en.Wedoany.com Reported - First Majestic Silver (TSX, NYSE: AG) has obtained construction permits for two new underground portals at its Santa Elena mine in Mexico, planning an additional investment of $12 million this year to advance the high-grade Santo Niño and Navidad deposits toward the production stage.

First Majestic stated on Thursday that the permits allow the company to commence underground development in the second half of 2026, including approximately 800 meters of ramp development at Santo Niño and about 1,300 meters of underground development at Navidad. These deposits are expected to provide a higher-grade feed source for the Santa Elena processing plant and have the potential to significantly extend the mine's life.

Located approximately 1,600 kilometers northwest of Mexico City, Santa Elena, together with the adjacent Ermitaño deposit, forms a key source of First Majestic's silver and gold production. In 2026, the company's four operating mines in Mexico are expected to produce a combined total of 13 million to 14.4 million ounces of silver and 127,000 to 140,000 ounces of gold.

This permitting milestone marks a new phase in the company's strategy to expand operations through exploration. Previously, the discovery and development of the Ermitaño deposit had significantly improved overall mine performance. Kevin O'Halloran, a mining analyst at BMO Capital Markets, noted in a report that the development of Santo Niño and Navidad builds on the company's success at Santa Elena, where the discovery of Ermitaño made the operation a strong performer in the company's portfolio, and developing these additional deposits has the potential to replicate that success.

The company also released results from infill drilling aimed at upgrading inferred resources and improving mine planning confidence. At Santo Niño, highlights included 77 grams per tonne silver and 1.52 grams per tonne gold over 10.87 meters. At Navidad, drilling results showed 28 grams per tonne silver and 3.5 grams per tonne gold over 14.89 meters. CEO Keith Neumeyer stated in a press release that infill drilling continues to deliver significant silver and gold intercepts at both targets, and Santo Niño and Navidad are expected to be important contributors to future mine plans, potentially significantly extending the mine life of Santa Elena. First Majestic has completed 26,904 meters of drilling at Santo Niño and 7,704 meters at Navidad this year.

A preliminary study indicates that dedicated underground access is the preferred development option for these deposits. Santo Niño will be accessed via a new portal near the processing plant, connected to existing infrastructure by a haul road; Navidad can be accessed through its own portal as well as from the Ermitaño underground workings.

First Majestic Silver shares rose 4.3% in early trading on Friday in Toronto to C$24.42, giving the company a market valuation of C$11.9 billion (US$840 million). The stock has doubled in price over the past 12 months, driven by rising silver prices.

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