Silver Production increases by 38%
April 28, 2007
MAJESTIC SILVER CORP. (FR-V) (the “Company”) is pleased to announce
that silver production in the first quarter ending March 31st, 2007 has
increased by 38% over the prior quarter to 792,196 equivalent ounces of
silver which is also an increase of 1358% over the same quarter ending
March 2006. The increase in production is due to a 104% increase in
production at the Company’s flagship La Parrilla Silver Mine, and the
two additional acquisitions, the San Martin Silver Mine, and the La
Encantada Silver Mine completed in the quarter ending September 2006,
and December 2006 respectively.
The equivalent silver production for the quarter consisted of 719,993
ounces of silver, 532 ounces of gold and 339,512 pounds of lead.
Significant underground development is continuing at all three mines in
addition to the improvements and upgrades being carried out at each
mill. This ongoing program of enhancements will continue for the
balance of the year and is focused on increasing the Company’s silver
production in each of the following quarters.
Resource development at the La Parrilla is meeting Company targets with
the use of six diamond drill rigs which in this quarter completed 7,213
metres of drilling over 26 holes. In the Company’s present NI 43-101
report published in February, which had a cut off of December 31st,
2006, included assays of only 100 holes in the present resource
estimate. As of April 15th, a total of 35,613 metres have been drilled
over 133 holes. A new updated resource estimate is anticipated to be
published by the end the present quarter.
In addition to the ongoing diamond drill program at the La Parrilla,
which is designed to increase resources and assist in production, 1481
metres of underground development and drifting has been completed. The
Company is presently mining from La Rosa-Rosario, Quebradillas and San
Marcos areas and is developing the new La Blanca area which appears to
be a large disseminated structure.
As well, the San Juan Silver Mine which is now 100% owned by the Company
located near Chalchihuites, is presently being developed and mined.
Approximately 50 tonnes of high grade ore per day is being shipped to
the La Parrilla mill which is 50 kilometres away from the San Juan.
At the San Martin Silver Mine, First Majestic in the quarter completed
1436 metres of diamond drilling which included 653 metres of drilling
from surface over three holes and 783 metres of drilling from
underground, which included 13 holes. In addition 1898 metres of
underground development has been completed. The focus of this quarter
has been to access upper levels in the mine where higher grade oxide
ores appear to be present. This activity is ongoing and is for the
purpose of grade control and development of additional resources and
exploration to define additional targets for future mine expansion.
Additionally, at the San Martin, construction of a five kilometre road
was completed to access and explore the upper part of the main Zuloaga
vein in the areas of the La Escondida and Pinolea. These areas are
presently being developed for mining purposes and defined to add new
resources which are proving to contain high grades of silver.
At the La Encantada Silver Mine, utilization of the 1000 tpd mill has
increased from 30% when the operations were taken over in November 2006
to the present mill rates reaching 75% of capacity in the first quarter.
This improvement in operations has resulted in a 65% increase in silver
production from the prior quarter. Further increases in mill output are
anticipated to continue into the present quarter resulting in
additional ounces of silver production from the La Encantada going
In the short time since the operations of the La Encantada were taken
over, several improvements have been implemented, including the
installation of a new screening plant and commencement of an aggressive
underground development campaign which included 1453 metres of drifting
to several targets located in the San Javier Breccia area. The purpose
of this ongoing development is for mining activity, confirmation of
resources and exploration.
Recently, First Majestic received a substantial database of historic
geological data on the La Encantada Silver Mine and the surrounding
area. This data is presently being analyzed and digitized into the
Company’s newly incorporated mining software programs. This database of
information will substantially assist the Company in its ongoing
development and exploration program. This data is anticipated to be
considered in an update NI 43-101 report which is expected to be
Pincock Allen & Holt of Denver, Colorado has been retained to
complete newly updated NI 43-101 reports on each of the Company’s
operating silver mines. The La Parrilla Silver Mine and the La Encantada
Silver Mine reports are anticipated to be published prior to the end of
June 2007 and the San Martin Silver Mine report is planned to be made
public prior to the end of May.
Of further interest; the Company’s three producing silver mines
collectively produced 2,905,382 ounces of silver equivalent in calendar
2006. However, due to acquisition dates and the change of year end from
June to December, only 1,601,796 ounces of silver equivalent could be
attributed to First Majestic’s credit for the calendar year 2006. The
first quarter ending March 31st, 2006 marked the beginning of a new era
for the Company which experienced all three mines producing silver under
the First Majestic umbrella.
Keith Neumeyer, President & CEO, wishes to thank the management team
and staff for their enormous achievements over the past two quarters.
“It goes without saying that when any company grows at the rapid pace
we’ve experienced, some growing pains are inevitable; however, our team
has persisted, consuming two new mines while aggressively expanding the
La Parrilla mine and mill. As a result of these achievements a
substantial increase in silver production has resulted as anticipated,
transforming the Company from a development and exploration stage
company into a significant silver producer. It’s hard not to be excited
about being a part of First Majestic”.
First Majestic is a producing silver company focused in Mexico 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.
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.