First Majestic posts second-quarter manufacturing | Mining

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First Majestic Silver Corp. produced 7.7 million silver equal ounces within the second quarter, up 20% from the 2021 quarter.

Manufacturing included 2.8 million ounces of silver and 59,391 ounces of gold, with 18,632 of the gold ounces coming from Jerritt Canyon Mine north of Elko.

“Within the second half of 2022, we anticipate an additional 25% manufacturing improve in our complete silver equal ounces. This improve is being propelled by vital development at each the Santa Elena and Jerritt Canyon operations,” First Majestic’s president and chief government officer, Keith Neumeyer, stated within the July 20 manufacturing announcement.

He stated in a July 21 convention name that he “expects 2023 to be thrilling occasions for these two mines.”

“At Jerritt Canyon, we efficiently restarted the West Generator Mine and anticipate to convey Saval II into manufacturing by October,” Neumeyer stated. “These two mines, along with operational enhancements at SSX, are anticipated to almost double the quantity of recent ore to the plant, along with rising the typical head grades.”

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Chief Working Officer Steve Holmes stated in a telephone interview that the mine had been idle 17 years, and contractor Redpath gained the bid to rehabilitate West Generator. The escapeway is stuffed with rock, in order that must be cleaned up earlier than precise mining can start.

“We are going to in all probability begin stripping ore subsequent month,” he stated.

There was ore from West Generator already, however that was ore the contractor bumped into whereas engaged on the mine, Holmes stated, and mining can not start till the escapeway is prepared.

Redpath gained the bid for West Generator and for Saval II, and the contractor might be mining each mines, whereas Small Mine Improvement will proceed mining on the Smith and SSX mines, he stated.

Processing of decrease grade ore continued from SSX within the quarter, which resulted in decrease than deliberate ore grades processed within the plant, however the firm acknowledged that it expects gold grades to enhance at SSX within the second half of the yr as higher-grade ore pods are developed following current exploration actions.

The corporate additionally stated that the brand new ore feeds from West Generator and later from Saval II ought to improve the typical head grade and practically double the quantity of recent ore feed to the processing plant within the fourth quarter, whereas additionally decreasing prices.

Holmes stated within the convention name that West Generator and Saval II are anticipated to offer one other 1,500 tons of ore per day to feed the processing plant, and the goal for all of Jerritt Canyon is at the very least 3,000 tons per day. Jerritt Canyon manufacturing additionally comes from the Smith Mine, which has been related underground to SSX.

He additionally stated there’s “large exploration potential” between West Generator and the Murray Mine, one other closed underground mine at Jerritt Canyon, and far of the 119 sq. miles of property has not been explored.

Gold manufacturing at Jerritt Canyon within the second quarter additionally was affected by a significant failure within the oxygen plant to supply liquid oxygen that considerably decreased roasting capability over a two-week interval in Might, Vancouver-based First Majestic reported.

Gold manufacturing from Jerritt Canyon for Might and June of 2021 when First Majestic took over the mine totaled 18,762 ounces. Jerritt Canyon has been in operation since 1981 underneath a number of house owners, and First Majestic acquired the property early within the second quarter of final yr from Sprott Mining.

Neumeyer stated that the enhancements at Jerritt Canyon ought to cut back prices on the mine, and Holmes stated within the name that the affect from inflation is felt most at Jerritt Canyon, in contrast with the mines in Mexico, as a result of these mines have established contractors.

“The mounted value construction at Jerritt Canyon is fairly excessive,” Holmes stated, citing for example rising electrical energy prices from Nevada Energy.

The outlook for the total yr predicts all-in sustaining prices of between $1,739 and $1,861 per gold ounce at Jerritt Canyon and price enhancements in 2023.

Companywide, First Majestic’s silver equal manufacturing of seven.7 million ounces was up from 6.5 million silver equal ounces within the second quarter of 2021, primarily because of the acquisition of Jerritt Canyon and a profitable ramp-up of the Ermitano Mine at Santa Elena in Mexico.

Sturdy ore manufacturing from Ermitano enabled Santa Elena to set an all-time new quarterly manufacturing report of two.2 million gold equal ounces, and First Majestic stated plans name for larger manufacturing charges from Ermitano within the second half of this yr. Manufacturing from the Santa Elena complicated is now estimated to be 28% larger this yr at between 8.7 million and 9.2 million gold equal ounces.

Neumeyer stated within the manufacturing name that Santa Elena is “simply blooming away.”

First Majestic acknowledged that development of the pure fuel energy plant extension mission and energy line at Santa Elena continued tin the second quarter to offer low-cost, clear vitality to the Ermitano Mine and the dual-circuit mission at Santa Elena. The expanded energy plant is anticipated to be in operation within the fourth quarter.

Santa Elena produced 384,953 ounces of silver and 22,309 ounces of gold within the second quarter, and the San Dimas gold and silver mine in Mexico produced practically 1.53 million silver ounces and 18,354 gold ounces within the quarter. La Encantada Mine, additionally in Mexico, produced 863,510 silver ounces at 96 gold ounces.

First Majestic acknowledged that the corporate is revising its manufacturing steerage for this yr to mirror the elevated manufacturing from Ermitano and improved milling efficiencies at Santa Elena, improved manufacturing and grades at Jerritt Canyon, and adjustments to steel value assumptions and manufacturing impacts from the primary half of the yr.

The corporate reported the silver value assumption for the second half of the yr is now $20.50 per ounce, down from $22.50 per ounce, however the gold value assumption remains to be at $1,750 per ounce, leading to an 85:1 silver to gold ratio.

The all-in sustaining prices are actually forecast at $17.68 to $18.42 per silver equal ounce for all of 2022.

Manufacturing for 2022 is now anticipated to be 32.5 million to 34.6 million gold equal ounces, down barely from between 32.5 and 35.8 million silver equal ounces introduced earlier for this yr. The brand new steerage contains 12.2 million to 13.5 million ounces of silver and 256,000 to 273,000 ounces of gold.

Jerritt Canyon is anticipated to supply between 96,000 and 103,000 ounces of gold in 2022, in line with the steerage.

First Majestic additionally reported that 30 drill rigs have been exploring within the second quarter, together with 11 rigs at Jerritt Canyon.


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