First Majestic Silver Corp. (NYSE: AG) (TSX: AG) (FSE: FMV) (the "Company" or "First Majestic") is pleased to announce the Company's unaudited condensed interim consolidated financial results for the third quarter ended September 30, 2024. The full version of the financial statements and the accompanying management's discussion and analysis can be viewed on the Company's website at www.firstmajestic.com or on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.govedgar. All amounts are in U.S. dollars unless stated otherwise.
THIRD QUARTER HIGHLIGHTS
Increased Production: The Company produced 5.5 million silver equivalent ("AgEq") ounces, a 4% increase when compared to Q2 2024, consisting of 1,967,574 silver ("Ag") ounces and 41,761 gold ("Au") ounces.
Increased Revenue: In the third quarter of 2024, the Company generated revenues of $146.1 million, a 10% increase compared to $133.2 million in the third quarter of 2023. This was primarily attributed to higher average realized silver prices, partially offset by a decrease in payable AgEq ounces sold primarily due to lower production levels at San Dimas and higher inventory levels held at First Mint at the end of the third quarter.
Built Inventory: The Company held 767,386 silver ounces in finished goods inventory as of September 30, 2024, inclusive of coins and bullion. The fair value of this inventory (which is not included in the third quarter revenues as of September 30, 2024) if sold, would have added $23.8 million in revenues.
Improved Mine Operating Earnings: The Company realized mine operating earnings of $28.5 million compared to $13.0 million in the third quarter of 2023, representing an increase of 119%. The increase in consolidated mine operating earnings was primarily attributed to a 67% increase in operating earnings at Santa Elena when compared to the third quarter of 2023, driven by higher average realized silver prices in Q3 2024.
Increased Cash Flow from Operations: Operating cash flow before changes in working capital and taxes in the quarter was $39.8 million compared to $14.1 million in the third quarter of 2023. This was primarily driven by a $15.5 million increase in mine operating earnings, a $6.4 million reduction in restructuring costs related to workforce optimization and a $1.0 million reduction in general and administrative expenses compared to the third quarter of 2023.
Improved Earnings Before Income Tax, Depreciation and Amortization ("EBITDA"): EBITDA for the quarter was $36.9 million compared to $11.5 million in the third quarter of 2023. The increase in EBITDA was primarily attributable to the increase in mine operating earnings and lower restructuring costs compared to the third quarter of 2023.
Strengthened Cash Position and Liquidity: The Company ended the quarter with a strong cash and cash equivalents position of $154.7 million compared to $138.3 million in the third quarter of 2023, while working capital increased to $238.2 million compared to $197.8 million in the third quarter of 2023. Cash and cash equivalents exclude an additional $103.9 million that is held in restricted cash.
Improved Cash Cost: Consolidated cash cost of $15.17 per AgEq ounce for the quarter represented a 1% improvement from $15.29 per AgEq ounce in the previous quarter. The decrease in cash costs was primarily attributable to the continued strong performance and increase in gold production at Santa Elena and San Dimas, along with the softening of the Mexican peso which averaged 10% weaker than the prior quarter. This was partially offset by an increase in royalty payments due to higher silver and gold prices, and a decrease in production at La Encantada due to the limited water supply, which was resolved by quarter end, partially offset by an increase in silver recoveries.
Decreased All-in Sustaining Cost ("AISC"): Consolidated AISC in the third quarter was $21.03 per AgEq ounce, representing a 3% decrease from $21.64 per AgEq ounce in the previous quarter. This was primarily attributable to lower cash costs along with lower worker participation costs.
Improved Sustainability Score: First Majestic achieved a score of 37 in the S&P Global Corporate Sustainability Assessment ("CSA") published on October 31, 2024, a 32% improvement over our 2023 performance. Our 2024 score places the Company in the top third of the mining and metals industry. Improvements were equally reflected across all three categories of the CSA - Environmental, Social, and Governance & Economic. The assessment noted significant improvements in First Majestic's Risk & Crisis Management, Business Ethics, IT Security, Water Management, Human Rights and Labour Practices.
