First Majestic operates three silver mines and has acquired five additional advanced stage silver projects. The Company’s flagship mine, the La Parrilla Silver Mine, located outside the city of Durango has seen an 18 month underground development program and the recent completion of an 800 tpd mill. Now that both programs are coming to completion, production levels will begin to increase dramatically to an annualized rate of around 2,000,000 ounces of silver for 2007. The most recent NI 43-101 compliant silver resource, which is planned to be upgraded every four months, stands at 11 million ounces of silver.
First Majestic’s second producing mine is the San Martin Silver Mine located about a 40 minute flight from Guadalajara. Production in 2006 will end at around 2,000,000 ounces and is planned to be maintained at that production level for 2007. During 2007 several improvements and mill additions will be made to allow for further production increases for 2008. The San Martin also has a NI 43-101 compliant silver resource of 48 million ounces and further development and exploration is underway to increase this number.
First Majestic’s third producing mine, the La Encantada Silver mine brings added value to the company with its 2006 production of 800,000 ounces. Production levels here are anticipated to be increased to 1 million ounces of silver for 2007. In addition, the historic resource will be upgraded to NI 43-101 compliance by mid 2007.
Exploration and development programs are underway at the Company’s exploration projects, the Candamena Mining District and the Chalchihuites Group of Properties. In addition JV partners are being sought for its other exploration projects, the Candelaria Silver Project, the Quitaboca Silver Project and the Dios Padre Silver Project.
Management strongly feels that investors will continue to witness a dramatic bull market in precious metals over the next several years. For this reason, a focus to continue to develop and increase production at its core assets will continue. In addition, management is determined to expand First Majestic's asset base and thus continues to investigate other interesting advanced stage silver projects in Mexico. With a Management team comprised of proven company and mine builders; shareholders are poised to capitalize on First Majestic’s rapid evolution into a world class silver producer.
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