Mr. Keith Neumeyer reports
FIRST MAJESTIC UPDATES MINERAL RESERVE AND RESOURCE ESTIMATES FOR YEAR END 2014 AND FILES FORM 40-F ANNUAL REPORT
First Majestic Silver Corp. has released its 2014 mineral reserve and resource estimates for its existing mineral property assets in Mexico as of Dec. 31, 2014. Silver metal content in the proven and probable reserve category totalled 101.1 million ounces of silver, down 7 per cent from 108.6 million as of Dec. 31, 2013. Metal prices used to estimate the 2014 reserve estimates were lowered compared with the prior year: $20 per ounce of silver, $1,200 per ounce of gold, 95 cents per pound of lead and $1 per pound of zinc.
The attached table shows the total tonnage mined from each of the company's five producing properties during 2014, including total ounces of silver and silver-equivalent ounces produced from each property and the tonnage mined from delineated reserves and resources at each property.
2014 PRODUCTION TABLE
La Encantada La Parrilla Del Toro San Martin La Guitarra Total
Tonnes of ore processed 721,172 711,915 629,492 363,952 186,881 2,613,412
Ounces of silver produced 3,711,633 2,876,450 2,690,717 1,833,618 636,301 11,748,719
Ounces of silver equivalent
produced from other metals 20,019 1,796,742 988,066 284,644 419,777 3,509,248
Total ounces of silver
equivalent produced 3,731,652 4,673,192 3,678,783 2,118,262 1,056,078 15,257,967
Tonnes mined from material
in reserves 416,591 708,211 608,260 320,812 125,487 2,179,360
Tonnes mined from material
not in reserves 304,582 3,704 21,233 43,140 61,393 434,051
(1) Silver-equivalent grade is estimated considering: metal price assumptions, metallurgical
recovery for the corresponding mineral type/mineral process and the metal payable of
the corresponding contract of each mine.
The company completed over 44,000 metres of diamond drilling at its five operating mines in 2014, representing a 25-per-cent reduction in metres drilled compared with the prior year. For 2015, First Majestic is planning to drill approximately 50,000 metres to further define known mineralized orebodies at its operating mines. A combination of surface and underground drill rigs will focus on assisting mining activities, definition drilling and to support future updates to the company's National Instrument 43-101 technical reports.
Starting this year, First Majestic is reporting mineral resources inclusive of mineral reserves; readers are cautioned of this change since the company had previously reported mineral resources exclusive of mineral reserves.
The largest change to mineral reserves occurred at La Encantada, where the old tailings were downgraded from proven and probable reserves to inferred resources after the company's decision to suspend the reprocessing of the old tailings due to the low metal price environment. This resulted in a 76-per-cent increase in the reserves silver grade, a 57-per-cent decrease in total reserve tonnes and a 24-per-cent decrease in reserve silver metal content. However, the underground proven and probable mineral reserves increased by 56 per cent to 3.2 million tonnes containing 28.4 million ounces of silver with average silver grade of 276 grams per tonne.
Silver metal content in the measured and indicated resource category totalled 152.4 million ounces. In addition, the silver metal content in the inferred resource totalled 170.4 million ounces, a decrease of 18 per cent compared with the prior year, due mainly to the impact of lower metal price assumptions, the adoption of the stricter Canadian Institute of Mining, Metallurgy and Petroleum (CIM) definition standards, and the subtraction of resources for the Penasco Quemado and La Frazada projects, which were disposed of during 2014.
The complete 2014 mineral reserve and resource estimates for all metals, tonnage and grades are shown below in the attached tables.
