First Majestic Reports Positive Exploration Results at Jerritt Canyon and Provides Restart Progress Update

First Majestic reports strong gold intercepts at Jerritt Canyon, but restart remains years away.

What the company is saying

First Majestic Silver Corp. is highlighting positive drill results from its 2026 exploration program at the Jerritt Canyon Gold Mine in Nevada, with a focus on the Saval open-pit target. The company emphasizes broad, high-grade gold intercepts, such as 48.8 metres at 4.24 g/t Au (including 19.8 m at 7.39 g/t Au) in hole SC-26-030 and 36.6 metres at 5.87 g/t Au (including 9.1 m at 19.67 g/t Au) in SC-26-023. Management, led by CEO Keith Neumeyer, frames these results as supporting the potential for open-pit mill feed to complement underground production at a planned restart. The narrative stresses that Saval is already permitted for open-pit mining, which could accelerate future development, and that critical upgrades to the processing plant and site infrastructure are underway. The company also notes that senior leadership and technical roles are filled, and that underground development is advancing. The tone is optimistic, positioning the restart as progressing steadily toward a targeted relaunch in the second half of 2027, though the company acknowledges that many assays remain pending and further work is required.

What the data suggests

The disclosed drill results from Saval are notable for both width and grade, with several intercepts exceeding 20 metres at grades above 4 g/t Au, and higher-grade sub-intervals such as 9.1 m at 19.67 g/t Au. The 2026 program completed 8,753 metres across 85 holes at Saval and 7,230 metres across 61 holes in the northern property, totaling 15,983 metres across 146 holes. Numerous additional intercepts are reported, including 21.3 m at 9.45 g/t Au (15.2 m at 11.56 g/t Au), 25.9 m at 6.97 g/t Au (13.7 m at 11.38 g/t Au), and 13.7 m at 8.43 g/t Au (12.2 m at 9.39 g/t Au). True widths are not yet determined but are expected to be close to drilled lengths. The area is already permitted for open-pit mining, which could reduce permitting delays. No resource estimate, economic study, or production guidance is provided, and many assays remain outstanding, especially from the northern targets. The restart plan is at the technical and development stage, with a stated target of the second half of 2027 for resuming operations. The evidence supports a robust mineralized system at Saval, but the absence of resource or economic data means the commercial viability and scale remain unproven. The company is investing in plant and infrastructure upgrades, indicating ongoing capital outlay.

Analysis

The announcement is upbeat and provides detailed technical results from the 2026 exploration program, including numerous specific drill intercepts and metres drilled. These realised facts support the claim of exploration progress. However, the narrative repeatedly emphasizes future potential—such as the Saval area's suitability as open-pit mill feed, the ongoing evaluation for a 2027 restart, and the benefits of existing permits—without providing feasibility, resource, or economic data to substantiate these forward-looking claims. The majority of key claims are projections or aspirations (e.g., 'targeted restart in the second half of 2027', 'support continued evaluation'), and the timeline for any production or financial benefit is long-term (beyond 2027). The mention of 'critical upgrades to the processing plant and site infrastructure underway' signals significant capital outlay, but there is no immediate earnings impact or disclosed economic analysis. While the technical disclosure is strong for an exploration-stage update, the tone inflates the signal by implying a clear pathway to production and value creation that is not yet evidenced by resource, reserve, or economic studies.

Risk flags

• ●The absence of a compliant resource estimate or economic assessment means the scale and profitability of Saval and the broader Jerritt Canyon project remain unproven. Investors face uncertainty about whether the reported grades and widths will translate into a viable mining operation.
• ●The timeline to restart is long, with operations not expected until the second half of 2027. This exposes the project to execution risk, including potential delays in drilling, permitting, technical studies, or construction.
• ●Significant capital is being deployed for processing plant and infrastructure upgrades before a resource or feasibility study is disclosed. This raises the risk of sunk costs if future studies do not support economic mining.
• ●Many assay results are still pending, particularly from the northern part of the property. The ultimate resource size, grade continuity, and economic potential could change materially as new data is received.
• ●The announcement does not provide cost, cash flow, or financial guidance, making it difficult for investors to assess the project's funding requirements or potential returns. This lack of financial disclosure adds to the uncertainty.

