First Majestic Announces 2023 Mineral Reserve and Mineral Resource Estimates
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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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