VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 01/09/13 — First Majestic Silver Corp. (TSX: FR)(NYSE: AG)(FRANKFURT: FMV) („First Majestic“ or the „Company“) is pleased to announce the Company-s fourth quarter and full year 2012 production results.
Highlights
The total production in 2012 reached 9,110,452 equivalent ounces of silver, representing a 20% increase over 7,562,494 equivalent ounces of silver produced in 2011.
The equivalent silver production for 2012 consisted of 8,260,434 ounces of pure silver, representing a 14% increase from the prior year, 13,240,889 pounds of lead, representing a 68% increase from the previous year, 4,952,899 pounds of zinc, representing a 2,671% increase from the previous year, 18,329 tonnes of iron ore, representing an 85% increase from the previous year, and 4,221 ounces of gold, representing an increase of 175% compared to the previous year. Total silver production in 2012 as a percentage of total metal production amounted to 91%.
Keith Neumeyer, President and CEO, stated, „Another great year which marked our ninth year of consecutive record growth in silver production. Our team once again deserves recognition of this great achievement. We look forward to a great 2013 with the Del Toro mine coming on line and the expansion currently underway at the La Guitarra mine.“
The Company has elected to provide guidance for 2013 production estimated in a range from 12.3 to 13.0 million ounces of silver equivalent or 11.1 to 11.7 million ounces of pure silver. On a year-over-year comparison, this 2013 estimate represents an increase of 34% to 42% of pure silver production maintaining First Majestic-s status as the silver industry-s growth leader. The Company remains on a very aggressive growth plan over the next few years with the ongoing development of the Del Toro Silver Mine, La Guitarra Silver Mine, and the La Luz Silver Project.
January 12, 2013 is the planned date for commencement of phase one production at Del Toro at 1,000 tpd through flotation, which will allow for the production of lead and zinc concentrates. By the end of the second quarter, management expects phase two of production (1,000 tpd flotation and 1,000 tpd cyanidation) to commence allowing for the production of silver dore bars. The Company remains on schedule for the final phase of production (2,000 tpd flotation and 2,000 tpd cyanidation) by mid-2014 at which time Del Toro is expected to become the Company-s largest operation and is projected to produce approximately 6 million ounces of silver per year annualized.
This exploration program for 2012 consisted of 135,769 metres of diamond drilling compared to 56,713 metres drilled in 2011. The total underground development completed in 2012 amounted to 57,267 metres compared to 37,311 metres developed in 2011. It is further anticipated that new updated NI 43- 101 Technical Reports will be released on each of the Company-s projects in 2013, beginning with the San Martin Silver Mine in the first quarter.
With respect to the fourth quarter production results, total ore processed at the Company-s four operating silver mines, the La Encantada Silver Mine, the La Parrilla Silver Mine, the San Martin Silver Mine and the La Guitarra Silver Mine, amounted to 701,618 tonnes milled in the quarter representing a 5% increase over the previous quarter. The average silver head grade in the quarter for the four mines increased 5% from the previous quarter to 176 g/t of silver. The overall combined recoveries of silver decreased from 62% to 58%.
The Company developed 14,802 metres underground in the fourth quarter, compared to 14,595 metres of underground development completed in the previous quarter. Development has been focused on increasing the Reserve and Resource preparation ratios at the four operating mines and further mine preparation at Del Toro in advance of phase two of production through cyanidation expected to commence in mid-2013.
Also, the diamond drilling programs in the fourth quarter totalled 25,940 metres of exploration drilling over 168 holes for a 2012 annual total of 135,769 metres of drilling completed over 674 holes at the Company-s four mines, and at the Del Toro Silver Mine.
As a result of the efforts and work completed in 2012, some of the improvements and advances made during the year included:
At the La Encantada Silver Mine
At the La Parrilla Silver Mine
At the San Martin Silver Mine
At the Del Toro Silver Mine
At the La Guitarra Silver Mine
At the La Luz Silver Project
Orko Silver Corp.
At the Plomosas Silver Project and other assets:
First Majestic is a producing company focused on silver production in Mexico and is aggressively pursuing its business plan of becoming a senior silver producer through the development of its existing mineral property assets and through acquisition of additional mineral assets which contribute to the Company achieving its aggressive corporate growth objectives.
FIRST MAJESTIC SILVER CORP.
Keith Neumeyer, President & CEO
SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION
This news release includes certain „Forward-Looking Statements“ of „forward-looking information“ within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, respectively. 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 accuracy of mineral reserve and resource estimates; the estimated cost and timing of development of our development projects; the timing of completion of exploration programs and preparation of technical reports; 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 or Mexico; the Company-s cash flow and availability of alternate sources of capital; 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 or development, 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.
Contacts: First Majestic Silver Corp. Keith Neumeyer President & CEO Toll Free: 1.866.529.2807
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