Bottom line

First Majestic's 2026 drilling at Jerritt Canyon delivers several broad, high-grade gold intercepts at the Saval target, with 15,983 metres drilled across 146 holes and standout results like 48.8 m at 4.24 g/t Au and 36.6 m at 5.87 g/t Au. The Saval area benefits from existing open-pit permits, potentially streamlining future development, and the company is investing in plant and infrastructure upgrades. However, the project remains at an early technical stage, with no resource estimate, economic assessment, or production guidance disclosed, and many assays outstanding. The targeted restart in the second half of 2027 is a long-term goal, and substantial execution and economic risks remain. Investors should treat these results as promising exploration data, not as evidence of near-term production or cash flow. The most important takeaway is that while the mineralization appears robust, commercial viability is still unproven and value realization is at least two years away.

Announcement summary

(NYSE: AG) (TSX: AG) (FSE: FMV) First Majestic Silver Corp. announced positive drill results from its ongoing 2026 exploration program at the Jerritt Canyon Gold Mine in Nevada, USA. Near-surface reverse circulation drilling at the Saval target area returned significant gold intercepts, including 48.8 metres grading 4.24 g/t Au (including 19.8 m at 7.39 g/t Au) in hole SC-26-030, and 36.6 metres grading 5.87 g/t Au (including 9.1 m at 19.67 g/t Au) in hole SC-26-023. The 2026 surface drilling program at Saval completed 8,753 metres across 85 holes, while an additional 7,230 metres were drilled across 61 holes in the northern part of the property, for a total of 15,983 metres across 146 holes. Assays are pending for many holes, especially in the northern targets. Two diamond drill rigs are following up on positive 2025 results in the Smith underground mine, and both surface and underground drilling will continue through the end of 2026 and into 2027. The Saval area is already permitted for open-pit mining, which could allow future mining to advance without the permitting timelines associated with new open pits. Drilling in both the northern and southeastern portions of Saval intersected broad, near-surface gold mineralization, supporting continued evaluation of Saval as a source of open-pit mill feed for the planned Jerritt Canyon restart. Detailed results from Saval include intercepts such as 21.3 m at 9.45 g/t Au (including 15.2 m at 11.56 g/t Au) in SC-26-024, 25.9 m at 6.97 g/t Au (including 13.7 m at 11.38 g/t Au) in SC-26-018A, 13.7 m at 8.43 g/t Au (including 12.2 m at 9.39 g/t Au) in SC-26-090, and 24.4 m at 4.48 g/t Au (including 13.7 m at 5.90 g/t Au and 4.6 m at 4.41 g/t Au) in SC-26-046. Additional intercepts from Table 2 include 18.3 m at 1.50 g/t Au in SC-26-001, 9.1 m at 2.01 g/t Au in SC-26-002, 21.3 m at 1.05 g/t Au in SC-26-004, 19.8 m at 1.98 g/t Au in SC-26-005, 13.7 m at 1.36 g/t Au in SC-26-006, 12.2 m at 1.81 g/t Au in SC-26-007, 15.2 m at 2.51 g/t Au (including 4.6 m at 4.19 g/t Au) in SC-26-008, 21.3 m at 2.49 g/t Au in SC-26-009, 13.7 m at 2.57 g/t Au (including 6.1 m at 4.51 g/t Au) in SC-26-011, 18.3 m at 1.84 g/t Au in SC-26-012, 25.9 m at 2.85 g/t Au (including 6.1 m at 8.40 g/t Au) in SC-26-013 (2), 16.7 m at 1.06 g/t Au in SC-26-014, 24.4 m at 2.30 g/t Au (including 6.1 m at 5.23 g/t Au) in SC-26-015, 15.2 m at 2.32 g/t Au in SC-26-016, 12.2 m at 1.17 g/t Au in SC-26-018A, 25.9 m at 6.97 g/t Au (including 13.7 m at 11.38 g/t Au) in SC-26-018A (2), 12.2 m at 1.27 g/t Au in SC-26-019, 25.9 m at 4.63 g/t Au (including 4.6 m at 8.48 g/t Au) in SC-26-020, and 13.7 m at 8.43 g/t Au (including 12.2 m at 9.39 g/t Au) in SC-26-090. The Jerritt Canyon restart plan continues to advance toward a targeted restart in the second half of 2027, with senior leadership and key technical roles filled, underground development and rehabilitation advancing, and technical, engineering, and operational readiness activities progressing. Keith Neumeyer, CEO of First Majestic, stated that the company is encouraged by the results at Saval and continues to make strong progress toward restarting Jerritt Canyon, with critical upgrades to the processing plant and site infrastructure underway.

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