Acquisition of Gatos Silver, Inc. ("Gatos"): On September 5, 2024, the Company announced that it had entered into a definitive agreement (the "Merger Agreement") to acquire all of the issued and outstanding shares of Gatos common stock pursuant to a merger under Delaware law (the "Merger"). The Merger is expected to close in early 2025, subject to the satisfaction of customary closing conditions, including approvals of the shareholders of First Majestic and Gatos, clearance under Mexican anti-trust laws, and approval of the listing of the First Majestic common shares to be issued under the Merger on both the TSX and the NYSE. The Merger Agreement has been unanimously approved by the board of directors of each of First Majestic and Gatos, and in the case of Gatos, on the unanimous recommendation of a special committee of independent directors of Gatos.
Third Quarter Dividend: Declared a cash dividend of $0.0048 per common share for the third quarter of 2024 for shareholders of record as of the close of business on November 15, 2024, to be paid out on or about November 29, 2024.
OPERATIONAL AND FINANCIAL HIGHLIGHTS
| Key Performance Metrics | 2024-Q3 | 2024-Q2 | Change Q3 vs Q2 | 2023-Q3 | Change Q3 vs Q3 | |||||||||||||
| Operational | ||||||||||||||||||
| Ore Processed / Tonnes Milled | 678,397 | 674,570 | 1% | 670,203 | 1% | |||||||||||||
| Silver Ounces Produced | 1,967,574 | 2,104,181 | (6%) | 2,461,868 | (20%) | |||||||||||||
| Gold Ounces Produced | 41,761 | 39,339 | 6% | 46,720 | (11%) | |||||||||||||
| Silver Equivalent ("AgEq) Ounces Produced | 5,490,416 | 5,289,439 | 4% | 6,285,790 | (13%) | |||||||||||||
| Cash Costs per Silver Equivalent Ounce(1) | $ | 15.17 | $ | 15.29 | (1%) | $ | 14.13 | 7% | ||||||||||
| All-in Sustaining Cost per Silver Equivalent Ounce(1) | $ | 21.03 | $ | 21.64 | (3%) | $ | 19.74 | 6% | ||||||||||
| Total Production Cost per Tonne(1) | $ | 109.81 | $ | 113.16 | (3%) | $ | 125.81 | (13%) | ||||||||||
| Average Realized Silver Price per Silver Equivalent Ounce(1) | $ | 29.84 | $ | 27.81 | 7% | $ | 22.41 | 33% | ||||||||||
| Financial (in $millions) | ||||||||||||||||||
| Revenues | $ | 146.1 | $ | 136.2 | 7% | $ | 133.2 | 10% | ||||||||||
| Mine Operating Earnings | $ | 28.5 | $ | 15.5 | 84% | $ | 13.0 | 119% | ||||||||||
| Net Loss | ($26.6 | ) | ($48.3 | ) | 45% | ($27.1 | ) | 2% | ||||||||||
| Operating Cash Flows before Non-Cash Working Capital and Taxes | $ | 39.8 | $ | 23.8 | 67% | $ | 14.1 | 181% | ||||||||||
| Capital Expenditures | $ | 34.7 | $ | 28.3 | 23% | $ | 32.2 | 8% | ||||||||||
| Cash and Cash Equivalents | $ | 154.7 | $ | 152.2 | 2% | $ | 138.3 | 12% | ||||||||||
| Restricted Cash | $ | 103.9 | $ | 117.5 | (12%) | $ | 119.0 | (13%) | ||||||||||
| Working Capital(1) | $ | 238.2 | $ | 229.9 | 4% | $ | 197.8 | 20% | ||||||||||
| Earnings before Interest, Tax, Depreciation and Amortization(1) | $ | 36.9 | $ | 21.6 | 71% | $ | 11.5 | NM | ||||||||||
| Adjusted EBITDA(1) | $ | 39.8 | $ | 26.8 | 49% | $ | 24.0 | 66% | ||||||||||
| Free Cash Flow(1) | $ | 31.3 | $ | 6.4 | NM | $ | 6.4 | NM | ||||||||||
| Shareholders | ||||||||||||||||||
| Loss per Share ("EPS") - Basic | ($0.09 | ) | ($0.17 | ) | 47% | ($0.09 | ) | 0% | ||||||||||
| Adjusted EPS(1) | ($0.03 | ) | ($0.07 | ) | 57% | ($0.04 | ) | 21% | ||||||||||
| | ||||||||||||||||||
(1) The Company reports certain non-GAAP measures which include cash costs per AgEq ounce produced, cash costs per Au ounce produced, AISC per AgEq ounce produced, AISC per Au ounce produced, total production cost per tonne, average realized silver price per AgEq ounce sold, average realized Au price per ounce sold, working capital, adjusted EPS, EBITDA, adjusted EBITDA, and free cash flow. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning under the Company's financial reporting framework, and the methods used by the Company to calculate such measures may differ from methods used by other companies with similar descriptions. See "Non-GAAP Measures" below for further details of these measures.
