IRW-News: First Majestic Silver Corp .: First Majestic produces 3.2 million ounces of silver and 25,771 ounces of gold (5.2 million ounces of silver equiva … | News) in the third quarter
IRW-PRESS: First Majestic Silver Corp .: First Majestic produces 3.2 million ounces of silver and 25,771 ounces of gold (5.2 million ounces of silver equivalent) in the third quarter
Vancouver, BC, Canada – First Majestic Silver Corp. (First Majestic or the Company) announces that total production in the third quarter of 2020 reached 5.2 million ounces of silver equivalent, consisting of 3.2 million ounces of silver and 25,771 ounces of gold. Quarterly silver and gold production rose 72% and 63%, respectively, compared to the previous quarter, when the Mexican Ministry of Health put a temporary halt to all non-systemic business activities, including mining, for much of April and May in response to the global pandemic had arranged. In the first nine months of 2020, the company produced a total of 8.1 million ounces of silver and 73,738 ounces of gold for a total production of 14.9 million ounces of silver equivalent.
Key results of the third quarter
– La Encantada produced 978,416 ounces of silver, up 92% from the previous quarter and the second highest quarterly production since 2014. It is now expected that the silver production at La Encantada caused by the COVID-19 shutdown will be recovered by year end.
– San Dimas produced 1,678,075 ounces of silver and 18,268 ounces of gold, the highest quarterly silver production since the mine was taken over in May 2018.
Santa Elena produced 502,375 ounces of silver and 7,428 ounces of gold, an increase of 126% and 102%, respectively, over the previous quarter.
– The liquefied natural gas (LNG) storage tanks were delivered to and installed at Santa Elana during the quarter. The project is still on schedule for commissioning in the first quarter of 2021 and should significantly reduce energy costs in the future.
– The construction of a second portal, including the initial development of a new parallel south-facing ramp, was completed during the third quarter in the Ermitao project near Santa Elena.
– At the end of the third quarter, the Company’s mines and projects had a total of 26 exploration drill rigs, including 14 rigs at San Dimas, eight at Santa Elena, two at La Encantada and two at La Parrilla.
– The exploratory drillings planned for 2020 were expanded by 24,000 meters; a total of 163,000 meters of drilling are now to be completed over the year.
– At the end of the quarter, the company had cash and cash equivalents valued at $ 232.4 million.
During the quarter, higher production rates, combined with improved metal prices and Eric Sprott’s recent investment, resulted in a significant increase in our cash balance to $ 232 million by the end of the quarter, said President and CEO Keith Neumeyer. On the operational side, we were able to record strong quarterly silver production at La Encantada and San Dimas due to the higher processing rates and assume that this trend will continue into 2021. At Santa Elena, we are projected to see higher grades and processing rates in the fourth quarter of 2020 after additional workers recently arrived at the site to support the increase in underground ore production. Although the COVID-19 situation has presented the company with many new challenges, I am proud of the overall production results of our team and our ongoing commitment to ensuring the health and safety of all our employees on site and in the local communities.
Production data
3rd 3rd year-2nd Quarta
Quarter quarter comparison quarter ls-ver
I’ll be right there
2020 2019 Vernde2020 Vernd
tion
Processing tons of ore 655,920 655,967 0% 333,559 97%
Production ounces of silver 3,158,863,367.74-6% 1,834,57572%
6 0
Production ounces of gold 25,771 35,791 -28% 15,764 63%
Production ounces of silver 5,201,086,636.71-22% 3,505.37648%
equivalent 5 6
Quarterly report
The Company’s mines processed a total of 665,920 tonnes of ore in the third quarter, up 97% from the previous quarter. Processing volumes increased compared to the previous quarter, primarily due to the resumption of all operations following the order of the Mexican Ministry of Health, which required the temporary cessation of all non-systemically important business activities in response to the global pandemic. The company continues to operate at expected levels related to the COVID-19 restrictions that the Mexican government has placed on people at risk. Therefore, the company is increasing the number of its temporary workers and contractors to support its production and development activities.
