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VANCOUVER, April 13, 2015 /CNW/ - First Majestic Silver
Corp. ("First Majestic" or the "Company") is pleased to announce
that total production at its five operating silver mines in
Mexico for the first quarter
ending March 31, 2015 reached
3,905,270 equivalent ounces of silver, representing an 8% increase
compared to the same quarter in 2014.
Total silver production for the quarter consisted of 2,776,855
ounces of silver, representing a 4% decrease compared to the same
quarter in 2014. In addition, 11,286,880 pounds of lead and
6,349,692 pounds of zinc were produced, representing an increase of
31% and 136%, respectively, compared to the same quarter of the
previous year. Also, 2,970 ounces of gold were produced,
representing a 12% decrease compared to the first quarter of
2014.
Keith Neumeyer, President &
CEO of First Majestic, states, "First quarter production of 3.9
million silver equivalent ounces was in-line with our annual
guidance projections even though production was slightly behind our
record fourth quarter numbers. Unusually high mill maintenance was
required at three of our operations which negatively impacted the
quarter. In addition, reduced underground development has
restricted the operations. With the irregular maintenance now
behind us, we are expecting to see an improvement in production in
the second quarter. Also, with the recently announced $30 million financing, we will be increasing
development at both the La
Encantada and La Guitarra
mines in order to improve those operations in time for the second
half of the year. We also witnessed the best metallurgical
recoveries during the quarter of 74% representing the highest
consolidated recovery rate over the past 24 quarters - a testament
to our teams focus in this area".
Consolidated Production Results:
|
|
Q1
|
|
Q1
|
Y/Y
|
|
Q4
|
|
Q/Q
|
|
2015
|
|
2014
|
Change
|
|
2014
|
|
Change
|
Ore processed/tonnes
milled
|
|
631,609
|
|
637,663
|
-1%
|
|
683,528
|
|
-8%
|
Total production -
ounces of silver equivalent
|
|
3,905,270
|
|
3,631,672
|
8%
|
|
4,247,527
|
|
-8%
|
Total silver ounces
produced
|
|
2,776,855
|
|
2,895,497
|
-4%
|
|
3,074,567
|
|
-10%
|
Silver grade
(g/t)
|
|
186
|
|
214
|
-13%
|
|
201
|
|
-8%
|
Silver recovery
(%)
|
|
74
|
|
66
|
12%
|
|
70
|
|
6%
|
Pounds of lead
produced
|
|
11,286,880
|
|
8,593,807
|
31%
|
|
11,764,160
|
|
-4%
|
Pounds of zinc
produced
|
|
6,349,692
|
|
2,689,274
|
136%
|
|
4,580,260
|
|
39%
|
Gold ounces
produced
|
|
2,970
|
|
3,375
|
-12%
|
|
3,326
|
|
-11%
|
Quarterly Operational Review:
The total ore processed during the quarter at the Company's five
operating silver mines: La
Encantada, La Parrilla, Del Toro, San Martin and La
Guitarra, amounted to 631,609 tonnes, relatively unchanged
compared to the first quarter of the prior year and an 8% decrease
from the previous quarter. The decrease in tonnes compared to the
prior quarter was primarily due to lower throughput rates at
La Encantada, Del Toro and
San Martin. Higher than usual mill
maintenance was required at each of these mines in the quarter. In
addition, due to the persistently low metal prices, management
decided to curtail certain underground development projects which
impacted throughput levels.
Average silver grades in the quarter for the five mines
decreased by 13% to 186 g/t compared to 214 g/t in the first
quarter of 2014 and decreased 8% compared with the previous
quarter. Combined silver recoveries averaged 74% during the
quarter, up from 66% in the same quarter of the prior year and
higher than the fourth quarter average of 70%.
The Company's underground development in the first quarter
consisted of 9,828 metres, a 17% decrease compared to 11,772 metres
completed in the previous quarter.
During the quarter, 13 diamond drill rigs were operating at the
Company's five operations. The Company completed 5,425 metres of
diamond drilling in the quarter compared to 5,990 metres in the
prior quarter, representing a 9% increase.
On March 31, 2015, the Company
released a new NI 43-101 Technical Report on the La Guitarra Silver
Mine following an aggressive two-year exploration program which
included an extensive 35,575 metres of diamond drilling over 262
holes along with the examination of over 900 historical drill
holes. The Company is now working towards updating the NI 43-101
Technical Report on the La Encantada Silver Mine which it expects
to be released in the second half of 2015.
