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First Majestic Silver (TSX: AG) (NYSE: AG) is starting to see assay results come in from their massive 112,000 metre drill program being conducted at the San Dimas Mine in Durango, Mexico this season. The company after the bell last night released the first results from that program.
Drilling is said to have intercepted multiple significant gold and silver intercepts in veins across the property, setting First Majestic up for resource expansion while also identifying a new vein where high grade gold and silver was hit. Major intercepts were encountered within four vein groups, including the Sinaloa-Elia, Roberta, Santa Teresa, and Coronado veins.
Highlights from the results include:
- Sinaloa-Elia
- ELI25X-1: 15.93 g/t gold and 1,112 g/t silver over 3.57 metres true width from a depth of 273.60 metres
- ELI25X-17: 23.70 g/t gold and 578 g/t silver over 1.06 metres true width from a depth of 312.10 metres
- SIN25X-5: 7.66 g/t gold and 495 g/t silver over 5.17 metres true width from a depth of 172.40 metres
- Roberta
- ROT25X-7: 7.37 g/t gold and 689 g/t silver over 0.77 metres true width from a depth of 231.95 metres
- ROT25X-10: 6.40 g/t gold and 472 g/t silver over 1.52 metres true width from a depth of 218.75 metres
- ROT25X-12: 1.66 g/t gold and 168 g/t silver over 3.78 metres true width from a depth of 231.65 metres
- Santa Teresa
- STE25X-6: 6.79 g/t gold and 463 g/t silver over 1.01 metres true width from a depth of 96.95 metres
- STE25X-9: 2.44 g/t gold and 120 g/t silver over 3.38 metres true width from a depth of 268.00 metres
- STE25X-20: 9.65 g/t gold and 121 g/t silver over 2.53 metres true width from a depth of 220.10 metres
- Coronado
- COR25X-2: 2.59 g/t gold and 327 g/t silver over 2.12 metres true width from a depth of 752.60 metres
Drilling at Sinaloa-Elia saw the expansion of known mineralization beyond the current resource area, while also confirming mineralization below historically mined areas to the east of Elia and along the Sinaloa vein. Drilling here has seen inferred resources converted to indicated resources, while de-risking the area for near term mining.
Exploratory drilling at Roberta has also demonstrated continuity outside of the current inferred mineral resource area, with expansionary drilling focused on untested up-dip mineralization at what was one of the largest past producing veins within the complex.
WATCH: San Dimas: First Majestic Silver’s Sleeper Asset
Elsewhere, drilling at Santa Teresa has provided positive results 170 metres to the east of historic mining, with the vein projection remaining open to the east for an approximate 600 metres. Slightly to the north of Santa Teresa is Coronado, a new gold and silver target that trends sub parallel to Santa Teresa.
Coronado is largely unexplored by modern methods, and is said to provide an opportunity for new mineral resources in the region. The trend currently remains open for an estimated 1,000 metres, demonstrating the potential that remains across the San Dimas property.
“We are realizing strong results from numerous veins at San Dimas near-mine extensions at Elia, Sinaloa, Roberta, and Santa Teresa, and we are excited by the new high-grade silver and gold intercept of the Coronado vein in the West Block. Extensions of historically mined areas remain untested by modern methods, and this speaks to the untapped potential of the district. These new results confirm our view that San Dimas has significant growth opportunities and remains a cornerstone asset for our long-term growth strategy,” commented Keith Neumeyer, CEO of First Majestic Silver.
READ: First Majestic Posts Record Free Cash Flow In Second Quarter
Exploration at San Dimas is part of a larger strategy by First Majestic to conduct 255,000 metres of drilling across all of their properties in 2025. The program at San Dimas is the largest across all assets, with the program focusing on infill, step-out and exploratory drilling that is centered on near mine and brownfield targets. A balanced approach is being used to convert inferred resources to indicated resources, while at the same time working to identify new veins in historically underexplored areas of the land package.
First Majestic Silver last traded at C$12.14 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.