Consolidated silver and gold grades averaged 170 g / t and 1.27 g / t for the third quarter, compared to 193 g / t and 1.52 g / t, respectively, in the previous quarter. The decline in grades is primarily due to the reduced tonnages from the higher grades at Santa Elena and San Dimas, after the mining cycles slowed due to the limited availability of contractors.
Consolidated recovery rates were steady in the third quarter, averaging 88% for silver and 96% for gold.
Production of the individual mines:
https://www.irw-press.at/prcom/images/messages/2020/53788/Oct 13 2020 Q3 Production_DEPRcom.001.png
* When adding certain amounts, there may be differences due to rounding.
* The following prices were used in calculating the silver equivalent values: US $ 24.26 per ounce of silver and US $ 1,909 per ounce of gold.
San Dimas silver / gold mine:
– San Dimas had its highest quarterly silver production under First Majestic ownership in the third quarter. 1,678,075 ounces of silver and 18,268 ounces of gold were produced, an increase of 52% for both metals compared to the previous quarter and a total production of 3,125,662 ounces of silver equivalent.
– A total of 189,918 tons with average grades of 291 g / t silver and 3.11 g / t gold were processed in the mill.
– Silver and gold recovery rates averaged 95% and 96%, respectively, for the third quarter.
– The Central Block and Sinaloa Graben businesses contributed approximately 69% and 27%, respectively, of total production for the quarter. In addition, the recently refurbished Tayoltita and El Cristo areas provided around 4% of total quarterly production.
– A new warehouse for more than 100 workers is currently being built at San Dimas to support the programs for the installation of the HIG mill (High-Intensity Grinding) and the modernization of the plant. The demolition work and the laying of new processing pipelines continued during the quarter, but due to the current COVID-19 restrictions, the completion date of the project had to be postponed to the second half of 2021.
– At the end of the quarter, 14 drills were in operation: three on the surface and 11 underground.
– The company expects to release an updated NI 43-101 technical report for San Dimas before year end.
Santa Elena silver / gold mine:
– Santa Elena produced 502,375 ounces of silver and 7,428 ounces of gold in the third quarter, an increase of 126% and 102%, respectively, over the previous quarter and total production of 1,091,026 ounces of silver equivalent.
– A total of 204,577 tons – consisting of 133,108 tons from civil engineering and 71,496 tons from above-ground heap leaching panels – were processed in the mill.
– The underground ore grades averaged 109 g / t silver and 1.49 g / t gold. The grades of material from the above-ground heap leach plate averaged 34 g / t silver and 0.61 g / t gold, respectively.
– Silver and gold recovery rates averaged 93% and 95%, respectively, for the third quarter.
– Development and construction work on the Ermitao project picked up during the quarter and additional surface and earthworks were completed. The company also started building the east portal and the parallel south ramp, which will serve to reduce future traffic congestion and as a ventilation circuit.
– The company is preparing the development of five levels in the high-grade portion of the Ermitao ore body, with around 155 meters still to be developed to reach the access point of the first level. This area is to be reached in November, after which the development of the upper and lower levels of the first mining block will begin. Initial limited production from the vein is expected in mid-2021.
– The storage tanks for the new LNG plant were delivered and installed during the quarter. The generators are expected to be installed by the end of October and all electrical connections will be completed before the end of the year tests. The new LNG plant is expected to be operational in the first quarter of 2021.
– At the end of the quarter, eight drills were in operation: five on the surface and three underground.
– The company expects to release an updated NI 43-101 technical report for Santa Elena before year end.
La Encantada Silver Mine:
– At La Encantada, 261,425 tons of ore were processed in the third quarter and a total of 978,416 ounces of silver were produced, an increase of around 92% over the previous quarter and the second highest quarterly production since 2014.
– Silver grades and recoveries averaged 152 g / t and 77%, respectively, in the second quarter.
– Quarry production in the San Javier and La Prieta areas was approximately 73% of total silver production for the quarter. The company continues to anticipate strong production rates from these quarry areas for the remainder of the year. As a result, it is now expected that La Encantada will be able to fully recover the silver production that was lost due to the recent cessation of operations due to COVID-19 by the end of the year.
