First Majestic Resource Corp. - Corporate Update
First Majestic (ots/PRNewswire)
First Majestic Resource Corp. would like to take this opportunity to update its shareholders on corporate activities over the past couple months on the La Parrilla Silver Mine, Perseverancia Silver Mine and the Niko Silver Project.
La Parrilla Silver Mine
During the initial pre-production stage which commenced in early July the mill at La Parrilla began operations at 180 tpd. The initial plan was to process above ground stockpiles which remained on site from prior mining operations while new accesses within the mine were completed. To date a total of 11,000 tonnes have been processed at the mill with an average grade of 241g/t silver and 0.3g/t gold for a total of 30,040 ounces of equivalent silver produced.
This stage identified a number of areas where low capital cost improvements were implemented to enhance production and recovery. In addition to previously announced items; four additional leaching tanks are planned, two are presently under construction and will be completed shortly; a new Butter Filter was constructed and now is in use to prevent slimes from passing into the press filter from the rich solution; and a new de-aeration tower was put in place in August.
During the month of September a temporary explosives permit was obtained in order to gain access to and develop the upper levels of the mine containing oxide material. A total of 35 metres were developed during the second and third weeks of September, gaining access to old stopes which are now producing ore in the range of 250g/t to 300g/t silver. Also the main Rosario vein has been reached and development is underway with the first 12 metres grading an average of 260g/t silver. To arrive at this average grade, four samples were collected from the back of the drift every 3 metres of development.
Further expansions and upgrades to increase production will continue to be implemented in the coming months.
Ramon Davila, Ing is the company's Qualified Person responsible for the supervision and reporting on this project.
Perseverancia Silver Mine
The Company announced on June 10th that it had entered into seven option agreements covering 283 contiguous hectares which included the Perseverancia Silver Mine, the Magistral Mine and the Esmeralda Mine. Since that time, First Majestic has added to its land position by entering into another similar agreement covering an additional 204 hectares covering the San Juan Mine which had a historic production in the range of 100,000 tonnes with an average grade of 450g/t silver as reported by the vendors.
A crew consisting of six geologists have been mapping and collecting rock samples from underground at the Perseverancia and within other drifts on the property since July. Eleven kilometres of grid lines have been established where a systematic soil geochemical sampling program was completed. A detailed geophysics survey to follow-up anomalous indications from the geochemical sampling and mapping is anticipated to commence in mid October along these same lines.
Lab results of 270 rock samples have now been received to date. Samples 1 through 60 were collected systematically from 4 levels underground at the Perseverancia, samples 61 through 196 were collected from other drifts within the boundaries of the 487 hectare property. The samples were collected and shipped to Laboratorios Geologico Minero, S.A. de C.V. of Guadalajara, where they were prepared and shipped directly to Acme Analytical Laboratory's Ltd., of Vancouver. A summary of the silver results grading higher then 150g/t silver (Ag) are as follows:
Sample No. Ag g/t Sample No. Ag g/t Sample No. Ag g/t
01 493 51 516 113 318
08 4,529 52 337 118 165
13 696 55 183 119 383
15 353 58 1,516 124 277
16 424 60 1,828 126 249
18 189 61 396 127 420
21 269 91 657 131 153
26 1,426 96 459 132 190
34 608 104 271 157 171
39 893 105 364 196 157
43 659 112 645The soil geochemistry samples as well as other rock samples from surface and underground remain outstanding.
For the purpose of this news release the Company has not reported values of silver grading less then 150 grams per tonne and has not reported other metal values. Further analysis of the data is presently underway to determine appropriate follow up work and significance of these encouraging results.
Ramon Davila, Ing, is the company's Qualified Person responsible for the supervision and reporting on this project.
Niko Silver Project
The drilling phase of the project was completed in late August for a total of 2,849 metres drilled in 6 diamond drill holes.
The drilling was primarily targeted on large CSAMT and NSAMT Geophysical anomalies - specifically resistivity lows. These were interpreted to represent massive polymetallic sulphides potentially containing silver, zinc, lead, copper and molybdenum.
No such bodies were intersected in the holes drilled to date. Instead the low resistivity geophysical anomalies appear to be due to complex geologic factors not directly related to mineralisation. Resistive zones appear to be related to solid, unbroken limestone and in some cases perhaps intrusive rock.
While the original objective of cutting significant mineralisation has not been realised, the various geochemical and geophysical programs as well as this drilling program have confirmed that the Niko Silver Project has characteristics of a large hydrothermal system. Five additional drill targets remain to be tested. The Company will be undertaking a detailed evaluation of the results and will be reviewing its options.
The Niko Silver Project is a joint venture between the Company and JABA Explorations Inc.. Under the terms of this option agreement First Majestic can earn up to an 80% interest by expending US$900,000 on exploration over a three year period, and by completing a bankable feasibility study.
JABA's James Briscoe, MS., P.Geo. is the company's Qualified Person responsible for the supervision and reporting on this project.
First Majestic continues to pursue other advanced stage silver projects in Mexico in accordance with its acquisition strategy. The Company is in negotiations with a number of potential vendors. At this time no agreements have been reached. These potential target acquisitions remain confidential in order for the Company to maintain its competitive position.
FIRST MAJESTIC RESOURCE CORP.
"signed"
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 mineralisation 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.
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