First Majestic Silver Corp. ("First Majestic" or the "Company") announces the company's production results for the fourth quarter and full year 2013.
Total production was in line with forecasts, reaching a new record of 2013 ounces of silver equivalent in 12.791.527, an increase of 41 percent compared to 2012. Silver equivalent production in 2013 was 10.641.465 ounces of silver, 10.040 ounces of gold, 26.904.093 pounds of lead and 8.509.097 pounds of zinc. With an annual production of over ten million ounces of pure silver, the company now achieves the status of a "Senior Silver Producer" in its tenth year.
Fourth quarter total production also reached a new quarterly record of 3.421.161 ounces of silver equivalent, consisting of 2.746.598 ounces of silver, 3.519 ounces of gold, 8.355.889 pounds of lead, and 1.698.745 pounds of zinc.
President and CEO Keith Neumeyer said: "2013 posed a major challenge for the mining industry. The unexpected drop in metal prices required a swift response to reduce investment and costs. Our team deserves a lot of credit for the difficult decisions that had to be made. However, further action is needed to increase efficiency and apply new technologies and innovative methods. In 2014, our main focus will be on improving efficiency through automation and training programs. With all the challenges we've already mastered and are still ahead of us, it's sometimes difficult to see all the positive things happening around us. Our team must therefore be congratulated for another year with production growth. As the companies Del Toro and San Martín are still being upgraded, similar growth is expected for 2014. Now that we have achieved one of our key goals that we set ourselves ten years ago - the production of over ten million ounces of silver - we set ourselves the goal of producing 20 million ounces, which in our opinion, with our current assets can be reached. We live in difficult but exciting times. "
Table with production data:
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Business Activities:
2013 was opened up to 53.257 meters underground, 2012 in 57.267 meters. Compared to a 135.769 Meter drilling volume in 2012, only 2013 meters were completed in diamond drilling on the 58.578 exploration program. The primary goal of the exploration program is to further define and enhance the resources and reserves, and to integrate this new data into the Company's future NI 43-101 compliant technical reports. After cutting the exploration budget for 2013 and reducing the drill programs for 2014, there will be no base drilling or drilling in undeveloped areas. There are therefore primarily subsidy or definition holes.
For the fourth quarter, the five operating silver mines - La Encantada, La Parrilla, Del Toro, San Martin and La Guitarra - processed a total of 701.617 tonnes of ore, an increase of 9% over the previous quarter.
The average silver grade of these five mines fell to 191 g / t in the quarter, a decrease of 5% compared to the previous quarter. The combined silver recovery rate averaged 64% for the quarter, remaining at the level of the third quarter, where 65% recovery was achieved.
In the fourth quarter, the company opened 13.280 Meter underground, which is 10.923 Meter 22% higher than in the previous quarter.
During the quarter, nine drilling rigs were in operation at the company's five facilities. The company drilled over 8.324 meters during the quarter, while around 7.823 meters were completed in the previous quarter. This equates to an increase of 6%.
The Company is pleased to announce the appointment of Mr. Alejandro Sandoval as General Manager of Processing Plants, in line with its goal of increasing recovery rates and operational efficiency. Mr. Sandoval has an experience of over 37 years in the Mexican mining industry and will be responsible for metallurgical improvements and testing at all operations. He spent most of his career working for Fresnillo and Peñoles, then moved to Goldcorp, where he was responsible for the development and operation of the sulfide processing plant at the Peñasquito Mine. Prior to joining First Majestic, Mr. Sandoval served as General Manager of Construction and Design for Minera Frisco.
Table of quarterly production of individual mines:
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1) Based on the number of days of operation
2) The new cyanidation cycle at Del Toro has been operating 38 days this quarter, processing 34.370 tonnes (on average, 904 tpd). The flotation circuit was in operation for 74 days and processed 88.468 tons (on average 1.196 tpd). It was thus 58 average-weighted operating days with an average operating rate of 2.100 tpd.