THIRD QUARTER FINANCIAL RESULTS
The Company ended the quarter with a strong cash and cash equivalents position of $154.7 million compared to $138.3 million in the third quarter of 2023, while working capital increased to $238.2 million compared to $197.8 million in the third quarter of 2023. Cash and cash equivalents exclude an additional $103.9 million that is held in restricted cash.
The Company generated revenues of $146.1 million during the quarter, a 10% increase compared to $133.2 million of revenues generated in the third quarter of 2023. This was primarily attributed to higher average realized silver prices, partially offset by a decrease in payable AgEq ounces sold primarily due to lower production levels at San Dimas and higher inventory levels held at the end of the third quarter of 2024.
The Company realized mine operating earnings of $28.5 million compared to $13.0 million in the third quarter of 2023, representing an increase of 119%. The increase in consolidated mine operating earnings was primarily attributed to a 67% increase in operating earnings at Santa Elena when compared to the third quarter of 2023, driven by higher average realized silver prices in the third quarter of 2024.
EBITDA for the quarter was $36.9 million compared to $11.5 million in the third quarter of 2023. The increase in EBITDA was primarily attributable to the increase in mine operating earnings and lower restructuring costs, related to workforce optimization mainly at San Dimas, compared to the third quarter of 2023.
Adjusted EBITDA, normalized for non-cash or non-recurring items such as share-based payments and unrealized losses on marketable securities for the quarter ended September 30, 2024, was $39.8 million compared to $24.0 million in the third quarter of 2023.
Net loss for the quarter was $26.6 million (EPS of ($0.09)) compared to a net loss of $27.1 million (EPS of ($0.09)) in the third quarter of 2023. Net loss for the quarter includes non-cash foreign exchange loss of $5.8 million (EPS of ($0.02)) and non-cash deferred income tax expense of $13.2 million (EPS of ($0.04)), relating primarily to the weakening of the Mexican peso at the end of the quarter compared to the third quarter of 2023. On September 30, 2024, the Company held $151.4 million of its cash and value added taxes receivable in Mexican pesos (there is a $9.7 million non-cash impact on the Company's reported net earnings or loss per 10% change in the value of the Mexican peso against the U.S. dollar). The slight decrease in net loss was primarily attributed to a $13.0 million increase in mine operating earnings partially offset by a $20.9 million income tax expense increase as compared to the same quarter of the prior year. Q3 2023 was also impacted by non-recurring restructuring efforts and holding costs at La Parrilla along with a one-time loss on the sale of mining interest incurred following the disposition of La Parrilla.
Adjusted net loss, normalized for non-cash or non-recurring items such as share-based payments, unrealized losses on marketable securities, and deferred income tax for the quarter ended September 30, 2024, was $10.5 million (adjusted EPS of ($0.03)) compared to adjusted net loss of $10.9 million (adjusted EPS of ($0.04)) in the third quarter of 2023.
The Company's total capital expenditures in the third quarter of 2024 were $34.7 million (Q3 2023 - $32.2 million) consisting of $13.8 million for underground development (Q3 2023 - $14.8 million), $14.8 million in exploration (Q3 2023 - $8.1 million), and $6.1 million in property, plant and equipment (Q3 2023 - $9.3 million).
