First Majestic Silver Corp. (AG)

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First Majestic Posts Record Silver Output In 3Q

By Kitco News

Thursday October 13, 2016 08:17

http://www.kitco.com/news/2016-10-13/First-Majestic-Posts-Record-Silver-Output-In-3Q.html


(Kitco News) - First Majestic Silver Corp. (NYSE: AG; TSX: FR) posted record silver production in the third quarter of 3.1 million ounces, a 20% gain from 2.6 million in the same period a year ago and a 9% gain from the second quarter, the company said Wednesday.

The company’s six Mexican operating mines combined for 4.5 million silver-equivalent ounces, which was up 27% from 3.6 million in the third quarter of 2015. Production of other metals included 14,452 ounces of gold, up from 4,434 in the year-ago quarter; 8 million pounds of lead, down from 8.7 million; and 1.5 million pounds of zinc, down from 3.1 million.

First Majestic Posts Record Silver Output In 3Q

“Higher silver grades, throughput rates and recoveries propelled silver production to a new company record of over 3.1 million ounces during the quarter,” said Keith Neumeyer, president and chief executive officer. “We saw significant grade improvements, particularly at Santa Elena, La Guitarra and
San Martin, as a result of improved mine sequencing and dilution control.”






The total amount of ore processed at the six mines was 838,233 tonnes, a 24% year-on-year gain and up 5% from the second quarter. Average silver grades were 150 grams per tonne, up from 148 in the second quarter.

With improved operational cash flow, the company has “significantly” expanded its exploration, with 19 drill rigs currently active on its properties, the CEO said. He said this will allow First Majestic to release updated reserve and resource estimates for Del Toro, La Parrilla and San Martin in the first quarter of 2017.

“At La Encantada, detailed engineering has been completed and furnace manufacturing has started for the construction of our new roasting circuit planned for final completion in the fourth quarter of 2017,” Neumeyer added.