First Majestic Updates Mineral Reserve and Resource Estimates for Year End 2014 and Files Form 40-F Annual Report

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VANCOUVER, April 1, 2015 /CNW/ - FIRST MAJESTIC SILVER CORP. (the "Company" or "First Majestic") is pleased to announce its 2014 Mineral Reserve and Resource estimates for its existing mineral property assets in Mexico as of December 31, 2014. Silver metal content in the Proven and Probable Reserve category totaled 101.1 million ounces of silver, down 7% from 108.6 million as of December 31, 2013. Metal prices used to estimate the 2014 Reserve estimates were lowered compared to the prior year to: $20.00/oz of silver, $1,200/oz of gold, $0.95/lb of lead and $1.00/lb of zinc.

The following table shows the total tonnage mined from each of the Company's five producing properties during 2014, including total ounces of silver and silver equivalent ounces produced from each property and the tonnage mined from delineated reserves and resources at each property.

2014 Production Table
		LA ENCANTADA			LA PARRILLA			DEL TORO			SAN MARTIN			LA GUITARRA			TOTAL
TONNES OF ORE PROCESSED		721,172			711,915			629,492			363,952			186,881			2,613,412
OZ OF SILVER PRODUCED		3,711,633			2,876,450			2,690,717			1,833,618			636,301			11,748,719
OZ OF SILVER EQ. PRODUCED FROM OTHER METALS		20,019			1,796,742			988,066			284,644			419,777			3,509,248
TOTAL OZ OF SILVER EQ. PRODUCED		3,731,652			4,673,192			3,678,783			2,118,262			1,056,078			15,257,967
TONNES MINED FROM MATERIAL IN RESERVES		416,591			708,211			608,260			320,812			125,487			2,179,360
TONNES MINED FROM MATERIAL NOT IN RESERVES		304,582			3,704			21,233			43,140			61,393			434,051

(1) Silver-equivalent grade is estimated considering: metal price assumptions, metallurgical recovery for the corresponding mineral type/mineral process and the metal payable of the corresponding contract of each mine.

The Company completed over 44,000 metres of diamond drilling at its five operating mines in 2014, representing a 25% reduction in metres drilled compared to the prior year. For 2015, First Majestic is planning to drill approximately 50,000 metres to further define known mineralized ore bodies at its operating mines. A combination of surface and underground drill rigs will focus on assisting mining activities, definition drilling and to support future updates to the Company's NI 43-101 Technical Reports.

Starting this year, First Majestic is reporting Mineral Resources inclusive of Mineral Reserves; readers are cautioned of this change since the Company had previously reported Mineral Resources exclusive of Mineral Reserves.

The largest change to Mineral Reserves occurred at La Encantada where the old tailings were downgraded from Proven and Probable Reserves to Inferred Resources after the Company's decision to suspend the reprocessing of the old tailings due to the low metal price environment. This resulted in a 76% increase in the Reserves silver grade, a 57% decrease in total Reserve tonnes and a 24% decrease in Reserve silver metal content. However, the underground Proven and Probable Mineral Reserves increased by 56% to 3.2 million tonnes containing 28.4 million ounces of silver with average silver grade of 276 g/t.

Silver metal content in the Measured and Indicated Resource category totaled 152.4 million ounces. In addition, the silver metal content in the Inferred Resource totaled 170.4 million ounces, a decrease of 18% compared to the prior year due mainly to the impact of lower metal price assumptions, the adoption of the stricter CIM Definition Standards, and the subtraction of Resources for the Peñasco Quemado and La Frazada projects, which were disposed of during 2014.

The complete 2014 Mineral Reserve and Resource estimates for all metals, tonnage and grades are shown below in the following tables: 

