First Silver Reserve Inc. Is a silver mining company focused on low cost, profitable production of silver through its 100% owned San Martin silver mine, located 250 km north of Guadalajara in Jalisco State, Mexico. The mine has been in continuous production since 1983 and produced 2.39 million ounces of silver in 2002.
First
Silver Reserve Inc. FSR
(TSE)
As of March 18, 1998 Hector Davila Santos held 74.1% of the issued shares.
CMH 1998-1999
San Martin de Bolaņos Ag Mine and adjacent properties in Jalisco State. Signed letter of intent in October, 1996 with Hector Davila-Santos to acquire Minera El Pilon S.A. de C.V. which owns 100% of the 12,400 acre producing property. Completed acquisition on Dec. 31st and VSE accepted and approved acquisition on 14Feb97. Pincott Allen & Holt were retained to appraise assets and reserves of Minera El Pilon as part of due diligence. Completed study confirmed ore reserves, volumes, costs and agreement was executed. Mine has been in operation since 1983 and works 6 levels on the Zuloaga vein system located 170 km NW of Guadalajara and 10 km SW of San Martin de Bolanos. . Identified proven + probable + possible reserves are 19.2 MM oz of Ag on Zuluaga vein with an additional resource of 41.5 MM oz indicated. Plans are to ramp production ASAP from present 600 tpd mill up to 1300 tpd through purchase of additional equipment. Miguel Orozco of Hermosillo receives a $100,000 finders fee in cash and shares (--way to go Miguel! How about you buying me a beer next time I am in town!). FSR staked an additional 167,500 ha around this area covering faults and annular structures. Silver dore shipments averaged 51,770 oz/wk for the 4 week period ending Dec.97 . This comes out to 2.26 MM oz Ag in 1997, a a slight increase over 1996 production of 2.15 Moz (at $2.38 oz). Dore is 99.93% Ag, the rest is Au. Production goal for 1999 was set for 3.0Moz and came in at 2.29 Moz Ag and 2,480 oz Au as compared to 2.37 Moz Ag and 2,640 oz Au for 1998. The decreased production is attributed to a lower head grade.
Press Release 9May00
MBD March, 1999
Press Release 18Feb99
GCN #155 13Aug98
Canada NewsWire 12Dec97
MBD June, July,1997
CSW 22May97
CSW 21Feb97
CSW 31Jan97
MBD January, 1997
CSW 15Nov96
CSW 1Nov96
Year Tonnes Milled Ounces Ag equivalent Oz Ag/Tonne Milled 1993 71.777 548,337 7.64 1994 77,313 812,650 10.51 1995 135,690 1,664,508 12.41 1996 171,099 2,148,719 12.56 1997 206,770 2,258,759 10.92 1998 257,924 2,436,766 10.256 1999 According to the Oct. 98 Business Plan Pincock Holt & Allen presented the following analysis of the Zuluoaga Vein at San Martin de Bolanos:
Category Tonnes Grams Ag/t Contained Ag (in millions of ounces) Proven 950,566 335 10.239 Probable 456,797 337 4.950 Totable Mineable Reserves 1,407,363 336 15.189 Possible 4,270,000 184 25.263 Potential 1,960,000 345 21.743 Total Inferred 6,230,000 235 47.006 Total Mineable and Inferred 7,637,363 253 62.195 Palmarejo Project, Jalisco. Purchased a 60% interest in 114 sq km property west of the San Martin de Bolanos Mine (around 55 mi W of Guadalajara) from Ameca Gold S.A. de C.V. for $160,000. A precious metals project located 20 km by paved road from Ameca. Project covers 28,512 ha and FSR can earn a 60% interest for cash and work commitment. Surface mapping and sampling of the property revealed 4 separate EW-trending breccia structures hosting quartz veins in hemetitic and silicified andesitic host rocks. Three were Au-bearing (maximum composite channel sample 12m of 1.69 g/t Au) while a fourth, the Descubridora was Ag-bearing. Five DDH totaling 1,161m were drilled in these 4 structures. The 4 holes in the 3 Au zones were non-economic. The 5th hole in Descubridora returned 156 gpt Ag over 2.6m. This system continues for at least 325m along strike and to 50m depth and is open in all directions. The project is on hold while the San Martin expansion is completed.
FSR 3Q98 Report
GCN #35 19Feb98
Canada NewsWire 12Dec97
CSW 23May97MUR Claim, Colima. A 16,000 ha property located at the border of Jalisco and Colima States was acquired by staking. Located 30 km north of Manzanillo, Colima. Chip sampling over a 400m by 700m grid have returned values up to 8.4 gpt Ag and 0.487%Cu. Looking for a JV partner.
FSR 3Q98 Report
La Chica Project, Jalisco. Owns 100% of a 75 ha property located 200 km NW of Guadalajara. A quartz structure 15m wide with a strike exposure of 250m with abundant FeOx, pyrite and sulphates surrounded by argillic alteration in andesitic basalts. Limited trenching to date has exposed 140 gpt Ag.
CSW 23May97
El Barqueno Project, Jalisco. Made a deal with the surface owners to re-process tailings.
PDAC Discussions, 1999
