NOT FOR DISTRIBUTION TO OR FOR DISSEMINATION IN THE UNITED STATES
Northern Lights Resources Corp. ("Northern Lights", "NLR" or the "Company")(CSE:NLR)(OTCQB:NLRCF) announces that it intends to complete a non-brokered private placement (the "Placement") for gross proceeds of up to C$1,000,000 from the sale of common shares of the Company (the "Shares") at a price of C$0.075 per Share
The Company intends to use the net proceeds raised from the Placement for the exploration of the Company's Secret Pass Gold Project located in Northwestern Arizona, USA and for general working capital purposes.
The Placement may be completed in multiple tranches and is subject to receipt of executed subscription agreements and funds as well as customary closing conditions, including regulatory approvals as required.
In accordance with applicable securities laws, the Shares issued under the Placement will be sold to accredited investors or other investors who are exempt from prospectus requirements and will be subject to a four-month hold period in Canada. While the Placement is non-brokered, referral fees may be paid on a portion of the proceeds to eligible persons, where permitted by applicable law.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or any applicable state securities laws, and may not be offered or sold to, or for the account or benefit of, persons in the United States or "U.S. persons," as such term is defined in Regulation S promulgated under the U.S. Securities Act, absent registration or an exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
No securities regulatory authority has either approved or disapproved of the contents of this news release.
For further information on Northern Lights Resources please contact:
Albert Timcke, Executive Chairman and President
Email: rtimcke@northernlightsresources.com
Tel: +1 604 608 6163
Jason Bahnsen, Chief Executive Officer
Email: Jason@northernlightsresources.com
Tel: +1 604 608 6163
Shawn Balaghi, Investor Relations
Email: Shawn@northernlightsresources.com
Tel: +1 604 773 0242
About Northern Lights Resources Corp.
Northern Lights Resources Corp is a growth-oriented exploration and development company that is advancing two projects: The 100% controlled, Secret Pass Gold Project located in Mohave County, Arizona; and the Medicine Springs silver-zinc-lead Project located in Elko County, Nevada where Northern Lights is earning 100% in joint venture with Reyna Silver Corp.
Northern Lights Resources trades under the ticker of "NLR" on the CSE. This and other Northern Lights Resources news releases can be viewed at www.sedar.com and www.northernlightsresources.com.
SOURCE: Northern Lights Resources Corp.
News Provided by ACCESSWIRE via QuoteMedia
Northern Lights Resources Corp. ("Northern Lights" or the "Company") (CSE:NLR)(OTCQB:NLRCD) is pleased to announce start of the 2022 exploration program at the Medicine Springs Silver Project ("Medicine Springs"), located in Elko County, Nevada, that the Company is exploring in joint venture with Reyna Silver Corp. (Reyna Silver
The 2022 exploration program at Medicine Springs will include a 5,000 to 7,000 metre drill program targeting the discovery of a large scale Carbonate Replacement Deposit (CRD) system. Drill permitting is underway and work is commencing immediately on additional field studies to further refine drill targets. Drilling is expected to commence in Q3/Q4 2022.
Norhern Lights CEO, Jason Bahnsen commented "We are delighted to have work underway at Medicine Spings leading to the upcoming 5,000 to 7,000 metre drill program. The Medicine Springs Project has the potential to host large scale CRD silver and base metals mineralizaton and we are looking forward to seeing the results of this initial drill program."
Under the terms of the Opton/JV agreement between Northern Lights and Reyna Silver, Reyna Silver are earning up to 80% of the Medicine Springs Project. Northern Lights does not contribute to project exploration expenditure until total exploration expenditures have exceeded US$4.0 million. (See the Northern Lights announcement dated October 5, 2020 for full details of the Option/JV agreement with Reyna Silver.)
In 2021, Reyna Silver conducted a Selective Jasperoid Sampling survey focused on the prominent NE trending, multi-stage jasperoids that cut across the property along the inferred principal hydrothermal fluid pathways. The results show zoning of Copper, Lead-Zinc, and Silver and are interpreted to indicate a multi-stage high-level mineralization center at depth. Comparison of the field data to Reyna's CRD continuum exploration model supports the idea that the full CRD spectrum is present within the Medicine Springs project area.
Competent Persons Statement
Information in this report relating to Exploration Results is based on information reviewed by Mr. Lee R. Beasley, a Certified Professional Geologist who is a Member of the American Institute of Professional Geologists, and a consultant to Northern Lights Resources. Mr. Beasley has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Qualified Person for the purposes of NI43-101 Standards of Disclosure for Mineral Projects. Mr. Beasley consents to the inclusion of the data in the form and context in which it appears.
For further information, please contact:
Albert Timcke, Executive Chairman and President
Email: rtimcke@northernlightsresources.com
Tel: +1 604 608 6163
Jason Bahnsen, Chief Executive Officer
Email: Jason@northernlightsresources.com
Tel: +1 604 608 6163
Shawn Balaghi, Investor Relations
Email: shawn@northernlightsresources.com
Tel: +1 604 773 0242
About Northern Lights Resources Corp.
Northern Lights Resources Corp is a growth-oriented exploration and development company that is advancing two projects: The 100% owned, Secret Pass Gold Project located in Arizona; and the Medicine Springs silver-zinc-lead Project located in Elko County Nevada where Northern Lights, in joint venture with Reyna Silver are earning 100% ownership. Northern Lights Resources is a member of the Arizona Mining Association.
