First Majestic Updates Mineral Reserve and Resource Estimates for Year End 2014 and Files Form 40-F Annual Report

New York – AG
Toronto – FR
Frankfurt – FMV
Mexico - AG

VANCOUVER, April 1, 2015 /CNW/ - FIRST MAJESTIC SILVER CORP. (the "Company" or "First Majestic") is pleased to announce its 2014 Mineral Reserve and Resource estimates for its existing mineral property assets in Mexico as of December 31, 2014. Silver metal content in the Proven and Probable Reserve category totaled 101.1 million ounces of silver, down 7% from 108.6 million as of December 31, 2013. Metal prices used to estimate the 2014 Reserve estimates were lowered compared to the prior year to: $20.00/oz of silver, $1,200/oz of gold, $0.95/lb of lead and $1.00/lb of zinc.

The following table shows the total tonnage mined from each of the Company's five producing properties during 2014, including total ounces of silver and silver equivalent ounces produced from each property and the tonnage mined from delineated reserves and resources at each property.

2014 Production Table



LA ENCANTADA



LA PARRILLA



DEL TORO



SAN MARTIN



LA GUITARRA



TOTAL



















TONNES OF ORE PROCESSED


721,172



711,915



629,492



363,952



186,881



2,613,412



















OZ OF SILVER PRODUCED


3,711,633



2,876,450



2,690,717



1,833,618



636,301



11,748,719



















OZ OF SILVER EQ. PRODUCED FROM OTHER METALS


20,019



1,796,742



988,066



284,644



419,777



3,509,248



















TOTAL OZ OF SILVER EQ. PRODUCED


3,731,652



4,673,192



3,678,783



2,118,262



1,056,078



15,257,967



















TONNES MINED FROM MATERIAL IN RESERVES


416,591



708,211



608,260



320,812



125,487



2,179,360



















TONNES MINED FROM MATERIAL NOT IN RESERVES


304,582



3,704



21,233



43,140



61,393



434,051

(1) 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.

The Company completed over 44,000 metres of diamond drilling at its five operating mines in 2014, representing a 25% reduction in metres drilled compared to the prior year. For 2015, First Majestic is planning to drill approximately 50,000 metres to further define known mineralized ore bodies at its operating mines. A combination of surface and underground drill rigs will focus on assisting mining activities, definition drilling and to support future updates to the Company's NI 43-101 Technical Reports.

Starting this year, First Majestic is reporting Mineral Resources inclusive of Mineral Reserves; readers are cautioned of this change since the Company had previously reported Mineral Resources exclusive of Mineral Reserves.

The largest change to Mineral Reserves occurred at La Encantada where the old tailings were downgraded from Proven and Probable Reserves to Inferred Resources after the Company's decision to suspend the reprocessing of the old tailings due to the low metal price environment. This resulted in a 76% increase in the Reserves silver grade, a 57% decrease in total Reserve tonnes and a 24% decrease in Reserve silver metal content. However, the underground Proven and Probable Mineral Reserves increased by 56% to 3.2 million tonnes containing 28.4 million ounces of silver with average silver grade of 276 g/t.

Silver metal content in the Measured and Indicated Resource category totaled 152.4 million ounces. In addition, the silver metal content in the Inferred Resource totaled 170.4 million ounces, a decrease of 18% compared to the prior year due mainly to the impact of lower metal price assumptions, the adoption of the stricter CIM Definition Standards, and the subtraction of Resources for the Peñasco Quemado and La Frazada projects, which were disposed of during 2014.

The complete 2014 Mineral Reserve and Resource estimates for all metals, tonnage and grades are shown below in the following tables: 

PROVEN AND PROBABLE MINERAL RESERVES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2014


Mine

Category


Mineral Type


k tonnes


Ag (g/t)


Au (g/t)


 Pb (%) 


 Zn (%) 


Ag-Eq (g/t)


Ag (k Oz)


Ag-Eq (k Oz)





















LA ENCANTADA

Proven (UG)


Oxides


1,084


248


-


-


-


248


8,639


8,639

Probable (UG)


Oxides


2,115


291


-


-


-


291


19,754


19,754

Total Proven and Probable  (UG)


Oxides


3,199


276


-


-


-


276


28,393


28,393





















LA PARRILLA

Proven (UG)


Oxides


302


219


-


-


-


219


2,119


2,119

Probable (UG)


Oxides


1,025


213


0.02


-


-


214


7,032


7,061

Total Proven and Probable (UG)


Oxides


1,327


215


0.01


-


-


215


9,152


9,181

Proven (UG)


