UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 40-F/A
(Amendment No.1)
[X] REGISTRATION STATEMENT PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934
OR
[ ] ANNUAL REPORT PURSUANT TO SECTION 13(a) OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended ______________
Commission File Number ______________
FIRST MAJESTIC SILVER CORP.
(Exact name of registrant as specified in its charter)
| British Columbia, Canada | 1041 | Not Applicable |
| (Province or other jurisdiction | (Primary Standard Industrial | (I.R.S. Employer |
| of incorporation or | Classification Code Number) | Identification Number) |
| organization) |
Suite 1805 – 925 West Georgia Street
Vancouver,
(604) 688-3033
(Address and telephone number of Registrant’s principal executive offices)
| Copies to: | |
| National Registered Agents, Inc. | Stewart L. Muglich |
| 1090 Vermont Avenue N.W. | Clark Wilson LLP |
| Suite 910 | 800 – 885 West Georgia Street |
| Washington D.C. 20005 | Vancouver, BC V6C 3H1 |
| (202) 371-8090 | (604) 891-7701 |
| Name, address (including zip code) | |
| and telephone number (including | |
| area code) of agent for service in | |
| the United States |
---------------------
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Securities to be registered pursuant to Section 12(b) of the Act:
| Title of each class: | Name of exchange on which registered: |
| Common Shares, no par value | New York Stock Exchange |
Securities registered pursuant to Section 12(g) of the Act: Not Applicable
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None
For annual reports, indicate by check mark the information filed with this Form.
[ ] Annual information form [ ] Audited annual financial statements
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report. Not Applicable
Indicate by check mark whether the Registrant by filing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934 (the “Exchange Act”). If “yes” is marked, please indicate the filing number
assigned to the Registration in connection with such Rule.
[ ]
Yes [X] No
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Exchange Act during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
[ ] Yes
[X] No
Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T (§232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the Registrant was required to submit and post such files).
[ ] Yes [X] No
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DIFFERENCES IN UNITED STATES AND CANADIAN REPORTING PRACTICES
First Majestic Silver Corp. (the “Registrant”) prepares its financial statements, which are filed with this report on Form 40-F in accordance with Canadian generally accepted accounting practices (“GAAP”), and are subject to Canadian auditing and auditor independence standards. They may not be comparable to financial statements of United States companies. The Registrant is permitted, under a multi-jurisdictional disclosure system adopted by the United States, to prepare this report in accordance with Canadian disclosure requirements, which are different from those of the United States. Significant differences between Canadian GAAP and United States GAAP as pertains to the Registrant for the years ended December 31, 2009, 2008 and 2007 are described in Exhibit 99.9 to this Registration Statement.
FORWARD-LOOKING STATEMENTS
This Registration Statement and the Exhibits incorporated by reference into it contain “forward-looking statements.” Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, and other similar words, or statements that certain events or conditions “may” or “will” or “can” occur. Forward-looking statements are based on the opinions and estimates of management on the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration, development, and mining of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, as well as those factors discussed in the section entitled “Description of the Business - Risk Factors” in the Annual Information Form of the Registrant filed as Exhibit 99.2 to this Registration Statement. Although the Registrant has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
Forward-looking statements contained in the Exhibits incorporated by reference into this Registration Statement are made as of the respective dates set forth in such Exhibits and the Registrant disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
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AMENDMENT
This Registration Statement has been amended to include additional Exhibits including a press release dated December 6, 2010 and a material change report of same date. Other than the addition of these exhibits, this Registration Statement on Form 40-F remains the same.
RESOURCE AND RESERVES ESTIMATES
The terms “Mineral Reserve”, “Proven Mineral Reserve” and “Probable Mineral Reserve” are Canadian mining terms as defined in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”) under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) CIM Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as may be amended from time to time by the CIM. These definitions differ from the definitions in the United States Securities and Exchange Commission (“SEC”) Industry Guide 7 (“SEC Industry Guide 7”) under the Securities Act of 1933. The definitions of proven and probable reserves used in NI 43-101 differ from the definitions in SEC Industry Guide 7. Under SEC Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report reserves, the three year history average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.
In addition, the terms “Mineral Resource”, “Measured Mineral Resource”, “Indicated Mineral Resource” and “Inferred Mineral Resource” are defined in and required to be disclosed by NI 43-101; however, these terms are not defined terms under SEC Industry Guide 7 and normally are not permitted to be used in reports and registration statements filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases.
