Vancouver, British Columbia--(Newsfile Corp. - April 1, 2024) - First Majestic Silver Corp. (NYSE: AG) (TSX: FR) (FSE: FMV) (the "Company" or "First Majestic") is pleased to announce the 2023 Mineral Reserve and Mineral Resource estimates for its four material mineral properties with an effective date of December 31, 2023. Three material properties are currently in production: the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, and the La Encantada Silver Mine. The fourth material property, the Jerritt Canyon Gold Mine, is currently in temporary suspension in respect of mining activities, with the Company currently focused on exploration, definition, and expansion of the mineral resources, and the optimization of mine planning and plant operations. During 2023, the Company completed a total of 143,454 metres of exploration drilling. Approximately 85% of this drilling was focused on near-mine or brownfield targets while the remainder was focused on greenfield targets exploring for new discoveries. In 2023, the Company's Measured and Indicated and Inferred Mineral Resource estimates remained relatively unchanged in contained silver equivalent ("AgEq") ounces; exploration results also successfully offset of Reserve depletion following record annual production of 9.6 million AgEq ounces. 2023 HIGHLIGHTS (compared to prior Mineral Reserve and Mineral Resource estimates on December 31, 2022) Proven and Probable ("P&P") Mineral Reserve estimates at the Company's three producing material assets totalled 122.5 million AgEq ounces consisting of 56.1 million ounces of silver and 671,000 ounces of gold, which represents a 2% decrease in tonnes, a 9% decrease in silver ounces and a 14% decrease in gold ounces. Measured and Indicated ("M&I") Mineral Resource estimates (inclusive of Mineral Reserves) for the four material assets totalled 346.6 million AgEq ounces consisting of 95.9 million ounces of silver and 2.9 million ounces of gold, which represents a 1% increase in tonnes, a 6% decrease in silver ounces and a 3% increase in gold ounces, respectively. The changes to Mineral Resource estimates reflect mining depletion and updated cut-off grades from new economic parameters including costs, metal recoveries and metal prices. Exploration drilling results added new Mineral Resources and identified additional mineralized areas. Jerritt Canyon added 207,000 ounces of gold to its M&I Mineral Resource estimates. Inferred Mineral Resource estimates for the Company's four material assets totalled 283.8 million AgEq ounces consisting of 65 million ounces of silver and 2.6 million ounces of gold, which represents a 6% increase in tonnes, a 12% decrease in silver ounces and a 10% increase in gold ounces. Jerritt Canyon added 360,000 ounces of gold to its Inferred Mineral Resource driven by a combination of expansionary drilling results, modelling of additional mineralized areas and a decreased cut-off grade. 2023 PRODUCTION TABLE Units SAN DIMAS SANTA ELENA LA ENCANTADA JERRITT CANYON TOTAL Ore Processed Tonnes 875,345 882,592 966,392 177,643 2,901,972 Material from Reserves Mined and Processed Tonnes 764,444 882,592 152,259 -- 1,799,295 Material Mined from Areas Not in Reserves Tonnes 110,900 -- 814,134 177,643 1,102,677 Silver Produced Ounces 6,355,308 1,176,591 2,718,856 -- 10,250,755 Gold Produced Ounces 76,964 100,535 321 21,101 198,921 Silver-Equivalent Produced from Gold Ounces 6,434,612 8,395,201 26,766 1,767,083 16,623,662 Silver-Equivalent Produced Ounces 12,789,920 9,571,792 2,745,622 1,767,083 26,874,417 Silver‐equivalent ounces are estimated considering metal price assumptions, metallurgical recovery for the corresponding mineral type/mineral process and the metal payable of the corresponding contract of each mine. Details as to the method of calculation can be found in the applicable tables in each mine section of the Company's Annual Information Form dated April 1, 2024 (the "AIF"). Metal price assumptions used to estimate the December 31, 2023 Mineral Reserves were $22.50/oz for silver and $1,850/oz for gold. This compares to the previous metal price assumptions of $21.50/oz for silver and $1,750/oz for gold used to calculate the Company's 2022 Mineral Reserve estimates. Metal price assumptions used to estimate the December 31, 2023 Mineral Resources were $24.50/oz for silver and $2,000/oz for gold. This compares to the previous metal price assumptions of $23.00/oz for silver and $1,900/oz for gold used to calculate the Company's 2022 Mineral Resources estimates. MINERAL RESERVE AND MINERAL RESOURCE ESTIMATES As of December 31, 2023, P&P Mineral Reserve estimates at the Company's three producing material assets totalled 56.2 million ounces of silver and 671,000 ounces of gold, which represents a total of 122.5 million AgEq ounces. Santa Elena's P&P Mineral Reserve estimates remained relatively unchanged despite record production of 9.6 million AgEq ounces from Ermitaño. At La Encantada, P&P Mineral Reserves estimates increased mainly due to mine design updates in the Milagros ore body. At San Dimas, P&P Mineral Reserve estimates decreased due to a combination of depletion, cost driven increase of cut-off grade and the exclusion of low tonnage pillars. Proven and Probable Mineral Reserve Estimates with an Effective Date of December 31, 2023 Mine Mineral Tonnage Grades Metal Content Category Type k tonnes Ag (g/t) Au (g/t) Ag-Eq (g/t) Ag (k Oz) Au (k Oz) Ag-Eq (k Oz) SAN DIMAS Proven (UG) Sulphides 1,972 265 3.47 556 16,780 220 35,270 Probable (UG) Sulphides 1,663 254 2.69 480 13,580 144 25,640 Total Proven and Probable (UG) Sulphides 3,635 260 3.11 521 30,360 364 60,910 SANTA ELENA Proven (UG - Ermitano) Sulphides 590 78 3.87 548 1,473 73 10,386 Proven (UG - Santa Elena) Sulphides 164 140 1.54 267 735 8 1,408 Probable (UG - Ermitano) Sulphides 2,086 65 2.87 414 4,367 193 27,774 Probable (UG - Santa Elena) Sulphides 679 167 1.30 275 3,636 28 5,996 Probable (Pad) Oxides 325 25 0.39 65 266 4 677 Total Proven and Probable (UG+Pad) Oxides + Sulphides 3,843 85 2.48 374 10,478 307 46,241 LA ENCANTADA Probable (UG) Oxides 3,675 130 - 130 15,321 - 15,321 Total Probable (UG) Oxides 3,675 130 - 130 15,321 - 15,321 Consolidated FMS Proven (UG) All mineral types 2,726 217 3.44 537 18,988 302 47,064 Probable (UG) All mineral types 8,428 137 1.36 278 37,171 369 75,409 Total Proven and Probable All mineral types 11,153 157 1.87 342 56,159 671 122,472 Mineral Reserves have been classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Definition Standards on Mineral Resources and Mineral Reserves, whose definitions are incorporated by reference into NI 43-101. The Mineral Reserve statement provided in the table above has an effective date of December 31, 2023, except for the Santa Elena Leach Pad estimate, which has an effective date of March 11, 2024. The Mineral Reserve estimates were prepared under the supervision of, or were reviewed by, Brian Boutilier, P.Eng., Internal QP for First Majestic, who is a Qualified Person under NI 43-101. The Mineral Reserves were estimated from the M&I portions of the Mineral Resource estimates. Inferred Mineral Resources were not considered to be converted into Mineral Reserve estimates. AgEq is estimated considering metal price assumptions, metallurgical recovery for the corresponding mineral type/mineral process and the metal payable of the selling contract. (a)The AgEq grade formula used was: AgEq Grade = Ag Grade + Au Grade * (Au Recovery * Au Payable * Au Price) / (Ag Recovery * Ag Payable * Ag Price). (b)Metal prices considered for Mineral Reserve estimates were $22.5/oz Ag and $1,850/oz Au for all sites. (c)Other key assumptions and parameters include: metallurgical recoveries; metal payable terms; direct mining costs, processing costs, indirect and G&A costs and sustaining costs. These parameters are different for each mine and mining method assumed and are presented in each mine section of the AIF. A two-step constraining approach has been implemented to estimate Mineral Reserves for each mining method in use: A General Cut-Off Grade ("GC") was used