Silver Mine Del Toro:
• This year, Del Toro 319.861 processed tons of ore with an average silver content of 213 g / t. The average metallurgical recovery rate amounted to 68 percent (production of a total of 1.484.598 ounces of silver). In addition, 8.400.642 pounds of lead and 1.785.219 pounds of zinc were produced this year.
• As previously announced, the new cyanidation cycle on the 20. October 2013 successfully put into operation, which now the production of silver Doré bars is possible. On the 20. November 2013 was the first official cast of silver bars at Del Toro. The new Cyanidationskreislauf becomes since 1. January 2014 considered commercial after reaching the commercial level.
• The flotation circuit is still in operation; In the fourth quarter, 88.468 tons were processed with an average silver content of 226 g / t and a silver recovery rate of 69 percent.
• New cyanidation cycle throughput in December averaged 881 tpd with an average maximum 164 g / t silver and recovery rates of 60 percent. As the company will upgrade the cyanidation cycle to 2.000 tpd, it is expected that the grades and recovery rates will be closer to those found in the preliminary Feasibility Study of the 20. August 2012 were specified.
• The construction of the new power line with 115 kV is now completed at 90 percent and is expected to be completed by the end of the second quarter following a plan change that will now allow power to pass through several small towns.
• During the quarter, a drill rig was in operation as part of the underground work at Del Toro. In the fourth quarter, 799 meters were drilled as part of the exploration, while 2.856 meters were completed in the previous quarter. This is due to the reduction in the exploration budget. In addition, 2013 closed 2.612 meters in the fourth quarter, while in the previous quarter only 1.817 meters were opened.
Silver mine La Encantada:
• This year, La Encantada processed a total of 1.139.241 tonnes, of which 53 percent consisted of fresh mines and 47 percent came from ancient mountains. The total production amounted to 4.081.094 ounces of silver. Implementing an optimization program at La Encantada reduced the amount of old mountains that passed through the cyanidation cycle, resulting in a reduction of 25's annual total throughput. However, the average maximum level increased by 29 percent to 227 g / t silver, leaving total silver production virtually unchanged year-on-year.
• Underground development and production of the San Francisco vein and the recently discovered "990" and "990-2" chimneys will continue. The recently discovered vines Regalo and Brecha are preparing new mining areas for production. In addition, preparations have begun during the quarter in the 310 excavation chamber at 1610 level and the expansion of the Buenos Aires area at 1850 level. These new areas are being prepared to support the planned increase in the production of fresh miners in 2014.
• Four drill rigs were deployed as part of the underground development of the La Encantada project during the quarter. In addition to supporting the promotional activities, they were used primarily to define reserves and resources in the newly discovered areas. In the fourth quarter, 6.611 meters were completed as part of the exploration and definition drilling, while only 2.928 meters were drilled in the previous quarter. In addition, a total of 3.210 meters were opened underground in the fourth quarter, while in the previous quarter 3.195 meters were opened.
• Much of the current drilling and development activities are designed to collect data to create a new NI 43-101 compliant technical report.
Silver mine La Parrilla:
• This year, La Parrilla processed 788.335 tonnes of ore with an average grade of 162 g / t (total production of 3.115.997 ounces of silver). Silver production increased 8 percent in 2013, mainly due to an increase in mill throughput of 16 percent year over year. The average metallurgical recovery rate of silver amounted to 76 percent - a decline of two percent compared to the year 2012. In addition, 18.503.451 pounds of lead and 6.723.878 pounds of zinc were produced this year.
• Quebradillas open pit mining has increased production in higher grade underground areas this year, notably at San Marcos. In addition, the new Vacas Mine was put into production in the second half of 2013 at a rate of 313 tpd. The sulfide ore contained therein has silver contents from 200 to 240 g / t.
• The development and construction of the rail transport system has now reached a length of 1.057 meters. Due to the reduction in development costs associated with the budget cuts, the deadline for completing the 5.000 Meter project has been extended until the end of 2016.
• A total of 2.989 meters were opened underground in the quarter, compared to 2.213 meters in the previous quarter.
• During the quarter, a drill rig was deployed as part of La Parilla's underground work. 249 meters were drilled in the fourth quarter, while 177 drills were completed in the previous quarter.
