to become a senior silver
producer through development of its existing assets and the pursuit
through acquisition of additional assets that make sense to achieving
its corporate objective.
FOR FURTHER INFORMATION contact firstname.lastname@example.org, visit our
website at www.firstmajestic.com
or call our toll free number
FIRST MAJESTIC SILVER CORP.
Keith Neumeyer, 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 Resource 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.
The TSX Venture Exchange has in no way passed upon the merits of the
proposed transaction and the TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of this release.