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First Majestic Receives Construction Permits for Santo Nino and Navidad; Advances Development Across the Santa Elena District

First Majestic’s Santa Elena portal permits advance mine life extension despite cost creep and price pullback tempering near-term upside.

By The Northwire Desk — AI Analysis Jun 25, 2026 · 16:16 AG · 23.42 First Majestic Silver Corp.

Executive Summary

First Majestic Silver Corp. (AG) has secured regulatory permits for dedicated underground portals at the Santo Niño and Navidad targets within its Santa Elena Silver/Gold Mine. Construction of these portals and related infrastructure is scheduled to begin in the second half of 2026. To support this underground access development, including haul road building and decline/ramp construction, the company plans an additional $12 million capital investment in 2026.

Drilling activity is underway to support resource conversion and mine planning. In 2026, progress includes 26,904 m across 69 holes at Santo Niño and 7,704 m across 10 holes at Navidad, with approximately 62,000 m planned for the remainder of the year. The company reported significant high-grade intercepts, including:

15.80 m @ 3.50 g/t Au, 28 g/t Ag (291 g/t AgEq) at Navidad
1.57 m @ 15.21 g/t Au, 333 g/t Ag (1,474 g/t AgEq) at Santo Niño

Preliminary mining and processing schedules suggest that higher-grade mineralization from these targets will positively impact production profiles by displacing lower-grade mineralization from other deposits. Management confirmed that Santo Niño and Navidad are expected to become important contributors to the future mine plan and have the potential to materially extend Santa Elena's mine life.

Material Impact

First Majestic Silver Corp. (AG) has reached an operational permitting milestone that carries no immediate financial impact. The company faces an additional capital expenditure of $12 million, which accounts for approximately 5-6% of its $213-236 million total capital budget for 2026. This development does not alter the company’s 2026 production or cost guidance, nor does it trigger immediate revenue recognition.

The news aligns with expectations previously telegraphed by scoping studies and metallurgical results, supporting the long-term mine life thesis without changing near-term financials. The stock has already declined approximately 48% from its February peak, a move that has priced in a silver price pullback and execution risks.

AG · Price

Company Overview

First Majestic Silver Corp. (AG) operates four producing underground mines in Mexico: Los Gatos (70% JV), Santa Elena, San Dimas, and La Encantada. The company is also advancing a restart project at Jerritt Canyon in Nevada, targeting production in H2 2027. Its jurisdictions include Mexico (Chihuahua, Sonora, Durango, Coahuila), USA (Nevada), and Canada (Ontario - Springpole stream). The portfolio is heavily weighted toward silver, which accounts for approximately 66% of revenue, with significant gold and base metal byproducts.

Read the original news release →

First Majestic Receives Construction Permits for Santo Nino and Navidad; Advances Development Across the Santa Elena District

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