OPERATIONAL HIGHLIGHTS
The table below represents the quarterly operating and cost performance at each of the Company's three producing mines during the quarter.
| Third Quarter Production Summary | Santa Elena | San Dimas | La Encantada | Jerritt Canyon(1) | Consolidated |
| Ore Processed / Tonnes Milled | 259,919 | 195,279 | 223,200 | - | 678,397 |
| Silver Ounces Produced | 376,203 | 1,046,340 | 545,031 | - | 1,967,574 |
| Gold Ounces Produced | 27,435 | 12,582 | 59 | 1,684 | 41,761 |
| Silver Equivalent Ounces Produced | 2,685,375 | 2,110,905 | 550,042 | 144,093 | 5,490,416 |
| Cash Costs per Silver Equivalent Ounce(2) | $11.96 | $16.50 | $25.24 | $17.25 | $15.17 |
| AISC per Silver Equivalent Ounce(2) | $14.38 | $21.44 | $30.10 | $17.25 | $21.03 |
| Cash Cost per Gold Ounce(2) | N/A | N/A | N/A | $1,491 | N/A |
| AISC per Gold Ounce(2) | N/A | N/A | N/A | $1,491 | N/A |
| Total Production Cost per Tonne(2) | $107.80 | $168.45 | $60.86 | $- | $109.81 |
(1) Jerritt Canyon was placed on temporary suspension in March 2023. In-circuit recovery efforts performed in Q3 2024 resulted in the production of 1,684 gold ounces.
(2) See "Non-GAAP Financial Measures" below for further details regarding these measures.
The Company produced 5.5 million AgEq ounces, consisting of 1,967,574 Ag ounces and 41,761 Au ounces, a 4% increase when compared to Q2 2024.
Consolidated cash costs of $15.17 per AgEq ounce for the quarter represented a 1% improvement from $15.29 per AgEq ounce in the previous quarter. The decrease in cash costs was primarily attributable to the continued strong performance and increase in gold production at Santa Elena and San Dimas, along with the weakening of the Mexican peso, which averaged 10% weaker than the prior quarter. This was partially offset by a decrease in production at La Encantada due to the limited water supply, which was resolved by quarter end, partially offset by an increase in silver recoveries.
Consolidated AISC in the third quarter was $21.03 per AgEq ounce, representing a 3% decrease from $21.64 per AgEq ounce in the previous quarter. This was primarily attributable to lower cash costs along with lower worker participation costs.
Q3 2024 DIVIDEND ANNOUNCEMENT
The Company is pleased to announce that its Board of Directors has declared a cash dividend in the amount of $0.0048 per common share for the third quarter of 2024. The dividend will be paid to holders of record of First Majestic's common shares as of the close of business on November 15, 2024, and will be paid out on or about November 29, 2024.
Under the Company's dividend policy, the quarterly dividend per common share is targeted to equal approximately 1% of the Company's net quarterly revenues divided by the number of the Company's common shares outstanding on the record date.
The amount and distribution dates of future dividends remain at the discretion of the Board of Directors. This dividend qualifies as an "eligible dividend" for Canadian income tax purposes. Dividends paid to shareholders outside Canada (non-resident investors) may be subject to Canadian non-resident withholding taxes.
ABOUT FIRST MAJESTIC
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.
On September 5, 2024, First Majestic and Gatos Silver, Inc. announced that they entered into a definitive merger agreement pursuant to which First Majestic will acquire all of the issued and outstanding shares of Gatos Silver's common stock. The proposed transaction would consolidate three world-class, producing silver mining districts in Mexico to create a leading intermediate primary silver producer. Information relating to the proposed transaction can be found on the Company's website.
For further information, contact info@firstmajestic.com, visit our website at www.firstmajestic.com or call our toll-free number 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 produced, all-in sustaining cost (or "AISC") per silver equivalent ounce produced, cash costs per gold ounce produced, AISC per gold ounce produced, total production cost per tonne, average realized silver price per ounce sold, average realized gold price per ounce sold, working capital, adjusted net earnings and EPS and free cash flow. 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/edgar.
