First Majestic upbeat on drill results from Mexico mines, Jerritt Canyon in Nevada
First Majestic Silver (TSX: FR; NYSE: AG) has delivered positive drilling results from its San Dimas and Santa Elena mines in Mexico and the Jerritt Canyon project in Nevada. In the first half of 2023, the company had up to 19 active drill rigs and completed a total of 78,973 metres of drilling across its portfolio of mines and projects.
The ongoing exploration programs were designed to focus on adding new mineral resources, upgrading resources to mineral reserves, and further defining mineralization near current underground infrastructure.
Exploration drill holes at the San Dimas property intersected significant gold-silver mineralization in three separate veins, each highlighted by results of: 8.38 grams gold per tonne and 763 grams silver over 3.9 metres; 14.98 grams gold and 89 grams silver over 4.1 metres; and 5.41 grams gold and 883 grams silver over 5.7 metres.
At Santa Elena, a delineation drill program designed to convert inferred to indicated resources at the Ermitaño vein cut multiple intersections of gold and silver mineralization. Select results include: 4.27 grams gold and 127 grams silver over 13.3 metres; 5.98 grams gold and 222 grams silver over 15.6 metres; and 13.73 grams gold and 150 grams silver over 6.4 metres.
In addition, recent drilling at Jerritt Canyon, where mining activity is temporarily halted, has returned positive results located within the SSX and Smith mine areas. Notable results include: 5.61 grams gold over 61.2 metres; 4.74 grams gold over 24.4 metres; and 8.04 grams gold over 12.2 metres.
“We are very encouraged with the high-grade exploration results that have been achieved to date,” stated Keith Neumeyer, CEO of First Majestic. “The recent drilling has accomplished multiple goals from confirming new geologically prospective areas to achieving strong intercepts for resource to reserve conversion.”
“Results from the Elia and Santa Teresa veins at San Dimas highlight the potential to add new, high-grade ounces within this past-producing area. At Santa Elena, the results from the Ermitaño vein are in many cases better than expected and will provide a solid foundation for reserve replacement,” he added.
Total proven and probable reserves at the company’s Mexico operations, which also include the La Encantada silver mine, are estimated at 11.3 million tonnes grading 169 grams silver and 2.14 grams gold, for 61.5 million oz. silver and 781,000 oz. gold.
“Finally, successful drilling at the Javelin target at Jerritt Canyon has identified what appears to be another large, mineralized gold pod near underground infrastructure and further showcases the strong exploration potential in the asset,” Neumeyer concluded.
The Jerritt Canyon project currently boasts a measured and indicated resource of 9.3 million tonnes averaging 5.57 grams gold, containing more than 1.6 million oz. of gold (open pit and underground).
First Majestic Silver’s stock gained 1.5% by noon ET on the new exploration results. The company has a market value of over $2.5 billion.
