First Majestic Silver Corp.: 3rd Quarter Production Results
October 23, 2008
Majestic Silver Corp. (“First Majestic” or the “Company”) announces
today that production in the third quarter ending September 30th 2008
was 840,918 equivalent ounces of silver representing a 34% decrease over
the prior quarter production. This decline in production was due to an
unusually heavy rainy season in Mexico that affected the three
Operations at each mine are now back to normal and the Company is
expecting to deliver record fourth quarter production. At the San
Martin, thousands of tonnes of rock washed down the mountain covering
three of the four entrances to the mine and causing an access bridge to
collapse, no injuries were reported due to the storm activity. The
excess water from the heavy tropical rainstorms also affected the
crushing circuits and screens at all three mines causing lower
throughput and lower recoveries.
Mr. Keith Neumeyer, President & CEO stated, “On a more positive
note, with silver prices at a temporary low, it’s not a bad time to be
selling less of our silver. Also, I would like to commend our staff at
each mine in working through these unavoidable challenges. Each mine has
recovered remarkably well; cleaning up all the debris and making
repairs where necessary. Furthermore, steps are being taken in advance
of the 2009 rainy season to avoid problems in the crushing circuits
caused by excess water.”
The equivalent silver production for the quarter consisted of 719,399
ounces of silver representing a 35% decrease from the prior quarter,
1,518,271 pounds of lead representing a 24% decrease from the previous
quarter, 536 ounces of gold representing an increase of 11% compared to
the previous quarter. During the quarter the combined recoveries of
silver at the three different mines showed a decrease from 70% to 67%.
The overall average silver head grade in the quarter for the three mines
decreased to 196 g/t of silver compared to the previous quarter of 230
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 170,298 tonnes
representing a 20% decrease over the previous quarter and an increase of
3% over the same quarter of 2007.
The three mines are now running at or above capacity and in addition,
the mill improvements at each operation are still underway which will
result in higher throughputs in 2009. The San Martin mill is undergoing
an expansion which will take its capacity up to 1000 tpd by year end;
the La Encantada will reach a capacity of 3500 tpd by the second quarter
of 2009 and the La Parrilla is being expanded to 1000 tpd and should
reach that capacity by the second quarter of 2009.
The Company’s aggressive development program continued in the third
quarter amounting to 8,876 metres of underground development compared
with 7,161 metres of underground development completed in the previous
quarter. Reserve and Resource development remains to be a top priority
for the Company. The Company’s global NI 43-101 Resources are currently
over 240,000,000 silver equivalent ounces. The Company is anticipating
new NI 43-101 reports on each of its mines by year end which will
substantially increase the Company’s compliant Resources. The Company
has been operating 23 drill rigs for most of the year, and has recently
reduced this number to 15 drill rigs. 26,666 metres of diamond drilling
was completed during the third quarter showing an increase of 31% over
the previous quarter.
As the Company releases its new NI 43-101 reports, and meets its
Resource targets, the current development program and exploration
program will be reduced in the fourth quarter and into 2009. Management
believes, the Company is getting little incremental value for adding
additional Resources/Reserves and due to current market conditions it is
prudent to reduce these programs.
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 while at the same
time taking necessary steps in order to cuts costs in these difficult
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.
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
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.