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« www.silver-prices.net Tops 7000 Subscribers | Main | Strike Halts Bolivia Silver Mine »
Thursday
Mar312011

First Majestic Silver Corp Up 62% since recommendation on the 09 Feb 2011

AG Chart 01 April 2011.JPG



Our purchase at $13.13 on the 9th February for First Majestic Silver Corporation (FR:TSX || AG:NYSE) has now increased by 62% in less than 2 months. The technical indicators are now in the overbought zone, with the RSI standing at 72.46, so we might get a breather, but don't count on it. This stock is at a record high with no overhead resistance so it is difficult to say just how far it can run.

We would also like to say a quick thank you to those of you who followed us into this trade and have taken the time to drop us a line about your respective purchases. As for taking some profits off the table, that's a decision that only you can make. We are intent on holding onto our position as we remain silver bulls and expect prices to go a lot higher from here.

The news stream from this company is good, which we regard as very important as investors, in order that we can position ourselves accordingly.

What follows is an update regarding the Del Toro Silver Mine:







First Majestic Silver Corp. (“First Majestic” or the “Company”) is pleased to announce an update on the Del Toro Silver Mine.
 
As previously announced on April 12, 2010 and January 11, 2011, all permitting was received in late 2009 and early 2010 for the construction of a 1,000 tonne per day flotation mill at the Company’s Del Toro Silver Mine. Commencing in late 2010, an extensive development program was launched at the property, consisting of 1,650 metres of ramp and crosscuts. This development program is designed for three purposes; 1) to gain access to each of the three defined ore bodies to upgrade the current NI 43-101 Resources to Reserves, 2) to prepare the ore bodies for mining, and 3) to build multiple underground drilling stations to drill the ore bodies at depth to define additional resources.
 
Currently, the ramp is now 1,100 metres in length and 186 metres in vertical distance from surface. A crosscut was made at the 7th level (176 metres from surface) where a drill rig was installed in February 2011. Two holes have been completed to date, both of which have intersected the ore bodies as expected.
 
Considering the work completed to date and the impressive results received, the Company has decided to continue with the following actions to advance this project:
 
·         Continue the underground infill drilling program in order to further define and upgrade resources at depth in the three ore bodies defined in previous exploration programs.

·         Continue the development of the main ramp, which has advanced 410 metres since November 2010, for total development (including 700 metres previously completed) of 1,100 metres. The objective is to develop this main ramp an additional 600 metres in the first half of 2011. This ramp will give access to the ore body No. 3 at depth which is expected to become the starting production level.

·         Once the current underground drill program has been completed, a newly updated NI 43-101 Technical Report will be commissioned and is anticipated to be released in July or August 2011.

·         Continue with the preparation of the underground infrastructure for preparation of underground mining, which is anticipated to commence in the second quarter of 2012. The initial level of production is planned to be 500 tpd to be ramped up to 1,000 tpd by approximately mid-2013.
·         Continue negotiations with the Municipality of Chalchihuites to reach an agreement to install a Water Treatment Plant near the town which will allow the Company to limit the use of clean water and will assist the local community by helping to alleviate its waste water management issues.

·         Commence construction of the power line and substation, road construction, processing plant, and all related surface installations such as laboratory, offices and warehouses as required for the future operations.
 
EXPLORATION PROGRAM:
 
A very aggressive exploration program has been launched at Del Toro with the following objectives:
 
1.      Underground drilling which is currently underway in the San Juan area to upgrade the current NI 43-101 Resources and potentially add additional resources. Approximately 10 holes will be fan drilled from this underground station.

2.      To complete the construction of an underground crosscut in the Perseverancia area in order to drill from underground to depth to test for the continuation of the Perseverancia chimney.

3.      Later in the year, a Surface Diamond Drilling program is planned to commence at the Cotorras and San Nicolas areas to define whether previously tested surface mineralization extends to depth.
 
INITIAL CAPITAL COSTS:
 
Management of the Company has prepared the following initial capital expenditure budget relating to the development of the Del Toro Silver Mine. This budget is preliminary only and is expected to change upon completion of the economic assessment/pre-feasibility study including final metallurgical testing and final plant designs, all of which are expected to be a part of the technical report the Company is expecting to commission following completion of the current underground drilling and development program:


Initial Capital Costs Firs Maj 01 April 2011.JPG



The Company does not require external funding for these initial capital expenditures as the current cash flows are sufficient to fund this project. The Company also now has more than $80 million cash and cash equivalents in its treasury.

PROJECT TIMELINE:

Ground breaking in the area of the planned mill site will commence in April 2011. Foundations are expected to be laid during May and June and construction of the plant facilities is anticipated shortly thereafter.

During this construction phase, the final economic parameters will be determined and released in the form of a NI 43-101 Technical Report.  It is anticipated this work will be completed early in the third quarter of 2011 and will be released at that time.

Current plans call for production to commence in the second quarter of 2012 with commercial production being reached in the third quarter of 2012. These estimates are preliminary and until the Pre-Feasibility Study is completed may not be relied upon.

First Majestic is a producing silver company focused on silver production in México and is aggressively pursuing its business plan of becoming a senior silver producer through the development of its existing mineral property assets and the pursuit through acquisition of additional mineral assets which contribute to the Company achieving its aggressive corporate growth objectives.

This news release has been reviewed and approved by Ramon Davila who is a Qualified Person in Mining as defined by NI 43-101.

AG on BNN 01 April 2011.JPG

Try and find the time to watch this short clip of about First Majestic on BNN, please click here.




Finally, should you wish to purchase silver coins and bars as part of your build up of physical silver you can buy direct from First Majestic, just follow this link.

Have a great weekend.


….........................................................................................

Over in the Options pit, our model portfolio has managed an average return of 41.23% per trade, 68 closed trades, 66 closed at a profit, or a 97% success rate. Average trade open for 42.76 days.


A gentle reminder for those of you who are still thinking about it, prices will double as of 2nd April 2011, but will remain 'as is' for existing subscribers, join us now while this bargain lasts.


SK Chart with profits re-invested 29 March 2011.JPG


The above progress chart shows our performance when profits are re-invested, however, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today, before we decide to cap membership.

Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.


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