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 timing for the payment of the Company's cash dividend for the second quarter of 2024. 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. All statements other than statements of historical fact may be forward‐looking statements. Statements concerning proven and probable mineral reserves and mineral resource estimates may also be deemed to constitute forward‐looking statements to the extent that they involve estimates of the mineralization that will be encountered as and if the property is developed, and in the case of measured and indicated mineral resources or proven and probable mineral reserves, such statements reflect the conclusion based on certain assumptions that the mineral deposit can be economically exploited. 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 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; availability of sufficient water for operating purposes; 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 recently filed AIF, available under the Company's profile on SEDAR+ at www.sedarplus.ca, and as an exhibit to the Company's most recently filed Form 40‐F available 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/229141
News Provided by Newsfile via QuoteMedia
Silver47 Exploration (TSXV:AGA) is a compelling investment story, well-positioned to capitalize on the increasing global demand for silver, gold, copper, zinc, antimony, tin and graphite driven by its vast industrial applications and investment potential. The company wholly owns a diverse portfolio of silver-polymetallic projects across North America, including Red Mountain VMS (Alaska), Adams Plateau (British Columbia) and Michelle (Yukon).
Focused on rapid resource growth and new discoveries, Silver47 is backed by an experienced technical and management team that brings decades of successful experience in mineral exploration. Silver47 has outlined aggressive drill programs to rapidly advance its projects toward development.
The Red Mountain VMS project is Silver47's flagship asset located about 100 kilometers south of Fairbanks, Alaska. Red Mountain is a polymetallic VMS deposit, rich in silver, gold, zinc, copper, and lead. Red Mountain holds an NI 43-101 inferred resource of 15.6 million tonnes (Mt) at 7 percent zinc equivalent, or 168.6 Moz of silver equivalent at a grade of 335.7 grams per ton (g/t) silver equivalent. The project is located in a mining-friendly jurisdiction on state managed lands with reasonable access to infrastructure.
This Silver47 Exploration profile is part of a paid investor education campaign.*
Click here to connect with Silver47 Exploration (TSXV:AGA) to receive an Investor Presentation
Glenn Jessome, President & CEO stated "We are very pleased with the work completed by our consultants and our technical team on the PFS for the open pit at El Tigre. The open pit delivers robust economics with an NPV of US$222 million, an initial capital expenditure of US$87 million, and a payback of 2 years with 3 years of production in the Proven category in the ‘Starter Pit using metal prices greatly discounted to the spot price." Mr. Jessome continued "This is a pivotal point for our Company as we now have a clear path forward to making a construction decision for the open pit. The open pit has good grade (48 g/t AgEq), low strip ratio (1.7:1), and wide benches (~150 m) with mineralization at surface. With such positive parameters and with our VP of Operations Francisco Albelais, a career expert in the construction of large heap leach mines in Mexico, we are confident we will be able to advance the Project very quickly." Mr. Jessome concluded "The open pit is only one component of El Tigre as we have also today delivered over 113 Mozs AgEq in the underground Mineral Resource Estimate and disclosed an Exploration Target establishing 10 to 12 million tonnes at 225 to 265 g/t AgEq for 73 to 100 Moz AgEq. This disclosed ‘near-mine' Mineral Resource and potential, when coupled with the fact that only 30% of this prolific Property has been explored, shows the value of the El Tigre Project. The Company will also continue to work on this substantial underground Mineral Resource by starting underground drilling immediately, and plan to release an underground PEA in H1-2025."
Highlights of the updated Mineral Resource
Preliminary Feasibility Summary
The PFS was prepared by independent consultants P&E Mining Consultants Inc. ("P&E"), with metallurgical test work completed by McClelland Laboratories, Inc. - Sparks, Nevada, process plant design and costing by D.E.N.M. Engineering Ltd., and environmental and permitting led by CIMA Mexico. Following are tables and figures showing key assumptions, results, and sensitivities.
Table 1: El Tigre PFS Key Economic Assumptions and Results
Figure 2: El Tigre Cash Flow Profile by Year
Figure 2 above highlights the post-tax cash flows of US$318 million associated with the El Tigre Project. The economics of the Project have been evaluated based on the base case scenario $26/oz silver price and gold price of $2,150/oz. As illustrated in the following sensitivity tables, the Project remains robust even at lower commodity prices or with higher costs (Tables 2 and 3).
Table 2 - El Tigre PFS Gold and Silver Price Sensitivities
Table 3 - El Tigre PFS Operating Cost and Capital Cost Sensitivities
Capital and Operating Costs
The El Tigre Project has been envisioned as an open pit mining operation starting at a processing rate of 7,500 tonnes per day for years 1-3 and then ramping up to 15,000 tonnes per day by year 4 after 1 year construction for ramp up in year 3.
The process plant is comprised of conventional three (3) stage crushing to an optimum -3/8 inch (10 mm) crush size. The crushed material will be conveyed and loaded on the lined pad areas. A series of pumping and piping will allow irrigation of the stacked heap material and subsequent production of pregnant solution to flow to the respective impoundment pond. The pregnant solution will be pumped to the recovery facility consisting of the Merrill - Crowe process (zinc precipitation) and refinery to produce the gold and silver dore for marketing. The process barren solution will be recycled (with NaCN addition) and pumped back to the heap for further leaching. The process plant location will be adjacent to the pad and pond infrastructure area.
Water supply to the process plant is provided by pumping from nearby Bavispe River to the process area water distribution system and high voltage grid power will be installed by the local utility to supply process and infrastructure electrical requirements. Expansion capital includes the cost to increase the process plant capacity from 7,500 tonnes per day to 15,000 tonnes per day as noted in Year 4 of operation.
Table 4 - LOM Capital Cost Estimate
Mining
Open pit mining will be contracted and carried out by drill and blast followed by conventional loading and truck haulage to the waste rock storage facilities and the process plant.
Metallurgy
A detailed metallurgical test program was carried out by McClelland Laboratories, Inc., Sparks, Nevada on six (6) El Tigre starter pit samples. The program included crushing, coarse bottle rolls, and column testing at both 80% passing 3/8 inch and 1/2 inch (10 and 12 mm) crush size for five (5) of the six samples. One low grade sample was only crushed to 80% passing 1-1/2 inch (38 mm) as an indication of low grade leachability. The leach samples comprised of drill core sample representing the starter pit and during the testing process it became apparent that the presence of transition and sulfide zones are in the starter pit thus affecting the base design recoveries. This variable test program (column and coarse bottle roll) estimated oxide average gold and silver respective metallurgical recoveries of 86% Au and 48% Ag at the 3/8 inch (10 mm) crush. The transition and sulfide zones had estimated recoveries of 59% Au and 43% Ag. Further percolation testing also confirmed no requirement for agglomeration of the crushed material is required prior to loading on the leach pad.
Mineral Resource Estimate
The basis for the PFS is the Mineral Resource Estimate completed by P&E for the El Tigre Project located in Sonora State, Mexico, which has an effective date of October 22, 2024, with an NI 43-101 Technical Report to be filed within 45 days of this news release. A summary of the Mineral Resource Estimate is provided in Table 5.
Table 5 - Updated Mineral Resource Estimate October 2024
Mineral Resource Estimate Methodology - El Tigre Project
The El Tigre Project includes the El Tigre Veins, El Tigre Tailings and the El Tigre Low-Grade Stockpile.
The databases used for this Mineral Resource update contain a total of 20,149 collar records that contribute directly to the Mineral Resource Estimate and includes collar, survey, assay, lithology and bulk density data. Assay data includes Au g/t, Ag g/t, Cu %, Pb % and Zn % grades. The drilling extends approximately five km along strike.
P&E Mining Consultants Inc. ("P&E") collaborated with Silver Tiger personnel to develop the mineralization models, grade estimates, and reporting criteria for the Mineral Resources at El Tigre. Mineralized domains were initially developed by Silver Tiger and were reviewed and modified by P&E. A total of twenty-seven individual mineralized domains have been identified through drilling and surface sampling. Interpreted mineralization wireframes were developed by Silver Tiger geologists for the El Tigre Veins based on logged drill hole lithology, assay grades and historical records. Silver Tiger identified continuous zones of mineralization from assay grades equal to or greater than 0.30 g/t AuEq with observed continuity along strike and down-dip, using a calculated Ag:Au equivalent factor of 75:1. The selected intervals include lower grade material where necessary to maintain wireframe continuity between drill holes.
P&E developed mineralized domains for the El Tigre Low-Grade Stockpile and the El Tigre Tailings based on lithological logging and LiDAR surface topography.
