Name: La Guitarra mine.

Location: The La Guitarra mine is located at the south-east end of the Mexican silver belt, within the Temascaltepec mining district of Mexico.

Controlling Company: First Majestic Silver Corp.

Brief History: First Majestic Silver Corp acquired La Guitarra from Silvermex Resources in 2012.

Brief Description: The 39 714 ha property is located within the Temascaltepec mining district, in Mexico. This district is a historically significant mining area, as operations at La Guitarra first began in the early fifteenth century and continued until the nineteenth century.

Mining Method: Underground.

Products: Silver.

Major Infrastructure and Equipment: The La Guitarra mine currently consists of two underground operation centres and a flotation mill with a capacity of 500 t/d.

Geology/Mineralisation: La Guitarra is situated in the southern part of the Sierra Madre Occidental. The region is characterised by mafic volcanics of the Trans-Mexican belt superimposing the intermediate to felsic Eocene volcanics. The mine also hosts rocks, from Mesozoic schist and slates to Tertiary age volcanics and intrusives. The area was mineralised as a result of late Miocene volcanic disruptions.

The core of the district is a mineralised belt more than 15 km long and at least 4 km wide, containing hundreds of documented epithermal veins. Mineralisation is hosted in these vein-type orebodies in the form of quartz-monzonite compositions. Silver/gold mineralisation is the product of a large low-sulphidation hydrothermal system. Ore grade mineralisation is structurally controlled and varies in size from narrow high-grade veins to bulk tonnage zones ranging up to 70 m wide.

Reserves: La Guitarra’s reserves are currently under review. The results of this review may result in a revised mine plan, which may necessitate the filing of a new technical report. Until then, management recommends caution when relying on the previously filed technical reports relating to the La Guitarra mine.

Prospects: First Majestic completed an expansion programme at La Guitarra in early 2013. The processing plant’s capacity increased by 40% from 350 t/d to 500 t/d (flotation). Permitting and planning for a new 1 000 t/d cyanidation processing facility is under way. At this increased throughput, production is expected to reach two-million ounces a year of silver doré.

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 www.firstmajestic.com