Northern Lights Resources trades under the ticker of "NLR" on the CSE and "NLRCD" on the OTCQB. This and other Northern Lights Resources news releases can be viewed at www.sedar.com and www.northernlightsresources.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to: the terms and conditions of the proposed private placement; use of funds; the business and operations of the Company after the proposed closing of the Offering. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; delay or failure to receive board, shareholder or regulatory approvals; and the uncertainties surrounding the mineral exploration industry. 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. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE: Northern Lights Resources Corp.
News Provided by ACCESSWIRE via QuoteMedia
Northern Lights Resources Corp. ("Northern Lights", "NLR" or the "Company")(CSE:NLR)(OTCQB:NLRCF) announces that the effective date of the ten (10) for one (1) share consolidation (the "Consolidation"), as announced on May 17, 2022, has been changed to May 26, 2022 (the "Effective Date
All other terms of the Consolidation remain unchanged. Please refer the May 17, 2022 announcement for full details.
For further information on Northern Lights Resources please contact:
Email: rtimcke@northernlightsresources.com Tel: +1 604 608 6163 | |
Email: Jason@northernlightsresources.com Tel: +1 604 608 6163 | |
Shawn Balaghi, Investor Relations
Email: Shawn@northernlightsresources.com
Tel: +1 604 773 0242
About Northern Lights Resources Corp.
Northern Lights Resources Corp is a growth-oriented exploration and development company that is advancing two projects: The 100% owned, Secret Pass Gold Project located in Arizona; and the Medicine Springs silver-zinc-lead Project located in Elko County Nevada where Northern Lights is earning 100% in joint venture with Reyna Silver Corp.
Northern Lights Resources trades under the ticker of "NLR" on the CSE. This and other Northern Lights Resources news releases can be viewed at www.sedar.com and www.northernlightsresources.com.
SOURCE:Northern Lights Resources Corp.
News Provided by ACCESSWIRE via QuoteMedia
Northern Lights Resources Corp. ("Northern Lights", "NLR" or the "Company") (CSE:NLR), (OTCQB:NLRCF) is pleased to announce that it is proceeding with the consolidation of its common shares on a ten (10) for one (1) basis (the "Consolidation"). The Company's common shares will commence trading on a post-consolidated basis effective at market opening on May 24, 2022 (the "Effective Date
Immediately prior to completion of the Consolidation, the Company has 143,571,385 common shares issued and outstanding. After giving effect to the Consolidation, the Company will have approximately 14,357,139 common shares issued and outstanding, subject to the rounding of fractional common shares. The company has been issued with a new Cusip Number (66538D301), there will be no escrow of shares, and the trading symbol will remain unchanged.
No fractional common shares will be issued as a result of the Consolidation. All fractional common shares resulting from the Consolidation will be rounded to the nearest whole number of common shares. The Company's outstanding incentive stock options and warrants will be adjusted on the same basis (10:1) to reflect the Consolidation in accordance with their respective terms, with proportionate adjustments being made to exercise prices. New warrant certificates reflecting the Consolidation are not required and will not be issued.
Registered shareholders will receive a letter of transmittal from the Company's transfer agent, Computershare Investor Services Inc., providing instructions on how to exchange their share certificates representing pre-Consolidation common shares for new share certificates or Direct Registration Advice (DRS) representing post-Consolidation common shares to which they are entitled as a result of the Consolidation. No action is required by non-registered shareholders (shareholders who hold their common shares through an intermediary) to affect the Consolidation.
For further information on Northern Lights Resources please contact:
Albert Timcke, Executive Chairman and President
Email: rtimcke@northernlightsresources.com
Tel: +1 604 608 6163
Jason Bahnsen, Chief Executive Officer
Email: Jason@northernlightsresources.co
Tel: +1 604 608 6163
Shawn Balaghi, Investor Relations
Email: Shawn@northernlightsresources.com
Tel: +1 604 773 0242
About Northern Lights Resources Corp.
Northern Lights Resources Corp is a growth-oriented exploration and development company that is advancing two projects: The 100% owned, Secret Pass Gold Project located in Arizona; and the Medicine Springs silver-zinc-lead Project located in Elko County Nevada where Northern Lights is earning 100% in joint venture with Reyna Silver Corp.
Northern Lights Resources trades under the ticker of "NLR" on the CSE. This and other Northern Lights Resources news releases can be viewed at www.sedar.com and www.northernlightsresources.com.
SOURCE: Northern Lights Resources Corp.
News Provided by ACCESSWIRE via QuoteMedia
Northern Lights Resources Corp. ("Northern Lights" or the "Company") (CSE:NLR)(OTCQB:NLRCF) is pleased to announce an update to the exploration plan for the Tin Cup prospect at the Company's 100% owned Secret Pass Gold Project in Mohave County, Arizona
Following on from the success of the initial four holes completed, Northern Lights is planning to expand the exploration program at Secret Pass to include the drilling of three (3) additional holes at Tin Cup and two (2) drill holes at the FM Zone, which is located approximately 500 metres east of Tin Cup. All five (5) proposed drill holes are fully permitted. The drill holes statistics and significant intersections for the first four drill holes are sumarized on Table 1. The location of the recent drill holes and the planned drill holes for Tin Cup and the FM Zones are illlustrated on Figure 1.
