First Majestic Silver Corp.: 2nd Quarter Production Shows Continued Ramp-Up
July 15, 2008
Majestic Silver Corp. (“First Majestic” or the “Company”) is pleased to
announce that production in the second quarter ending June 30th 2008
increased again to a record 1,271,141 equivalent ounces of silver
representing a 20% increase over the prior quarter production and an
increase of 49% over the same quarter in the prior year.
The equivalent silver production for the quarter consisted of 1,109,821
ounces of silver representing a 24% increase from the prior quarter,
1,987,551 pounds of lead representing a 7% increase over the previous
quarter, 482 ounces of gold representing an increase of 101% and 82,758
pounds of zinc which represents a decrease of 74% compared to the
previous quarter. During the quarter the combined recoveries of silver
at the three different mines showed a minor decrease from 71% to 70%.
The overall average silver head grade in the quarter for the three mines
decreased to 230 g/t of silver compared to the previous quarter of 248
g/t of silver which was a result of the higher throughput achieved at
each mill and a decrease of high grade ore being shipped from the
Perseverancia Silver Mine due to construction.
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 a record production of
213,994 tonnes representing a 35% increase over the previous quarter and
an increase of 37% over the same quarter of 2007. The La Parrilla
Silver Mine is now operating over capacity and in addition, substantial
increases in mining activity are occurring at the San Martin Silver Mine
as a result of improvements made in the past quarters now taking
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 7,161 meters of development was
completed in the quarter compared with 6,006 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 22 drill rigs are operating which represents one of
the largest drilling programs in Mexico; with seven rigs at La Parrilla,
three at the Chalchihuites, nine at San Martin and three at La
Encantada. In addition, two more rigs are being added, one at the San
Juan Silver mine and one additional rig is being deployed at La
Parrilla. This will bring the total to twenty four rigs operating across
the Company’s properties by the end of July. Also, in line with the
Company’s aggressive resource development strategy, 20,325 meters of
diamond drilling was completed during the quarter showing an increase
with respect to the previous quarter of 98%, covering a total of 92
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 La Parrilla and San Martin Silver Mines are
presently in the planning stage and ground breaking and construction of
the new 3500 tpd Cyanide mill at the La Encantada Silver Mine is now
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 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
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.