Ermitaño Silver Project

Overview

The Ermitaño Project is a gold/silver mineral exploration project located in the Sonora State, Mexico. Ermitaño is located four kilometres southeast of the Santa Elena Silver/Gold Mine, a silver and gold producing complex operated by First Majestic.

Location

Ermitaño is approximately 145 kilometres northeast of Hermosillo and contiguous with Santa Elena Mine near the intersection of 29° 59´ 29.25” north latitude and 110° 05´24.95” west longitude and 12km west of Banamichi.  

Ermitano West Map

Following the discovery in late 2016, the company released a maiden Inferred Mineral Resource in early 2018 of 40.8 million silver equivalent ounces.

In early 2019 the company updated its Inferred Mineral Resource to 49 million silver equivalent ounces and added 8.8 million silver equivalent ounces in the Indicated Category.

Mineral Resources

Ermitano Mineral Resources Table

  1. Mineral Resources have been classified in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves, whose definitions are incorporated by reference into NI 43-101.
  2. Metal prices considered for Mineral Resource estimates were $17.50/oz Ag and $1,300.00/oz Au.
  3. The Mineral Resources information provided above is based on internal estimates prepared as of December 31, 2018. The information provided was reviewed and validated by Ramon Mendoza Reyes, PEng, QP Geology for First Majestic, who has the appropriate relevant qualifications, and experience in geology and resource estimation.

Local Geology & Mineralization

The Ermitaño West area contains a network of east–west trending low sulphidation epithermal veins and stockwork within an area of 1,200 metres long 600 metres wide.   Vein textures suggest a shallower level of exposure in the low sulphidation epithermal environment compared to Santa Elena. Surface sampling includes 946 chip and channel samples which average 0.12 gpt Au and ranging up to 6.67 gpt Au

Ermitaño Vein System

Low sulphidation epithermal silver and gold mineralization is hosted in the steep dipping Ermitaño and Ermitaño Splay structures. The structures host green and white massive, banded, and bladed and stockwork quartz, calcite, and adularia. The veins are commonly brecciated and are associated with argillic alteration. Sulphide and iron oxide after sulphide and pyrolusite occur locally. The bulk of Inferred mineralization disclosed in 2018 is hosted in the Ermitaño Splay. Drilling of the Ermitaño Splay has delineated an east-west striking structure approximately 500 metres long, 400 metres down dip, with mineralized true thicknesses ranging from 0.9 to 30.0 metres, averaging 11.0 metres. Mineralization in the Splay remains open up-dip and down-dip to the west. The Ermitaño Splay separates from the Ermitaño structure which is delineated by drilling over an approximate 1,000 metre southwest strike length and 400 metre dip length.  Mineralized true thickness range from 0.8 to 11.0 metres, averaging 4.0 metres.

Oblique view of Ermitaño and Ermitaño Splay

Plan view of Ermitaño and Ermitaño Splay

 

Ermitaño West Drill Results

In October 2016, First Majestic began a diamond drilling campaign at Ermitaño West. Ten drill holes were completed over a total of 3,156 metres which defined the current 40.8 million silver equivalent resource below. By the end of the 2018, a total of 50 drill holes had been completed on the property.  The 2018 exploration program added 17,447 metres in 40 drill holes consisting of nine infill holes designed to increase the confidence and size of the resource and 31 step out holes to target areas to the West and East of the known mineralization.

 

2019 Exploration Program

The 2019 exploration program will consist of approximately 16,000 metres in 75 planned drill holes. In the first half of 2019, the Company will explore the Ermitaño Splay at shallow elevations with the objective to investigate the continuity of mineralization at low depths and to evaluate the feasibility of open pit extraction. If feasibility is confirmed, this could provide a faster way to process ore from this area.