Prior to initiating the second phase of drilling, Northern Lights is planning to complete a deep penetrating Induced Polarization (IP) survey over the claim area covering the Tin Cup and FM zones. This survey will explore to depths of ~400 metres and will assist in refining existing targets and identifying new drill targets associated with zones of high chargeability located along strike and to depth. With reference to Figure 1, the IP survey area will cover the gold anomay generated from the soil sampling program completed in 2021. This soil survey identified a significant gold soil anomaly approximately 1,100 metres in length and up to 400 metres wide as shown on Figure1.
Northern Lights CEO, Jason Bahnsen, commented"The initial drilling at Tin Cup has been very successful and has confirmed the presence of wide zones of gold mineralization. The next phase of drilling will test the Tin Cup mineralization at depth and further along strike. We also have two holes permitted to drill at the FM Zone where we are targeting vertical vein structrues similar to Tin cup. The proposed holes are fully permitted with drilling to commence pending financing and availability of drilling contractors."
The first four drill holes completed at Tin Cup showed confirmation of gold mineralization from surface to a maximum depth of approximately 90 metres. The three additional holes planned have been fully permitted and will test the down plunge extension of the gold mineralization. With reference to Figure 2, drill hole TC21-06 is planned for 400 metres at a 55 degree dip to test the mineralizaton at depth. The other two drill holes TC22-07 and TC22-08 will test the mineralization along strike.
At the Tin Cup zone, drilling at depth will test the potential for an epithermal quartz vein system similar to the Oatman District. The geology of the Tin Cup zone shares similarities of the upper parts of the Oatman gold system. The Secret Pass drilling will target both the upper broad zone of stockwork veining and the deeper, more discreet ‘bonanza' veining.
The drilling at the FM zone will target near-vertical mineralized structures related to the FM fault zone similar to the Tin Cup zone.
Table 1: Tin Cup Phase 1 Drill Holes
Hole No. | Location | Azimuth (o) | Dip (o) | Length (m) | Significant Intersections |
TC21-01 | Tin Cup | - | - | - | Abandoned |
TC21-02 | Tin Cup | 220 | -45 | 175 |
|
TC21-03 | Tin Cup | 220 | -55 | 230 |
|
TC21-04 | Tin Cup | 310 | -50 | 103* |
|
TC21-05 | Tin Cup | 040 | -60 | 102* |
|
TC22-06 | Tin Cup | 220 | -65 | 400 | Fully Permitted - Pending Drilling |
TC22-07 | Tin Cup | 250 | -50 | 250 | Fully Permitted - Pending Drilling |
TC22-08 | Tin Cup | 200 | -50 | 150 | Fully Permitted - Pending Drilling |
FM22-01 | FM Zone | 220 | -50 | 150 | Fully Permitted - Pending Drilling |
FM22-02 | FM Zone | 220 | -50 | 150 | Fully Permitted - Pending Drilling |
| Total Completed and Planned | 1,710 | ||||
Note: all intersections have been previously announced and represent downhole widths as insufficient information is available to calculate true widths.
*Drill holes TC21-04 and TC21-05 were terminated early due to technical difficulties.
Figure 1: Drill Locations and Gold Soil Anomalies
Figure 2: Tin Cup Drilling Cross Section and Geological Model
QA/QC Statement
Diamond Core (HQ size) was drilled by Godbe Drilling LLC under the supervision of Mr. Lee Beasley, QP for Northern Lights Resources. The core was split with the half core transported to Skyline Assayers and Laboratories (Skyline) in Tucson, AZ. Field control QA/QC samples, including standards, blanks, and field duplicates, were inserted into the sample stream at a rate of one field control sample every 20 regular samples. Samples received by the lab are logged, weighted and assigned into batches. Sample preparation begins with crushing samples to 75% passing -10 mesh. From this sample, 250 grams of material is separated using a riffle splitter which is then further pulverized to at least 95% - 150 mesh resulting in a pulp that is ready for analysis. Gold was determined by fire assay fusion of a 30 gram sub-samples with atomic absorption spectroscopy (method FA-01). Overlimit samples of gold ( greater than 5 g/t) were assayed by gravimetric means (FA-02). Skyline Laboratories is accredited in accordance with ISO/IEC 17025:2017 and ISO 9001:2015.
Competent Persons Statement
Information in this report relating to Exploration Results is based on information reviewed by Mr. Lee R. Beasley, a Certified Professional Geologist who is a Member of the American Institute of Professional Geologists, and a consultant to Northern Lights Resources. Mr. Beasley has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Qualified Person for the purposes of NI43-101 Standards of Disclosure for Mineral Projects. Mr. Beasley consents to the inclusion of the data in the form and context in which it appears.
For further information, please contact:
Albert Timcke, Executive Chairman and President
Email: rtimcke@northernlightsresources.com
Tel: +1 604 608 6163
Jason Bahnsen, Chief Executive Officer
Email: Jason@northernlightsresources.com
Tel: +1 604 608 6163
Shawn Balaghi, Investor Relations
Email: shawn@northernlightsresources.com
Tel: +1 604 773 0242
About Northern Lights Resources Corp.
Northern Lights Resources Corp is a growth-oriented exploration and development company that is advancing two projects: The 100% owned, Secret Pass Gold Project located in Arizona; and the Medicine Springs silver-zinc-lead Project located in Elko County Nevada where Northern Lights, in joint venture with Reyna Silver are earning 100% ownership. Northern Lights Resources is a member of the Arizona Mining Association.