Accordingly, information contained in this report and the documents incorporated by reference herein containing descriptions of our mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.
DOCUMENTS FILED PURSUANT TO GENERAL INSTRUCTIONS
In accordance with General Instruction B.(1) of Form 40-F, the Registrant hereby incorporates by reference Exhibits 99.1 through 99.8, Exhibits 99.10 through 99.131 and Exhibits 99.137 through 99.141, inclusive, as set forth in the Exhibit Index attached hereto.
In accordance with General Instruction B.(2) of Form 40-F, the Registrant hereby makes reference to the sections entitled “Authorized Share Structure” on page 3 of the Notice of Articles of the Registrant filed as Exhibit 99.137 and on page 2 of the Notice of Articles of the Registrant filed as Exhibit 99.138, as set forth in the Exhibit Index attached hereto.
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In accordance with General Instruction C.(2) of Form 40-F, the Registrant hereby incorporates by reference (i) Exhibits 99.4 and 99.7, the Audited Consolidated Financial Statements of the Registrant for the years ended December 31, 2009, 2008 and 2007; (ii) Exhibits 99.3 and 99.6, Management’s Discussion and Analysis of Financial Condition and Results of Operation for the period ended December 31, 2009 and December 31, 2008, respectively; and (iii) Exhibit 99.9, Reconciliation to United States Generally Accepted Accounting Principles for years ended December 31, 2009, 2008 and 2007.
In accordance with General Instruction D.(9) of Form 40-F, the Registrant has filed written consents of certain experts named in the foregoing Exhibits as Exhibit 99.132 through Exhibit 99.136, inclusive, as set forth in the Exhibit Index attached hereto.
OFF-BALANCE SHEET ARRANGEMENTS
The Registrant has no off-balance sheet arrangements.
TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS
The following table lists, as of December 31, 2009, information with respect to the Registrant’s known contractual obligations.
| Payment due by period | |||||
|
Contractual Obligations
|
Total
|
Less than
1 year |
1-3 years
|
3-5 years
|
More than 5
years |
| Long-Term Debt Obligations | 4,309,159 | 1,095,672 | 1,676,605 | 1,536,882 | - |
| Capital (Finance) Lease Obligations | 2,807,636 | 2,139,352 | 668,284 | - | - |
| Metal Prepayment Obligation | 450,940 | 450,940 | - | - | - |
| Property Purchase Obligations | 1,261,200 | 1,261,200 | - | - | - |
| Construction Contract Obligations | 2,071,102 | 2,071,102 | - | - | - |
| Other Long-Term Liabilities Reflected on the Registrant’s Balance Sheet under GAAP of the primary financial statements – Asset Retirement Obligations | 4,336,088 | - | - | - | 4,336,088 |
| Total | 15,236,125 | 7,018,266 | 2,344,889 | 1,536,882 | 4,336,088 |
UNDERTAKINGS
The Registrant undertakes to make available, in person or by telephone, representatives to respond to inquiries made by the Commission staff, and to furnish promptly, when requested to do so by the Commission staff, information relating to: the securities registered pursuant to Form 40-F; the securities in relation to which the obligation to file an annual report on Form 40-F arises; or transactions in said securities.
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CONSENT TO SERVICE OF PROCESS
Concurrently with the filing of this Registration Statement on Form 40-F, the Registrant will file with the Commission an Appointment of Agent for Service of Process and Undertaking on Form F-X.
Any change to the name or address of the Registrant’s agent for service shall be communicated promptly to the Commission by amendment to Form F-X referencing the file number of the Registrant.
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SIGNATURES
Pursuant to the requirements of the Exchange Act, the Registrant certifies that it meets all of the requirements for filing on Form 40-F and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereto duly authorized.
