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Message: First Majestic Announces High-Grade Drill Results from 2018 Exploration Program at the Ermitano Silver/Gold Project; Permitting Status Update

First Majestic Announces High-Grade Drill Results from 2018 Exploration Program at the Ermitano Silver/Gold Project; Permitting Status Update

posted on Feb 25, 2019 07:49AM

 

 
2019-02-25 07:09:49 AM ET (GlobeNewswire)
   
   

FIRST MAJESTIC SILVER CORP. (AG: NYSE; FR: TSX) (the "Company" or "First Majestic") is pleased to announce the results from its 2018 exploration program at the Ermitano Silver/Gold project located four kilometres south of the producing Santa Elena Silver/Gold Mine in Sonora, Mexico. The initial discovery hole (EW16-04) was previously announced on January 17, 2017 which intersected 997 AgEq grams per tonnes ("g/t") over 18.0 metres (11.4 g/t gold and 86 g/t silver). At the end of 2018, a total of 50 drill holes had been completed on the property. The 2018 exploration program totalled 17,447 metres in 40 drill holes consisting of nine infill holes designed to increase the confidence and size of the resource and 31 step out holes to target areas to the West and East of the known mineralization.

DRILLING HIGHLIGHTS

Drill Hole 18-35 - 30.1 metres grading 293 AgEq g/t (3.0 g/t gold and 53 g/t silver)

Drill Hole 18-36 - 11.2 metres grading 1,019 AgEq g/t (11.1 g/t gold and 128 g/t silver)

Drill Hole 18-39 - 17.6 metres grading 654 AgEq g/t (6.3 g/t gold and 149 g/t silver)

Drill Hole 18-47 - 28.3 metres grading 403 AgEq g/t (3.9 g/t gold and 95 g/t silver)

Keith Neumeyer, President and CEO of First Majestic stated: "The drilling results announced today from our Ermitano project are extremely encouraging as it continues to show the potential to build high quality resources in close proximity to our producing Santa Elena operation. The environmental permitting process is in the final stage with an expected positive decision in the coming weeks ahead. Pending project approval, Ermitano will add several years of mine life at Santa Elena and will displace the reprocessing of the old heap-leach ore pad with fresh ore containing higher grades that are not subject to the Sandstorm streaming agreement."

PERMITTING STATUS

In early February, technical personnel from SEMARNAT visited the Ermitano site in connection with the submission of the Company's Unified Technical Document ("DTU") for Exploitation. The DTU permit is the final federal requirement that includes authorizations for environmental impact and land-use change needed prior to the commencement any construction and mining activities. The Company anticipates receiving permission from the federal agency in March.

SUMMARY OF COMPOSITES

Hole ID   From  To    Length (m) Estimated   Ag g/t Au g/t Ag Eq g/t
                                 True Length
                                 (m)
EW-16-03  199.6 202.1 2.5        1.9         37     5.3    463
EW-16-04  224.5 242.5 18.0       14.5        86     11.4   997
including 228.1 229.5 1.4                    83     16.6   1,407
          233.1 233.8 0.7                    634    39.7   3,808
          233.8 234.3 0.5                    97     19.5   1,658
          234.3 235.5 1.1                    154    40.1   3,364
          235.5 236.4 0.9                    129    31.9   2,678
          237.6 240.1 2.5                    60     14.7   1,232
EW-16-05  126.4 152.6 26.2       20.7        52     4.2    390
including 134.9 136.3 1.3                    92     13.9   1,207
          136.3 137.4 1.1                    165    11.1   1,053
EW-16-06  271.3 301.6 30.3       19.8        201    4.1    528
including 271.3 272.5 1.2                    312    11.2   1,204
          272.9 273.5 0.6                    534    10.9   1,404
          273.5 273.9 0.4                    643    9.6    1,410
          274.4 274.8 0.4                    1517   5.5    1,955
          274.8 275.6 0.8                    1408   24.9   3,403
          275.6 276.9 1.3                    1128   18.4   2,602
          276.9 277.7 0.8                    654    16.3   1,956
EW-16-08  350.7 371.5 20.9       16.5        40     2.2    214
EW-17-09  268.5 280.7 12.2       9.8         77     3.6    367
including 271.3 271.8 0.5                    76     12.9   1,109
EW-17-10  147.4 152.9 5.4        4.0         65     4.8    450
EW-18-19  669.0 670.9 1.9        1.5         78     1.7    217
EW-18-27  708.1 709.1 1.0        0.9         29     1.0    111
EW-18-33  237.2 255.5 18.3       14.5        28     2.9    261
EW-18-34  273.5 287.1 13.6       9.4         53     3.4    327
including 275.4 276.3 0.9                    72     13.6   1,160
EW-18-35  148.0 188.3 40.3       30.1        53     3.0    293
including 163.6 164.1 0.5                    139    19.4   1,691
          165.4 166.1 0.7                    118    18.7   1,614
EW-18-36  292.3 311.0 18.7       11.2        128    11.1   1,019
including 299.3 300.4 1.1                    307    19.8   1,891
          300.4 301.7 1.3                    567    70.8   6,231
          301.7 303.0 1.3                    122    20.1   1,730
          303.0 304.4 1.4                    326    32.0   2,886
EW-18-37  185.5 192.0 6.4        4.0         54     3.2    309
EW-18-38  182.6 185.3 2.8        2.2         48     5.8    510
EW-18-39  265.4 294.1 28.7       17.6        149    6.3    654
including 265.4 266.0 0.6                    520    17.0   1,879
          268.8 270.0 1.2                    369    20.1   1,980
          272.0 273.0 1.0                    387    8.6    1,074
          283.0 284.0 1.0                    149    15.5   1,392
          286.0 287.0 1.0                    180    10.4   1,010
          289.0 290.2 1.2                    192    14.4   1,342
EW-18-40  294.7 307.4 12.8       10.3        21     1.3    126
EW-18-41  166.3 172.9 6.5        4.5         78     9.6    849
including 167.7 168.5 0.8                    83     14.6   1,250
          169.3 170.3 0.9                    133    39.4   3,281
EW-18-43  347.2 356.3 9.1        5.9         26     1.2    125
EW-18-44  199.1 229.5 30.4       16.8        39     2.6    251
EW-18-45  189.5 215.1 25.6       15.4        77     2.5    274
including 214.1 215.1 1.0                    85     17.2   1,457
EW-18-46  74.6  99.3  24.7       20.5        41     3.7    341
including 90.2  91.1  0.9                    95     13.0   1,136
          93.3  94.0  0.8                    149    27.3   2,334
EW-18-47  296.2 343.7 47.5       28.3        95     3.9    403
including 304.6 305.7 1.1                    434    21.1   2,125
          313.5 314.9 1.4                    184    10.4   1,019
          318.0 320.1 2.1                    160    11.8   1,100
EW-18-48  260.5 264.6 4.1        3.5         59     6.3    561
EW-18-49  307.1 322.5 15.4       11.1        60     2.3    244
EW-18-50  243.5 263.4 19.9       17.8        57     3.9    366
including 260.2 261.4 1.2                    74     12.2   1,043