Northern Lights Resources trades under the ticker of "NLR" on the CSE and "NLRCF" on the OTCQB. This and other Northern Lights Resources news releases can be viewed at www.sedar.com and www.northernlightsresources.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to: the terms and conditions of the proposed private placement; use of funds; the business and operations of the Company after the proposed closing of the Offering. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; delay or failure to receive board, shareholder or regulatory approvals; and the uncertainties surrounding the mineral exploration industry. 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. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new inforAddmation, future events or otherwise, except as required by law.
SOURCE: Northern Lights Resources Corp.
News Provided by ACCESSWIRE via QuoteMedia
First Majestic Silver Corp. (NYSE: AG) (TSX: AG) (FSE: FMV) (the "Company" or "First Majestic") announces that total production in the second quarter of 2024 from the Company's three producing mines in Mexico, the Santa Elena SilverGold Mine, the San Dimas SilverGold Mine, and the La Encantada Silver Mine, reached 5.3 million silver equivalent ("AgEq") ounces, consisting of 2.1 million silver ounces and 39,339 gold ounces. The Company's financial results for the second quarter of 2024 are scheduled to be released on Thursday, August 1, 2024.
Q2 2024 HIGHLIGHTS
Increased Production: Total production in Q2 2024 consisted of 2,104,181 silver ounces and 39,339 gold ounces, representing a 7% and 9% increase, respectively, when compared to Q1 2024. Silver equivalent production for the quarter was 5.3 million ounces, representing a 2% increase compared to Q1. The silver equivalent (Silver:Gold) ratio in Q2 2024 decreased 10% to 81:1 compared to 88:1 in Q1 2024 due to the silver price outperforming the gold price. While higher silver prices positively impact revenue, the reported silver equivalent production is impacted when silver outperforms gold.
La Encantada Increased Production: Since successfully identifying a water source in Q1 2024, water inventory and processing rates at La Encantada have increased significantly leading to a 28% increase in silver production through the second quarter. Plant ore throughput rates are expected to return to targeted levels of approximately 3,000 tonnes per day ("tpd") in Q3 2024.
Santa Elena's Robust Production Continues: Production during the second quarter at Santa Elena totaled 2.6 million AgEq ounces, representing a 13% increase compared to Q1 and is on track to exceed the Company's original annual production guidance plan (see updated guidance section below).
Conversion to Liquefied Natural Gas ("LNG") at San Dimas: To provide an additional, more reliable and lower carbon emission power option at San Dimas, management has launched a process at San Dimas to replace the diesel backup power generation plant with LNG. The main source of power at San Dimas remains cost efficient hydroelectricity sourced from Las Truchas, the Company's 100%-owned and operated hydroelectric power generation facility.
Safety Performance: In Q2 2024, the consolidated Total Reportable Incident Frequency Rate ("TRIFR") remained strong at 0.48, well below the Company's target key performance indicator ("KPI") of
2023 Sustainability Report: The Company released its third Sustainability Report, accompanied by the Company's first analyst-focused Sustainability Data Download containing detailed quantitative data, allowing investors to easily compare First Majestic's key sustainability metrics across time periods.
Sustainability: Continued improvement in the Company's ESG ratings with ISS ESG, achieving performance in the top 40% of the industry in both Environmental and Social categories, reflecting our carbon footprint reduction and community involvement initiatives.
Up to 22 Active Drill Rigs: The Company completed a total of 47,447 metres ("m") of drilling across its mines in Mexico during the second quarter, representing a 31% increase compared to the previous quarter. Throughout the second quarter, up to 22 drill rigs were active consisting of 13 rigs at San Dimas, eight rigs at Santa Elena and one rig at La Encantada.
"Consistent with our plans, our operations delivered a robust quarter, and we are well-positioned for a strong second half of 2024", said Keith Neumeyer, First Majestic's President & CEO. "We are extremely pleased with the production trajectory at Santa Elena, allowing us to revise our guidance upwards on the back of increased throughput and significantly higher gold grades. Additionally, production ramp up at La Encantada demonstrated that the water issues are now behind us with production in H2 expected to return to historical levels."
Production Details Table:
| Q2 2024 | Q2 2023 | Y/Y Change | Consolidated Production Results | Q1 2024 | Q/Q Change |
| 674,570 | 733,170 | (8)% | Ore processed/tonnes milled | 588,651 | 15% |
| 5,289,439 | 6,320,971 | (16)% | Total production - Silver equivalent ounces | 5,162,283 | 2% |
| 2,104,181 | 2,633,411 | (20)% | Silver ounces produced | 1,975,176 | 7% |
| 39,339 | 45,022 | (13)% | Gold ounces produced | 35,936 | 9% |
Quarterly Mine-by-Mine Production Table:
| Mine | Ore Processed | Tonnes per Day | Ag Grade (g/t) | Au Grade (g/t) | Ag Recovery | Au Recovery | Ag Oz Produced | Au Oz Produced | AgEq Oz Produced | |
| Santa Elena | 256,427 | 2,818 | 69 | 3.52 | 66% | 94% | 376,947 | 27,176 | 2,580,497 | |
| San Dimas | 183,188 | 2,013 | 210 | 2.15 | 92% | 95% | 1,141,906 | 12,043 | 2,114,072 | |
| La Encantada | 234,955 | 2,582 | 129 | 0.01 | 60% | 90% | 585,329 | 46 | 589,060 | |
Santa Elena Silver/Gold Mine:
Santa Elena produced 2.6 million AgEq ounces, consisting of 376,947 silver ounces and 27,176 gold ounces, representing an increase of 6% and 25%, respectively, when compared to the previous quarter. The strong increase in production is primarily due to an increase in ore processed rates and higher gold grades.
