TORONTO (miningweekly.com) – Mexico-focused precious metals miner First Majestic Silver has reported 4% lower first-quarter silver output as grades at all five of its active mines decreased by 13%.
The Vancouver-based miner reported total silver output for the three months ended March 31, of 2.78-million ounces of silver, compared with 2.9-million ounces produced in the same quarter in 2014.
Gold output was 12% down at 2 970 oz, while lead output rose 31% year-on-year to 11.28-million pounds and zinc output rose 136% to 6.35-million pounds, compared with the previous corresponding quarter.
First Majestic reported similar year-over-year tonnes processed in the quarter from the La Encantada, La Parrilla, Del Toro, San Martin and La Guitarra mines, amounting to 631 609 t.
This was an 8% decrease compared with the previous quarter and was mainly owing to lower throughput rates at La Encantada, Del Toro and San Martin, where the company encountered higher than usual mill maintenance.
The persistently low metal prices also prompted management to curtail certain underground development projects, which impacted throughput levels.
During the three months, the average silver grades for the five mines decreased by 13% to 186 g/t compared with 214 g/t in the first quarter of 2014 and decreased 8% compared with the previous quarter. Combined silver recoveries averaged 74% during the quarter, the highest consolidated recovery rate over the past 24 quarters, up from 66% in the prior comparable quarter and higher than the fourth quarter average of 70%.
“With the irregular maintenance now behind us, we are expecting to see an improvement in production in the second quarter. Also, with the recently announced $30-million financing, we will be increasing development at both the La Encantada and La Guitarra mines to improve those operations in time for the second half of the year,” president and CEO Keith Neumeyer said in a release on Monday.