to delimit new mining areas that will require development of access, infrastructure and all sustaining costs. A second Incremental Cut-Off Grade ("IC") was considered to include adjacent mineralized material which recoverable value pays for all associated costs, including but not limited to the variable cost of mining and processing, indirect costs, treatment, administration costs and plant sustaining costs but excludes the access development assumed to be covered by the block above the GC grade. The cut-off grades, metallurgical recoveries, payable terms and modifying factors used to convert Mineral Reserves from Mineral Resources are different for all mines and are presented in each mine section in the AIF. Modifying factors for conversion of resources to reserves include consideration for planned dilution which is based on spatial and geotechnical aspects of the designed stopes and economic zones, additional dilution consideration due to unplanned events, materials handling and other operating aspects, and mining recovery factors. Mineable shapes were used as geometric constraints. Tonnage is expressed in thousands of tonnes; metal content is expressed in thousands of ounces. Metal prices and costs are expressed in USD. Numbers have been rounded as required by reporting guidelines. Totals may not sum due to rounding. The technical reports from which the above-mentioned information is derived are cited under the heading "Technical Reports for Material Properties" in the AIF. M&I Mineral Resource estimates for the four material assets totalled 346.6 million AgEq ounces consisting of 95.9 million ounces of silver and 2.9 million ounces of gold. The M&I tonnes increased by 1% compared to 2022. M&I Mineral Resources at Jerritt Canyon increased by 207,000 gold ounces primarily due to successful drilling programs at the SSX and Smith mines that expanded the mineralization, combined with an overall decrease in gold cut-off grade from assumptions related to increased gold prices and lower costs due to self-performed mining instead of third-party contractor mining. M&I Mineral Resource estimates are reported inclusive of Mineral Reserve estimates. Inferred Mineral Resource estimates for the Company's four material properties totalled 283.8 million AgEq ounces consisting of 65 million ounces of silver and 2.6 million ounces of gold. Successful exploration drilling at Jerritt Canyon outlined new Inferred Resource estimates, additional mineralized areas were modeled, and a reduction of the gold cut-off grade all contributed to an increase in Inferred Resources totalling 360,000 ounces of gold. Measured and Indicated Mineral Resource Estimates with an Effective Date of December 31, 2023 Mine / Project Mineral Tonnage Grades Metal Content Category / Area Type k tonnes Ag (g/t) Au (g/t) Ag-Eq (g/t) Ag (k Oz) Au (k Oz) Ag-Eq (k Oz) MATERIAL PROPERTIES SAN DIMAS Measured (UG) Sulphides 2,124 449 5.92 942 30,640 404 64,340 Indicated (UG) Sulphides 1,821 353 3.80 671 20,680 223 39,260 Total Measured and Indicated (UG) Sulphides 3,945 405 4.94 817 51,320 627 103,600 SANTA ELENA Measured Ermitano (UG) Sulphides 612 81 4.38 613 1,600 86 12,060 Measured Santa Elena (UG) Sulphides 387 152 1.72 295 1,890 21 3,670 Indicated Ermitano (UG) Sulphides 2,306 71 3.45 489 5,260 256 36,280 Indicated Santa Elena (UG) Sulphides 1,384 163 1.52 290 7,250 68 12,890 Indicated (Leach Pad) Oxides Spent Ore 337 25 0.39 64 270 4 690 Total Measured and Indicated (UG+Pad) All Mineral Types 5,026 101 2.69 406 16,280 435 65,590 JERRITT CANYON Measured (UG) Sulphides 5,717 - 5.25 429 - 966 78,850 Indicated (UG) Sulphides 4,490 - 5.42 442 - 782 63,860 Indicated (OP) Sulphides 711 - 3.43 280 - 78 6,400 Total Measured and Indicated (UG and OP) All Mineral Types 10,918 - 5.20 425 - 1,827 149,110 LA ENCANTADA Indicated (UG) Oxides 3,299 178 - 178 18,900 - 18,900 Indicated Tailings Deposit No. 4 Oxides 2,458 119 - 119 9,410 - 9,410 Total Indicated (UG+Tailings) All Mineral Types 5,756 153 - 153 28,310 - 28,310 TOTAL MATERIAL PROPERTIES Total