VANCOUVER, BRITISH COLUMBIA--(Marketwire -
April 8, 2010) - First Majestic Silver Corp. (the "Company") (TSX:FR)(OTCQX:FRMSF)(FRANKFURT:FMV)(WKN:A0LHKJ) is pleased to announce
that the Company's new 3,500 tpd cyanidation plant at its La Encantada Silver Mine
in Coahuila, Mexico has reached commercial production effective April 1st,
The throughput since April 1st has averaged 2600 tpd
while the average throughput for the month of March was 1450 tpd. Full capacity
at 3,500 tpd is expected to be reached in May 2010 resulting in production at
an annualized rate of over 4 million ounces of silver dore bars per year. The new plant is now 98%
complete with the only item remaining being the delivery and installation of
the 'Induction Furnaces'.
The completion of this new world-class cyanidation plant is
beginning to have a significant impact on the Company's production growth. The
Company plans to release its first quarter production results on April 12,
This plant is currently producing silver precipitates which are
being shipped regularly to the smelter until the new induction furnaces are
installed later this quarter. Once these furnaces are operating, the Company
will be producing its own dore bars which will further reduce third party
smelting and refining charges.
The last major items installed in the first quarter were the tailings
filter-presses which are allowing for the recirculation of 84% of the water
circulating in the system. These filters are some of the latest mining
technologies available resulting in First Majestic setting an important
standard for sustainable operational practices. The plant is using much less
water than originally expected and much less than a traditional operation of
this type. This state-of-art process is also opening the possibility for
immediate reclamation of permanent rejuvenated open space.
The use of this filter press technology will play a central role
in achieving superior operational performance in the areas of water use,
cyanide use, land use and environmental impact. These three large, heavy duty,
2m x 2m automatic filter presses are dewatering the tailings to 16% moisture
levels resulting in substantial savings in pumping, cyanide consumption and
power generation. Additionally, the remaining tailings cake is being
dry-stacked which eliminates the need for conventional tailings ponds and
promotes ongoing reclamation and re-vegetation of the area.
Ongoing daily improvements are underway and being focused in the
areas of daily tonnage, recoveries, quality of precipitate production and other
Ramon Davila, Chief Operating Officer, stated; "To have a plant of
this size deemed commercial within five months of being inaugurated is an
impressive achievement and something our team deserves a lot of credit for.
These are exciting times for First Majestic".
In addition to the completion of the new cyanidation plant, the
Company also invested in improving the old flotation plant by installing
several new flotation cells and ancillary equipment. Improvements in recoveries
resulted immediately and will be evident in future production and financial
results going forward.
Keith Neumeyer, CEO & President stated; "As this major
milestone comes to its completion, this will result in our production of silver
exceeding 6 million ounces this year and we can now look forward to other
exciting challenges ahead. Congratulations should go out to all of our
management, staff and construction crew for their professionalism and
commitment to our growth strategy. This team is now readying itself for our
next stage of expansion. Stay tuned."
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 significant
corporate growth objectives.
FIRST MAJESTIC SILVER CORP.
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