First Majestic Silver Commits $75 Million to Revive Nevada Gold Mine

First Majestic Silver allocates $75M to restart its Jerritt Canyon gold mine, targeting production in 2027 based on a bullish $4,000-$5,000/oz gold price forecast.

As gold prices reach levels that seemed improbable just a year ago, First Majestic Silver is moving forward with a significant investment to restart its idled Jerritt Canyon gold mining operation in Nevada. The company has allocated $75 million in capital for the current year to lay the groundwork for a production restart, which is scheduled for the second half of 2027.

The decision to reactivate the mine is heavily influenced by a transformed gold market. Operations were suspended in March 2023 due to extreme weather conditions and high contractor costs, at a time when gold traded between $1,600 and $1,900 per ounce. First Majestic is now basing its 2026 planning on a projected gold price ranging from $4,000 to $5,000 per ounce.

Breakdown of Capital Allocation

The $75 million budget will be directed toward several key areas to prepare the site. The planned expenditures include:
* $15 million for exploration drilling.
* $13 million allocated to underground development.
* Another $13 million for mining fleet and surface infrastructure.
* $12 million is designated for the processing plant.
* $10 million for technical studies.
* $7.5 million for staffing and personnel.

A critical milestone for the project will be the completion of a preliminary feasibility study by Stantec Consulting, expected in the fourth quarter of 2026. The findings of this study are anticipated to be a major factor in finalizing the detailed production plans for 2027.

Resource Base and Market Sentiment

The company's reactivation strategy is supported by an updated resource estimate. As of the end of 2025, the Jerritt Canyon property holds a total of 4.1 million ounces of gold in the measured and indicated categories, with an additional 3.7 million ounces classified as inferred. Notably, approximately 85% of the 308-square-kilometer property remains unexplored.

Following the announcement, several equity researchers adjusted their outlook on the company's stock. BMO Capital Markets upgraded the shares to "Outperform" in late March, setting a price target of C$35. H.C. Wainwright & Co. maintained its "Buy" rating with a $30 target. The current analyst consensus stands at "Moderate Buy," with an average price target of $25. For the coming year, analysts project earnings growth of nearly 48%.

First Majestic's share price currently trades about 30% below its 52-week high, implying an upside potential of roughly 14.5% relative to the consensus target. Whether the 2027 production timeline is met will depend significantly on the outcome of the Stantec study in the fall of 2026.