Another Record Quarter of Silver Production
October 23, 2007
FIRST MAJESTIC SILVER CORP. (First Majestic or the “Company”) is pleased
to announce that production in the third quarter ending September 30th,
2007 increased again to a record 942,656 equivalent ounces of silver
representing an 11% increase over the prior quarter and an increase of
113% over the same quarter the previous year.
The equivalent silver production for the quarter consisted of 812,536
ounces of silver, an increase of 5% over the previous quarter and a very
significant increase in lead production amounting to 949,988 pounds
which compares to 534,324 pounds of lead produced in the previous
quarter showing an increase of 78%. The large increase in lead
production was primarily due to the start-up of the flotation circuit at
the La Parrilla Silver Mine. Production of gold was 436 ounces in the
quarter compared to 591 ounces in the prior quarter as a result of ore
being mined during the quarter containing lower gold content.
The ore processed at the Company’s three operating silver mines; the La
Parrilla Silver Mine, the San Martin Silver Mine and the La Encantada
Silver Mine, increased to 165,549 tonnes in the quarter representing a
5% increase over the second quarter and 113% over the third quarter of
During the quarter; the flotation circuit at the La Parrilla was
commissioned; a new 1500 KW power plant was installed at La Encantada;
and three new pieces of underground equipment arrived from Sandvik. An
additional four pieces of equipment will arrive prior to year end. These
improvements and the ongoing efforts to improve recoveries, head grade
and tonnage all will contribute to increased efficiencies and increasing
silver production going forward.
An aggressive development program continues at all three mines. This
activity is ongoing for the purpose of opening up additional stopes,
grade control, resource development and exploration. A total of 5,219
metres of underground development was completed in the quarter. Several
new areas of the mines were accessed and are being prepared for mining
in order to continue the growth of silver production in the coming
Reserve and Resource development remains to be a high priority of the
Company. Presently ten drill rigs are operating; six rigs at La Parrilla
and the Chalchihuites areas, three rigs at San Martin and one rig at La
Encantada. Two additional rigs are being added to the program at the
San Martin and two additional rigs are expected to arrive shortly at the
La Encantada. In line with the Company’s aggressive resource
development strategy, 9,983 metres of diamond drilling was completed
during the quarter, covering 35 holes. The Company remains on track to
release updated NI 43-101 compliant resource estimates before year end.
In addition to the drilling program, an IP and AR Geophysics program
covering approximately 50 line kms was completed during the quarter on
areas surrounding the La Parrilla mine.
Presently, drilling activity at the San Martin is taking place both from
underground and new defined surface areas at the North-South structural
system and at the Rosarios-Condesa (Cinco Senores) vein system which is
parallel to the Zuloaga vein, where intersections of high grade silver
ore are confirming new areas of interest originally identified by
surface geological mapping executed in the first part of the year. This
drill and development program is focused on defining additional oxide
resources in the upper parts of the mine and in new development areas.
The Company is presently assessing the feasibility of adding a flotation
circuit at the San Martin which will allow the mill to take advantage
of the large sulphide ore resource present at the San Martin.
At La Encantada, a pressure type drill program consisting of 51 holes
was completed in the tailing ponds to define the feasibility of
reprocessing this material. This resource will be defined in the
upcoming NI 43-101 report. The metallurgical tests completed by SGS de
Mexico, SA de CV., lab in Durango confirmed the economic feasibility of
recovering the silver contained in these tailings ponds. An internal
study is currently underway to evaluate the economics of adding a
cyanidation circuit to the mill and what level of expansion would be
most optimal. The permitting process has commenced and a final decision
on expansion size will be made prior to year end.
At the Company’s recently acquired San Juan and Perseverancia Silver
Mines located in Chalchihuites about 60 kilometres away from the La
Parrilla, mine development and exploration is continuing. At the
Perseverancia mine the upgrade and rehabilitation of the old mine
continued during the quarter in order to start production on its high
grade chimney areas. Ore production started at the Perseverancia in the
latter half of the third quarter at a rate of 50 tonnes per week which
is being direct-shipped to the smelter. In the future this ore will be
shipped to the La Parrilla mill for mixing and processing.
At the San Juan, mine ramp construction is continuing, with more than
600 metres completed to date. The development and exploration project
has been expanded based on the excellent results at this mine. 50 tonnes
of oxide ore is being removed from the mine daily and being shipped to
the La Parrilla mill.
Also, at the La Parrilla, construction of the new tailings dam, which
commenced in the second week of May 2007, is currently under budget and
on target to complete in November. A portion of the new tailings dam,
which will extend the life of this operation by ten years, is already
First Majestic is a producing silver company focused in México 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 email@example.com, visit our
website at www.firstmajestic.com
or call our toll free number
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 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.