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First Majestic’s Q1 Production Reaches New Record of 3.63 million Silver Equivalent Ounces

First Majestic Silver Corp. ("First Majestic" or the "Company") is pleased to announce that total production at its five operating silver mines in Mexico for the first quarter ending March 31, 2014 reached a new quarterly record of 3,631,672 equivalent ounces of silver, representing a 33% increase compared to the same quarter in 2013.

Total silver production for the quarter consisted of 2,895,497 ounces of silver, representing an increase of 19% compared to the same quarter in 2013. In addition, 8,593,807 pounds of lead and 2,689,274 pounds of zinc were produced, representing an increase of 112% and 60%, respectively, compared to the same quarter of the previous year. Also produced were 3,375 ounces of gold, representing an increase of 113% compared to the first quarter of 2013.

Keith Neumeyer, President & CEO of First Majestic, states, “Our first quarter results show a great start to the new year. Even though some challenges existed in the quarter, other improvements that were implemented in 2013 are taking hold. With many exciting initiatives underway in the areas of automation, processes and metallurgy, we are setting ourselves up for another record year of production”.

Production Details Table:

Operational Review:

The total ore processed during the quarter at the Company's five operating silver mines: La Encantada, La Parrilla, Del Toro, San Martin and La Guitarra, amounted to 637,663 tonnes milled, representing a 9% decrease over the previous quarter primarily due to the elimination of old tailings in the ore blend at La Encantada.

Silver grades in the quarter for the five mines increased by 12% to 214 g/t compared to the previous quarter.  Combined silver recoveries averaged 66% in the quarter, an improvement over the fourth quarter average of 64%. These improvements were primarily the result of the changes occurring at the La Encantada Silver Mine. 

The Company's underground development in the first quarter consisted of 12,215 metres, an 8% decrease compared to 13,280 metres completed in the previous quarter. This decrease is part of a planned reduction of capital expenditures aimed at reducing costs due to the lower metal price environment.

During the quarter, nine diamond drill rigs were operating at the Company’s five operations. The Company completed 7,190 metres of diamond drilling in the quarter, compared to 8,324 metres in the prior quarter, representing a 13% decrease.

The table below represents the operating parameters at each of the Company’s five producing silver mines.  Starting in 2014, the Company has adopted the use of calendar days versus operating days for its average throughput calculations.

Mine by Mine Quarterly Production Table:

The following prices were used in the calculation of silver equivalent ounces: Silver: $20.48 per ounce; Gold: $1,297 per ounce; Lead: $0.95 per pound; Zinc $0.92 per pound and Iron $148 per tonne.

At the La Encantada Silver Mine: