First Majestic Produces 2.1 Million Silver Equivalent Ounces in Second Quarter
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/17/12 -- First Majestic Silver Corp. ("First Majestic" or the "Company") (TSX: FR)(NYSE: AG)(FRANKFURT: FMV) (WKN: A0LHKJ)is pleased to announce that total production at its three mines in Mexico for the second quarter ending June 30, 2012 reached 2,102,222 equivalent ounces of silver, representing a 14% increase compared to the same quarter in 2011.
The total silver production for the quarter consisted of 1,917,248 ounces of silver, representing an 8% increase compared to the same quarter in 2011. In addition, 3,005,209 pounds of lead and 1,423,890 pounds of zinc was produced representing an increase of 116% and 5,355% respectively, compared to the same quarter in the previous year. Also, 533 ounces of gold was produced, representing an increase of 58% compared to the second quarter of 2011. No production from Silvermex Resources Inc. ("Silvermex") was included in First Majestic's second quarter operations as the acquisition closed on July 3, 2012, after the quarter was closed.
Following the recent closing of the Silvermex acquisition, the Company's 2012 production guidance has been adjusted for the additional production from the La Guitarra Silver Mine as well as other operational improvements at the existing operations. The Company now expects to produce between 8.3 to 9.1 million pure silver ounces, up from the previous 2012 guidance of 8.2 to 8.7 million silver ounces. Total silver equivalent production is now expected to be between 9.1 to 9.7 million ounces, up from the previous guidance of 8.8 to 9.3 million equivalent ounces.
Production Details Table:
Other Developments:
The severe drought conditions throughout much of Mexico and parts of the southern United States have left many communities, farming areas, cattle ranches and mining operations without normal water supplies. Second quarter production results at San Martin were lower, by approximately 80,000 ounces, due to the local Bolanos River, which supplies water to the region becoming completely dry. First Majestic acted quickly to assist the town of San Martin de Bolanos by building a 10 kilometre pipeline from a water source near the mine. The excess water was used for the milling operations which is now back to normal conditions. In addition, the seasonal rains have begun in the region resulting in the Bolanos River now being full of water relieving the need for the pipeline which can now be used as a back-up system for the future.
Over two years ago, First Majestic anticipated the importance of water conservation in Mexico. The Company's first mitigation effort was the installation of the tailings filtration system at the La Encantada operation which resulted in over 80% of the water being re-used in the milling operations. Due to the successful retention of water from the application of these filters, this same application was added to the recent expansion at the La Parrilla Silver Mine. These new filters are now fully operational, and are now saving over 80% of the water previously used at La Parrilla. In addition, the Del Toro Silver Mine, which has been under construction now for 15 months, will also be using the same tailings filtration system, and the San Martin mill is planning to install the same technology in 2013.
First Majestic has taken other important steps to protect the water supplies of our communities and for our operations by not only installing filtration systems to recirculate water, but also constructing sewage treatment facilities. The first example of this program was the construction of the sewage water treatment facility in the town of Chalchihuites. Previously, this sewage water was dispersed into the nearby streams negatively impacting the regional environment. Not only will this new sewage water treatment facility prevent regional environmental problems, this facility will also deliver gray water back to the milling operation at Del Toro.
In addition, First Majestic has signed an agreement with the town of San Martin de Bolanos in order to complete the construction of a sewage treatment facility which was abandoned several years ago. This facility is expected to be operational within six months, saving water and preserving the environment.
Due to the benefits for the communities and the Company resulting from First Majestic's conservation methods, the Company has adopted a policy of installing tailings filtration systems and sewage water treatment facilities at each of its mining operations.
The total ore processed during the quarter at the Company's three operating silver mines, the La Encantada Silver Mine, the La Parrilla Silver Mine and the San Martin Silver Mine, amounted to 615,799 tonnes milled representing an increase of 10% over the previous quarter. The average head grade in the quarter for the three mines decreased by 7% over the previous quarter to 164 g/t of silver. The combined silver recoveries increased from 57% in the first quarter to 59% in the second quarter of 2012.
The Company's underground development in the second quarter consisted of 13,627 metres, reaching a total of 27,870 metres in the first half of 2012. There were 35,965 metres of diamond drilling completed in the quarter compared with 29,194 metres of diamond drilling in the first quarter 2012 representing a 23% increase, reaching a total of 65,159 metres in the year. The expanded exploration program consists of definition drilling to define Reserves and Resources at the Company's three operating mines, to assist in mining activities and at the Del Toro Silver Mine which is being prepared for production in the fourth quarter of 2012. The Company currently has 19 diamond drill rigs operating.
At the La Encantada Silver Mine:
At the La Parrilla Silver Mine:
At the San Martin Silver Mine:
At the Del Toro Silver Mine:
Silvermex Acquisition:
La Guitarra Silver Mine:
Rosario Silver Mine and other assets:
First Majestic is a producing silver company focused in Mexico and is aggressively pursuing its business plan to become a senior silver producer through the development of its existing assets and the pursuit through acquisition of additional assets that contribute to achieving its corporate growth objectives.
FIRST MAJESTIC SILVER CORP.
Keith Neumeyer, President & CEO
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements", within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of First Majestic Silver Corp. Forward-looking statements include, but are not limited to, statements with respect to the future price of silver and other metals, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, hedging practices, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, timing and possible outcome of pending litigation, title disputes or claims and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of First Majestic Silver Corp. to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the integration of acquisitions; risks related to international operations; risks related to joint venture operations; actual results of current exploration activities; actual results of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of metals; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "Description of the Business - Risk Factors" in First Majestic Silver Corp.'s Annual Information Form for the year ended December 31, 2011, available on , and Form 40-F on file with the United States Securities and Exchange Commission in Washington, D.C. Although First Majestic Silver Corp. has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. First Majestic Silver Corp. does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.
Contacts:
First Majestic Silver Corp.
Keith Neumeyer
President & CEO
Toll Free: 1.866.529.2807 or (604) 688-3033
(604) 639-8873 (FAX)
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Datum: 17.07.2012 - 11:30 Uhr
Sprache: Deutsch
News-ID 165783
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