Sulphides


585


201


-


1.8


1.9


304


3,784


5,714

Probable (UG)


Sulphides


1,473


157


0.04


1.5


2.4


261


7,436


12,369

Total Proven and Probable (UG)


Sulphides


2,057


170


0.03


1.6


2.3


273


11,220


18,083


Total Proven and Probable (UG)


Oxides + Sulphides


3,384


187


0.02


1.0


1.4


251


20,371


27,264





















SAN MARTÍN

Proven (UG)


Oxides 


1,024


224


0.18


-


-


237


7,359


7,790

Probable (UG)


Oxides 


1,813


188


0.04


-


-


191


10,960


11,107

Total Proven and Probable (UG)


Oxides 


2,837


201


0.09


-


-


207


18,319


18,897





















DEL TORO

Proven (UG)


Transition


511


156


0.03


2.0


2.1


231


2,560


3,792

Probable (UG)


Transition


589


157


0.06


2.6


1.6


224


2,964


4,248

Total Proven and Probable (UG)


Transition


1,100


156


0.05


2.3


1.8


227


5,523


8,040

Proven (UG)


Sulphides


1,097


148


0.08


2.7


1.8


229


5,206


8,063

Probable(UG)


Sulphides


1,991


218


0.18


4.0


3.9


347


13,931


22,218

Total Proven and Probable (UG)


Sulphides


3,088


193


0.15


3.5


3.2


305


19,138


30,281


Total Proven and Probable (UG)


Transition + Sulphides


4,187


183


0.12


3.2


2.8


285


24,661


38,321





















LA GUITARRA

Proven (UG)


Sulphides


91


153


1.84


-


-


256


446


745

Probable (UG)


Sulphides


1,217


228


1.00


-


-


284


8,911


11,098

Total Proven and Probable (UG)


Sulphides


1,308


223


1.06


-


-


282


9,358


11,843






















Total Proven and Probable (UG)


All mineral types


14,915


211


0.15


1.1


1.1


260


101,102


124,718

(1) 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 National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101").

(2) In all cases, metal prices considered for Mineral Reserves estimates were $20 USD/oz Ag, $1,200 USD/oz Au, $0.95 USD/lb Pb, and $1.00 USD/lb Zn.

(3) The Mineral Reserves information provided above for La Encantada, La Parrilla, Del Toro and San Martín is based on internal estimates prepared as of December 31, 2014. The information provided was reviewed and validated by the Company's internal Qualified Person, Mr. Ramon Mendoza Reyes, P.Eng., who has the appropriate relevant qualifications, and experience in mining and reserves estimation practices.

(4) Mineral Reserve estimates for La Guitarra are based on the 2015 La Guitarra Silver Mine Technical Report compiled by First Majestic with contribution of Amec Foster Wheeler Americas Ltd.

(5) 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 2014 Annual Information Form.

(6) The cut-off grades and modifying factors used to convert Mineral Reserves from Mineral Resources are different for all mines. The cut-off grades are listed in each mine section of the 2014 Annual Information Form.

 

MEASURED AND INDICATED MINERAL RESOURCES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2014





















Mine / Project

Category


Mineral Type


k tonnes


Ag (g/t)


Au (g/t)


 Pb (%) 


 Zn (%) 


Ag-Eq (g/t)


Ag (k Oz)


Ag-Eq (k Oz)





















LA ENCANTADA

Measured (UG)


Oxides


1,086


283


-


-


-


283


9,878


9,878

Indicated (UG)


Oxides


2,289


321


-


-


-


321


23,623


23,623

Total Measured and Indicated  (UG)


Oxides


3,375


309


-


-


-


309


33,501


33,501





















LA PARRILLA

Measured (UG)


Oxides


344


255


-


-


-


255


2,817


2,817

Indicated (UG)


Oxides


953


254


-


-


-


255


7,774


7,807

Total Measured and Indicated (UG)


Oxides


1,298


254


-


-


-


255


10,591


10,624

Measured (UG)


Sulphides


703


240


-


2.2


2.1


347


5,415


7,845

Indicated (UG)


Sulphides


1,310


188


0.05


1.8


2.8


302


7,939


12,705

Total Measured and Indicated (UG)


Sulphides


2,013


206


0.03


1.9


2.6


318


13,355


20,550


Total Measured and Indicated (UG)


Oxides + Sulphides


3,311


225


0.0


1.2


1.6


293


23,946


31,175





















SAN MARTÍN

Measured (UG)


Oxides 


1,240


254


0.26


-


-


273


10,128


10,882

Indicated (UG)


Sulphides


1,819


220


0.11


-


-


228


12,878


13,360

Total Measured and Indicated (UG)