The mill processed a total of 256,427 tonnes of ore, a 14% increase compared to the previous quarter, containing average silver and gold head grades of 69 g/t and 3.52 g/t, respectively.
Silver and gold recoveries averaged 66% and 94%, respectively, during the quarter. Metallurgical recoveries remained strong due to the continuous operational optimization of the new dual-circuit plant, enabling higher throughput in the mill while maintaining strong metal recoveries.
During the quarter, a total of eight drill rigs consisting of six surface rigs and two underground rigs completed 15,591 metres of drilling on the property, representing a 57% increase when compared to the prior quarter (9,911 metres).
San Dimas Silver/Gold Mine:
San Dimas produced 2.1 million AgEq ounces during the quarter, consisting of 1,141,906 silver ounces and 12,043 gold ounces, representing a decrease of 2% and 11%, respectively, when compared to Q1 2024. The decrease in production is primarily due to a decrease in fresh ore processed largely as a result of the ongoing labour relations negotiations that the Company is actively conducting with the unionized workers. Management is optimistic about reaching an agreement in the near-term and expects production at San Dimas to increase once that agreement has been reached.
The mill processed a total of 183,188 tonnes of ore with average silver head grades of 210 g/t and gold head grades of 2.15 g/t, representing a decrease of 5% and 12%, respectively, when compared to the previous quarter.
Silver and gold recoveries during the second quarter averaged 92% and 95%, respectively, consistent with the prior quarter.
The Central Block and Sinaloa Graben areas contributed approximately 78% and 22%, respectively, of the total production during the quarter.
During the quarter, a total of 13 drill rigs, consisting of three surface rigs and 10 underground rigs, completed 31,249 metres of drilling on the property, representing a 19% increase when compared to Q1 2024 (26,363 metres).
The results of resource conversion and expansion drilling at San Dimas, published in Q2 2024, continued to delineate and further define known mineralization, and highlight the presence of new silver and gold mineralization (see the Company's News Release dated June 13, 2024).
La Encantada Silver Mine:
During the quarter, La Encantada produced 585,329 silver ounces, representing a 28% increase compared to Q1 2024, primarily due to the identification of a new, reliable water source leading to an increase in ore processed for the quarter.
The mill processed a total of 234,955 tonnes of ore with an average silver grade of 129 g/t, an increase of 27% and 5%, respectively, compared to Q1 2024.
Silver recovery for the quarter achieved 60%, slightly lower from 62% in Q1 2024.
Stope production from the new Beca Zone contributed 26,910 tonnes with average silver grades of 106 g/t.
During the quarter, the 2024 exploration program commenced after securing the new water source with one surface drill rig completing 607 metres of drilling on the property.
OUTLOOK
The Company is updating its full year 2024 guidance to reflect the following changes:
Improved metal price environment: the revised silver and gold price assumptions for the second half of 2024 are $28.00 and $2,300 per ounce.
Strong production forecast at Santa Elena: management is increasing the Santa Elena production forecast to 9.2 to 9.6 million silver equivalent ounces, an increase of 14% (mid-point) compared to the original guidance.
New water source at La Encantada: increased production forecast at La Encantada, with H2 production guidance forecasted to be 38% higher than H1 actuals, based on the mid-point of the updated guidance.
Labour negotiations at San Dimas: management is assuming labour inefficiencies to continue throughout Q3 while negotiations are ongoing with the unionized workers and is planning for normalized production rates at San Dimas in Q4 2024.
As a result of these adjustments, our 2024 consolidated production guidance remains relatively unchanged at 21.4 to 22.6 (mid-point: 22.0) million AgEq ounces compared to the prior guidance of 21.1 to 23.5 (mid-point: 22.3) million AgEq ounces, with a slight increase in silver production offset by a slight decrease in gold production on a consolidated basis.
The Company is also providing updated guidance on a mine-by-mine basis for the second half of 2024.
