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First Majestic sees higher production from new mills

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First Majestic (TSE:FR) said today that it produced 6.6 million silver equivalent ounces, a 2% drop from the same quarter a year ago.

Total production consisted of 3.4 million ounces of silver, 35,791 ounces of gold, 1.9 million pounds of lead and 1.0 million pounds of zinc.

By the end of the third quarter, total production in 2019 had reached 19.3 million silver equivalent ounces, or approximately 77% of the company’s guidance midpoint of producing 24.4 to 26.0 million ounces.

The company lost production from San Martin Silver mine this quarter. In July operations at the mine were discontinued due to safety concerns at the site. The company also slowed production at La Parrilla during the commissioning phase of the new high-recovery microbubble flotation cells in early 2020.

Other mines out-performed, said Keith Neumeyer, President and CEO.

"Total production increased 4% quarter over quarter due to higher grades and recoveries at both our Santa Elena and La Encantada operations," said Neumeyer. "At La Encantada, silver recoveries averaged 82%, making it the highest recovery rate since owning this operation, following successful plant modifications to optimize ore handling and processing. In addition to higher recoveries, silver grades at La Encantada increased 59% pushing silver production to the highest level since 2014."

"Production at Santa Elena also reached a new record as higher gold grades were produced from the Main Vein and overall higher metallurgical recoveries were achieved following the start-up of the new HIG mill. This new mill is proving to be a major asset for this operation and I would like to recognize our projects and innovations team for a job well done."

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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