Location: The San Martín mine is located 250 km north of Guadalajara city, in Jalisco state, Mexico.

Controlling Company: First Majestic Silver Corp.

Brief History: The San Martín mine is located on the southern portion of the north-south-trending Bolaños graben, which consists of a 20-km-long geologic structure along the Bolaños river. Most of the historical mining production from the region was extracted from the Bolaños mine, which is located on the northern part of the Bolaños graben, and was developed by Kennecott, Cyprus and other operators into a 1 500 t/d underground mining and processing operation during the early 1980s.

In 1997, Vancouver-based First Silver Reserve (FSR) through a reverse takeover, acquired all the shares of the Mexican company Minera El Pilón, owner and operator of the San Martín mine. In April 2006, First Majestic Silver Corp (formerly First Majestic Resource Corp) entered into an irrevocable share purchase agreement to acquire the majority shares of FSR. First Majestic Silver took control of FSR and the San Martín mine in June 2006.

Brief Description: The San Martín mine holds 33 contiguous mining concessions in the San Martín de Bolaños mining district that cover mineral rights for 37 518 ha. San Martín also holds 1 295.8 ha of surface land that covers the areas where the company has the mine’s access, mine installations, and part of the access roads, as well as an additional 160 ha of surface land where the processing plant, camp, office facilities, maintenance shops and tailings dams are located.

Mining Method: The principal vein that is being exploited in the San Martín mine is the wide, continuous Zuloaga vein, from which mainly oxide ore has been extracted. This section is developed through a series of trackless levels from the surface, most of which started as adits from the mountainside.

Some oxide ore is being derived from development and stoping in the Esperanza and Rosario (and ancillary veins) exploration projects, as well as from the recovery of old low-grade dumps and old stope backfill material.

The Esperanza exploration project is being explored and developed through a surface adit, a drift on vein, a footwall drift in waste to prepare an ore block for stoping and a decline to develop a new level below the surface adit.

The Rosario and ancillary veins, located to the west of the San Martín mine, are being explored and developed through adits from the surface.

Products: Silver.

Major Infrastructure and Equipment: San Martín has under- gone several upgrades since the site was acquired by First Majestic Silver in 2006. The most recent upgrade increased the processing plant’s capacity from 950 t/d to 1 300 t/d. Other elements of the upgrade included two new induction furnaces with two new filter presses, new leaching tanks and new thickeners.

Geology/Mineralisation: San Martín is situated above the base of the western graben escarpment. The mine is centred on the Zuloaga vein, which is by far the most extensively developed vein in the district, having accounted for about one-half of all silver production.

Reserves: Total proven and probable reserves as at December 31, 2012, were 4.3-million tonnes, grading 155 g/t silver.

Resources: Total measured and indicated resources as at December 31, 2012, were 800 000 t, grading 79 g/t silver, 0.7% lead and 1.4% zinc.

Prospects: The San Martín mill completed an expansion from 950 t/d to 1 300 t/d in October 2013. At full capacity of 1 300 t/d, San Martín’s yearly silver production is expected to increase by more than 50% to about 1.4-million to 1.6-million ounces of silver in the form of doré bars.

Contact Person: President and CEO, Keith Neumeyer.

Contact Details:
First Majestic Silver
Tel +1 604 688 3033
Fax + 1 604 639 8873
Email info@firstmajestic.com
Website http://www.firstmajestic.com