GUIDANCE FOR SECOND HALF 2024
| Silver Oz (M) | Gold Oz (k) | Ag/Eq Oz (M) | Cash Cost | AISC | |
| Operation: | ($ per AgEq Oz) | ($ per AgEq Oz) | |||
| Santa Elena, Mexico | 0.6 - 0.7 | 45 - 50 | 4.3 - 4.8 | 12.71 - 13.33 | 15.55 - 16.42 |
| San Dimas, Mexico | 2.9 - 3.2 | 30 - 34 | 5.3 - 6.0 | 12.46 - 13.21 | 16.35 - 17.47 |
| La Encantada, Mexico | 1.4 - 1.5 | - | 1.4 - 1.5 | 19.54 - 20.62 | 23.83 - 25.36 |
| Operations Total: | 4.8 - 5.4 | 75 - 84 | 11.0 - 12.2 | 13.41 - 14.15 | 18.54 - 19.79 |
| Corporate: | ($ per AgEq Oz) | ($ per AgEq Oz) | |||
| Corporate Charges | - | - | - | - | 0.51 - 0.58 |
| Total: | ($ per AgEq Oz) | ($ per AgEq Oz) | |||
| Consolidated | 4.8 - 5.4 | 75 - 84 | 11.0 - 12.2 | 13.41 - 14.15 | 19.05 - 20.35 |
GUIDANCE FOR FULL YEAR 2024
| Silver Oz (M) | Gold Oz (k) | Ag/Eq Oz (M) | Cash Cost | AISC | |
| Operation: | ($ per AgEq Oz) | ($ per AgEq Oz) | |||
| Santa Elena, Mexico | 1.3 - 1.4 | 94 - 99 | 9.2 - 9.6 | 12.45 - 12.73 | 15.25 - 15.64 |
| San Dimas, Mexico | 5.2 - 5.5 | 56 - 59 | 9.8 - 10.4 | 14.17 - 14.69 | 18.69 - 19.45 |
| La Encantada, Mexico | 2.4 - 2.5 | - | 2.4 - 2.5 | 21.52 - 22.26 | 26.17 - 27.18 |
| Operations Total: | 8.9 - 9.5 | 150 - 158 | 21.4 - 22.6 | 14.25 - 14.68 | 19.73 - 20.45 |
| Corporate: | ($ per AgEq Oz) | ($ per AgEq Oz) | |||
| Corporate Charges | - | - | - | - | 0.63 - 0.67 |
| Total: | ($ per AgEq Oz) | ($ per AgEq Oz) | |||
| Consolidated | 8.9 - 9.5 | 150 - 158 | 21.4 - 22.6 | 14.25 - 14.68 | 20.36 - 21.12 |
For the full year of 2024, the Company now estimates silver production will range between 8.9 to 9.5 million ounces compared to the prior guidance of 8.6 to 9.6 million ounces, a 1% increase on the mid-point average. Additionally, gold production is estimated to range between 150,000 to 158,000 ounces compared to the prior guidance of 150,000 to 167,000, a 3% decrease based on the mid-point average.
Annual cash costs are now expected to be within the range of $14.25 to $14.68 per ounce, slightly higher than the previous guidance of $13.69 to $14.46 per ounce, primarily due to a stronger than budgeted Mexican Peso in H1 combined with lower production from San Dimas.
The Company is projecting its consolidated 2024 AISC to be within a range of $20.36 to $21.12 on a per consolidated payable AgEq ounce basis, slightly higher than the original guidance range of $19.25 to $20.57 due to higher cash costs. Excluding non-cash items, the Company anticipates its 2024 AISC to be within a range of $19.57 to $20.27 per payable AgEq ounce. An itemized AISC cost table is provided below:
| All-In Sustaining Cost Calculation | FY 2024 ($ per AgEq Oz) | ||||
| Total Cash Costs per Payable Equivalent Silver Ounce | 14.25 - 14.68 | ||||
| General and Administrative Costs | 1.58 - 1.67 | ||||
| Sustaining Development Costs | 1.38 - 1.42 | ||||
| Sustaining Property, Plant and Equipment Costs | 0.81 - 0.85 | ||||
| Profit Sharing | 0.87 - 0.92 | ||||
| Lease Payments | 0.68 - 0.72 | ||||
| Share-based Payments (non-cash) | 0.63 - 0.68 | ||||
| Accretion of Reclamation Costs (non-cash) | 0.16 - 0.17 | ||||
| All-In Sustaining Costs: (AgEq Oz) | 20.36 - 21.12 | ||||
| All-In Sustaining Costs: (AgEq Oz excluding non-cash items) | 19.57 - 20.27 | ||||
UPDATED CAPITAL BUDGET
In 2024, the Company now plans to invest a total of $136.4 million on capital expenditures consisting of $49.5 million for sustaining activities and $87.1 million for expansionary projects. This represents a 9% increase compared to the original 2024 capital expenditures guidance and is aligned with the Company's future growth strategy of increasing exploration and development activities at Santa Elena, San Dimas and Jerritt Canyon.
| 2024 Capital Guidance ($ Millions) | Sustaining | Expansionary | Total |
| Underground Development | 31.2 | 43.3 | 74.5 |
| Exploration | - | 37.6 | 37.6 |
| Property, Plant and Equipment | 17.7 | 4.1 | 21.8 |
| Corporate Projects | 0.6 | 2.1 | 2.7 |
| Total | 49.5 | 87.1 | 136.4 |
Under the updated 2024 budget, the Company is planning to complete a total of approximately 34,304 metres of lateral underground development, representing an 11% increase on the original guidance. In addition, the Company is now planning to complete a total of approximately 211,600 metres of exploration drilling in 2024, representing a 12% increase compared to the original guidance. In the first half of 2024, the Company completed 14,836 metres of underground development drilling and 83,721 metres of exploration drilling.
CONFERENCE CALL DETAILS
The Company will host a conference call and webcast on Thursday, July 18, 2024, at 8:00 a.m. (PT) / 11:00 a.m. (ET) to provide investors and analysts with a business update and to discuss its second quarter production results and updated 2024 guidance.
To participate in the conference call, please use the following dial-in numbers:
Canada & USA Toll-Free: +1-844-763-8274
Outside of Canada & USA: +1-647-484-8814
Toll-Free Germany: +49-69-17415718
Toll-Free UK: +44-20-3795-9972
Participants should dial in at least 10 minutes prior to the start of the call to ensure placement into the conference on time.
A live webcast of the call will be accessible through the "July 18, 2024 Webcast Link" on the First Majestic home page at www.firstmajestic.com. A webcast archive will be available approximately one hour after the end of the event and will be accessible for three months through the same link as the live event.
A recording of the conference call will be available for telephone replay approximately one hour after the end of the event by calling:
USA Toll-Free: +1-877-344-7529
Canada Toll-Free: +1-855-669-9658
Outside of Canada & USA: +1-412-317-0088
Access Code: 5667555#
The telephone audio replay will be available for seven days following the end of the event.