Oxides + Sulphides


3,059


234


0.17


-


-


246


23,006


24,242





















DEL TORO

Measured (UG)


Transition


538


185


0.04


2.6


2.6


257


3,198


4,450

Indicated (UG)


Transition


549


180


0.06


2.9


1.9


258


3,176


4,544

Total Measured and Indicated (UG)


Transition


1,087


182


0.05


2.7


2.2


257


6,373


8,994

Measured (UG)


Sulphides


1,150


182


0.08


3.3


2.3


272


6,726


10,048

Indicated(UG)


Sulphides


1,747


255


0.21


4.6


4.6


394


14,315


22,128

Total Measured and Indicated (UG)


Sulphides


2,897


226


0.16


4.1


3.7


345


21,041


32,176


Total Measured and Indicated (UG)


Transition + Sulphides


3,984


214


0.13


3.7


3.3


321


27,414


41,169





















LA GUITARRA

Measured (UG)


Sulphides


121


170


2.37


-


-


305


660


1,185

Indicated (UG)


Sulphides


1,029


335


1.56


-


-


424


11,078


14,029

Total Measured and Indicated (UG)


Sulphides


1,150


318


1.65


-


-


412


11,738


15,214





















LA LUZ

Measured (UG)


Oxides


2,614


221


-


-


-


221


18,559


18,559

Measured (Tailings)


Oxides (Tailings)


1,403


90


-


-


-


90


4,075


4,075

Indicated (UG)


Sulphides


988


321


-


-


-


321


10,202


10,202

Total Measured + Indicated


All material types


5,005


204


-


-


-


204


32,836


32,836






















Total Measured and Indicated


All mineral types


19,885


238


0.15


0.94


0.92


279


152,442


178,137









































INFERRED MINERAL RESOURCES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2014





















Mine / Project

Category


Mineral Type


k tonnes


Ag (g/t)


Au (g/t)


 Pb (%) 


 Zn (%) 


Ag-Eq (g/t)


Ag (k Oz)


Ag-Eq (k Oz)





















LA ENCANTADA

Inferred (UG)


Oxides


899


340


-


-


-


340


9,832


9,832


Inferred (Tailings)


Tailings


6,026


107


-


-


-


107


20,731


20,731


Inferred Total


Oxides + Tailings


6,926


137


-


-


-


137


30,562


30,562





















LA PARRILLA

Inferred (UG)


Oxides


3,422


259


-


-


-


259


28,477


28,477

Inferred (UG)


Sulphides


5,848


190


-


2.4


3.1


324


35,676


60,997

Inferred Total (UG)


Oxides + Sulphides


9,270


215


-


1.5


2.0


300


64,153


89,475





















SAN MARTÍN

 Inferred Total (UG)


Oxides


5,541


216


-


-


-


216


38,502


38,502





















DEL TORO

Inferred (UG)


Transition


1,457


186


0.04


2.6


2.2


257


8,699


12,031

Inferred (UG)


Sulphides


4,211


176


0.13


3.8


5.3


297


23,821


40,156

Inferred Total (UG)


Transition + Sulphides


5,669


178


0.11


3.5


4.5


286


32,520


52,187





















LA GUITARRA

 Inferred Total (UG)


Sulphides


739


197


1.23


-


-


267


4,674


6,343






















Total Inferred


All mineral types


28,145


188


0.05


1.2


1.6


240


170,412


217,070

(1) Mineral Resources have been classified in accordance with CIM Definition Standards on Mineral Resources and Mineral Reserves, whose definitions are incorporated by reference into NI 43-101.

(2) In all cases, metal prices considered for Mineral Resource estimates were $22 USD/oz Ag, $1,350 USD/oz Au, $0.95 USD/lb Pb, and $1.00 USD/lb Zn.

(3) The Mineral Resources information provided above for La Encantada, La Parrilla, Del Toro and San Martín is based on internal estimates prepared as of December 31, 2014. The information provided was reviewed and validated by the Company's internal Qualified Person, Mr. Jesus M. Velador Beltran, Ph.D. Geology, who has the appropriate relevant qualifications, and experience in mining and resource geology.

(4) Mineral Resource estimates for La Guitarra Silver Mine are based on the 2015 Technical Report compiled by First Majestic with contribution of Amec Foster Wheeler Americas Ltd.

(5) 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 2014 Annual Information Form.

(6) The cut-off grades for Mineral Resources are different for all mines. The cut-off grades are listed in each mine section of the 2014 Annual Information Form.

(7) Measured and Indicated Mineral Resources are reported inclusive of Mineral Reserves.