Date: December 7, 2010
| FIRST MAJESTIC SILVER CORP. | ||
| By: | /s/ Raymond Polman | |
| Name: Raymond Polman | ||
| Title: Chief Financial Officer | ||
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EXHIBIT INDEX
| Annual Information | |
| Exhibit | Description |
| 99.1. | 2009 Annual Report* |
| 99.2. |
Annual Information Form for the year ended December 31, 2009* |
| 99.3. |
Management’s discussion and analysis for the year and fourth quarter ended December 31, 2009* |
| 99.4. |
Audited consolidated financial statements for the year ended December 31, 2009* |
| 99.5. |
2008 Annual Report* |
| 99.6. |
Management’s discussion and analysis for the year and the fourth quarter ended December 31, 2008* |
| 99.7. |
Audited consolidated financial statements for the year ended December 31, 2008* |
| 99.8. |
Annual Information Form for the year ended December 31, 2008* |
| 99.9. |
Reconciliation to United States Generally Accepted Accounting Principles for the years ended December 31, 2009, 2008 and 2007* |
| Quarterly Information | |
| 99.10. |
Management’s Discussion and Analysis for the quarter ended September 30, 2010* |
| 99.11. |
Interim consolidated financial statements for the nine months ended September 30, 2010 (unaudited)* |
| 99.12. |
Management’s Discussion and Analysis for the quarter ended June 30, 2010* |
| 99.13. |
Interim consolidated financial statements for the six months ended June 30, 2010 (unaudited)* |
| 99.14. |
Management’s Discussion and Analysis for the quarter ended March 31, 2010* |
| 99.15. |
Interim consolidated financial statements for the three months ended March 31, 2010 (unaudited)* |
| 99.16. |
Management’s Discussion and Analysis for the quarter ended September 30, 2009* |
| 99.17. |
Consolidated financial statements for the nine months ended September 30, 2009 (unaudited)* |
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| 99.18. |
Management’s discussion and analysis for the quarter ended June 30, 2009* |
| 99.19. |
Consolidated financial statements for the three months ended June 30, 2009 (unaudited)* |
| 99.20. |
Management’s discussion and analysis for the quarter ended March 31, 2009* |
| 99.21. |
Consolidated financial statements for the three months ended March 31, 2009 (unaudited)* |
| Shareholder Meeting Materials | |
|
|
|
| 99.22. |
Report of voting results of the annual general meeting of shareholders held May 27, 2010* |
| 99.23. |
Form of Proxy for Annual General Meeting held May 27, 2010* |
| 99.24. |
Management Information Circular for the Annual General Meeting of shareholders held on May 27, 2010* |
| 99.25. |
Notice of Meeting for the Annual General Meeting of the shareholders held May 27, 2010* |
| 99.26. |
Request for Printed Copies of Annual and Interim Financial Statements and MD&A April 1, 2010* |
| 99.27. |
Voting Instruction Form for Annual Meeting held May 27, 2010* |
| 99.28. |
Notice of Annual Meeting and Record Date held May 27, 2010* |
| 99.29. |
Report of Voting Results for the annual general meeting of shareholders held May 28, 2009* |
| 99.30. |
Form of Proxy for Annual General Meeting held May 28, 2009* |
| 99.31. |
Management Information Circular for the Annual General Meeting of shareholders held May 28, 2009* |
| 99.32. |
Notice of Annual General Meeting held May 28, 2009* |
| 99.33. |
Request for Printed Copies of Annual and Interim Financial Statements and MD&A April 13, 2009* |
| 99.34. |
Voting Instruction Form for Annual General Meeting held May 28, 2009* |
| 99.35. |
Notice of Meeting and Record Date for Annual General Meeting held May 28, 2009* |
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| Material Change Reports | |
| 99.36. | Material Change Report dated December 6, 2010 |
| 99.37. | Material Change Report dated November 10, 2010* |
| 99.38. | Material Change Report dated November 9, 2010* |
| 99.39. | Material Change Report dated October 6, 2010* |
| 99.40. | Material Change Report dated August 16, 2010* |
| 99.41. | Material Change Report dated July 8, 2010* |
| 99.42. | Material Change Report dated May 13, 2010* |
| 99.43. | Material Change Report dated April 12, 2010* |