Silver mine San Martin:
• This year, 322.618 tons of ore with an average silver content of 153 g / t were processed at San Martín (total production of 1.250.774 ounces of silver). This represents an increase in 31 percent of total silver production compared to 2012, mainly due to an increase in 13 percent, an increase in mill throughput of 13 percent, and an increase in recovery of three percent.
• The expansion of the processing plant was completed in late December with the final installation of a new 9,5 'by 12' ball mill to replace the older 8,5 'by 12' ball mill. This new, larger ball mill is expected to be more reliable and achieve projected throughputs of 1.300 tpd.
• In the fourth quarter, a total of 2.858 meters were opened underground, compared to 2.267 meters in the previous quarter. The mine development continues to focus on the new areas of Rosarios where there are currently seven production sites in operation.
• During the quarter, a drill rig was deployed as part of the underground work at San Martin. 387 meters were drilled in the fourth quarter, while 376 drills were completed in the previous quarter.
Silver Mine La Guitarra:
• This year, La Guitarra 171.662 processed tons of ore with an average silver content of 152 g / t (total production of 709.002 ounces of silver). This represents an increase in silver production of 82 percent compared to year 2012 (since the acquisition of Silvermex Resources in July 2012), which is mainly due to an increase in mill throughput of 184 percent due to a decline in silver content of 34 percent and a fall in the recovery rate of three percent was made up for.
• The mine development at the Joya Larga structure in the El Coloso area has reached 151 meters along the vein and has reached the economic production area. The first ore production started at a rate of 48 tpd in December, and preparations are continuing to raise ore production to 2014 tpd by the second half of the year, 160. This new area indicated grades between 200 and 350 g / t silver.
• A total of 1.611 meters were opened in the fourth quarter, compared with 1.431 meters in the previous quarter. The production ore continued to be mined in areas within the La Guitarra vein, which had higher gold grades and lower silver grades. The average silver content is expected to increase as production increases on the Joya Larga structure.
• In the fourth quarter, two drill rigs were deployed as part of the underground development of the La Guitarra project. 278 meters were drilled during the quarter, while 1.486 meters were completed in the previous quarter.
Production and cost forecast 2014:
For the year 2014, the company expects to increase silver production from 19 to 25 percent, as well as a new annual production rate from 12,70 to 13,35 million ounces (14,85 to 15,60 million ounces of silver equivalent). The following developments are on the agenda in this regard:
• At Del Toro, the total throughput of the dual-circuit processing plant is expected to be on average 2.600 tpd (2.100 tpd via cyanidation and 500 tpd via flotation).
• As a result of the recent expansion at San Martín, the cyanidation facility is expected to average 2014 tpd from the beginning of 1.300. This increase in mill capacity (previously 900 tpd) is expected to increase production by another 500.000 ounces of silver as well as moderate amounts of gold per year.
• La Encantada plans to upgrade and expand the crushing and milling area to increase the increase in underground mining of fresh ore in the second half of the year 2014. In addition, the processing of old mountains is removed from the mill feed due to the low metal prices. This change is intended to increase both the silver recovery rates and the maximum level at the mill.
• Due to 2013's underground mining operations at La Guitarra in the second half of the year, the company anticipates that 2014 will extract and process higher silver grades. Historical silver grades varied between 200 and 225 g / t.
The company continues to optimize the mines to ensure profitability given low prices. These changes are designed to maintain the status of First Majestic as one of the producers with the purest silver and highest margins in the silver industry.
The following table shows a breakdown of the individual mines of the production forecast 2014:
To view the full press release please follow the link:
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For the first time, the company also integrates the entire maintenance costs into the forecast for 2014. However, this calculation is not in line with the GAAP provisions and is only intended to provide a better overview, comparability and presentation of the total costs associated with the production of silver in the current operations. New project capital and expansion capital for current operations are not included in this total cost of living calculation.