Ermitaño Splay Grade x Thickness Long Section

SUMMARY OF DRILL COMPOSITES

Hole ID From To Length (m) Estimated True Length (m) Ag g/t Au g/t Ag Eq g/t
EW-16-03 199.6 202.1 2.5 1.9 37 5.3             463
EW-16-04 224.5 242.5 18.0 14.5 86 11.4             997
including 228.1 229.5 1.4   83 16.6          1,407
  233.1 233.8 0.7   634 39.7          3,808
  233.8 234.3 0.5   97 19.5          1,658
  234.3 235.5 1.1   154 40.1          3,364
  235.5 236.4 0.9   129 31.9          2,678
  237.6 240.1 2.5   60 14.7          1,232
EW-16-05 126.4 152.6 26.2 20.7 52 4.2             390
including 134.9 136.3 1.3   92 13.9          1,207
  136.3 137.4 1.1   165 11.1          1,053
EW-16-06 271.3 301.6 30.3 19.8 201 4.1             528
including 271.3 272.5 1.2   312 11.2          1,204
  272.9 273.5 0.6   534 10.9          1,404
  273.5 273.9 0.4   643 9.6          1,410
  274.4 274.8 0.4   1517 5.5          1,955
  274.8 275.6 0.8   1408 24.9          3,403
  275.6 276.9 1.3   1128 18.4          2,602
  276.9 277.7 0.8   654 16.3          1,956
EW-16-08 350.7 371.5 20.9 16.5 40 2.2             214
EW-17-09 268.5 280.7 12.2 9.8 77 3.6             367
including 271.3 271.8 0.5   76 12.9          1,109
EW-17-10 147.4 152.9 5.4 4.0 65 4.8             450
EW-18-19 669.0 670.9 1.9 1.5 78 1.7             217
EW-18-27 708.1 709.1 1.0 0.9 29 1.0             111
EW-18-33 237.2 255.5 18.3 14.5 28 2.9             261
EW-18-34 273.5 287.1 13.6 9.4 53 3.4             327
including 275.4 276.3 0.9   72 13.6          1,160
EW-18-35 148.0 188.3 40.3 30.1 53 3.0             293
including 163.6 164.1 0.5   139 19.4          1,691
  165.4 166.1 0.7   118 18.7          1,614
EW-18-36 292.3 311.0 18.7 11.2 128 11.1          1,019
including 299.3 300.4 1.1   307 19.8          1,891
  300.4 301.7 1.3   567 70.8          6,231
  301.7 303.0 1.3   122 20.1          1,730
  303.0 304.4 1.4   326 32.0          2,886
EW-18-37 185.5 192.0 6.4 4.0 54 3.2             309
EW-18-38 182.6 185.3 2.8 2.2 48 5.8             510
EW-18-39 265.4 294.1 28.7 17.6 149 6.3             654
including 265.4 266.0 0.6   520 17.0          1,879
  268.8 270.0 1.2   369 20.1          1,980
  272.0 273.0 1.0   387 8.6          1,074
  283.0 284.0 1.0   149 15.5          1,392
  286.0 287.0 1.0   180 10.4          1,010
  289.0 290.2 1.2   192 14.4          1,342
EW-18-40 294.7 307.4 12.8 10.3 21 1.3             126
EW-18-41 166.3 172.9 6.5 4.5 78 9.6             849
including 167.7 168.5 0.8   83 14.6          1,250
  169.3 170.3 0.9   133 39.4          3,281
EW-18-43 347.2 356.3 9.1 5.9 26 1.2             125
EW-18-44 199.1 229.5 30.4 16.8 39 2.6             251
EW-18-45 189.5 215.1 25.6 15.4 77 2.5             274
including 214.1 215.1 1.0   85 17.2          1,457
EW-18-46 74.6 99.3 24.7 20.5 41 3.7             341
including 90.2 91.1 0.9   95 13.0          1,136
  93.3 94.0 0.8   149 27.3          2,334
EW-18-47 296.2 343.7 47.5 28.3 95 3.9             403
including 304.6 305.7 1.1   434 21.1          2,125
  313.5 314.9 1.4   184 10.4          1,019
  318.0 320.1 2.1   160 11.8          1,100
EW-18-48 260.5 264.6 4.1 3.5 59 6.3             561
EW-18-49 307.1 322.5 15.4 11.1 60 2.3             244
EW-18-50 243.5 263.4 19.9 17.8 57 3.9             366
including 260.2 261.4 1.2   74 12.2          1,043

Note: Holes EW16-01 to EW16-04 were announced on January 17, 2017 (see press release at https://www.firstmajestic.com/news/2017/index.php?content_id=312). Holes EW16-06 and EW 17-09 were announced on January 9, 2018 (see press release at https://www.firstmajestic.com/news/index.php?content_id=340). Gold equivalent (“Gold-Equiv”) is calculated using a gold to silver ratio of 1:80.

After detailed geological logging, all drill core samples were split on site by diamond saw. One half of the core was submitted to Bureau Veritas Mineral Laboratories at the laboratory in Vancouver, British Columbia, Canada and to SGS Laboratories at the laboratories in Durango and Hermosillo, Mexico. The remaining half core is retained on-site for verification and reference purposes.

 

Photo Gallery

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