First Majestic Reports Exploration Success As Silver Rallies

Key Concepts

• First Majestic Silver: A silver mining company focused on production in Mexico.
• Navidad & Santino Discoveries: New exploration sites showing promising gold and silver mineralization.
• Scoping Studies: Preliminary economic and technical assessments for potential mining operations.
• Inferred vs. Indicated Mineral Resources: Categories defining the level of geological confidence in mineral deposit estimates.
• Del Toro Silver Mine: A mine First Majestic is proposing to sell.
• Strike & Dip: Geological terms describing the orientation of geological features (like mineralized zones).

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First Majestic Silver: Exploration Updates & Strategic Moves – December Update

This report details recent news from First Majestic Silver, focusing on exploration results, mine planning studies, and a proposed asset sale, all occurring amidst a record-high silver price environment. The timing of these developments, particularly the Los Gatos deal increasing production, is highlighted as strategically advantageous.

Exploration Progress at Santa Elena

Significant exploration drilling at the Santa Elena mine complex has yielded positive results. Specifically, drilling at the Luna zone, east of the producing Aratano mine, is successfully converting inferred mineral resources into indicated mineral resources. A 33-hole program in 2025, totaling 11,190 meters of drilling, shows assay results closely aligning with the company’s modeled expectations. This conversion is crucial as indicated resources represent a higher level of geological confidence, making them more viable for mine planning.

Navididad & Santino: Scoping Studies Initiated

First Majestic has initiated preliminary mine planning studies – specifically, scoping-level studies – for the Navididad and Santino discoveries. These studies aim to assess the feasibility of underground mining operations at both locations. The studies will cover critical aspects including optimal material handling, access to mineralization, mining methods, and mining rates.

At Santino, drilling across a 32-hole program (15,37 meters total) revealed gold and silver mineralization extending over an area greater than 1100 meters by 400 meters in strike and dip, and remains open for further expansion to the east.

At Navidad, a 2025 drilling program (10,161 meters over eight holes) yielded significant intercepts outside the current inferred mineral resource boundary to the east. Mineralization now extends over an area exceeding 1200 meters by 400 meters in strike and dip, with a true thickness averaging between 3 and 4 meters.

Technical Note: Strike refers to the direction of a geological feature’s intersection with a horizontal plane, while dip refers to the angle of that intersection. These measurements are fundamental in understanding the geometry of ore bodies.

Proposed Sale of Del Toro Silver Mine

First Majestic announced a proposed sale of the Del Toro silver mine to Sierra Madre for up to $60 million. The deal is contingent upon shareholder approval from Sierra Madre, which is expected to be voted on at a meeting in late April 2026. This sale represents a strategic move to potentially streamline assets and generate capital.

CEO Perspective & Organic Growth Strategy

Keith Newire, CEO and President of First Majestic, emphasized the continued success of the exploration program at Santa Elena, stating that it has prompted the launch of the scoping study. He further noted that the district demonstrates “exceptional potential” and aligns with the company’s “organic growth strategy.” This highlights a focus on expanding production through internal exploration and development rather than acquisitions.

Upcoming Interview with Keith Newire

The video concludes with the announcement that Keith Newire will be appearing on the Arcade Economics show before the end of the year, providing an opportunity for a more in-depth update on First Majestic’s progress.

Data Summary

• Luna Zone Drilling: 11,190 meters drilled (33 holes, 2025) – focused on converting inferred to indicated resources.
• Santino Drilling: 15,37 meters drilled (32 holes) – mineralization >1100m x 400m (strike & dip), open to the east.
• Navidad Drilling: 10,161 meters drilled (8 holes, 2025) – mineralization >1200m x 400m (strike & dip), average thickness 3-4m.
• Del Toro Sale Price: Up to $60 million.
• Sierra Madre Shareholder Vote: Late April 2026.

Conclusion

First Majestic Silver is actively advancing its exploration portfolio, particularly at Santa Elena, Navididad, and Santino. The initiation of scoping studies for these discoveries, coupled with the potential sale of the Del Toro mine, indicates a proactive approach to optimizing its asset base and capitalizing on the favorable silver price environment. The company’s focus on organic growth, as articulated by CEO Keith Newire, suggests a long-term strategy centered on internal development and resource expansion.