First Majestic La Encantada solar, dry tails & mine plan

First Majestic Silver: La Encatada Mine Plan

▶

JavaScript required to play First Majestic Silver: La Encatada Mine Plan.

The La Encantada Silver Mine is 100% owned and operated by First Majestic Silver (NYSE: AG; TSX: FR). Located in the State of Coahuila, Mexico, and situated approximately 60km south of the US/Mexico border, the La Encantada land package stretches across approximately 4,000 hectares of land. Local infrastructure includes a mining camp with 180 houses, laboratory, private airstrip, schools, hospital, a general store as well as other recreational facilities.

In 2009, First Majestic invested $38M to construct a world-class 4,000 tpd cyanidation mill aimed at increasing production levels and switching production from a lead concentrate to pure silver dore bars.

On April 1st, 2010, commercial production was achieved and La Encantada began producing silver at a rate of over four million ounces per year.

Current underground mining supplies fresh ore to the mill and additional capacity is supplied by the reprocessing of old tailings left over from historic mining operations.

La Encantada is a complex of underground mining areas, including the San Francisco, Milagros Breccia, Buenos Aires and San Javier mining areas.

Since taking control of the property, First Majestic has drilled more than 45,000 metres in over 241 drill holes. An additional 25,000 metres were drilled by Penoles in over 291 holes prior to 2006.

The mine boasts a long mine life with proven and probable reserves totaling 38.7M silver ounces, and total measured and indicated resources and Inferred resources registering 20.4 million and 11.9 million silver ounces, respectively.

(Silver equivalency here includes silver, gold, lead and zinc. These estimates are based on the following prices: $23.85/oz Ag, $1,300/oz Au, $1/lb Pb and $1/lb Zn)

Ore deposits consist mainly of skarn-ore replacement, mineralized dikes, breccia or chimneys, as well as veins and high-grade mantos found in limestone replacement deposits with oxide mineralization.

Numerous known anomalies lie within the current 4,000 hectare land package and are currently in the process of being explored. Five drill rigs are active with the goal of increasing resources and reserves. The results of these exploration efforts are expected to be released in the form of an updated NI 43-101.

An important focus of First Majestic’s current efforts at La Encantada involves improving the environmental landscape. First Majestic has built a modern dry stack tailings facility in place of conventional wet tailings. This process filters and recycles water and chemicals used in the processing plant. The result is a dry tailings paste which that can be stacked higher than conventional tailings, requiring less space and eliminating the risk of groundwater contamination.

Another key environmental initiative at La Encantada is the development of a solar power station. This solar project could supplement La Encantada’s present diesel power use by 20-30%—a substantial reduction in both energy costs and our carbon emission footprint. Management expects to make a construction decision on this initiative in 2013.

First Majestic Silver is confident that continued success at La Encantada will be beneficial to its shareholders, local residents and economic partners.

Go to www.FirstMajestic.com today to find out more about this and other First Majestic operations.

Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. Mineral resource estimates that include Inferred mineral resources are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves.

This presentation may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The Issuer relies upon litigation protection for forward-looking statements. This piece is for information purposes only and is not a recommendation to buy or sell any securities.

Copyright 2012