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First Majestic Silver Corp making steady progress

First Majestic View of the La Parrilla mill operations 16 sep 2011.JPG

View of the La Parrilla mill operations at night looking to the west.

Just in case you missed the recent news release, First Majestic Silver Corp (AG) have been making steady progress with La Parrilla resource development surpassing management's expectations and an increase in production is anticipated over the coming quarters as per Keith Neumeyer, CEO and President of First Majestic Silver, states:

"This new Reserve / Resource estimate validates our decision to invest over $40 million to increase the capacity of this operation to 2,000 tpd from the previously announced 1,600 tpd. We are extremely pleased with La Parrilla's results and look forward to the increases in production coming in the next few quarters and the release of updated NI 43-101's on the Company's remaining four assets."


Silver Equivalent Reserves increases 607% to 37.1M ounces
Silver Equivalent Measured & Indicated Resources decreased by 74% to 8.1M ounces, resulting from a large portion being upgraded to Reserves
Silver Equivalent Inferred Resources increased by 16% to 61.2M ounces
Dual-processing mill capacity to reach 2,000 tonnes per day (1,000 tpd flotation; 1,000 tpd cyanidation) by December 31st, 2011
Total Estimated Production of over 3M ounces pure silver annually plus approximately 6.0M pounds of lead and 4.8M pounds of zinc over LOM
Life of Mine (LOM) increases from 2 years to 14 years
Post Tax NPV at 5% discount = US$78.6M with an IRR of 40% using $23.85 silver price
Cash Costs of $4.16 per ounce of silver on a by-product basis

To date, the La Parrilla resource development has exceeded management's expectations due to the continued success of the Company's current drill program. The Company's exploration and development efforts have seen exceptional results in upgrading Measured and Indicated Resources to Proven and Probable Reserves. This positive development has resulted in the life of mine (LOM) being extended to fourteen years from the previously disclosed LOM of two years in the 2008 Technical Report.

This new NI 43-101 Technical Report only considers exploration and development work completed up to the cut-off date of June 30th, 2011. The new Reserve / Resource estimates as at cut-off consist of 37.1 million ounces of silver equivalent in Proven and Probable Reserves, which represents a significant increase of 607% percent over previously reported estimates; 8.1 million ounces of silver equivalent in Measured and Indicated Resources, representing a decrease of 74% from the 2008 estimates; plus 61.2 million ounces contained in Inferred Resources representing a 16% increase from the previous estimate. It should also be noted that this significant increase in Reserves comes after continuous mining and production since the previous NI 43-101 released over three years ago which demonstrates not only the Company's ability to identify and process undefined Reserves but the potential of this prolific region of Durango.

To see read this update in full please click here.

First Majestic Corporation has a market capitalization of $1.85 billion, a P/E ratio of 26.38, an EPS of $0.76, with an average volume of around 1.7 million shares traded per day and trades in Toronto under the symbol of FR and on the NYSE under the symbol of AG.

As always go gently with the implementation of your acquisitions programme in this sector as volatility is the order of the day and white knuckle single session moves in either direction should be expected.

However, the silver bull is still in an uptrend so try and remain patient and keep a cool head when adding to your portfolio.

Regarding We currently have a number of open trades at the moment, however, we do not update the charts until the trade is closed and the cash is back in our account.

For those subscribers who are too busy to trade their own accounts we are now able to offer an Autotrading program with our SK OptionTrader service, as we are pleased to announce that we have entered into a partnership with GlobalAutoTrading and also with eOptiontherefore auto trading is now available for SK OptionTrader signals

Our model portfolio is up 396.58% since inception

An annualized return of 119.04%%

Average return per trade of 42.21%

85 closed trades, 82 closed at a profit

Average trade open for 45.41 days

sk chart return on SK OptionTrader Model Port 22 aug 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.

Stay on your toes and have a good one.

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