First Majestic reports 16% decline in reserves, adds to resources
(Kitco News) - First Majestic Silver announced today that Proven and Probable Mineral Reserves ("P&P") at the company's three producing material assets totaled 62.2 million ounces of silver and 606,000 ounces of gold, or 121.5 million silver equivalent ounces, representing a 16% decrease compared to previous estimates.
The company said that the decrease was primarily due to the downgrading of 14.6 million silver ounces contained in low grade, old tailings at La Encantada from reserves to resources. In addition, reserves at San Dimas only includes exploration results from the first half of 2020, or 35% of total metres drilled in 2020, while mine depletion is assumed for the full year. Average P&P grades increased by 40% to 449 AgEq g/t (230 g/t silver and 2.24 g/t gold).
Measured and Indicated Mineral Resources ("M&I") at the company's material assets totaled 111.7 million ounces of silver and 1.26 million ounces of gold, or 233.2 million silver equivalent ounces, representing a 3% increase compared to the previous estimate. Average M&I grades increased by 2% to 437 AgEq g/t (209 g/t silver and 2.35 g/t gold).
Inferred Mineral Resources at the company's material assets totaled 98.0 million ounces of silver and 1.22 million ounces of gold, or 214.8 million silver equivalent ounces, representing a 19% increase from the prior estimate. Average Inferred grades decreased 8% to 406 AgEq g/t (185 g/t silver and 2.31 g/t gold).
First Majestic is a publicly traded mining company focused on silver production in Mexico. The company presently owns and operates the San Dimas silver/gold mine, the Santa Elena silver/gold mine and the La Encantada silver mine. Production from these mines are projected to be between 12.5 to 13.9 million silver ounces or 20.6 to 22.9 million silver equivalent ounces in 2021.