| 99.44. | Material Change Report dated April 8, 2010* |
| 99.45. | Material Change Report dated March 22, 2010* |
| 99.46. | Material Change Report dated November 26, 2009* |
| 99.47. | Material Change Report dated November 13, 2009* |
| 99.48. | Material Change Report dated November 12, 2009* |
| 99.49. | Material Change Report dated November 6, 2009* |
| 99.50. | Material Change Report dated October 13, 2009* |
| 99.51. | Material Change Report dated October 6, 2009* |
| 99.52. | Material Change Report dated September 18, 2009* |
| 99.53. | Material Change Report dated September 16, 2009* |
| 99.54. | Material Change Report dated September 14, 2009* |
| 99.55. | Material Change Report dated August 20, 2009* |
| 99.56. | Material Change Report dated August 14, 2009* |
| 99.57. | Material Change Report dated August 13, 2009* |
| 99.58. | Material Change Report dated August 12, 2009* |
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| 99.59. | Material Change Report dated July 20, 2009* |
| 99.60. | Material Change Report dated July 16, 2009* |
| 99.61. | Material Change Report dated May 14, 2009* |
| 99.62. | Material Change Report dated April 27, 2009* |
| 99.63. | Material Change Report dated March 31, 2009* |
| 99.64. | Material Change Report dated March 23, 2009* |
| 99.65. | Material Change Report dated March 17, 2009* |
| 99.66. | Material Change Report dated March 5, 2009* |
| 99.67. | Material Change Report dated February 26, 2009* |
| 99.68. | Material Change Report dated February 19, 2009* |
| 99.69. | Material Change Report dated February 18, 2009* |
| 99.70. | Material Change Report dated February 17, 2009* |
| 99.71. | Material Change Report dated January 20, 2009* |
| 99.72. | Material Change Report dated January 13, 2009* |
| News Releases | |
| 99.73. | News Release dated December 6, 2010 |
| 99.74. | News Release dated November 10, 2010* |
| 99.75. | News Release dated November 9, 2010* |
| 99.76. | News Release dated October 6, 2010* |
| 99.77. | News Release dated August 16, 2010* |
| 99.78. | News Release dated July 8, 2010* |
| 99.79. | News Release dated May 13, 2010* |
| 99.80. | News Release dated April 22, 2010* |
| 99.81. | News Release dated April 13, 2010* |
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| 99.82. | News Release dated April 12, 2010* |
| 99.83. | News Release dated April 8, 2010* |
| 99.84. | News Release dated March 24, 2010* |
| 99.85. | News Release dated March 22, 2010* |
| 99.86. | News Release dated January 11, 2010* |
| 99.87. | News Release dated November 26, 2009* |
| 99.88. | News Release dated November 13, 2009* |
| 99.89. | News Release dated November 12, 2009* |
| 99.90. | News Release dated November 6, 2009* |
| 99.91. | News Release dated October 13, 2009* |
| 99.92. | News Release dated October 6, 2009* |
| 99.93. | News Release dated September 18, 2009* |
| 99.94. | News Release dated September 16, 2009* |
| 99.95. | News Release dated September 14, 2009* |
| 99.96. | News Release dated August 20, 2009* |
| 99.97. | News Release dated August 14, 2009* |
| 99.98. | News Release dated August 13, 2009* |
| 99.99. | News Release dated August 12, 2009* |
| 99.100. | News Release dated July 20, 2009* |
| 99.101. | News Release dated July 16, 2009* |
| 99.102. | News Release dated May 14, 2009* |
| 99.103. | News Release dated April 27, 2009* |
| 99.104. | News Release dated March 31, 2009* |
| 99.105. | News Release dated March 23, 2009* |
| 99.106. | News Release dated March 17, 2009* |
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| 99.107. |
News Release dated March 5, 2009* |
| 99.108. |
News Release dated February 26, 2009* |
| 99.109. |
News Release dated February 19, 2009* |
| 99.110. |
News Release dated February 18, 2009* |
| 99.111. |
News Release dated February 17, 2009* |
| 99.112. |
News Release dated January 20, 2009* |
| 99.113. |
News Release dated January 13, 2009* |
| Technical Reports | |
| 99.114. |
Certificate of Qualified Person (NI 43-101) dated February 26, 2009* |
| 99.115. |
Certificate of Qualified Person (NI 43-101) dated February 26, 2009* |
| 99.116. |
