First Majestic Silver, a major player in the mining industry, has announced the discovery of a new gold and silver mineralized system, dubbed Navidad, near its Ermitaño mine in Mexico. This new find has generated excitement and optimism within the company and the broader mining community.
The company released drill results showcasing some impressive grades. Highlights include 4.78 meters grading 8.15 grams of gold per tonne and 427 grams of silver per tonne from a depth of 1,104.35 meters in hole EW-24-364. Another drill hole, EW-24-370, returned 4.4 meters at 10.13 grams of gold and 86 grams of silver from a depth of 1,162.8 meters, and 5.8 meters at 5.65 grams of gold and 46 grams of silver from a depth of 961.6 meters.
The Navidad system was discovered during exploration on the west side of the Ermitaño deposit at the 1,000-square-kilometer Santa Elena site in Sonora state. The company revealed that six out of seven drill holes intersected mineralization in a set of quartz veins containing silver sulfides. This new system is located approximately 500 meters southwest and 750 meters below the Ermitaño deposit.
The discovery of Navidad has significant implications for the Santa Elena complex. BMO Capital Markets mining analyst Kevin O’Halloran noted that while the discovery is in its early stages, it has the potential to extend the life of the Santa Elena complex, currently estimated at six years. The proximity of Navidad to Ermitaño means that future development could leverage existing mine infrastructure, although the mineralization lies substantially below current development levels.
First Majestic is optimistic about the potential of the Navidad system. The full extent and geometry of the gold and silver veins, which remain open in all directions, are still being explored. Four drill rigs are currently working to determine the extent and grade of the mineralization.
First Majestic’s president and CEO, Keith Neumeyer, emphasized the significance of Navidad’s location near Ermitaño’s infrastructure. He highlighted that this is the most promising discovery at the Santa Elena property since Ermitaño was found in 2016. According to Neumeyer, Navidad could significantly increase Santa Elena’s estimated mineral resources and extend the life of the mine.
The Navidad vein system appears to strike to the northeast and dips at a moderate to low angle to the northwest. The intersections outline a strike length of 750 meters and a dip continuity of 225 meters, the minimum distances between drill holes. The Navidad vein ranges from 1.8 meters to 5 meters in thickness, with adjacent veins ranging from 1.5 meters to 6 meters.
First Majestic’s portfolio includes several other significant assets. In Durango state, the company operates the San Dimas silver-gold mine, which it acquired from Primero Mining for $320 million in 2018. Additionally, First Majestic has held the La Encantada silver mine in Coahuila state since 2006. The company’s projects also include the Jerritt Canyon gold site in northeastern Nevada, where it started the First Mint plant last year to expand bullion sales.
First Majestic’s shares experienced a slight dip, slipping less than 1% by mid-Tuesday in Toronto to C$8.22 per share, valuing the company at C$2.4 billion ($1.7 billion). The shares have traded in a 52-week range of C$7.83 to C$10.72.
