First Majestic blocking out new ore on San Martin

A new reserve estimate shows a turnaround at the San Martin silver mine in northern Jalisco state, Mexico, under new owner First Majestic Silver (FR-V, FRMSF-O), will likely rest on bringing resources and exploration targets into the reserve base.

The mine has a reserve of 492,000 tonnes grading 290 grams silver per tonne, plus some gold and lead credits, with a significant measured and indicated resource not included in the reserve. Measured and indicated resources total 1.8 million tonnes grading 250 grams silver per tonne, and an inferred resource amounts to another 2.7 million tonnes grading 202 grams per tonne.

The new figure, calculated by outside consultants Pincock Allen & Holt, does not include new mineralization blocked out in underground development on the producing Zuloaga vein, or mineralization intersected in underground drill holes.

Three drills are in operation on the property and First Majestic hopes to line up another three for exploration on known vein systems, including Zuloaga and two oteher targets, Rosario and Condesa.

Production continues from the active parts of the mine at about 800 tonnes per day.

In February First Majestic released a resource figure on its La Parilla project 75 km southeast of Durango. That project has 1.9 million tonnes, measured and indicated, grading 278 grams silver and 0.09 gram gold per tonne.