Amended & Restated Technical Report (NI 43-101) dated February 26, 2009* |
| 99.117. |
Certificate of Qualified Person (NI 43-101) dated February 26, 2009* |
| 99.118. |
Certificate of Qualified Person (NI 43-101) dated February 26, 2009* |
| 99.119. |
Amended & Restated Technical Report (NI 43-101) dated February 26, 2009* |
| 99.120. |
Certificate of Qualified Person (NI 43-101) dated February 26, 2009* |
| 99.121. |
Certificate of Qualified Person (NI 43-101) dated February 26, 2009* |
| 99.122. |
Amended & Restated Technical Report (NI 43-101) dated February 26, 2009* |
| 99.123. |
Certificate of Qualified Person (NI 43-101) dated February 16, 2009* |
| 99.124. |
Certificate of Qualified Person (NI 43-101) dated February 16, 2009* |
| 99.125. |
Technical Report (NI43-101) dated February 16, 2009* |
| 99.126. |
Certificate of Qualified Person (NI 43-101) dated January 15, 2009* |
| 99.127. |
Certificate of Qualified Person (NI 43-101) dated January 15, 2009* |
| 99.128. |
Technical Report (NI 43-101) dated January 15, 2009* |
| 99.129. |
Certificate of Qualified Person (NI 43-101) dated January 12, 2009* |
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| 99.130. |
Certificate of Qualified Person (NI 43-101) dated January 12, 2009* |
| 99.131. |
Amended and Restated Technical Report dated January 12, 2009 (NI 43-101)* |
| Consents | |
| 99.132. |
Consent of Auditors dated November 22, 2010* |
| 99.133. |
Consent of Qualified Person dated November 23, 2010* |
| 99.134. |
Consent of Qualified Person dated November 23, 2010* |
| 99.135. |
Consent of Qualified Person dated November 23, 2010* |
| 99.136. |
Consent of Qualified Person dated November 23, 2010* |
| Constating Documents | |
| 99.137. |
Notice of Articles dated January 17, 2005* |
| 99.138. |
Notice of Articles dated November 22, 2006* |
| 99.139. |
Notice of Change in Corporate Structure Pursuant to Section 4.9 of National Instrument 51-102 November 18, 2009* |
| 99.140. |
Notice of Change in Corporate Structure Pursuant to Section 4.9 of National Instrument 51-102 January 9, 2010* |
| Material Contracts | |
| 99.141. |
Arrangement Agreement dated September 11, 2009* |
*previously filed
Form 51-102F3
Material Change Report
| Item 1. | Name and Address of Company |
| FIRST MAJESTIC SILVER CORP. (the “Company”) | |
| 1805 – 925 West Georgia Street | |
| Vancouver, BC V6C 3L2 CANADA | |
| Telephone: (604) 688-3033 | |
| Facsimile: (604) 639-8873 | |
| Item 2. | Date of Material Change |
| December 6, 2010 | |
| Item 3. | News Release |
| The press release was disseminated through the services of Marketwire. | |
| Item 4. | Summary of Material Change |
|
The Company announced the expansion of its 100% owned La Parrilla Silver Mine, located in Durango, Mexico has commenced. |
|
| Item 5. | Full Description of Material Change |
| 5.1 Full Description of Material Change | |
| See Schedule “A” attached hereto. | |
| 5.2 Disclosure for Restructuring Transactions | |
| Not applicable. | |
| Item 6. | Reliance on subsection 7.1(2) or (3) of National Instrument 51-102 |
| Not applicable | |
| Item 7. | Omitted Information |
| Not applicable. | |
| Item 8. | Executive Officer |
| Keith Neumeyer, President & CEO | |
| Telephone: (604) 688-3033 Facsimile: (604) 639-8873 | |
| Item 9. | Date of Report |
| December 6, 2010 |
SCHEDULE “A”
| FIRST MAJESTIC SILVER CORP. |
| Suite 1805 – 925 West Georgia Street |
| Vancouver, B.C., Canada V6C 3L2 |
| Telephone: (604) 688-3033 Fax: (604) 639-8873 |
| Toll Free: 1-866-529-2807 |
| Web site: www.firstmajestic.com; E-mail: info@firstmajestic.com |
NEWS RELEASE
| Toronto Stock Exchange – FR | December 6, 2010 |
| OTCQX – FRMSF | |
| Frankfurt – FMV (WKN: A0LHKJ) |
La Parrilla Expansion to 1,600 tonnes per day
First Majestic Silver Corp. is pleased to announce the expansion of its 100% owned La Parrilla Silver Mine, located in Durango, Mexico has commenced. The extremely successful completion of the expansion of the Company’s La Encantada Silver Mine has allowed management to focus its efforts on the Company’s next major expansion project with ground breaking that started on December 1 st , 2010.
