First Majestic Updates Del Toro NI 43-101 TR; Receives Final Permit

First Majestic Silver Corp. (TSX:FR) announced that it has filed an updated NI 43-101 Technical Report for the Del Toro Silver mine.

As quoted in the report:

REPORTED HIGHLIGHTS

• Silver Equivalent Measured & Indicated Resources increased to 76.5 million ounces
• Silver Equivalent Inferred Resources increased to 81.8 million ounces
• Average Measured and Indicated silver grade increased by 20% to 175 g/t
• Total estimated production to reach 7.2 million silver equivalent ounces containing 5.4 million pure silver ounces in 2014
• Subsequent to the Technical Report’s cut-off date, on August 13, 2012, the Company received the final permit from the Mexican government approving the cyanidation circuit and the enlarged 4,000 tpd plant
• Estimated total direct operating costs are $35.00 per tonne and cash costs of $7.05 per ounce of silver on a by-product basis for LOM
• Post Tax Net Present Value (“NPV”) at 5% discount increased by 30% to US$191.1 million using US$25 silver price
• Internal Rate of Return (“IRR”) increased from 43% to 49% with a payback period of 3.5 years
• Total capital requirement over three years remains $124.2 million, inclusive of a 5% contingency
• The Del Toro Silver Mine is 100% owned by First Majestic Silver and there are no royalties payable

Keith Neumeyer, CEO and President of First Majestic Silver, commented:

The recent great news regarding the receipt of our final permit allowing for the full 4,000 tpd production at the Del Toro mill, including the allowance for doré production, is another major milestone for this project. The decision to construct a new state of the art laboratory as part of the La Parrilla expansion which is only 60 kms away has already proven to be a huge benefit to First Majestic. Based on the latest results from our metallurgical testing, we were able to improve the recoveries and economics of Del Toro. The La Parrilla lab will further assist the Company in responding to the needs of each of our mines as a specialized centralized facility. We have also been able to complete the construction of the sewage treatment facility for the town of Chalchihuites, which is on standby waiting for the mill production to commence.

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