Assay samples were composited to either 1.00 m or 1.50 m for the vein domains. No compositing was used for the Low-Grade Stockpiles and Tailings models. Composites were capped prior to grade estimation based on the analysis of individual composite log-probability distributions.
A total of 5,542 bulk density values were taken by Silver Tiger from drill hole core. Mineralized bulk density values were assigned for each of the El Tigre Main Veins based on the median vein measurement. For the El Tigre North Veins, a bulk density of 2.65 t/m 3 was assigned for the veins and a value of 2.42 t/m 3 was assigned for the Protectora Halo. For the Low-Grade Stockpile a value of 1.60 t/m 3 was assigned, and for the Tailings a value of 1.39 t/m 3 was used based on 37 nuclear density measurements.
Vein block grades for gold and silver were estimated by Inverse Distance Cubed ("ID3") interpolation of capped composites using a minimum of four and a maximum of twelve composites. Vein block grades for copper, lead and zinc were estimated by Inverse Distance Squared ("ID2") interpolation of capped composites using a minimum of four and a maximum of twelve composites.
Nearest-Neighbour grade interpolation was used for the Low-Grade Stockpiles, and for the Tailings, block grades were estimated by ID2 estimation of capped assays using a minimum of four and a maximum of twelve samples.
For the El Tigre Main Veins, blocks within 30 m of three or more drill holes/channels were classified as Measured Mineral Resources, and blocks within 60 m of three or more drill holes/channels were classified as Indicated Mineral Resources. All additional estimated blocks were classified as Inferred Mineral Resources.
For the North Veins, blocks interpolated by at least two drill holes within 50 m were classified as Indicated Mineral Resources. Blocks interpolated by at least one drill hole within a maximum distance of 200 m were classified as Inferred Mineral Resources.
For the Low-Grade Stockpiles, blocks within 15 m of two or more drill holes were classified as Indicated Mineral Resources. All additional estimated blocks were classified as Inferred Mineral Resources.
For the Tailings, blocks within 30 m of three or more auger or core drill holes were classified as Measured Mineral Resources. Blocks within 60 m of two or more auger/drill holes/pits or trenches were classified as Indicated Mineral Resources. All additional estimated blocks were classified as Inferred Mineral Resources.
P&E considers that the block model Mineral Resource Estimates and Mineral Resource classification represent a reasonable estimation of the global mineral resources for the El Tigre Project with regard to compliance with generally accepted industry standards and guidelines, the methodology used for estimation, the classification criteria used and the actual implementation of the methodology in terms of Mineral Resource estimation and reporting. The Mineral Resources have been estimated in conformity with the requirements of the CIM "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines as required by the Canadian Securities Administrators' National Instrument 43-101. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
Table 6: AuEq Cut-off Sensitivities - ET Pit-Constrained Mineral Resource
Table 7: AuEq Cut-off Sensitivities - ET Out-of-Pit Mineral Resource
Exploration Potential
Exploration potential at the El Tigre Project is substantial with prospective areas for exploration both down dip and along strike with the disclosed Exploration Target establishing 10 to 12 million tonnes at 225 to 265 g/t AgEq for 73 to 100 Moz AgEq.
Figure 3-Exploration Potential released October 2024
Surface Rights Agreement
The Company owns royalty-free, 100% of the 6,238 hectares land-package encompassing the footprint of proposed mining operation with no Ejido presence. In addition, the Company controls 28,414 hectares of Concessions to conduct exploration along a 25 km strike length of the Sierra Madres.
Underground Preliminary Economic Assessment
The Company will also continue to work on this substantial, permitted underground Mineral Resource Estimate and advance this towards a Preliminary Economic Assessment by H1-2025. The Measured and Indicated Out-of-Pit Mineral Resource at El Tigre is 44 Moz AgEq grading 255 g/t AgEq contained in 5.3 Mt and the Inferred Mineral Resource is 70 Moz AgEq grading 216 g/t AgEq contained in 10.1 Mt.
