First Majestic Silver Corp. (NYSE:AG, TSE:FR) shares gained nearly 4% on Wall Street and in Toronto on Thursday after the company said Total production in the third quarter from its six operating silver mines reached 4.5mln silver equivalent ounces – including a record 3.1mln ounces of silver in the three-month period.
Total production consisted of 3.1mln ounces of silver, 14,452 ounces of gold, 8.0mln pounds of lead and 1.5mln pounds of zinc.
Total ore processed during the quarter at the company’s six operating silver mines: Santa Elena, La Encantada, La Parrilla, Del Toro, San Martin and La Guitarra, amounted to 838,233 tonnes, reflecting a 5% increase compared to the previous quarter. In the month of August, processing rates at Del Toro, La Parrilla, San Martin and La Guitarra were affected by the heavy seasonal rains causing temporary clogging of ore in the crushing areas.
Average silver grades in the quarter increased to 150 g/t compared to 148 g/t in the previous quarter. Higher silver grades were achieved at Santa Elena, La Guitarra and San Martin due to improved mine sequencing and dilution control – however, offset by lower grades at La Encantada due to the blending of ore from old stopes, stockpiles and the recovery of pillars.
“Higher silver grades, throughput rates and recoveries propelled silver production to a new Company record of over 3.1 million ounces during the quarter,” said Keith Neumeyer, President & CEO.
“We saw significant grade improvements, particularly at Santa Elena, La Guitarra and San Martin, as a result of improved mine sequencing and dilution control. Due to the improved operational cash flows, we’ve significantly expanded our exploration programs resulting in 19 drill rigs currently active on our properties which will allow us to release updated Reserve and Resource estimates for Del Toro, La Parrilla and San Martin in the first quarter of 2017. At La Encantada, detailed engineering has been completed and furnace manufacturing has started for the construction of our new roasting circuit planned for final completion in the fourth quarter of 2017.”
First Majestic shares were up 3.5% to C$10.86 in Toronto and up 3.8% to $8.20 in New York.
Story by ProactiveInvestors