PROVEN AND PROBABLE MINERAL RESERVES WITH AN EFFECTIVE DATE OF DEC. 31, 2014
Mine Category Mineral Tonnes Ag Au Pb Zn AgEq Ag AgEq
type (000s) (g/t) (g/t) (%) (%) (g/t) (000s oz) (000s oz)
La Encantada Proven (UG) Oxides 1,084 248 - - - 248 8,639 8,639
Probable (UG) Oxides 2,115 291 - - - 291 19,754 19,754
Total proven
and probable (UG) Oxides 3,199 276 - - - 276 28,393 28,393
La Parrilla Proven (UG) Oxides 302 219 - - - 219 2,119 2,119
Probable (UG) Oxides 1,025 213 0.02 - - 214 7,032 7,061
Total proven
and probable (UG) Oxides 1,327 215 0.01 - - 215 9,152 9,181
Proven (UG) Sulphides 585 201 - 1.8 1.9 304 3,784 5,714
Probable (UG) Sulphides 1,473 157 0.04 1.5 2.4 261 7,436 12,369
Total proven
and probable (UG) Sulphides 2,057 170 0.03 1.6 2.3 273 11,220 18,083
Total proven Oxides plus
and probable (UG) sulphides 3,384 187 0.02 1.0 1.4 251 20,371 27,264
San Martin Proven (UG) Oxides 1,024 224 0.18 - - 237 7,359 7,790
Probable (UG) Oxides 1,813 188 0.04 - - 191 10,960 11,107
Total proven
and probable (UG) Oxides 2,837 201 0.09 - - 207 18,319 18,897
Del Toro Proven (UG) Transition 511 156 0.03 2.0 2.1 231 2,560 3,792
Probable (UG) Transition 589 157 0.06 2.6 1.6 224 2,964 4,248
Total proven
and probable (UG) Transition 1,100 156 0.05 2.3 1.8 227 5,523 8,040
Proven (UG) Sulphides 1,097 148 0.08 2.7 1.8 229 5,206 8,063
Probable(UG) Sulphides 1,991 218 0.18 4.0 3.9 347 13,931 22,218
Total proven
and probable (UG) Sulphides 3,088 193 0.15 3.5 3.2 305 19,138 30,281
Total proven Transition
and probable (UG) plus sulphides 4,187 183 0.12 3.2 2.8 285 24,661 38,321
La Guitarra Proven (UG) Sulphides 91 153 1.84 - - 256 446 745
Probable (UG) Sulphides 1,217 228 1.00 - - 284 8,911 11,098
Total proven
and probable (UG) Sulphides 1,308 223 1.06 - - 282 9,358 11,843
Total proven All mineral
and probable (UG) types 14,915 211 0.15 1.1 1.1 260 101,102 124,718
(1) Mineral reserves have been classified in accordance with the CIM definition standards on mineral
resources and mineral reserves, whose definitions are incorporated by reference into NI 43-101,
Standards of Disclosure for Mineral Projects.
(2) In all cases, metal prices considered for mineral reserves estimates were $20 (U.S.) per ounce
silver, $1,200 (U.S.) per ounce gold, 95 U.S. cents per pound lead and $1 (U.S.) per pound zinc.
(3) The mineral reserves information provided in the table for La Encantada, La Parrilla, Del Toro
and San Martin is based on internal estimates prepared as of Dec. 31, 2014. The information
provided was reviewed and validated by the company's internal qualified person, Ramon Mendoza
Reyes, PEng, who has the appropriate relevant qualifications and experience in mining and
reserves estimation practices.
(4) Mineral reserve estimates for the La Guitarra are based on the 2015 La Guitarra silver mine
technical report compiled by First Majestic with contribution of Amec Foster Wheeler Americas Ltd.
(5) Silver-equivalent grade is estimated considering metal price assumptions, metallurgical recovery
for the corresponding mineral type/mineral process and the metal payable of the corresponding
contract of each mine. Estimation details are listed in each mine section of the 2014 annual
information form.
(6) The cut-off grades and modifying factors used to convert mineral reserves from mineral resources
are different for all mines. The cut-off grades are listed in each mine section of the 2014
annual information form.
