The discovery of a third massive sulphide deposit has prompted First Majestic Silver (FM-T, FMV-F) to bring in a fourth drill rig to its San Juan silver project in Zacatecas state, Mexico.
First Majestic has completed 26 drill holes at the past-producing San Juan mine, which have so far shown consistent mineralization across a broad width with strong grades of silver, lead and zinc.
From the most recent assays, hole SSJ-04 returned 74.2 metres grading 359 grams silver per tonne, 7.07% lead and 7.6% zinc, including 5.05 metres grading 2,806 grams silver per tonne, 52% lead and 13.67% zinc.
The mineralization is the third massive sulphide to be found, located about 25 metres below the two other ore bodies already discovered.
Mineralization is found in a sequence of replacements and veins of massive galena and sphalerite with high silver content and disseminated mineralization in the contact between the skarn and the intrusive igneous rock, the company reports.
The deposit is open at depth and to the west.
The San Juan mine is about 300 years old and although there is no production data, it’s estimated that about 100,000 tons of ore have been extracted due to the size of the old stopes.
First Majestic wants to both rehabilitate the mine and define new areas, which it’s doing through its ongoing drill program.
The company has completed 2,850 metres of underground development, including an access ramp and six underground cross cuts to test the continuity of the ore body.
The mine is on a 3.4-sq.-km property that includes a second silver mine called Perseverancia, which is also being developed. First Majestic says a previous owner operated the mine between 1974 and 1997, that claims to have shipped about 150-300 tons of ore grading between 1.5-3 kg per ton silver and 20-40% lead to a smelter about 120 km to the southeast.
First Majestic shares fell 3.7% or 18 today to $4.65 on a trading volume of 372,000 shares.
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