La Luz Silver Project

 
Overview

The La Luz Silver Project is 100% owned by First Majestic Silver Corp. The property was acquired in 2009 as a result of the acquisition of Normabec Mining Resources. The site consists of mining concessions that cover 6,327 hectares and is located within Real de Catorce, a historically significant mining district with an estimated historic production of 230 million ounces of recovered silver between 1773 and 1990.


Location

The La Luz Silver Project is located in the northern portion of San Luís Potosí State, Mexico. The property is approximately 25 km west of the town of Matehuala and 170 km due north of the city of San Luís Potosí, the state capital.
 
 
 


Local Geology

The ore deposits in the district are epithermal veins system-low sulfidation type which are hosted in sedimentary rocks ranging in ages from Paleozoic (metamorphosed sediments), Triassic (Huizachal Formation), Jurassic (Zuloaga and La Caja limestones) to mid-Tertiary (Quartz-monzonite dikes and Basalts). The main veins are: San Agustin (N50°W, 2,300 metres long, 2 to 10 metres wide), Veta Madre (N62°W, 2,500 metres long, 1 to 10 metres wide), Ave Maria (N70°E, 550 metres long, 0.5 to 6 metres wide) Villanos-San Ramón (N40°W, 1,200 metres long, 0.1 to 5 metres wide) and San Agustín system (N48°W, 2,200 metres long, 0.2 to 10 metres wide). There are also several blind (not outcropping) veins that were intersected by drill holes. Economic mineralization is in almost vertical ore-shoots with vertical extensions of 200 to 400 metres. The presence of the most important ore shoots are related with favorable rocks like La Caja and Zuloaga limestones and in the inflections and intersection of structures.



Historical Estimates
 
Category Mineral Type Tonnes
(Mt)
Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
Ag
(Moz)
AgEq
(Moz)

Not in accordance with

current CIM standards

Oxides + Sulphides 5.005 204 - - - 32.8 32.8
 
(1) The La Luz resource estimates are taken from the Real de Catorce Property Technical Report dated July 25, 2008 and the Real de Catorce Property Technical Report dated July 30, 2007. The Company’s Qualified Persons consider that those reports do not reflect current economicconditions and are working on applying similar economic inputs to the La Luz Silver Project to those applied to the other properties.
(2) Tonnage is expressed in thousands of tonnes, metal content is expressed in thousands of ounces.
(3) The Company’s Qualified Persons have not done sufficient work to classify the historical estimates as current Mineral Resources or MineralReserves and the Company is not treating these historical estimates as current Mineral Reserves or Mineral Resources. Since the historical estimates do not have demonstrated current economic viability, these estimates should not be relied upon until the verification process and due diligence in progress by the Company's Qualified Person is completed.
(4) In order to verify or upgrade the historical estimates, the Company will need to implement a diamond drilling program at the La Luz mines to confirm the historical estimates reported in previous Technical reports and a second exploration program focused on locating extensions of the known mineralization. Other work required to verify the historical estimates as current includes, but it is not limited to: re‐survey of underground workings, re‐survey of available exploration drill-hole monuments, review of drilling, sampling and assays databases, and the re‐assessment of the estimates following CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines and CIM Definition Standards on Mineral Resources and Mineral Reserves based on a completion of at least a Pre‐Feasibility study based on the re‐assessed indicated and Measured Mineral Resources.