MEASURED AND INDICATED MINERAL RESOURCES WITH AN EFFECTIVE DATE OF DEC. 31, 2014
Mine/project Category Mineral type Tonnes Ag Au Pb Zn AgEq Ag AgEq
(000s) (g/t) (g/t) (%) (%) (g/t) (000s oz) (000s oz)
La Encantada Measured (UG) Oxides 1,086 283 - - - 283 9,878 9,878
Indicated (UG) Oxides 2,289 321 - - - 321 23,623 23,623
Total measured
and indicated (UG) Oxides 3,375 309 - - - 309 33,501 33,501
La Parrilla Measured (UG) Oxides 344 255 - - - 255 2,817 2,817
Indicated (UG) Oxides 953 254 - - - 255 7,774 7,807
Total measured
and indicated (UG) Oxides 1,298 254 - - - 255 10,591 10,624
Measured (UG) Sulphides 703 240 - 2.2 2.1 347 5,415 7,845
Indicated (UG) Sulphides 1,310 188 0.05 1.8 2.8 302 7,939 12,705
Total measured
and indicated (UG) Sulphides 2,013 206 0.03 1.9 2.6 318 13,355 20,550
Total measured Oxides plus
and indicated (UG) sulphides 3,311 225 0.0 1.2 1.6 293 23,946 31,175
San Martin Measured (UG) Oxides 1,240 254 0.26 - - 273 10,128 10,882
Indicated (UG) Sulphides 1,819 220 0.11 - - 228 12,878 13,360
Total measured Oxides plus
and indicated (UG) sulphides 3,059 234 0.17 - - 246 23,006 24,242
Del Toro Measured (UG) Transition 538 185 0.04 2.6 2.6 257 3,198 4,450
Indicated (UG) Transition 549 180 0.06 2.9 1.9 258 3,176 4,544
Total measured
and indicated (UG) Transition 1,087 182 0.05 2.7 2.2 257 6,373 8,994
Measured (UG) Sulphides 1,150 182 0.08 3.3 2.3 272 6,726 10,048
Indicated(UG) Sulphides 1,747 255 0.21 4.6 4.6 394 14,315 22,128
Total measured
and indicated (UG) Sulphides 2,897 226 0.16 4.1 3.7 345 21,041 32,176
Total measured Transition
and indicated (UG) Sulphides 3,984 214 0.13 3.7 3.3 321 27,414 41,169
La Guitarra Measured (UG) Sulphides 121 170 2.37 - - 305 660 1,185
Indicated (UG) Sulphides 1,029 335 1.56 - - 424 11,078 14,029
Total measured
and indicated (UG) Sulphides 1,150 318 1.65 - - 412 11,738 15,214
La Luz Measured (UG) Oxides 2,614 221 - - - 221 18,559 18,559
Measured (tailings) Oxides
(tailings) 1,403 90 - - - 90 4,075 4,075
Indicated (UG) Sulphides 988 321 - - - 321 10,202 10,202
Total measured All material
plus indicated types 5,005 204 - - - 204 32,836 32,836
Total measured All mineral
and indicated types 19,885 238 0.15 0.94 0.92 279 152,442 178,137
INFERRED MINERAL RESOURCES WITH AN EFFECTIVE DATE OF DEC. 31, 2014
Mine/project Category Mineral type Tonnes Ag Au Pb Zn AgEq Ag AgEq
(000s) (g/t) (g/t) (%) (%) (g/t) (000s oz) (000s oz)
LA Encantada Inferred (UG) Oxides 899 340 - - - 340 9,832 9,832
Inferred (tailings) Tailings 6,026 107 - - - 107 20,731 20,731
Inferred total Oxides
plus tailings 6,926 137 - - - 137 30,562 30,562
La Parrilla Inferred (UG) Oxides 3,422 259 - - - 259 28,477 28,477
Inferred (UG) Sulphides 5,848 190 - 2.4 3.1 324 35,676 60,997
Inferred total (UG) Oxides
plus sulphides 9,270 215 - 1.5 2.0 300 64,153 89,475
San Martin Inferred total (UG) Oxides 5,541 216 - - - 216 38,502 38,502
Del Toro Inferred (UG) Transition 1,457 186 0.04 2.6 2.2 257 8,699 12,031
Inferred (UG) Sulphides 4,211 176 0.13 3.8 5.3 297 23,821 40,156
Inferred total (UG) Transition
plus sulphides 5,669 178 0.11 3.5 4.5 286 32,520 52,187
La Guitarra Inferred total (UG) Sulphides 739 197 1.23 - - 267 4,674 6,343
Total inferred All mineral
types 28,145 188 0.05 1.2 1.6 240 170,412 217,070
(1) Mineral resources have been classified in accordance with CIM definition standards on mineral resources
and mineral reserves, whose definitions are incorporated by reference into NI 43-101.