Q2 2024 EARNINGS AND DIVIDEND ANNOUNCEMENT
The Company is planning to release its second quarter 2024 unaudited financial results, and announce the second quarter dividend payment, shareholder record, and payable dates on August 1, 2024.
ABOUT THE COMPANY
First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and the United States. The Company presently owns and operates the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine and the La Encantada Silver Mine as well as a portfolio of development and exploration assets, including the Jerritt Canyon Gold project located in northeastern Nevada, U.S.A.
First Majestic is proud to own and operate its own minting facility, First Mint, LLC, and to offer a portion of its silver production for sale to the public. Bars, ingots, coins and medallions are available for purchase online at www.firstmint.com, at some of the lowest premiums available.
For further information, visit our website at www.firstmajestic.com. You can contact us by e-mail at info@firstmajestic.com, or by telephone at 1.866.529.2807.
FIRST MAJESTIC SILVER CORP.
"signed"
Keith Neumeyer, President & CEO
Non-GAAP Financial Measures
This news release includes reference to certain financial measures which are not standardized measures under the Company's financial reporting framework. These measures include cash costs per silver equivalent ounce and all-in sustaining cost (or "AISC") per silver equivalent ounce. The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. These measures are widely used in the mining industry as a benchmark for performance but do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures disclosed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. For a complete description of how the Company calculates such measures and a reconciliation of certain measures to GAAP terms please see "Non-GAAP Measures" in the Company's most recent management discussion and analysis filed on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov and which is incorporated by reference herein.
Cautionary Note Regarding Forward Looking Statements
This news release contains "forward‐looking information" and "forward-looking statements" under applicable Canadian and U.S. securities laws (collectively, "forward‐looking statements"). These statements relate to future events or the Company's future performance, business prospects or opportunities that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management made in light of management's experience and perception of historical trends, current conditions and expected future developments. Forward-looking statements in this news release include, but are not limited to, statements with respect to: the assumptions used by the Company for its updated 2024 production guidance; timing for the release of the Company's Q2 2024 unaudited financial results; timing for the announcement of the Company's second quarter dividend payment and the shareholder record and payable dates in connection with such dividend payment; future planning processes; commercial mining operations; budgets; the timing and amount of estimated future production, AISC and cash costs; costs and timing of development at the Company's projects; and; capital projects and exploration activities for 2024 and their possible results. Assumptions may prove to be incorrect and actual results may differ materially from those anticipated. Consequently, guidance cannot be guaranteed. As such, investors are cautioned not to place undue reliance upon guidance and forward-looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "forecast", "potential", "target", "intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical fact and may be "forward‐looking statements".
Actual results may vary from forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to materially differ from those expressed or implied by such forward-looking statements, including but not limited to: the duration and effects of the coronavirus and COVID-19, and any other pandemics on our operations and workforce, and the effects on global economies and society; general economic conditions including inflation risks; actual results of exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; commodity prices; variations in ore reserves, grade or recovery rates; actual performance of plant, equipment or processes relative to specifications and expectations; accidents; labour relations; relations with local communities; changes in national or local governments; changes in applicable legislation or application thereof; delays in obtaining approvals or financing or in the completion of development or construction activities; exchange rate fluctuations; requirements for additional capital; government regulation; environmental risks; reclamation expenses; outcomes of pending litigation; limitations on insurance coverage as well as those factors discussed in the section entitled "Description of the Business - Risk Factors" in the Company's most recent Annual Information Form for the year ended December 31, 2023 filed with the Canadian securities regulatory authorities under the Company's SEDAR+ profile at www.sedarplus.ca, and in the Company's Annual Report on Form 40-F for the year ended December 31, 2023 filed with the United States Securities and Exchange Commission on EDGAR at www.sec.gov/edgar. Although First Majestic 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.
The Company believes that the expectations reflected in these forward‐looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward‐looking statements included herein should not be unduly relied upon. These statements speak only as of the date hereof. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/216951
News Provided by Newsfile via QuoteMedia
A number of factors have been driving the price of silver upward in 2024.
Even though rate cuts from the Fed have yet to materialize, softening interest rates and slowing economic growth have led to greater speculation that at least one reduction will come in the second half of the year.
Silver was initially followed gold higher in the March to May period. However, the gains in silver have outpaced gold nearly two to one in 2024. To date, silver has risen nearly 30 percent, while gold has only gained 15 percent.
Silver price, January 1, 2024, to July 16, 2024.
Chart via Trading Economics.
The pace of these gains has led to improving sentiment among investors. As of April, managed money positions in silver had climbed to their highest level since May 2022, and exchange-traded product holdings rose to their highest since July 2023, as outlined in the Silver Institute’s 2024 World Silver Survey presentation and report.
In an email to the Investing News Network (INN), Silver Institute President and CEO Michael DiRienzo said that the close link between silver and gold has led some investors to use it as a leverage play to gain exposure to gold.
“In addition, silver’s low unit cost and lower entry level have also made it more attractive to retail investors with a limited investment budget,” DiRienzo explained.
This was a point echoed by IndependentSpeculator.com CEO Lobo Tiggre in an interview with INN that took place on July 9. He suggested that even though silver has acted more like an industrial metal over the last several years, 2024 has seen investors once again looking at it for its value as a precious metal.