Note: Holes EW16-01 to EW16-04 were announced on January 17, 2017 (see press release at https://www.firstmajestic.com/news/2017/index.php?content_id=312). Holes EW16-06 and EW 17-09 were announced on January 9, 2018 (see press release at https://www.firstmajestic.com/news/index.php?content_id=340). Gold equivalent ("Gold-Equiv") is calculated using a gold to silver ratio of 1:80.

After detailed geological logging, all drill core samples were split on site by diamond saw. One half of the core was submitted to Bureau Veritas Mineral Laboratories at the laboratory in Vancouver, British Columbia, Canada and to SGS Laboratories at the laboratories in Durango and Hermosillo, Mexico. The remaining half core is retained on-site for verification and reference purposes.

ERMITAÃ'O VEIN SYSTEM

Low sulphidation epithermal silver and gold mineralization is hosted in the steep dipping Ermitano and Ermitano Splay structures. The structures host green and white massive, banded, and bladed and stockwork quartz, calcite, and adularia. The veins are commonly brecciated and are associated with argillic alteration. Sulphide and iron oxide after sulphide and pyrolusite occur locally. The bulk of Inferred mineralization disclosed in 2018 is hosted in the Ermitano Splay. Drilling of the Ermitano Splay has delineated an east-west striking structure approximately 500 metres long, 400 metres down dip, with mineralized true thicknesses ranging from 0.9 to 30.0 metres, averaging 11.0 metres. Mineralization in the Splay remains open up-dip and down-dip to the west. The Ermitano Splay separates from the Ermitano structure which is delineated by drilling over an approximate 1,000 metre southwest strike length and 400 metre dip length. Mineralized true thicknesses range from 0.8 to 11.0 metres, averaging 4.0 metres.

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/21927b64-32ea-447e-aa1e-0c7d39deed35

Figure 1: Oblique view of Ermitano and Ermitano Splay

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/885a7dfa-61e6-443b-ab74-eabfeace9267

Figure 2: Plan view of Ermitano and Ermitano Splay

2019 EXPLORATION PROGRAM

The 2019 exploration program will consist of approximately 16,000 metres in 75 planned drill holes. In the first half of 2019, the Company will explore the Ermitano Splay at shallow elevations with the objective to investigate the continuity of mineralization at low depths and to evaluate the feasibility of open pit extraction. If feasibility is confirmed, this could provide a faster way to process ore from this area.

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/89583387-f02a-4dc9-b49f-4dd1203a86c2

Figure 3: Ermitano Splay Grade x Thinkness Long Section

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

ABOUT THE COMPANY

First Majestic is a mining company focused on silver production in Mexico and is aggressively pursuing the development of its existing mineral property assets. The Company presently owns and operates the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, the La Encantada Silver Mine, the San Martin Silver Mine, the La Parrilla Silver Mine and the Del Toro Silver Mine. Production from these mines are projected to be between 14.2 to 15.8 million silver ounces or 24.7 to 27.5 million silver equivalent ounces in 2019.

FOR FURTHER INFORMATION contact [email protected], visit our website at www.firstmajestic.com or call our toll-free number 1.866.529.2807.

FIRST MAJESTIC SILVER CORP.

"signed"

Keith Neumeyer, President & CEO

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