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Re: News Releases - Wednesday, November 19, 2008
Operations Update
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First Majestic Silver Corp. (FR-T) ("First Majestic" or the "Company")
is pleased to announce that production during the month of October has
increased significantly from the average monthly production achieved in
the third quarter.
The Company's three producing mines; the La Parrilla Silver Mine, the
San Martin Silver Mine and the La Encantada Silver Mine have
experienced a substantial increase in throughput at each mill in
October. Ore processed through the mills increased to a combined 71,172
tonnes, an increase of 25% compared to the monthly average throughput
of 56,766 tonnes achieved in the third quarter. This increased
throughput is expected to result in lower costs on a per ounce basis
for the fourth quarter.
At the La Parrilla mill, several modifications have been made to
increase capacity from 800 to 840 tpd. The mill has been running at
this new higher capacity since the early part of November. Total
tonnage processed for the month of October reached 21,918 tonnes
compared with the average monthly tonnage in the previous three months
of 17,274 showing an increase of 27%.
The San Martin mill has also been undergoing improvements which are in
the process of being completed. Mill capacity is being increased from
800 tpd to 1000 tpd and is expected to be completed by the end of
November. Ore processed in the month of October reached 22,808 tonnes
compared with the average tonnage of the previous three months of
18,690 tonnes, an increase of 22%.
Several modifications have now been completed at the La Encantada mill
to increase the mill capacity from 800 to 1000 tpd. The mill processed
26,447 tonnes of ore in the month of October amounting to an increase
of 27% compared to the average of 20,802 tonnes achieved during the
three months in the third quarter. The mill expansion to 1000 tpd was
achieved in late October.
Also at the La Encantada, construction of the 3,500 tpd cyanidation
circuit is proceeding as planned. Construction is expected to be
completed in April 2009, which will allow the Company to significantly
ramp up silver production at this operation. In the interim, in order
to reduce smelting costs, a cyanidation circuit designed to leach
concentrates has been constructed. This new cyanidation circuit is
presently in the testing stage. Once fully operational, the silver
precipitates produced from the concentrates will be shipped to the La
Parrilla mill for the production of Dor� bars. The production of Dor�
bars which is anticipated to begin within the next few weeks will
result in a significant reduction of smelting and refining costs
associated with selling concentrates.
First Majestic completed a very aggressive drill campaign in 2008 with
the use of 23 drill rigs spread throughout the Company's four core
projects. A total of 57,247 metres were drilled to the end of September
which has resulted in significant growth in Resources. The Company will
be releasing new NI 43-101 Technical Reports on each of the Company's
three producing mines prior to year end. This drill program has now
been reduced to four drill rigs in operation, leaving one in each mine
and one at Del Toro.
At the Del Toro Silver Mine, development and exploration programs have
been reduced however, due to the significance of this project to the
future of the Company, current activities will continue for the
foreseeable future. An Environmental Impact Assessment (EIA) for the
construction of a flotation plant at Del Toro is underway and full
permitting applications are expected to be submitted to the government
authorities in the first quarter of 2009. The timing of the
construction of a new mill at Del Toro will be determined at a later
date.
All activities at the Cuitaboca Silver Project have been temporarily
suspended. The Company has also suspended the construction of the new
crushing circuit at the San Martin which was designed to increase the
capacity of that mill to 2000 tpd. The expansion planned at the La
Parrilla mill to increase its capacity from 850 tpd to 1000 tpd has
also been temporarily suspended.
Given the current financial environment, management has undertaken
several measures to protect cash and costs structures at its operations
while at the same time maintaining or increasing production where
possible. Management is continuing its detailed review and may decide
that further operating and or capital expenditure cuts may be required
dependant on market conditions going forward.
The Company's direct sales of finished silver products continue to be
very robust. The Company presently is selling approximately 5% of its
production in the form of 1 oz, 2 oz, 5 oz and 10 oz coins, 5 oz and 10
oz Ingots and 1 kilo bars containing 99.9% pure silver. These products
are actively marketed on the Company's web site and sales are
anticipated to reach 10% of the Company's production by February 2009.
The sale of silver in these forms tend to sell at a substantial premium
to COMEX spot prices and help to supply the enormous demand for
physical silver in the current environment.
First Majestic is a producing silver company focused in M�xico and is
aggressively pursuing its business plan to become a senior silver
producer through the development of its existing assets and the pursuit
through acquisition of additional assets that contribute to achieving
its corporate growth objectives.
FOR FURTHER INFORMATION contact , visit our website at or call our
toll free number 1.866.529.2807.
FIRST MAJESTIC SILVER CORP.
"signed"
Keith Neumeyer, President & CEO
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 mineralization and reserves, exploration
results and future plans and objectives of First Majestic Silver 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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Copyright (c) 2008 FIRST MAJESTIC SILVER CORP. (TSXV-FR) All rights
reserved. For more information visit our website at
http://www.firstmajestic.com/ or send mailto:general@firstmajestic.com
Message sent on Wed Nov 19, 2008 at 10:43:57 AM Pacific Time
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