Silver Production Increases by 38%
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 24, 2007) - FIRST MAJESTIC
SILVER CORP. (TSX VENTURE:FR)(PINK SHEETS:FRMSF)(FRANKFURT:FMV)(WKN:A0LHKJ)
(the "Company") is pleased to announce that silver production in the first
quarter ending March 31st, 2007 has increased by 38% over the prior quarter to
792,196 equivalent ounces of silver which is also an increase of 1358% over the
same quarter ending March 2006. The increase in production is due to a 104%
increase in production at the Company's flagship La Parrilla Silver Mine, and
the two additional acquisitions, the San Martin Silver Mine, and the La
Encantada Silver Mine completed in the quarter ending September 2006, and
December 2006 respectively.
The equivalent silver production for the quarter consisted of 719,993 ounces of
silver, 532 ounces of gold and 339,512 pounds of lead. Significant underground
development is continuing at all three mines in addition to the improvements
and upgrades being carried out at each mill. This ongoing program of
enhancements will continue for the balance of the year and is focused on
increasing the Company's silver production in each of the following quarters.
Resource development at the La Parrilla is meeting Company targets with the use
of six diamond drill rigs which in this quarter completed 7,213 metres of
drilling over 26 holes. In the Company's present NI 43-101 report published in
February, which had a cut off of December 31st, 2006, included assays of only
100 holes in the present resource estimate. As of April 15th, a total of 35,613
metres have been drilled over 133 holes. A new updated resource estimate is
anticipated to be published by the end the present quarter.
In addition to the ongoing diamond drill program at the La Parrilla, which is
designed to increase resources and assist in production, 1481 metres of
underground development and drifting has been completed. The Company is
presently mining from La Rosa-Rosario, Quebradillas and San Marcos areas and is
developing the new La Blanca area which appears to be a large disseminated
structure.
As well, the San Juan Silver Mine which is now 100% owned by the Company
located near Chalchihuites, is presently being developed and mined.
Approximately 50 tonnes of high grade ore per day is being shipped to the La
Parrilla mill which is 50 kilometres away from the San Juan.
At the San Martin Silver Mine, First Majestic in the quarter completed 1436
metres of diamond drilling which included 653 metres of drilling from surface
over three holes and 783 metres of drilling from underground, which included 13
holes. In addition 1898 metres of underground development has been completed.
The focus of this quarter has been to access upper levels in the mine where
higher grade oxide ores appear to be present. This activity is ongoing and is
for the purpose of grade control and development of additional resources and
exploration to define additional targets for future mine expansion.
Additionally, at the San Martin, construction of a five kilometre road was
completed to access and explore the upper part of the main Zuloaga vein in the
areas of the La Escondida and Pinolea. These areas are presently being
developed for mining purposes and defined to add new resources which are
proving to contain high grades of silver.
At the La Encantada Silver Mine, utilization of the 1000 tpd mill has increased
from 30% when the operations were taken over in November 2006 to the present
mill rates reaching 75% of capacity in the first quarter. This improvement in
operations has resulted in a 65% increase in silver production from the prior
quarter. Further increases in mill output are anticipated to continue into the
present quarter resulting in additional ounces of silver production from the La
Encantada going forward.
In the short time since the operations of the La Encantada were taken over,
several improvements have been implemented, including the installation of a new
screening plant and commencement of an aggressive underground development
campaign which included 1453 metres of drifting to several targets located in
the San Javier Breccia area. The purpose of this ongoing development is for
mining activity, confirmation of resources and exploration.
Recently, First Majestic received a substantial database of historic geological
data on the La Encantada Silver Mine and the surrounding area. This data is
presently being analyzed and digitized into the Company's newly incorporated
mining software programs. This database of information will substantially
assist the Company in its ongoing development and exploration program. This
data is anticipated to be considered in an update NI 43-101 report which is
expected to be published shortly.
Pincock Allen & Holt of Denver, Colorado has been retained to complete newly
updated NI 43-101 reports on each of the Company's operating silver mines. The
La Parrilla Silver Mine and the La Encantada Silver Mine reports are
anticipated to be published prior to the end of June 2007 and the San Martin
Silver Mine report is planned to be made public prior to the end of May.
Of further interest; the Company's three producing silver mines collectively
produced 2,905,382 ounces of silver equivalent in calendar 2006. However, due
to acquisition dates and the change of year end from June to December, only
1,601,796 ounces of silver equivalent could be attributed to First Majestic's
credit for the calendar year 2006. The first quarter ending March 31st, 2006
marked the beginning of a new era for the Company which experienced all three
mines producing silver under the First Majestic umbrella.
Keith Neumeyer, President & CEO, wishes to thank the management team and staff
for their enormous achievements over the past two quarters. "It goes without
saying that when any company grows at the rapid pace we've experienced, some
growing pains are inevitable; however, our team has persisted, consuming two
new mines while aggressively expanding the La Parrilla mine and mill. As a
result of these achievements a substantial increase in silver production has
resulted as anticipated, transforming the Company from a development and
exploration stage company into a significant silver producer. It's hard not to
be excited about being a part of First Majestic."
First Majestic is a producing silver company focused in Mexico and is
aggressively pursuing its business plan to become a senior silver producer
through development of its existing assets and the pursuit through acquisition
of additional assets that make sense to achieving its corporate objective.
FIRST MAJESTIC SILVER CORP.
Keith Neumeyer, President
This press release includes certain "Forward-Looking Statements" within the
meaning of section 21E of the United States Securities Exchange Act of 1934, as
amended. All statements, other than statements of historical fact, included
herein, including without limitation, statements regarding potential
mineralization and reserves, exploration results and future plans and
objectives of First Majestic Resource Corp. are forward-looking statements that
involve various risks and uncertainties. There can be no assurance that such
statements will prove to be accurate and actual results and future events could
differ materially from those anticipated in such statements.