PROVEN AND PROBABLE MINERAL RESERVES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2014
Mine	Category		Mineral Type		k tonnes		Ag (g/t)		Au (g/t)		Pb (%)		Zn (%)		Ag-Eq (g/t)		Ag (k Oz)		Ag-Eq (k Oz)
LA ENCANTADA	Proven (UG)		Oxides		1,084		248		-		-		-		248		8,639		8,639
	Probable (UG)		Oxides		2,115		291		-		-		-		291		19,754		19,754
	Total Proven and Probable  (UG)		Oxides		3,199		276		-		-		-		276		28,393		28,393
LA PARRILLA	Proven (UG)		Oxides		302		219		-		-		-		219		2,119		2,119
	Probable (UG)		Oxides		1,025		213		0.02		-		-		214		7,032		7,061
	Total Proven and Probable (UG)		Oxides		1,327		215		0.01		-		-		215		9,152		9,181
	Proven (UG)		Sulphides		585		201		-		1.8		1.9		304		3,784		5,714
	Probable (UG)		Sulphides		1,473		157		0.04		1.5		2.4		261		7,436		12,369
	Total Proven and Probable (UG)		Sulphides		2,057		170		0.03		1.6		2.3		273		11,220		18,083
	Total Proven and Probable (UG)		Oxides + Sulphides		3,384		187		0.02		1.0		1.4		251		20,371		27,264
SAN MARTÍN	Proven (UG)		Oxides		1,024		224		0.18		-		-		237		7,359		7,790
	Probable (UG)		Oxides		1,813		188		0.04		-		-		191		10,960		11,107
	Total Proven and Probable (UG)		Oxides		2,837		201		0.09		-		-		207		18,319		18,897
DEL TORO	Proven (UG)		Transition		511		156		0.03		2.0		2.1		231		2,560		3,792
	Probable (UG)		Transition		589		157		0.06		2.6		1.6		224		2,964		4,248
	Total Proven and Probable (UG)		Transition		1,100		156		0.05		2.3		1.8		227		5,523		8,040
	Proven (UG)		Sulphides		1,097		148		0.08		2.7		1.8		229		5,206		8,063
	Probable(UG)		Sulphides		1,991		218		0.18		4.0		3.9		347		13,931		22,218
	Total Proven and Probable (UG)		Sulphides		3,088		193		0.15		3.5		3.2		305		19,138		30,281
	Total Proven and Probable (UG)		Transition + Sulphides		4,187		183		0.12		3.2		2.8		285		24,661		38,321
LA GUITARRA	Proven (UG)		Sulphides		91		153		1.84		-		-		256		446		745
	Probable (UG)		Sulphides		1,217		228		1.00		-		-		284		8,911		11,098
	Total Proven and Probable (UG)		Sulphides		1,308		223		1.06		-		-		282		9,358		11,843
	Total Proven and Probable (UG)		All mineral types		14,915		211		0.15		1.1		1.1		260		101,102		124,718

(1) Mineral Reserves have been classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Definition Standards on Mineral Resources and Mineral Reserves, whose definitions are incorporated by reference into National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101").

(2) In all cases, metal prices considered for Mineral Reserves estimates were $20 USD/oz Ag, $1,200 USD/oz Au, $0.95 USD/lb Pb, and $1.00 USD/lb Zn.

(3) The Mineral Reserves information provided above for La Encantada, La Parrilla, Del Toro and San Martín is based on internal estimates prepared as of December 31, 2014. The information provided was reviewed and validated by the Company's internal Qualified Person, Mr. Ramon Mendoza Reyes, P.Eng., who has the appropriate relevant qualifications, and experience in mining and reserves estimation practices.

(4) Mineral Reserve estimates for La Guitarra are based on the 2015 La Guitarra Silver Mine Technical Report compiled by First Majestic with contribution of Amec Foster Wheeler Americas Ltd.

(5) Silver-equivalent grade is estimated considering: metal price assumptions, metallurgical recovery for the corresponding mineral type/mineral process and the metal payable of the corresponding contract of each mine. Estimation details are listed in each mine section of the 2014 Annual Information Form.

(6) The cut-off grades and modifying factors used to convert Mineral Reserves from Mineral Resources are different for all mines. The cut-off grades are listed in each mine section of the 2014 Annual Information Form.

