FULL DISCLOSURE: First Majestic Silver is a sponsor of theDeepDive.ca.
First Majestic Silver (TSX: AG) (NYSE: AG) is ready to turn the lights back on at the Jerritt Canyon Gold Mine. Following a comprehensive review of the Nevada asset, the company has greenlit a $75 million investment plan for 2026, marking the first major step toward a full production restart targeted for the second half of 2027.
“With the successful and seamless integration of Gatos Silver now complete, we are focusing our attention on restarting Jerritt Canyon. In the current favourable metal price environment, Jerritt Canyon represents a rare and compelling opportunity to generate meaningful shareholder value. We are now commencing a restart plan through enhanced operations, including owner-operated mining and an optimized mine plan,” commented Keith Neumeyer, CEO of First Majestic Silver.
The cornerstone of the plan is a shift in how the mine will be operated. First Majestic is moving toward an owner-operator model, a transition intended to give the company direct control over the pace and efficiency of mining. This new roadmap also expands the scope of the project, moving beyond underground mining to include bulk-tonnage open-pit opportunities that were previously on the periphery of the mine plan.
READ: First Majestic Boosts Silver Reserves 16% As Exploration Outpaces Production
This return to production is backed by a massive expansion of the resource base. A reserves and resources update released earlier this week estimates that measured and indicated mineral resources have more than doubled, increasing by 116% to 4.1 million ounces of gold. When combined with 3.7 million ounces of inferred resources, the project now boasts a scale that supports a multi-year production profile in one of the world’s most stable mining jurisdictions.
Capital allocation for 2026 is heavily weighted toward infrastructure and readiness. Approximately $13 million is designated for a new mining fleet, while $15 million will be poured into exploration to further expand the resource.
At the same time, Stantec Consulting Services has been tasked with delivering a pre-feasibility study by the end of this year to finalize the mine plan for the 2027 restart.
READ: First Majestic Drills 3.43 g/t Gold Over 24.4 Metres At Jerritt Canyon
Physical work on the ground is expected to begin shortly. Rehabilitation of the Smith and SSX mines is scheduled to start as early as the second quarter of this year, and includes an estimated 600 metres of expansionary development underground. This work is essential to ensuring the underground infrastructure is modernized and ready to support the projected throughput once the processing plant is reactivated.
The technical foundation for the restart was solidified during the 2025 exploration program. Exploration at the Mahala and Javelin targets yielded significant results, including a 24.4 metre intercept at Mahala that tested 3.43 g/t gold. Further exploration this year is expected to total 42,000 metres, including 23,000 metres of surface drilling focused on defining near surface open pit targets.
Initial production targets and a revised capital budget for Jerritt Canyon are expected to be released later this year.
First Majestic Silver last traded at $30.77 on the TSX.
FULL DISCLOSURE: First Majestic Silver Corp. is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of First Majestic Silver Corp. The author has been compensated to cover First Majestic Silver Corp. on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