(2) In all cases, metal prices considered for mineral resource estimates were $22 (U.S.) per ounce silver,
$1,350 (U.S.) per ounce gold, 95 U.S. cents per pound lead and $1 (U.S.) per pound zinc.
(3) The mineral resources information provided above for La Encantada, La Parrilla, Del Toro and San Martin
is based on internal estimates prepared as of Dec. 31, 2014. The information provided was reviewed and
validated by the company's internal qualified person, Dr. Jesus M. Velador Beltran, PhD, geology,
who has the appropriate relevant qualifications and experience in mining and resource geology.
(4) Mineral resource estimates for the La Guitarra silver mine are based on the 2015 technical report
compiled by First Majestic with contribution of Amec Foster Wheeler Americas Ltd.
(5) Silver-equivalent grade is estimated considering metal price assumptions, metallurgical recovery for
the corresponding mineral type/mineral process and the metal payable of the corresponding contract of
each mine. Estimation details are listed in each mine section of the 2014 annual information form.
(6) The cut-off grades for mineral resources are different for all mines. The cut-off grades are listed
in each mine section of the 2014 annual information form.
(7) Measured and indicated mineral resources are reported inclusive of mineral reserves.
(8) 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 are working on applying similar economic inputs to the La Luz silver project to
those applied to the other properties.
PLOMOSAS HISTORICAL ESTIMATES
Project Category Mineral type Tonnes Ag Au Pb Zn Ag AgEq
(000s) (g/t) (g/t) (%) (%) (000s oz) (000s oz)
Plomosas Not in accordance
with CIM standards Sulphides (UG) 896 192 0.8 2.1 3.4 5,500 11,000
(1) Plomosas historical estimates are taken from Grupo Mexico's estimates prepared in 2001.
(2) Tonnage is expressed in thousands of tonnes; metal content is expressed in thousands of ounces.
(3) The company's qualified persons have been co-ordinating the work for the verification of the
information supporting the historical estimates at Plomosas. The historical estimates at
Plomosas do not conform to NI 43-101 for reporting purposes; as such, 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 complete a
diamond drilling program at the Rosario and San Juan mines. The drilling program is designed to
confirm the historical estimates reported by Grupo Mexico and will allow the company to plan 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: resurvey of underground workings, resurvey of available exploration drill-hole monuments,
review of drilling, sampling and assays databases, and the reassessment 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.
The company also announces that its 2014 audited financial statements have been filed on SEDAR. In addition, a Form 40-F report has been filed with the U.S. Securities and Exchange Commission and is available on EDGAR. Both documents are also available on the company's website.
Shareholders may also receive a copy of First Majestic's audited financial statements, without charge, upon request to First Majestic at Suite 1805, 925 W Georgia St., Vancouver, B.C., Canada, V6C 3L2, or by e-mail.
Ramon Mendoza Reyes, vice-president, technical services, for First Majestic, is a qualified person as such term is defined under NI 43-101, and has reviewed and approved the technical information disclosed in this news release.
We seek Safe Harbor.
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