FULL DISCLOSURE: This is sponsored content for First Majestic Silver Corp.
Another major discovery has been made at the Santa Elena mine complex in Sonoro, Mexico, which is owned and operated by First Majestic Silver (TSX: AG) (NYSE: AG). The discovery marks the second major discovery in just a single year at the mine.
The latest discovery, referred to as Santo Nino, is found one kilometre to the south of the Santa Elena mine. The vein is described as a large, epithermal quartz-adularia vein hosting gold and silver within a freshly identified fault zone. Drilling has traced the vein over one kilometre and strike and 400 metres down dip, with a total of 13 intercepts made to date on the vein.
Confirmed mineralization of the vein spans over 600 metres along strike and 200 metres down dip, while remaining open in multiple directions. The average thickness of the zone is currently ~4.5 metres, while ranging from 1.0 to 12.3 metres. The vein, which is found just 900 metres to the south of the processing plant, is said to closely mirror the geological characteristics of the Ermitano deposit, which is found 2.2 kilometres to the east-southeast along strike.
Highlights from the results include:
- SE-24-04: 3.07 g/t gold and 115 g/t silver over 1.93 metres from a depth of 471.45 metres
- And 2.69 g/t gold and 59 g/t silver over 1.99 metres from a depth of 479.80 metres
- SE-25-15: 8.38 g/t gold and 248 g/t silver over 1.91 metres from a depth of 345.00 metres
- SE-25-19: 2.10 g/t gold and 34 g/t silver over 1.12 metres from a depth of 363.20 metres
- And 1.51 g/t gold and 81 g/t silver over 5.24 metres from a depth of 366.25 metres
- And 1.65 g/t gold and 113 g/t silver over 12.34 metres from a depth of 374.00 metres
- SE-25-23: 4.81 g/t gold and 94 g/t silver over 1.84 metres from a depth of 376.20 metres
“The Santo Niño discovery marks yet another exciting milestone for the district, and the drilling shows the vein remains open for expansion in most directions. At the same time, step-out drilling at the Navidad Discovery continues to intercept exceptionally high-grade mineralization and expand the resource envelope. Together with the producing Santa Elena and Ermitaño mines, these new deposits confirm Santa Elena as a truly prolific district with tremendous untapped potential. We believe Santo Niño and Navidad will meaningfully extend the mine life and will unlock additional value to the portfolio,” commented Keith Neumeyer, CEO of First Majestic Silver.
READ: First Majestic Posts Record Cash Flows In Q1 As Production Costs Fall
Exploration meanwhile has also continued at the Navidad Discovery, which is said to have substantially expanded the size of the mineralized area, while continued drilling has returned multiple holes with higher than average grades. The combined structure has now been traced for 1.3 kilometres along strike and 450 metres down dip, with drilling having confirmed lateral continuity and the vertical reach of high-grade mineralization.
Continued exploration has expanded the discovery largely on the eastern portion of the deposit. Drilling here has expanded the Winter vein by 175 metres to the east, and the Navidad vein by 325 metres, with stepouts continuing to return strong silver and gold grades.
Highlights from the results include:
- EWUG-25-050: 14.77 g/t gold and 642 g/t silver over 6.81 metres from a depth of 702.50 metres
- EWUG-25-051: 11.11 g/t gold and 215 g/t silver over 5.89 metres from a depth of 569.10 metres
- EW-25-389: 6.06 g/t gold and 103 g/t silver over 3.75 metres from a depth of 1,124.65 metres
- EWUG-25-047: 3.31 g/t gold and 55 g/t silver over 9.05 metres from a depth of 815.00 metres
The continued exploration at Navidad follows a maiden resource being announced on the deposit back in March, which outlined 29.7 million silver equivalent ounces within the inferred category. Broken out, the discovery is estimated to contain 5.9 million ounces of silver at 81 g/t and a further 249,000 ounces of gold at 3.42 g/t based on early exploration results.
The two discoveries, both Navidad and Santo Nino, are said by First Majestic to confirm the district-scale, multi-deposit opportunity presented at Santa Elena. Drilling is currently ongoing at site, with nine rigs currently in active, which aim to test the full strike and depth potential of the new discvoeries.
First Majestic Silver last traded at $8.60 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.