Measured (UG) All Mineral Types 8,840 120 5.20 559 34,130 1,478 158,920 Total Indicated(UG and OP) All Mineral Types 16,806 114 2.61 347 61,770 1,411 187,690 Total Measured and Indicated (UG and OP) All Mineral Types 25,646 116 3.50 420 95,900 2,888 346,610 Mineral Resource estimates have been classified in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves, whose definitions are incorporated by reference into NI 43-101. The Mineral Resource estimates provided above have an effective date of December 31, 2023, except for the Santa Elena Leach Pad estimate, which has an effective date of March 11, 2024. The Mineral Resource estimates were prepared by the Company's Internal QPs, who have the appropriate relevant qualifications, and experience in geology and resource estimation. The Mineral Resource estimates were prepared under the supervision of, or were reviewed by, David Rowe, CPG, Internal QP for First Majestic, who is a Qualified Person under NI 43-101. Sample data was collected through a cut-off date of December 31, 2023 for the material properties except for the Santa Elena Leach Pad estimate, which has an effective date of March 11, 2024. All properties account for relevant technical information and mining depletion through December 31, 2023. Metal prices considered for Mineral Resource estimates were $24.5/oz Ag and $2,000/oz Au. Silver-equivalent grade is estimated considering: metal price assumptions, metallurgical recovery for the corresponding mineral type/mineral process and the metal payable of the corresponding contract of each mine. Estimation details are listed in each mine section of the AIF. The cut-off grades and cut-off values used to report Mineral Resources are different for all mines. The cut-off grades, values and economic parameters are listed in the applicable section describing each mine section in the AIF. M&I Mineral Resource estimates are inclusive of the Mineral Reserve estimates. Tonnage is expressed in thousands of tonnes; metal content is expressed in thousands of ounces. Totals may not add up due to rounding. The technical reports from which the above-mentioned information for the material properties is derived are cited under the heading "Technical Reports for Material Properties" in the AIF. Inferred Mineral Resource Estimates with an Effective Date of December 31, 2023 Mine / Project Mineral Tonnage Grades Metal Content Category / Area Type k tonnes Ag (g/t) Au (g/t) Ag-Eq (g/t) Ag (k Oz) Au (k Oz) Ag-Eq (k Oz) MATERIAL PROPERTIES SAN DIMAS Inferred Total (UG) Sulphides 3,959 306 3.67 612 38,990 467 77,940 Inferred Total (UG) Sulphides 3,959 306 3.67 612 38,990 467 77,940 SANTA ELENA Inferred Ermitaño (UG) Sulphides 2,049 65 2.34 349 4,280 154 22,970 Inferred Santa Elena (UG) Sulphides 1,340 143 1.55 272 6,160 67 11,700 Inferred (Leach Pad) Oxides Spent Ore 50 35 0.66 101 60 1 160 Inferred Total (UG + Pad) All Mineral Types 3,439 95 2.01 315 10,500 222 34,840 JERRITT CANYON Inferred Total (UG) Sulphides 11,565 - 4.89 399 - 1,819 148,490 Inferred Total (OP) Sulphides 862 - 3.10 253 - 86 7,010 Inferred Total (UG & OP) Sulphides 12,427 - 4.77 389 - 1,905 155,500 LA ENCANTADA Inferred Total (UG) Oxides 2,115 204 - 204 13,890 - 13,890 Inferred Tailings Deposit No. 4 Oxides 427 118 - 118 1,620 - 1,620 Inferred Total (UG + Tailings) All Mineral Types 2,542 190 - 190 15,510 - 15,510 Total Inferred Material Properties All Mineral Types 22,367 90 3.61 395 65,000 2,594 283,790 Mineral Resource estimates have been classified in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves, whose definitions are incorporated by reference into NI 43-101. The Mineral Resource estimates provided above have an effective date of December 31, 2023, except for the Santa Elena Leach pad estimate, which has an effective date of March 11, 2024. The Mineral Resource estimates were prepared by the Company's Internal QPs, who have the appropriate relevant qualifications, and experience in geology and resource estimation. The Mineral Resource estimates were prepared under the supervision