First Majestic Silver (NYSE: AG) (TSX: AG) has released a new set of drill results from the Saval area at its Jerritt Canyon gold mine. Reverse circulation drilling returned broad gold intervals in the zone, which is already permitted for open pit mining.
The company paired the results with a restart progress update, with Jerritt Canyon remaining on track to resume production in the second half of 2027.
Highlights from Saval include:
- SC-26-030: 4.24 g/t gold over 48.8 metres from a depth of 118.9 metres
- Including 7.39 g/t gold over 19.8 metres
- SC-26-023: 5.87 g/t gold over 36.6 metres from a depth of 102.1 metres
- Including 19.67 g/t gold over 9.1 metres
- SC-26-024: 9.45 g/t gold over 21.3 metres from a depth of 131.1 metres
- Including 11.56 g/t gold over 15.2 metres
- SC-26-018A: 6.97 g/t gold over 25.9 metres from a depth of 77.7 metres
- Including 11.38 g/t gold over 13.7 metres
- SC-26-046: 4.48 g/t gold over 24.4 metres from a depth of 9.1 metres
- Including 5.90 g/t gold over 13.7 metres
Mineralization at Saval is broad, shallow and largely sub-horizontal. The company said the results support continued evaluation of the area as a source of open pit mill feed to complement underground production at restart.
Saval accounted for 8,753 metres across 85 holes of the 15,983 metres drilled at Jerritt Canyon so far this year. The remaining 7,230 metres tested targets in the northern part of the property, and many of those assays are still pending. One rig has since moved to the Mahala and Javelin targets near the SSX and Smith underground mines, while two diamond rigs continue drilling underground at Smith.
On the restart itself, senior leadership and key technical roles have been filled, and underground development and rehabilitation are advancing toward the first planned mining areas. First Majestic also moved foundation work for a vertical roller mill and long-lead equipment forward from 2027 into this year. The new mill will replace the plant’s crushing, grinding and drying circuit and feed the existing roaster.
The company also acquired an adjacent 2,971-acre property to support mine dewatering, possible on-site employee housing and conservation offsets.
“We continue to make strong progress towards restarting Jerritt Canyon, with underground development advancing and critical upgrades to the processing plant and site infrastructure underway,” said CEO Keith Neumeyer. He added that the company is “increasingly encouraged by Saval.”
Jerritt Canyon has been on care and maintenance since March 2023, when high contractor costs and extreme weather forced a halt to operations. The restart plan announced earlier this year moves the mine to owner-operated mining and sets aside US$75 million in capex for 2026, including US$15 million for exploration. The property hosts 4.1 million ounces of gold in the measured and indicated categories, plus 3.7 million inferred ounces.
An updated technical report covering the latest exploration, engineering and mine planning work is expected at the end of the first quarter of 2027.
First Majestic Silver last traded at $20.43 on the TSX.
