VANCOUVER, BRITISH COLUMBIA--(Marketwire -05/22/12)- FIRST MAJESTIC SILVER CORP. (FR.TO)(AG)(FMV.F)(WKN:A0LHKJ) (the "Company" or "First Majestic") is pleased to announce a new NI 43-101 Technical Report (TR) and Pre-Feasibility Study (PFS) for the Del Toro Silver Mine.
-- Silver Equivalent Measured & Indicated Resources increased by 186% to 74.5 million ounces
-- Silver Equivalent Inferred Resources increased by 79% to 79.0 million ounces
-- Total estimated production to reach 9.7 million silver equivalent ounces in 2014
-- Estimated total operating costs at $34.96 per tonne and cash costs of $7.32 per ounce of silver on a by-product basis
-- Post Tax NPV at 5% discount = US$147.1 million using a US$25 silver price
-- Internal Rate of Return (IRR) is 43% with a payback period of 2.5 years from completion
-- Life of Mine (LOM) currently estimated at 6.5 years taking into consideration mine dilution from underground mining operations and metallurgical silver recoveries of 77% in Sulfides and 81% in Oxides
-- Total capital requirement over three years of $124.2 million including a 5% contingency
-- The Del Toro Silver Mine is 100% owned by First Majestic Silver and there are no Royalties payable
This new NI 43-101 TR and PFS considers exploration and development work completed as at the cut-off date of March 31, 2012. These estimates include all work completed as at the cut-off date, including a total of 35,230 metres of diamond drilling over 117 holes and development metres totalling 7,133. Assays for 33 holes did not make the cut-off date and were not included in this report. Seven drill rigs remain actively drilling on site. The new Resource estimates as at the cut-off consists of 74.5 million ounces of silver equivalent in Measured and Indicated Resources, representing an increase of 186% from the 2008 estimates plus an additional 79.0 million ounces contained in Inferred Resources representing a 79% increase from the previous estimate.
The following three summary tables were taken from the complete Del Toro Silver Mine NI 43-101 TR and PFS prepared by Pincock Allan & Holt, Lakewood, Colorado (PAH). Shareholders and interested parties are encouraged to read this positive report in its entirety which can be viewed on SEDAR (www.sedar.com) and the Company's web site at www.firstmajestic.com.