of, or were reviewed by, David Rowe, CPG, Internal QP for First Majestic, who is a Qualified Person under NI 43-101. Sample data was collected through a cut-off date of December 31, 2023 for the material properties, except for the Santa Elena Leach pad estimate, which has an effective date of March 11, 2024. All properties account for relevant technical information and mining depletion through December 31, 2023. Metal prices considered for Mineral Resource estimates were $24.5/oz Ag and $2,000/oz Au. Silver-equivalent grade is estimated considering metal price assumptions, metallurgical recovery for the corresponding mineral type/mineral process and the metal payable of the corresponding contract of each mine. Estimation details are listed in each mine section of the AIF. The cut-off grades and cut-off values used to report Mineral Resource estimates are different for all mines. The cut-off grades, values and economic parameters are listed in the applicable section describing each mine section in the AIF. Tonnage is expressed in thousands of tonnes; metal content is expressed in thousands of ounces. Totals may not add up due to rounding. The technical reports from which the above-mentioned information for the material properties is derived are cited under the heading "Technical Reports for Material Properties" in the AIF. The Company also announces that it has filed its Annual Information Form for the year ended December 31, 2023 (the "AIF") under its profile on SEDAR+ at www.sedarplus.ca. In addition, the Company has filed its Annual Report on Form 40-F for the year ended December 31, 2023 with the United States Securities and Exchange Commission. The Form 40-F, which includes the Company's annual audited financials statements, management's discussion and analysis ("MD&A") and AIF, is available on EDGAR at www.sec.gov/edgar, and on the Company's website at www.firstmajestic.com Shareholders may also receive a copy of First Majestic's Annual Report which includes the annual audited financial statements and MD&A, free of charge, upon request to First Majestic, Suite 1800 - 925 West Georgia Street, Vancouver, B.C., Canada, V6C 3L2, or by e-mail to [email protected]. QUALIFIED PERSONS Scientific and technical disclosure in this news release relating to the Company's material properties is based on technical reports for the material properties that have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") (collectively, the "Technical Reports"). The Technical Reports have been filed under the Company's profile on SEDAR+ at www.sedarplus.ca. The technical information has been updated with more current information where appropriate. Gonzalo Mercado, P.Geo., the Company's Vice President of Exploration and Technical Services and a "Qualified Person" as defined under NI 43-101, has reviewed and approved the scientific and technical information contained in this news release. Mineral Resource estimates were prepared under the supervision of, or were reviewed by, David Rowe, CPG, our Director of Mineral Resources. Mineral Reserve estimates were prepared under the supervision of, or were reviewed by, Brian Boutilier, P.Eng., our Principal Mine Planning Engineer. Each of Mr. Rowe and Mr. Boutilier are also "Qualified Persons" under NI 43-101. 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 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, contact [email protected], 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 Cautionary Note Regarding Forward-Looking Statements This press 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 press release include, but are not limited to, statements with respect to: the expansion of Mineral Resources. 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 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 AIF, available on SEDAR+ at www.sedarplus.ca, and 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/203834
First Majestic Announces 2023 Mineral Reserve and Mineral Resource Estimates
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