During the past three years the La Parrilla mine has undergone extensive development to prepare the mine for higher production levels. During the past six months this expansion plan has been assessed and defined to optimize the La Parrilla operation into the future. Once this construction project is completed, the La Parrilla mine will be operating at twice current levels. This expansion will result in the mill capacity reaching 1,600 tpd from the current 850 tpd and will effectively double the current output of the La Parrilla operation from approximately 1.5 million ounces to 3.0 million ounces of silver equivalent annually.
The following activities have been achieved to date:
Engineering and design work has been completed for the expansion of the processing plant including a new and larger crushing area, the addition of a third ball mill and the increase of capacity of both the flotation and cyanidation circuits. Each circuit’s capacity is currently 425 tpd and once the expansion is completed, each circuit will continue to run in parallel but at the higher rate of 800 tpd for a total capacity of 1,600 tpd.
Engineering plans for the Rosarios/La Rosa, San Marcos, Quebradillas and Vacas mines have been defined and scheduled, including the planning of development and preparation of required production areas, planning and scheduling the construction of a new production shaft for the Rosarios mine, and all other required mine infrastructure to achieve the expanded production levels.
All final documentation required for the Environmental Impact Statement and the ‘Change of use of Land’ have been submitted to the SEMARNAT (the government environmental authorities) office in Durango, with final approvals expected prior to year end.
Timelines for the Construction Project:
Land clearing and preparation activities commenced on December 1 st , 2010
Construction of the new crushing area will begin in January 2011. A new third ball mill has already been purchased and is on site and is expected to be ready for installation by June 2011.
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The expansion of the flotation circuit is planned for completion by the end of July 2011. This new circuit will produce both a lead and zinc concentrate. A full year of production at 800 tpd is expected to produce 5,673,096 pounds of lead and 5,236,704 pounds of zinc. In flotation, the silver will report to the lead concentrate which is expected to contain 1,429,991 ounces of silver annually.
The expansion of the cyanidation circuit will follow in the second half of 2011 with the replacement and expansion of eight leach tanks and the construction of four additional leach tanks. Several new technologies will also be utilized; similar to those adopted in the Company’s recently completed La Encantada operation. These items will include; new clarification filters, new induction furnaces and new filter presses for the tailings in order to recover and re-use solution and to save on water consumption. In addition, the plan includes new systems for automation of feeding processes for chemicals and reagents.
Inauguration of this newly expanded cyanidation circuit is expected to take place early in the first quarter of 2012. Once completed, this larger 800 tpd cyanidation circuit will produce an additional 899,792 ounces of silver in the form of silver Doré bars annually.
The total capital budget for this expansion is US$27.3 million, consisting of: US$17.5 million for plant equipment and construction costs; US$2.8 million for additions to the underground fleet; US$8.1 million for underground mine development and US$4.0 million for infrastructure including a new power line and substation. All required capital for this expansion project will be funded internally from cash flows.
The internal rate of return (IRR) on this investment is expected to be 126% considering a price of silver of US$20.00 per ounce and lead and zinc prices of US$1.00 per pound.
Once in full operation at the newly expanded rate of 1,600 tpd, the La Parrilla Silver Mine will produce 3.0 million silver equivalent ounces annually consisting of 2.3 million ounces silver and 0.7 million ounces of silver equivalents in the form of lead and zinc. The expected Total Cash Costs are anticipated to be US$5.50 per ounce of silver.
First Majestic is a producing silver company focused in Mexico and is aggressively pursuing its business plan to become a senior silver producer through the development of its existing assets and the pursuit through acquisition of additional assets that contribute to achieving its corporate growth objectives.
FOR FURTHER INFORMATION contact info@firstmajestic.com, visit our website at www.firstmajestic.com or call our toll free number 1.866.529.2807.
FIRST MAJESTIC SILVER CORP.
“Signed”
Keith Neumeyer, President & CEO
This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of First Majestic Silver Corp. are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
| FIRST MAJESTIC SILVER CORP. |
| Suite 1805 – 925 West Georgia Street |
| Vancouver, B.C., Canada V6C 3L2 |
| Telephone: (604) 688-3033 Fax: (604) 639-8873 |
| Toll Free: 1-866-529-2807 |
| Web site: www.firstmajestic.com; E-mail: info@firstmajestic.com |
NEWS RELEASE
| Toronto Stock Exchange – FR | December 6, 2010 |
| OTCQX – FRMSF | |
| Frankfurt – FMV (WKN: A0LHKJ) |
La Parrilla Expansion to 1,600 tonnes per day
First Majestic Silver Corp. is pleased to announce the expansion of its 100% owned La Parrilla Silver Mine, located in Durango, Mexico has commenced. The extremely successful completion of the expansion of the Company’s La Encantada Silver Mine has allowed management to focus its efforts on the Company’s next major expansion project with ground breaking that started on December 1 st , 2010.