MEASURED AND INDICATED MINERAL RESOURCES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2014
Mine / Project	Category		Mineral Type		k tonnes		Ag (g/t)		Au (g/t)		Pb (%)		Zn (%)		Ag-Eq (g/t)		Ag (k Oz)		Ag-Eq (k Oz)
LA ENCANTADA	Measured (UG)		Oxides		1,086		283		-		-		-		283		9,878		9,878
	Indicated (UG)		Oxides		2,289		321		-		-		-		321		23,623		23,623
	Total Measured and Indicated  (UG)		Oxides		3,375		309		-		-		-		309		33,501		33,501
LA PARRILLA	Measured (UG)		Oxides		344		255		-		-		-		255		2,817		2,817
	Indicated (UG)		Oxides		953		254		-		-		-		255		7,774		7,807
	Total Measured and Indicated (UG)		Oxides		1,298		254		-		-		-		255		10,591		10,624
	Measured (UG)		Sulphides		703		240		-		2.2		2.1		347		5,415		7,845
	Indicated (UG)		Sulphides		1,310		188		0.05		1.8		2.8		302		7,939		12,705
	Total Measured and Indicated (UG)		Sulphides		2,013		206		0.03		1.9		2.6		318		13,355		20,550
	Total Measured and Indicated (UG)		Oxides + Sulphides		3,311		225		0.0		1.2		1.6		293		23,946		31,175
SAN MARTÍN	Measured (UG)		Oxides		1,240		254		0.26		-		-		273		10,128		10,882
	Indicated (UG)		Sulphides		1,819		220		0.11		-		-		228		12,878		13,360
	Total Measured and Indicated (UG)		Oxides + Sulphides		3,059		234		0.17		-		-		246		23,006		24,242
DEL TORO	Measured (UG)		Transition		538		185		0.04		2.6		2.6		257		3,198		4,450
	Indicated (UG)		Transition		549		180		0.06		2.9		1.9		258		3,176		4,544
	Total Measured and Indicated (UG)		Transition		1,087		182		0.05		2.7		2.2		257		6,373		8,994
	Measured (UG)		Sulphides		1,150		182		0.08		3.3		2.3		272		6,726		10,048
	Indicated(UG)		Sulphides		1,747		255		0.21		4.6		4.6		394		14,315		22,128
	Total Measured and Indicated (UG)		Sulphides		2,897		226		0.16		4.1		3.7		345		21,041		32,176
	Total Measured and Indicated (UG)		Transition + Sulphides		3,984		214		0.13		3.7		3.3		321		27,414		41,169
LA GUITARRA	Measured (UG)		Sulphides		121		170		2.37		-		-		305		660		1,185
	Indicated (UG)		Sulphides		1,029		335		1.56		-		-		424		11,078		14,029
	Total Measured and Indicated (UG)		Sulphides		1,150		318		1.65		-		-		412		11,738		15,214
LA LUZ	Measured (UG)		Oxides		2,614		221		-		-		-		221		18,559		18,559
	Measured (Tailings)		Oxides (Tailings)		1,403		90		-		-		-		90		4,075		4,075
	Indicated (UG)		Sulphides		988		321		-		-		-		321		10,202		10,202
	Total Measured + Indicated		All material types		5,005		204		-		-		-		204		32,836		32,836
	Total Measured and Indicated		All mineral types		19,885		238		0.15		0.94		0.92		279		152,442		178,137
INFERRED MINERAL RESOURCES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2014
Mine / Project	Category		Mineral Type		k tonnes		Ag (g/t)		Au (g/t)		Pb (%)		Zn (%)		Ag-Eq (g/t)		Ag (k Oz)		Ag-Eq (k Oz)
LA ENCANTADA	Inferred (UG)		Oxides		899		340		-		-		-		340		9,832		9,832
	Inferred (Tailings)		Tailings		6,026		107		-		-		-		107		20,731		20,731
	Inferred Total		Oxides + Tailings		6,926		137		-		-		-		137		30,562		30,562
LA PARRILLA	Inferred (UG)		Oxides		3,422		259		-		-		-		259		28,477		28,477
	Inferred (UG)		Sulphides		5,848		190		-		2.4		3.1		324		35,676		60,997
	Inferred Total (UG)		Oxides + Sulphides		9,270		215		-		1.5		2.0		300		64,153		89,475
SAN MARTÍN	Inferred Total (UG)		Oxides		5,541		216		-		-		-		216		38,502		38,502
DEL TORO	Inferred (UG)		Transition		1,457		186		0.04		2.6		2.2		257		8,699		12,031
	Inferred (UG)		Sulphides		4,211		176		0.13		3.8		5.3		297		23,821		40,156
	Inferred Total (UG)		Transition + Sulphides		5,669		178		0.11		3.5		4.5		286		32,520		52,187
LA GUITARRA	Inferred Total (UG)		Sulphides		739		197		1.23		-		-		267		4,674		6,343
	Total Inferred		All mineral types		28,145		188		0.05		1.2		1.6		240		170,412		217,070

(1) Mineral Resources have been classified in accordance with CIM Definition Standards on Mineral Resources and Mineral Reserves, whose definitions are incorporated by reference into NI 43-101.

(2) In all cases, metal prices considered for Mineral Resource estimates were $22 USD/oz Ag, $1,350 USD/oz Au, $0.95 USD/lb Pb, and $1.00 USD/lb Zn.

(3) The Mineral Resources information provided above for La Encantada, La Parrilla, Del Toro and San Martín is based on internal estimates prepared as of December 31, 2014. The information provided was reviewed and validated by the Company's internal Qualified Person, Mr. Jesus M. Velador Beltran, Ph.D. Geology, who has the appropriate relevant qualifications, and experience in mining and resource geology.

(4) Mineral Resource estimates for La Guitarra Silver Mine are based on the 2015 Technical Report compiled by First Majestic with contribution of Amec Foster Wheeler Americas Ltd.

(5) Silver-equivalent grade is estimated considering: metal price assumptions, metallurgical recovery for the corresponding mineral type/mineral process and the metal payable of the corresponding contract of each mine. Estimation details are listed in each mine section of the 2014 Annual Information Form.