To view the full press release please follow the link:
http://www.irw-press.com/dokumente/FirstMajestic_140114_Deutsch.pdf
1. Total maintenance costs are calculated based on the World Gold Council ("WGC") June 2013 forecast, rather than GAAP. By 1. January 2014 voluntarily announces the Entire Entity Cost Report to compare its consolidated operating performance. The WGC is not a regulator and has no authority to establish accounting standards for publications. Other mining companies could calculate the total maintenance costs differently, due to differences in the underlying principles and provisions, as well as differences in definitions of maintenance and development capital expenditure.
2. In order to comply with WGC's Total Cost of Ownership (TCO) provisions, the Company also included 2014-0,38 $ employee participation fees in the calculation of the total investment cost per ounce of silver payable for 0,39.
As shown in the table above, the AISC cost for 2014 is estimated to be between 15,87 $ and 16,69 $ per payable silver ounce.
In 2014, the company plans to allocate a total of 106,0 millions of dollars in maintenance capital for the current operations as well as expansion capital for numerous growth projects. The annual budget includes $ 42,3 million spent on facilities, properties, and equipment, as well as 55,7 million for development and $ 8,0 million for exploration.
In addition, the Company is planning a limited number of capital expansion projects for 2014, including 8,8 $ millions at Del Toro for the completion of the new power line with 115 kV and for the extension of the mountain pond. In addition, 4,6 has been earmarked $ 15 million for La Encantada's upgrades and expansion of crushing and grinding operations in anticipation of higher throughput in the second half of the year.
First Majestic is a mining company focused on silver production in Mexico, and is rigorously focusing its business strategy on developing its existing mineral claims and acquiring additional mineral projects to meet its growth targets.
FURTHER INFORMATION is available from ppgad@pucrs.br or visit our website at www.firstmajestic.com or our toll-free number 1.866.529.2807.
FIRST MAJESTIC SILVER CORP.
Unterschrift:
Keith Neumeyer, President & CEO
Cautionary statement regarding forward-looking statements
This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws regarding the business, operations, financial performance and financial condition of First Majestic Silver Corp. Forward-looking statements include, among others Statements about future prices for silver and other metals, estimation of mineral reserves and resources, execution of mineral reserve estimates, timing and quantity of estimated future production, production and investment costs, costs and timing of development of new deposits, the success of exploration activities, the timing of approval procedures, hedging practices, exchange rate fluctuations, the need for additional funding, the government's influence on the mining operation, environmental risks, unexpected ones Recultivation expenditure, the timing and possible outcome of pending litigation, ownership or Liability claims and insurance coverage. In general, these forward-looking statements are indicative of the use of forward-looking words, such as: "Plans," "expects," "does not expect," "anticipates," "budgeted," "estimates," "forecasts," "intends," "does not intend," "believes," and " Modifications to such terms and phrases or statements that "may," "may," "may," or "become," certain actions, events, or results. Forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that may cause them that the actual results, level of activity, performance or achievements of First Majestic Silver Corp. materially different from those expressed or implied in the forward-looking statements. This includes, but is not limited to, risks associated with incorporating newly acquired projects, risks related to international operations, risks related to joint ventures, actual results of current exploration activities, actual results of the current remedial actions, the outcome of economic valuations, changes detailed project planning figures, future metal prices, potential variations in ore reserves, ore grades or recoveries, unexpected shortcomings in plant operation, machinery or manufacturing processes, accidents, labor disputes, and other risks typically associated with mining, delays in Approval by governmental authorities or in the financing or completion of the development or Construction, as well as all factors identified in the “Business Description - Risk Factors” section of the First Majestic Annual Report for the year ended December 31 December 2012, which was published on www.sedar.com, respectively at the United States Securities and Exchange Commission in Washington, DC submitted form 40-F. First Majestic Silver Corp. has endeavored to identify important factors that could cause actual results to differ materially from those contained in such forward-looking statements. However, other factors may not cause the results to be as expected, estimated or intended. There can be no assurance that such statements will prove to be accurate. Actual results and future events may differ materially from such statements. Readers are cautioned not to rely too much on forward-looking statements. First Majestic Silver Corp. does not intend to update any forward-looking statements referenced herein, unless required by applicable securities laws.
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Source: IRW-Press.com.