“That market dynamic has changed, and it’s moving more strongly with gold again as a monetary metal should … I think it's fantastic news for silver — and long-suffering silver bulls out there,” he said.
Improved sentiment has coincided with heightened industrial demand, particularly in the Indian market. Overall, silver demand is projected to grow by 2 percent in 2024, with the Silver Institute forecasting that industrial demand will increase by 9 percent — photovoltaics alone are expected to see a 20 percent gain.
As mentioned, India in particular has upped its silver purchases in 2024. Its imports came to a record 2,295 metric tons of silver in February, nearly outstripping an entire month of global mine supply. Though purchases have waned as prices have risen, the first four months of the year saw India import more silver than it did for all of 2023.
DiRienzo said that while the primary silver demand in India continues to be from the production of jewelry, the precious metal has also benefited from “firmer electrical & electronics demand, thanks to the continued strength in India’s real estate market and rising investment in local infrastructure construction.”
Additionally, he noted that Indian manufacturing of solar cells received additional support as companies reduced their reliance on Chinese manufacturing and diversified their supply lines for solar panels.
India has been the biggest driver in the photovoltaics category as the country continues building up its domestic solar supply chain through efforts such as its Approved List of Models and Manufacturers, which consists wholly of domestic companies. After a pause due to supply concerns last year, the nation's government reinstated the mandate as of April 1 of this year — as a result, government-funded and subsidized solar projects in India must source their solar photovoltaic modules from one of the companies included on the list.
Even so, China remains the global leader in photovoltaics production. And with new N-Type TopCon panels — which require 50 percent more silver — set to become the industry standard, industrial demand is set to rise even further.
Last year, a flagging Chinese economy not only put base metals under pressure, but dragged on silver as well. According to DiRienzo, fiscal stimulus measures implemented by the Chinese government have provided crucial support.
“Expectations on further fiscal stimulus for the Chinese economy led to a sharp rebound in base metal prices during 2024-to-date, which has benefited silver,” he said.
While both retail and industrial demand is growing, it’s not just demand driving prices.
Silver is also facing a severe supply crisis as a deficit that began to emerge in 2021 continues to widen, with the Silver Institute forecasting that the deficit will reach 215 million ounces by the end of 2024.
According to the Silver Institute, Mexico and Argentina had steep output declines in 2023, with production falling by 10.9 million ounces and 4.9 million ounces, respectively. The Silver Institute predicts that global production will fall further in 2024 to 823.5 million ounces due to the closure of several mines in Peru.
While it isn’t expected to eclipse these declines, new silver supply is coming online from various sources this year.
The Silver Institute forecasts an increase from Mexico this year now that Newmont’s (TSX:NGT,NYSE:NEM) Peñasquito mine is back at full operating capacity following a strike in 2023. Additionally, Endeavour Silver (TSX:EDR,NYSE:EXK) announced in April that its Terronera project was more than 50 percent complete and on schedule to begin production at the end of 2024. The mine will add 4 million ounces of silver supply to global markets annually.
The US is also increasing its silver output this year. Hecla Mining Company's (NYSE:HL) Lucky Friday mine in Idaho returned to full production in March, while the expansion at Coeur Mining’s (NYSE:CDE) Rochester silver-gold mine in Nevada entered commercial operation at the end of the first quarter. Once fully ramped up, it will be the largest domestic source of silver in the US, processing 32 million metric tons of ore per year.
Aya Gold and Silver (TSX:AYA,OTCQX:AYASF) provided an update on progress at its Zgounder mine expansion in Morocco on July 9, announcing it had made the first silver pour. The company said it remains on schedule for commercial production to begin in Q4. Once fully ramped up, the expanded mine is expected to produce 6.8 million ounces of silver per year, a significant increase from its 2023 output of 1.97 million ounces.
Despite these new and expanded mining operations bringing significant new silver supply to the market, it’s still a far cry from meeting the more than 200 million ounce deficit.
While gold tends to garner more of the media attention, silver has already been a stronger performer in 2024. Since its move began this year, a variety of experts have suggested the white metal has further to go.
In an interview with INN on July 3, Chris Vermeulen, chief market strategist at TheTechnicalTraders.com, suggested that silver is at a multi-year consolidation. He thinks a run over the next few months to US$36 per ounce is a possibility.
Peter Krauth, editor of Silver Stock Investor, told INN on May 24 that silver might experience a slight pullback over the next couple of months, but would likely establish a new floor at US$30. This came to pass as silver traded in the US$29 range in June before stabilizing above US$30 through the first half of July.
“We still have the gold-to-silver ratio somewhere around 75; it's averaged about 55 or 60 over the last few decades, so just on that basis if gold were to stay put, silver has a lot higher to go,” Krauth said.
“Typically when you get the ratio running down, both metals do well, but silver continues to do even better … so look for this to be a really tremendous run over the next months and years," he added.
While this might not be good news for manufacturers that require silver and consumers who buy their products, it's positive news for existing silver investors and new market participants who are looking for opportunities for a safe-haven investment that doesn’t come with the high entry point of gold.
There are also opportunities in silver stocks, which have been undervalued in recent years — in fact, many silver stocks have already seen significant gains this year. For example, silver producer Endeavour Silver and advanced development-stage companies GR Silver Mining (TSXV:GRSL,OTCQB:GRSLF) and Defiance Silver (TSXV:DEF,OTCQX:DNCVF) have all gained more than 100 percent from the start of the year through July 9.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
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