(6) The cut-off grades for Mineral Resources are different for all mines. The cut-off grades are listed in each mine section of the 2014 Annual Information Form.

(7) Measured and Indicated Mineral Resources are reported inclusive of Mineral Reserves.

(8) The La Luz resource estimates are taken from the Real de Catorce Property Technical Report dated July 25, 2008 and the Real de Catorce Property Technical Report dated July 30, 2007. The Company's Qualified Persons are working on applying similar economic inputs to the La Luz Silver Project to those applied to the other properties.

PLOMOSAS HISTORICAL ESTIMATES

Project

Category

Mineral Type

k tonnes

Ag (g/t)

Au (g/t)

Pb (%)

Zn (%)

Ag (k Oz)

Ag-Eq (k Oz)

PLOMOSAS

Not in accordance with CIM Standards

Sulphides (UG)

896

192

0.8

2.1

3.4

5,500

11,000

(1) Plomosas historical estimates are taken from Grupo Mexico's estimates prepared in 2001.

(2) Tonnage is expressed in thousands of tonnes, metal content is expressed in thousands of ounces.

(3) The Company's Qualified Persons have been coordinating the work for the verification of the information supporting the historical estimates at Plomosas. The historical estimates at Plomosas do not conform to NI 43-101 for reporting purposes; as such, the Company is not treating these historical estimates as current Mineral Reserves or Mineral Resources. Since the historical estimates do not have demonstrated current economic viability, these estimates should not be relied upon until the verification process and due diligence in progress by the Company's Qualified Person is completed.

(4) In order to verify or upgrade the historical estimates, the Company will need to complete a diamond drilling program at the Rosario and San Juan mines. The drilling program is designed to confirm the historical estimates reported by Grupo Mexico and will allow the Company to plan a second exploration program focused on locating extensions of the known mineralization. Other work required to verify the historical estimates as current includes, but it is not limited to: re-survey of underground workings, re-survey of available exploration drill-hole monuments, review of drilling, sampling and assays databases, and the re-assessment of the estimates following CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines and CIM Definition Standards on Mineral Resources and Mineral Reserves.

The Company also announces that its 2014 audited financial statements have been filed on SEDAR.  In addition, a Form 40-F report has been filed with the United States Securities and Exchange Commission and is available on EDGAR.  Both documents are also available on the Company's website at www.firstmajestic.com.

Shareholders may also receive a copy of First Majestic's audited financial statements, without charge, upon request to First Majestic, Suite 1805 – 925 West Georgia Street Vancouver, B.C., Canada, V6C 3L2 or to [email protected].

Mr. Ramon Mendoza Reyes, Vice President Technical Services for First Majestic, is a "qualified person" as such term is defined under National Instrument 43-101, and has reviewed and approved the technical information disclosed in this news release.

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

FIRST MAJESTIC SILVER CORP.
"signed"
Keith Neumeyer, President & CEO

SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION

This news release includes certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target", "plan", "forecast", "may", "schedule" and similar words or expressions, identify forward-looking statements or information. These forward-looking statements or information relate to, among other things: the price of silver and other metals; the accuracy of mineral reserve and resource estimates and estimates of future production and costs of production at our properties; estimated production rates for silver and other payable metals produced by us, the estimated cost of development of our development projects; the effects of laws, regulations and government policies on our operations, including, without limitation, the laws in Mexico which currently have significant restrictions related to mining; obtaining or maintaining necessary permits, licences and approvals from government authorities; and continued access to necessary infrastructure, including, without limitation, access to power, land, water and roads to carry on activities as planned.

These statements reflect the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements or information and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: fluctuations in the spot and forward price of silver, gold, base metals or certain other commodities (such as natural gas, fuel oil and electricity); fluctuations in the currency markets (such as the Canadian dollar and Mexican peso versus the U.S. dollar); changes in national and local government, legislation, taxation, controls, regulations and political or economic developments in Canada, Mexico; operating or technical difficulties in connection with mining or development activities; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins and flooding); risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom the Company does business; inability to obtain adequate insurance to cover risks and hazards; and the presence of laws and regulations that may impose restrictions on mining, including those currently enacted in Mexico; employee relations; relationships with and claims by local communities and indigenous populations; availability and increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses, permits and approvals from government authorities; diminishing quantities or grades of mineral reserves as properties are mined; the Company's title to properties; and the factors identified under the caption "Risk Factors" in the Company's Annual Information Form, under the caption "Risks Relating to First Majestic's Business".

Investors are cautioned against attributing undue certainty to forward-looking statements or information. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.

SOURCE First Majestic Silver Corp.

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