During the past three years the La Parrilla mine has undergone extensive development to prepare the mine for higher production levels. During the past six months this expansion plan has been assessed and defined to optimize the La Parrilla operation into the future. Once this construction project is completed, the La Parrilla mine will be operating at twice current levels. This expansion will result in the mill capacity reaching 1,600 tpd from the current 850 tpd and will effectively double the current output of the La Parrilla operation from approximately 1.5 million ounces to 3.0 million ounces of silver equivalent annually.
The following activities have been achieved to date:
Engineering and design work has been completed for the expansion of the processing plant including a new and larger crushing area, the addition of a third ball mill and the increase of capacity of both the flotation and cyanidation circuits. Each circuit’s capacity is currently 425 tpd and once the expansion is completed, each circuit will continue to run in parallel but at the higher rate of 800 tpd for a total capacity of 1,600 tpd.
Engineering plans for the Rosarios/La Rosa, San Marcos, Quebradillas and Vacas mines have been defined and scheduled, including the planning of development and preparation of required production areas, planning and scheduling the construction of a new production shaft for the Rosarios mine, and all other required mine infrastructure to achieve the expanded production levels.
All final documentation required for the Environmental Impact Statement and the ‘Change of use of Land’ have been submitted to the SEMARNAT (the government environmental authorities) office in Durango, with final approvals expected prior to year end.
Timelines for the Construction Project:
Land clearing and preparation activities commenced on December 1 st , 2010
Construction of the new crushing area will begin in January 2011. A new third ball mill has already been purchased and is on site and is expected to be ready for installation by June 2011.
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The expansion of the flotation circuit is planned for completion by the end of July 2011. This new circuit will produce both a lead and zinc concentrate. A full year of production at 800 tpd is expected to produce 5,673,096 pounds of lead and 5,236,704 pounds of zinc. In flotation, the silver will report to the lead concentrate which is expected to contain 1,429,991 ounces of silver annually.
The expansion of the cyanidation circuit will follow in the second half of 2011 with the replacement and expansion of eight leach tanks and the construction of four additional leach tanks. Several new technologies will also be utilized; similar to those adopted in the Company’s recently completed La Encantada operation. These items will include; new clarification filters, new induction furnaces and new filter presses for the tailings in order to recover and re-use solution and to save on water consumption. In addition, the plan includes new systems for automation of feeding processes for chemicals and reagents.
Inauguration of this newly expanded cyanidation circuit is expected to take place early in the first quarter of 2012. Once completed, this larger 800 tpd cyanidation circuit will produce an additional 899,792 ounces of silver in the form of silver Doré bars annually.
The total capital budget for this expansion is US$27.3 million, consisting of: US$17.5 million for plant equipment and construction costs; US$2.8 million for additions to the underground fleet; US$8.1 million for underground mine development and US$4.0 million for infrastructure including a new power line and substation. All required capital for this expansion project will be funded internally from cash flows.
The internal rate of return (IRR) on this investment is expected to be 126% considering a price of silver of US$20.00 per ounce and lead and zinc prices of US$1.00 per pound.
Once in full operation at the newly expanded rate of 1,600 tpd, the La Parrilla Silver Mine will produce 3.0 million silver equivalent ounces annually consisting of 2.3 million ounces silver and 0.7 million ounces of silver equivalents in the form of lead and zinc. The expected Total Cash Costs are anticipated to be US$5.50 per ounce of silver.
First Majestic is a producing silver company focused in Mexico and is aggressively pursuing its business plan to become a senior silver producer through the development of its existing assets and the pursuit through acquisition of additional assets that contribute to achieving its corporate growth objectives.
FOR FURTHER INFORMATION contact info@firstmajestic.com, visit our website at www.firstmajestic.com or call our toll free number 1.866.529.2807.
FIRST MAJESTIC SILVER CORP.
“Signed”
Keith Neumeyer, President & CEO
This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of First Majestic Silver Corp. are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.