The table below represents the operating parameters at each of
the Company's five producing silver mines.
Mine by Mine Quarterly Production Table:
|
|
|
|
|
|
|
|
|
|
Mine
|
Ore
Processed
|
Tonnes
per Day
|
Silver
Grade
(g/t)
|
Silver
Recovery %
|
Silver
Oz
Produced
|
Gold Oz
Produced
|
Pounds
of
Lead
|
Pounds
of
Zinc
|
Equivalent
Silver Ounces
|
La
Encantada
|
167,270
|
1,859
|
176
|
58%
|
544,735
|
47
|
-
|
-
|
548,124
|
La
Parrilla
|
172,647
|
1,918
|
142
|
79%
|
622,237
|
269
|
1,629,240
|
6,349,692
|
1,080,445
|
Del
Toro
|
157,934
|
1,755
|
212
|
78%
|
841,026
|
182
|
9,657,640
|
-
|
1,327,628
|
San
Martin
|
88,362
|
982
|
258
|
78%
|
571,937
|
1,511
|
-
|
-
|
682,071
|
La
Guitarra
|
45,396
|
504
|
160
|
84%
|
196,920
|
961
|
-
|
-
|
267,002
|
Total
|
631,609
|
7,018
|
186
|
74%
|
2,776,855
|
2,970
|
11,286,880
|
6,349,692
|
3,905,270
|
The following prices
were used in the calculation of silver equivalent ounces: Silver:
$16.72 per ounce; Gold: $1,219 per ounce; Lead: $0.82 per
pound;
Zinc $0.94 per pound.
|
At the Del Toro Silver Mine:
- For the quarter, Del Toro achieved a new quarterly record
production of 1,327,628 silver equivalent ounces representing an
increase of 5% compared to the previous quarter. The plant
processed 157,934 tonnes of ore through flotation with an average
silver grade of 212 g/t. The increase in total production was
primarily due to a 22% increase in lead production and a 4%
improvement in silver recoveries, however, offset by a 10% decrease
in throughput compared to the fourth quarter of 2014.
- Lead production reached a new quarterly record of 9,657,640
pounds. Lead grades and recoveries averaged 4.2% and 66%,
respectively, in the first quarter, an increase of 25% and 9%
compared to the previous quarter due to higher quality sulphide ore
production from the Perseverancia mine.
- Underground development completed in the quarter totaled 1,686
metres compared with 2,095 metres developed in the previous
quarter.
- Four drill rigs consisting of three underground and one on
surface were active in the first quarter at Del Toro. Total
exploration metres drilled in the first quarter amounted to 2,285
metres compared to 559 metres drilled in the previous quarter.
At the La Encantada Silver Mine:
- For the quarter, total silver production was 544,735 silver
ounces representing a 31% decrease over the previous quarter
primarily due to a 29% decrease in the silver grade, a 10% decrease
in processed ore, offset by a 9% increase in recoveries. The
reduction in grade was a result of mining lower grade stopes due to
the decrease in the underground development that occurred during
the quarter. The Company is planning on accelerating the
underground development into the recently discovered Ojuelas ore
body and is advancing the block caving system in order to have
additional production areas ready for the ramp up to 3,000 tpd in
July.
- The foundations for the new 12' x 24' ball mill and fine ore
bin were completed early in the quarter. In addition, the
installation and integration of the new tertiary crusher area began
in January. The total plant expansion to 3,000 tpd is now 60%
complete and the expected ramp up to 3,000 tpd remains on track for
July.
- A total of 2,989 metres of underground development were
completed in the first quarter compared to 4,344 metres of
development in the previous quarter.
- Three drill rigs were active underground at La Encantada during the quarter. A total
of 828 metres of exploration drilling was completed in the first
quarter compared to 3,367 metres of drilling in the previous
quarter.
At the La Parrilla Silver Mine:
- During the quarter, the flotation circuit processed 86,965
tonnes with an average silver grade of 165 g/t and an 88% recovery
while the cyanidation circuit processed 85,682 tonnes with an
average silver grade of 118 g/t and a 66% recovery.
- Zinc production increased 39% compared to the previous quarter
to 6,349,692 pounds due to higher grade production stopes within
the Vacas mine.
- During the quarter, an additional 235 metres were completed at
the underground ore haulage level 11. To date, a total of 2.3
kilometres have been completed on the 5.0 kilometre electrical rail
system project.
