First Majestic Announces High-Grade Drill Results from 2018 Exploration Program at the Ermitaño Silver/Gold Project; Permitt...

Date : 02/25/2019 @ 12:10PM
Source : GlobeNewswire Inc.
Stock : First Majestic Silver Corp (FR)
Quote : 13.91  -0.91 (-6.14%) @ 9:43PM

First Majestic Announces High-Grade Drill Results from 2018 Exploration Program at the Ermitaño Silver/Gold Project; Permitt...

First Majestic Silver (TSX:FR)
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FIRST MAJESTIC SILVER CORP. (AG: NYSE; FR: TSX) (the "Company" or “First Majestic”) is pleased to announce the results from its 2018 exploration program at the Ermitaño Silver/Gold project located four kilometres south of the producing Santa Elena Silver/Gold Mine in Sonora, Mexico. The initial discovery hole (EW16-04) was previously announced on January 17, 2017 which intersected 997 AgEq grams per tonnes (“g/t”) over 18.0 metres (11.4 g/t gold and 86 g/t silver). At the end of 2018, a total of 50 drill holes had been completed on the property. The 2018 exploration program totalled 17,447 metres in 40 drill holes consisting of nine infill holes designed to increase the confidence and size of the resource and 31 step out holes to target areas to the West and East of the known mineralization.

Oblique view of Ermitaño and Ermitaño Splay
Plan view of Ermitaño and Ermitaño Splay
Ermitaño Splay Grade x Thinkness Long Section

DRILLING HIGHLIGHTS

Drill Hole 18-35 – 30.1 metres grading 293 AgEq g/t (3.0 g/t gold and 53 g/t silver)

Drill Hole 18-36 – 11.2 metres grading 1,019 AgEq g/t (11.1 g/t gold and 128 g/t silver)

Drill Hole 18-39 – 17.6 metres grading 654 AgEq g/t (6.3 g/t gold and 149 g/t silver)

Drill Hole 18-47 – 28.3 metres grading 403 AgEq g/t (3.9 g/t gold and 95 g/t silver)

Keith Neumeyer, President and CEO of First Majestic stated: “The drilling results announced today from our Ermitaño project are extremely encouraging as it continues to show the potential to build high quality resources in close proximity to our producing Santa Elena operation. The environmental permitting process is in the final stage with an expected positive decision in the coming weeks ahead. Pending project approval, Ermitaño will add several years of mine life at Santa Elena and will displace the reprocessing of the old heap-leach ore pad with fresh ore containing higher grades that are not subject to the Sandstorm streaming agreement.” 

PERMITTING STATUS

In early February, technical personnel from SEMARNAT visited the Ermitaño site in connection with the submission of the Company's Unified Technical Document ("DTU") for Exploitation. The DTU permit is the final federal requirement that includes authorizations for environmental impact and land-use change needed prior to the commencement any construction and mining activities. The Company anticipates receiving permission from the federal agency in March.

SUMMARY OF COMPOSITES

Hole IDFromToLength (m)EstimatedTrue Length(m)Ag g/tAu g/tAg Eq g/t
EW-16-03199.6202.12.51.9375.3  463
EW-16-04224.5242.518.014.58611.4  997
including228.1229.51.4 8316.6  1,407
 233.1233.80.7 63439.7  3,808
 233.8234.30.5 9719.5  1,658
 234.3235.51.1 15440.1  3,364
 235.5236.40.9 12931.9  2,678
 237.6240.12.5 6014.7  1,232
EW-16-05126.4152.626.220.7524.2  390
including134.9136.31.3 9213.9  1,207
 136.3137.41.1 16511.1  1,053
EW-16-06271.3301.630.319.82014.1  528
including271.3272.51.2 31211.2  1,204
 272.9273.50.6 53410.9  1,404
 273.5273.90.4 6439.6  1,410
 274.4274.80.4 15175.5  1,955
 274.8275.60.8 140824.9  3,403
 275.6276.91.3 112818.4  2,602
 276.9277.70.8 65416.3  1,956
EW-16-08350.7371.520.916.5402.2  214
EW-17-09268.5280.712.29.8773.6  367
including271.3271.80.5 7612.9  1,109
EW-17-10147.4152.95.44.0654.8  450
EW-18-19669.0670.91.91.5781.7  217
EW-18-27708.1709.11.00.9291.0  111
EW-18-33237.2255.518.314.5282.9  261
EW-18-34273.5287.113.69.4533.4  327
including275.4276.30.9 7213.6  1,160
EW-18-35148.0188.340.330.1533.0  293
including163.6164.10.5 13919.4  1,691
 165.4166.10.7 11818.7  1,614
EW-18-36292.3311.018.711.212811.1  1,019
including299.3300.41.1 30719.8  1,891
 300.4301.71.3 56770.8  6,231
 301.7303.01.3 12220.1  1,730
 303.0304.41.4 32632.0  2,886
EW-18-37185.5192.06.44.0543.2  309
EW-18-38182.6185.32.82.2485.8  510
EW-18-39265.4294.128.717.61496.3  654
including265.4266.00.6 52017.0  1,879
 268.8270.01.2 36920.1  1,980
 272.0273.01.0 3878.6  1,074
 283.0284.01.0 14915.5  1,392
 286.0287.01.0 18010.4  1,010
 289.0290.21.2 19214.4  1,342
EW-18-40294.7307.412.810.3211.3  126
EW-18-41166.3172.96.54.5789.6  849
including167.7168.50.8 8314.6  1,250
 169.3170.30.9 13339.4  3,281
EW-18-43347.2356.39.15.9261.2  125
EW-18-44199.1229.530.416.8392.6  251
EW-18-45189.5215.125.615.4772.5  274
including214.1215.11.0 8517.2  1,457
EW-18-4674.699.324.720.5413.7  341
including90.291.10.9 9513.0  1,136
 93.394.00.8 14927.3  2,334
EW-18-47296.2343.747.528.3953.9  403
including304.6305.71.1 43421.1  2,125
 313.5314.91.4 18410.4  1,019
 318.0320.12.1 16011.8  1,100
EW-18-48260.5264.64.13.5596.3  561
EW-18-49307.1322.515.411.1602.3  244
EW-18-50243.5263.419.917.8573.9  366
including260.2261.41.2 7412.2  1,043