– The mill modernization project, which is intended to improve processing efficiencies, is expected to be accelerated in the fourth quarter, with the installation of new wet cleaners for the foundry, the replacement main gear and new drive wheels for the two thickening tanks as well as the modernization of the filter press and improvements in the electrical control room are planned.
– At the end of the quarter, two drills were in operation: one on the surface and one underground.
Announcement of the results for the third quarter
The company plans to release its unaudited financial results for the third quarter of 2020 on Thursday, November 5, 2020.
About the company
First Majestic is a publicly traded mining company whose primary focus is silver production in Mexico and is aggressively advancing the development of its existing mineral concessions. The Company owns and operates the San Dimas Silver-Gold Mine, the Santa Elena Silver-Gold Mine and the La Encantada Silver Mine. Production at these mines is expected to be between 11.0 and 11.7 million ounces of silver and 21.4 and 22.9 ounces of silver equivalent in 2020.
FURTHER INFORMATION is available from info@firstmajestic.com or on our website at www.firstmajestic.com or by calling our toll-free number 1.866.529.2807.
FIRST MAJESTIC SILVER CORP.
Signature:
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 US securities laws (collectively, forward-looking statements). These statements relate to future events or the future performance, business prospects or opportunities of the company, which are based on projections of future results, estimates of amounts that cannot be determined and assumptions made by management, which in turn are based on management’s experience and perception of historical Trends, current conditions and expected future developments are based. Forward-looking statements include, but are not limited to, statements relating to: the company’s business strategy; future planning processes; commercial mining activities; Cash flow; Budgets; Timing and volume of estimated future production; Recovery rates; Mine plans and the life of the mines; the future price of silver and other metals; Production costs; Costs and timing of the development of new deposits; Investment projects and exploration activities and their possible outcomes. The assumptions made could prove to be incorrect and actual results could differ materially from expectations. The targets cannot therefore be guaranteed. Accordingly, investors are expressly cautioned not to place undue reliance on the guidelines and forward-looking statements, as there is no guarantee that the plans, assumptions or expectations on which they are based will materialize. All other statements, other than statements of historical fact, may constitute forward-looking statements. Statements regarding proven and probable mineral reserve and mineral resource estimates may also be considered forward-looking statements to the extent that they contain estimates of mineralization that will be discovered upon development of the property and in the case of measured and indicated mineral resources or proven and probable mineral reserves, such statements reflect that Conclusion based on certain assumptions that the mineral deposit is economically minable. All statements that express or relate to predictions, expectations, beliefs, plans, forecasts, goals or future events or achievements (often, but not always, using words or terms such as search, anticipate, plan, continue, estimate , expect, can, will, predict, forecast, potential, goal, intend, could, should, should, believe and similar expressions) are not statements of historical fact and may be forward-looking statements.
The current results could differ from the forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. These include, but are not limited to: the duration and impact of the coronavirus and COVID-19 and all other pandemics on our operations and employees, and the impact on the global economy and society, the risks associated with integrating acquisitions; actual results of exploration activities; Conclusions from economic evaluations; changes in project parameters as plans are refined; Commodity prices; Fluctuations in ore reserves, grades or recovery rates; the actual performance of any facility, equipment, or process compared to specifications and expectations; Accidents; Labor relations; Relationships with local communities; changes in national or local governments; changes in current legislation or its application; Delays in obtaining permits, securing financing or completing development or construction work; Exchange rate fluctuations; additional capital requirement; state regulation; Environmental risks; Complaint costs; Results of pending litigation; Insurance coverage limitations and the factors set out in the Description of the Business – Risk Factors section of the company’s current Annual Information Form, available at www.sedar.com, and Form 40-F, filed with the United States Securities and Exchange Commission in Washington, DC was submitted. Although First Majestic has attempted to identify important factors that could cause actual results to differ materially from those expressed in any forward-looking statement, there may be other factors that could cause results not to be as expected, estimated or intended.
The company believes that the expectations expressed in these forward-looking statements are reasonable, however no assurance can be given that these expectations will prove to be correct. Therefore, you should not place undue reliance on the forward-looking statements contained herein. These statements apply only at the time of this announcement. The company does not intend or undertake any obligation to update these forward-looking statements unless this is required by applicable law.
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