Good News From This $6 Miner Could Boost Your Wealth
First Majestic Silver Corp. (NYSE: AG) recently provided 2018 mineral reserve and resource estimates for its existing mineral property assets in Mexico with an effective date of December 31, 2018. Investors appear to be impressed with the news.
First Majestic is a mining company focused on silver production in Mexico and is aggressively pursuing the development of its existing mineral property assets.
The Company presently owns and operates the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, the La Encantada Silver Mine, the San Martin Silver Mine, the La Parrilla Silver Mine and the Del Toro Silver Mine.
In 2019, these mines are projected to produce between 14.2 to 15.8 million silver ounces (or 24.7 to 27.5 million silver equivalent ounces) with an AISC of $12.55 to $14.23 per payable silver ounce.
The Company completed a total of 211,695 metres of diamond drilling at its operating mines in 2018, representing a 35% increase in metres drilled compared to the prior year.
GlobeNewswire shared the highlights of the 2018 mineral reserve and resource estimates with an effective date of December 31, 2018:
- “Proven and Probable Reserves increased 46% to 170.9 million silver equivalent ounces
- Measured and Indicated Resources increased 82% to 259.8 million silver equivalent ounces
- Inferred Resources increased 3% to 212.7 million silver equivalent ounces”
“The company notes that the gains reflect the incorporation of the high grade reserves of the San Dimas mine after its acquisition last May and the results of the infill exploration and development programs, offset by factors including the elimination of reserves from La Guitarra, which was put in care and maintenance in August 2018, as well as the impact of lower metal price assumptions.”
The company also shared the details of its 2019 exploration program in the updated mineral reserve and resource estimates:
“For 2019, First Majestic is planning to invest a total of $26.2 million towards exploration to drill approximately 188,000 metres across its core Mexican assets.
The 2019 drilling program will consist of approximately 11,600 metres of sustaining diamond drilling to support mining activities at the six operating mines; approximately 152,000 metres of expansionary diamond drilling intended to improve confidence and increase Mineral Resources with a focus on the Santa Elena Main Vein and the Central Block at San Dimas; and drill approximately 8,400 metres intended to test greenfield targets at Santa Elena and Del Toro.
Furthermore, due to the exploration success in 2018 at Ermitaño, the Company is planning to complete a 16,000 metre drill program in 2019 to investigate the continuity of mineralization at shallow depths that may be amenable to open pit extraction.”
First Majestic Silver Corp. could be profitable for investors who are willing to focus on potential long-terms gains.
AG should be considered a buy if recent momentum continues.
Look for an entry at $6.66 with a price target of at least $8.82 based on the pattern in the chart.