(8) The La Luz resource estimates are taken from the Real de Catorce Property Technical Report dated July 25, 2008 and the Real de Catorce Property Technical Report dated July 30, 2007. The Company's Qualified Persons are working on applying similar economic inputs to the La Luz Silver Project to those applied to the other properties.

 

PLOMOSAS HISTORICAL ESTIMATES




















Project


Category


Mineral Type


k tonnes


Ag (g/t)


Au (g/t)


 Pb (%) 


 Zn (%) 


Ag (k Oz)


Ag-Eq (k Oz)




















PLOMOSAS


Not in accordance with
CIM Standards


Sulphides (UG)


896


192


0.8


2.1


3.4


5,500


11,000




















(1) Plomosas historical estimates are taken from Grupo Mexico's estimates prepared in 2001.

(2) Tonnage is expressed in thousands of tonnes, metal content is expressed in thousands of ounces.

(3) The Company's Qualified Persons have been coordinating the work for the verification of the information supporting the historical estimates at Plomosas. The historical estimates at Plomosas do not conform to NI 43-101 for reporting purposes; as such, the Company is not treating these historical estimates as current Mineral Reserves or Mineral Resources. Since the historical estimates do not have demonstrated current economic viability, these estimates should not be relied upon until the verification process and due diligence in progress by the Company's Qualified Person is completed.

(4) In order to verify or upgrade the historical estimates, the Company will need to complete a diamond drilling program at the Rosario and San Juan mines. The drilling program is designed to confirm the historical estimates reported by Grupo Mexico and will allow the Company to plan a second exploration program focused on locating extensions of the known mineralization. Other work required to verify the historical estimates as current includes, but it is not limited to: re-survey of underground workings, re-survey of available exploration drill-hole monuments, review of drilling, sampling and assays databases, and the re-assessment of the estimates following CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines and CIM Definition Standards on Mineral Resources and Mineral Reserves.

The Company also announces that its 2014 audited financial statements have been filed on SEDAR.  In addition, a Form 40-F report has been filed with the United States Securities and Exchange Commission and is available on EDGAR.  Both documents are also available on the Company's website at www.firstmajestic.com.

Shareholders may also receive a copy of First Majestic's audited financial statements, without charge, upon request to First Majestic, Suite 1805 – 925 West Georgia Street Vancouver, B.C., Canada, V6C 3L2 or to info@firstmajestic.com.

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

First Majestic is a mining company focused on silver production in México and is aggressively pursuing the development of its existing mineral property assets and the pursuit through acquisition of additional mineral assets which contribute to the Company achieving its corporate growth objectives.

FIRST MAJESTIC SILVER CORP.
"signed"
Keith Neumeyer, President & CEO

SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION

This news release includes certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target", "plan", "forecast", "may", "schedule" and similar words or expressions, identify forward-looking statements or information. These forward-looking statements or information relate to, among other things: the price of silver and other metals; the accuracy of mineral reserve and resource estimates and estimates of future production and costs of production at our properties; estimated production rates for silver and other payable metals produced by us, the estimated cost of development of our development projects; the effects of laws, regulations and government policies on our operations, including, without limitation, the laws in Mexico which currently have significant restrictions related to mining; obtaining or maintaining necessary permits, licences and approvals from government authorities; and continued access to necessary infrastructure, including, without limitation, access to power, land, water and roads to carry on activities as planned.

These statements reflect the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements or information and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: fluctuations in the spot and forward price of silver, gold, base metals or certain other commodities (such as natural gas, fuel oil and electricity); fluctuations in the currency markets (such as the Canadian dollar and Mexican peso versus the U.S. dollar); changes in national and local government, legislation, taxation, controls, regulations and political or economic developments in Canada, Mexico; operating or technical difficulties in connection with mining or development activities; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins and flooding); risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom the Company does business; inability to obtain adequate insurance to cover risks and hazards; and the presence of laws and regulations that may impose restrictions on mining, including those currently enacted in Mexico; employee relations; relationships with and claims by local communities and indigenous populations; availability and increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses, permits and approvals from government authorities; diminishing quantities or grades of mineral reserves as properties are mined; the Company's title to properties; and the factors identified under the caption "Risk Factors" in the Company's Annual Information Form, under the caption "Risks Relating to First Majestic's Business".

Investors are cautioned against attributing undue certainty to forward-looking statements or information. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.

SOURCE First Majestic Silver Corp.

For further information: contact info@firstmajestic.com, visit our website at www.firstmajestic.com or call our toll free number 1.866.529.2807

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