Qualified Persons
Mineral Resource Estimate: Dave Duncan P. Geo. VP Exploration of Silver Tiger, Charles Spath P.Geo., VP of Technical Services of Silver Tiger, and Fred Brown, P.Geo RM-SME Senior Associate Geologist of P&E Mining Consultants, and Eugene Puritch, P.Eng., FEC, CET, President of P&E Mining Consultants are the Qualified Persons as defined under National Instrument 43-101. All Qualified Persons have reviewed and approved the scientific and technical information in this press release.
Preliminary Feasibility Study: Andrew Bradfield P. Eng of P&E Mining Consultants, Eugene Puritch, P.Eng., FEC, CET, President of P&E Mining Consultants and David J. Salari, P. Eng. of D.E.N.M. Engineering Ltd are the Qualified Persons as defined under National Instrument 43-101. All Qualified Persons have reviewed and approved the scientific and technical information in this press release.
A Technical Report is being prepared on the Preliminary Feasibility Study in accordance with National Instrument 43-101 ("NI-43-101"), and will be available on the Company's website and SEDAR within 45 days of the date of this news release. The effective date of this Preliminary Feasibility Study is October 22, 2024.
VRIFY Slide Deck and 3D Presentation - Silver Tiger's El Tigre Project
VRIFY is a platform being used by companies to communicate with investors using 360° virtual tours of remote mining assets, 3D models and interactive presentations. VRIFY can be accessed by website and with the VRIFY iOS and Android apps.
Access the Silver Tiger Metals Inc. Company Profile on VRIFY at: https://vrify.com
The VRIFY Slide Deck and 3D Presentation for Silver Tiger Metals Inc. can be viewed at: https://vrify.com/explore/decks/492 and on the Corporation's website at: www.silvertigermetals.com.
About Silver Tiger and the El Tigre Historic Mine District
Silver Tiger Metals Inc. is a Canadian company whose management has more than 25 years' experience discovering, financing and building large epithermal silver projects in Mexico. Silver Tiger's 100% owned 28,414 hectare Historic El Tigre Mining District is located in Sonora, Mexico. Principled environmental, social and governance practices are core priorities at Silver Tiger.
The El Tigre historic mine district is located in Sonora, Mexico and lies at the northern end of the Sierra Madre silver and gold belt which hosts many epithermal silver and gold deposits, including Dolores, Santa Elena and Las Chispas at the northern end. In 1896, gold was first discovered on the property in the Gold Hill area and mining started with the Brown Shaft in 1903. The focus soon changed to mining high-grade silver veins in the area with production coming from 3 parallel veins the El Tigre Vein, the Seitz Kelley Vein and the Sooy Vein. Underground mining on the middle El Tigre Vein extended 1,450 metres along strike and was mined on 14 levels to a depth of approximately 450 metres. The Seitz Kelley Vein was mined along strike for 1 kilometre to a depth of approximately 200 metres. The Sooy Vein was only mined along strike for 250 metres to a depth of approximately 150 metres. Mining abruptly stopped on all 3 of these veins when the price of silver collapsed to less than 20¢ per ounce with the onset of the Great Depression. By the time the mine closed in 1930, it is reported to have produced a total of 353,000 ounces of gold and 67.4 million ounces of silver from 1.87 million tons (Craig, 2012). The average grade mined during this period was over 2 kilograms silver equivalent per ton.
For further information, please contact:
Glenn Jessome
President and CEO
902 492 0298
jessome@silvertigermetals.com
CAUTIONARY STATEMENT:
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This News Release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential mineralization, Mineral Resources and Reserves, the ability to convert Inferred Mineral Resources to Indicated Mineral Resources, the ability to complete future drilling programs and infill sampling, the ability to extend Mineral Resource blocks, the similarity of mineralization at El Tigre to Delores, Santa Elena and Chispas, exploration results, and future plans and objectives of Silver Tiger, are forward-looking statements that involve various risks and uncertainties. Forward-looking statements are frequently characterized by words such as "may", "is expected to", "anticipates", "estimates", "intends", "plans", "projection", "could", "vision", "goals", "objective" and "outlook" and other similar words. Although Silver Tiger believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, there can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Silver Tiger's expectations include risks and uncertainties related to exploration, development, operations, commodity prices and global financial volatility, risk and uncertainties of operating in a foreign jurisdiction as well as additional risks described from time to time in the filings made by Silver Tiger with securities regulators.