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First Majestic Silver Corp: Trusted to Deliver, Committed to Growth
Mar. 30, 2009 04:26PM PST
Resource InvestingOverview First Majestic Silver Corp. is committed to building a senior Silver producing mining company based on an aggressive development and acquisition plan with a focus on Mexico. The Company presently owns or operates three silver mines in Mexico; the La Parrilla Silver Mine, the San Martin Silver Mine and the La Encantada Silver Mine. …
OverviewFirst Majestic Silver Corp. is committed to building a senior Silver producing mining company based on an aggressive development and acquisition plan with a focus on Mexico. The Company presently owns or operates three silver mines in Mexico; the La Parrilla Silver Mine, the San Martin Silver Mine and the La Encantada Silver Mine. Production from these three mines is anticipated to be approximately 5.0 million ounces of silver in 2008 with further increases in 2009 and beyond. This past year the Company focused on the consolidation of its three producing silver mines in Mexico – La Parrilla, La Encantada, and San Martin Silver Mines – with 90% of its overall revenues from the sale of silver
First Majestic has excelled in acquisition of long term sustainable projects and has set itself apart from others in the silver space lead by President and CEO, Keith Neumeyer, founder of First Quantum Minerals, a successful copper company; alongside with COO Ramon Davila who has over 30 years of mining experience in Mexico, most recently with Pan American Silver. This management team has led the Company to incredible growth over the last 3 years, growing from 85 to almost 1300 employees corporate wide with continued growth on the horizon! With a solid team in place, the Company expects to achieve continuous growth in silver production and resource development going forward.
Chief PropertiesLa Parrilla Silver Mine
The property is located 65km due southeast of the city of Durango in the western part of the Mexican Altiplano at 23 degrees 44′ 16″ North latitude and 104 degrees 06′ 26″ West longitude. The nearest towns are San Jose de La Parrilla, 1.5km to the north of the property, and the larger Vicente Guerrero, 16km to the southeast. Excellent infrastructure exists in the area with the mine only 4 km away from the main highway which links Durango and Zacatecas. Among the several large vein systems included within the La Parrilla property boundaries, the company is focusing on the La Rosa/Los Rosarios, San Marcos, San José, San Nicolás, Vacas, Quebradilla, La Luz and Recuerdo structures. Most of the silver ore presently being mined comes from Los Rosarios, La Rosa, San Jose, and San Marcos mines. The figure below illustrates the geographical layout of First Majestic’s Land package. Development and exploration drilling commenced in July 2005 with a focus on resource definition and exploration of the strike and depth of the known structures. It is thought that several ore shoots exist along a strike length of at least 4 km. San Martín Silver MineThe San Martín Silver Mine is 100% owned and includes an 800 tpd cyanide & flotation mill and a land package consisting of 7840 hectares of which First Majestic owns 1482 hectares of the surface rights. The area has never been explored using modern exploration techniques. The mine has been in continuous production since 1983 and produces approximately 1.5 million ounces of silver per year. First Majestic is focused on increasing its silver resources while at the same time maintaining production at present levels. It is anticipated that during the later part of 2008, an expansion program designed to expand the mill capacity will be launched. The San Martín is located 250 km north of Guadalajara in Jalisco State, Mexico. Pincock Allen & Holt (“PAH”), the Company’s Qualified Person, has completed a NI 43-101 compliant technical report on the San Martín (see Reserve/Resource Section). In addition to calculating a large silver Resource, PAH also stated that the exploration potential for developing additional Resources at the San Martín appears to be very promising. First Majestic took control of operations of the San Martín in June 2006 by purchasing a majority stake in First Silver Reserve Inc. In September 2006, First Majestic purchased the remaining shares of First Silver resulting in 100% ownership. The San Martín Silver Mine suffered from a lack of reinvestment for several years. The opportunity which First Majestic identified was to make the necessary investments in development, exploration and mill improvements to not only increase the 43-101 compliant silver Resources, but also increase silver production from current levels. La Encantada Silver MineThe La Encantada Silver Mine is located in the “Sierra Madre Oriental” physiographic province of México. The mine is in the state of Coahuila and the access is through the road from Muzquiz to Boquillas del Cármen, Coah., through a 165 kilometres paved road and a branch of 45 kilometres dirty road, covering the distance in 2.5 hours. The mining activity in this district began in a low scale in 1950 up to 1969 and at the beginning of the 1970’s until the year 2003 with Grupo Peñoles/Lacana Corp. exploiting the ore-bodies of; La Prieta, 660, Ojuelas, Escondida, San Javier Breccia, Milagros and some of the irregular veins in the San Javier zone. It is estimated that around 6.0 million tons with a grade of 418 g/ton silver and 9.83% lead have been extracted (P. Trejo and E. Chico). Del Toro Silver MineThe Del Toro Silver Mine which has been previously referred to as the Chalchihuites Group of Properties is strategically located only 60 km to the southeast from First Majestic’s La Parrilla Silver Mine. The property consists of 340 hectares of a contiguous land package which includes two mines; the Perseverancia Silver Mine (now referred to as the Perseverancia area) and the San Juan Silver Mine which are located in the Chalchihuites mining district at the Western portion of Zacatecas State in the municipality of Chalchihuites, and 150 km to the northwest from Zacatecas City. The properties host silver, copper, lead and zinc mineralization with a potential for near term silver production which could be processed at the La Parrilla. The properties have history of silver-lead-zinc and copper-gold production with extensive underground workings. The properties host potential for manto style silver-lead-zinc replacement type ore bodies, chimney type gold-silver-lead-zinc-copper ore bodies and silver vein type ore bodies and represent significant exploration potential. Access to the properties is easily achieved due to the close proximity to the Interstate 45 highway and the state roads which connect the Chalchihuites Town and several country and trail roads connect most of the claims. Local infrastructure, including electricity, water and telephones are all presently available. Basic facilities, restaurants, hotels and gas stations can be found in Chalchihuites Town. Major services, banks, repair shops, etc, can be found in Vicente Guerrero Town and in Sombrerete town located both just 50 km away. The climate is moderate to semi-dry. Rainfalls are much more common in summer than in winter. Vegetation is scarce because of the semi-dry weather conditions; in the lower parts cactuses, grasslands and farm lands are common while in the heights, pine and oak forests occur. Cuitaboca Silver Project
For the updated NI 43-101 report click here: https://www.firstmajestic.com/i/pdf/TechReport-Quitaboca.pdf
Management
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