Note: Holes EW16-01 to EW16-04 were announced on January 17, 2017 (see press release at https://www.firstmajestic.com/news/2017/index.php?content_id=312). Holes EW16-06 and EW 17-09 were announced on January 9, 2018 (see press release at https://www.firstmajestic.com/news/index.php?content_id=340). Gold equivalent (“Gold-Equiv”) is calculated using a gold to silver ratio of 1:80.

After detailed geological logging, all drill core samples were split on site by diamond saw. One half of the core was submitted to Bureau Veritas Mineral Laboratories at the laboratory in Vancouver, British Columbia, Canada and to SGS Laboratories at the laboratories in Durango and Hermosillo, Mexico. The remaining half core is retained on-site for verification and reference purposes.

ERMITAÑO VEIN SYSTEM

Low sulphidation epithermal silver and gold mineralization is hosted in the steep dipping Ermitaño and Ermitaño Splay structures. The structures host green and white massive, banded, and bladed and stockwork quartz, calcite, and adularia. The veins are commonly brecciated and are associated with argillic alteration. Sulphide and iron oxide after sulphide and pyrolusite occur locally. The bulk of Inferred mineralization disclosed in 2018 is hosted in the Ermitaño Splay. Drilling of the Ermitaño Splay has delineated an east-west striking structure approximately 500 metres long, 400 metres down dip, with mineralized true thicknesses ranging from 0.9 to 30.0 metres, averaging 11.0 metres.  Mineralization in the Splay remains open up-dip and down-dip to the west. The Ermitaño Splay separates from the Ermitaño structure which is delineated by drilling over an approximate 1,000 metre southwest strike length and 400 metre dip length. Mineralized true thicknesses range from 0.8 to 11.0 metres, averaging 4.0 metres.

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/21927b64-32ea-447e-aa1e-0c7d39deed35

Figure 1: Oblique view of Ermitaño and Ermitaño Splay

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/885a7dfa-61e6-443b-ab74-eabfeace9267

Figure 2: Plan view of Ermitaño and Ermitaño Splay

2019 EXPLORATION PROGRAM

The 2019 exploration program will consist of approximately 16,000 metres in 75 planned drill holes. In the first half of 2019, the Company will explore the Ermitaño Splay at shallow elevations with the objective to investigate the continuity of mineralization at low depths and to evaluate the feasibility of open pit extraction. If feasibility is confirmed, this could provide a faster way to process ore from this area.

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/89583387-f02a-4dc9-b49f-4dd1203a86c2

Figure 3: Ermitaño Splay Grade x Thinkness Long Section

Mr. Ramon Mendoza Reyes, Vice President Technical Services for First Majestic, is a "qualified person" as such term is defined under NI 43-101, and has reviewed and approved the technical information disclosed in this news release.

ABOUT THE COMPANY

First Majestic is a mining company focused on silver production in Mexico and is aggressively pursuing the development of its existing mineral property assets. The Company presently owns and operates the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, the La Encantada Silver Mine, the San Martin Silver Mine, the La Parrilla Silver Mine and the Del Toro Silver Mine. Production from these mines are projected to be between 14.2 to 15.8 million silver ounces or 24.7 to 27.5 million silver equivalent ounces in 2019.

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

SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION

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 include, but are not limited to, statements with respect to: the Company’s business strategy; future planning processes; commercial mining operations; cash flow; budgets; the timing and amount of estimated future production; recovery rates; mine plans and mine life; the future price of silver and other metals; costs of production; costs and timing of the development of new deposits; capital projects and exploration activities and the possible results thereof. 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: risks related to the integration of acquisitions; actual results of exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; commodity prices; variations in ore reserves, grade or recovery rates; actual performance of plant, equipment or processes relative to specifications and expectations; accidents; labour relations; relations with local communities; changes in national or local governments; changes in applicable legislation or application thereof; delays in obtaining approvals or financing or in the completion of development or construction activities; exchange rate fluctuations; requirements for additional capital; government regulation; environmental risks; reclamation expenses; outcomes of pending litigation; limitations on insurance coverage as well as those factors discussed in the section entitled "Description of the Business - Risk Factors" in the Company's most recent Annual Information Form, available on www.sedar.com, and Form 40-F on file with the United States Securities and Exchange Commission in Washington, D.C.  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.

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