- Underground development completed in the quarter totaled 2,077
metres compared with 2,378 metres developed in the previous
quarter.
- Three underground drill rigs were active within the La Parrilla
property during the quarter. A total of 1,437 metres were drilled
in the first quarter compared to 685 metres in the previous
quarter.
At the San Martin Silver Mine:
- During the quarter, San Martin
produced a total of 571,937 silver ounces and 1,511 ounces of gold
for a total quarterly production of 682,071 silver equivalent
ounces. The slight decrease in production compared to the previous
quarter was primarily due to a 9% decrease in throughput due to
numerous shut downs caused by unseasonal heavy rains in the month
of March and the repair of the transmission system of the 9' X 9'
ball mill.
- Underground development completed in the first quarter totaled
2,010 metres compared with 1,414 metres of development in the
previous quarter.
- One underground drill rig was active within the San Martin property during the quarter. Total
metres drilled in the first quarter amounted to 266 metres compared
to 943 metres of drilling in the previous quarter.
At the La Guitarra Silver Mine:
- During the quarter, total production consisted of 196,920
silver ounces and 961 gold ounces. This represents a 14% decrease
in silver production and a 32% decrease in gold production compared
to the previous quarter. The decrease in total production was
primarily due to an 8% decrease in throughput and a 22% decrease in
gold grades.
- Mine production within the El Coloso area delivered 27,700
tonnes (308 tpd) of ore during the quarter or approximately 60% of
total throughput. The Company is working towards achieving 100% of
production from the El Coloso area which will include the Nazareno
area once an 800 metre drift can be constructed. Construction of
this drift is planned to begin in May with completion in
approximately six months.
- A total of 1,066 metres of development were completed in the
first quarter compared to 1,541 metres of development in the
previous quarter.
- Two underground drill rigs were active in the first quarter
within the La Guitarra property.
Total metres drilled in the quarter amounted to 609 metres compared
to 436 metres drilled in the previous quarter.
First Majestic is a mining company focused on silver production
in Mexico and is aggressively
pursuing the development of its existing mineral property assets
and the pursuit through acquisition of additional mineral assets
which contribute to the Company achieving its corporate growth
objectives.
FIRST MAJESTIC SILVER CORP.
"signed"
Keith Neumeyer
President & CEO
Cautionary Note Regarding Forward Looking Statements
This press release contains "forward-looking statements", within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and applicable Canadian securities legislation,
concerning the business, operations and financial performance and
condition of First Majestic Silver Corp. Forward-looking
statements include, but are not limited to, statements with respect
to the future price of silver and other metals, the estimation of
mineral reserves and resources, the realization of mineral reserve
estimates, the timing and amount of estimated future production,
costs of production, capital expenditures, costs and timing of the
development of new deposits, success of exploration activities,
permitting time lines, hedging practices, currency exchange rate
fluctuations, requirements for additional capital, government
regulation of mining operations, environmental risks, unanticipated
reclamation expenses, timing and possible outcome of pending
litigation, title disputes or claims and limitations on insurance
coverage. Generally, these forward-looking statements can be
identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved". Forward-looking statements are subject to known
and unknown risks, uncertainties and other factors that may cause
the actual results, level of activity, performance or achievements
of First Majestic Silver Corp. to be materially different
from those expressed or implied by such forward-looking statements,
including but not limited to: risks related to the integration of
acquisitions; risks related to international operations; risks
related to joint venture operations; actual results of current
exploration activities; actual results of current reclamation
activities; conclusions of economic evaluations; changes in project
parameters as plans continue to be refined; future prices of
metals; possible variations in ore reserves, grade or recovery
rates; failure of plant, equipment or processes to operate as
anticipated; accidents, labour disputes and other risks of the
mining industry; delays in obtaining governmental approvals or
financing or in the completion of development or construction
activities, as well as those factors discussed in the section
entitled "Description of the Business - Risk Factors" in First
Majestic Silver Corp.'s Annual Information Form for the year ended
December 31, 2014, available on
www.sedar.com, and Form 40-F on file with the United States
Securities and Exchange Commission in Washington, D.C. Although First
Majestic Silver Corp. has attempted to identify important
factors that could cause actual results to differ materially from
those contained in forward-looking statements, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements. First Majestic Silver
Corp. does not undertake to update any forward-looking
statements that are incorporated by reference herein, except in
accordance with applicable securities laws.
SOURCE First Majestic Silver Corp.