First Majestic Announces 2023 Mineral Reserve and Mineral Resource Estimates


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.

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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



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