First Majestic just released a scoping study for a 2,000 tpd mill. This is the same size mill that Golden Minerals is planning for our Velerdena mine. Below are some cut and paste from sections of the report:

FIRST MAJESTIC SILVER CORP. (AG: NYSE; FR: TSX) (the "Company" or "First Majestic") is pleased to announce an update regarding its activities in Mexico at the La Parrilla Silver Mine and a new NI 43-101 Reserve/Resource update. REPORTED HIGHLIGHTS Silver Equivalent Reserves increases 607% to 37.1M ounces Silver Equivalent Measured & Indicated Resources decreased by 74% to 8.1M ounces, resulting from a large portion being upgraded to Reserves Silver Equivalent Inferred Resources increased by 16% to 61.2M ounces Dual-processing mill capacity to reach 2,000 tonnes per day (1,000 tpd flotation; 1,000 tpd cyanidation) by December 31st, 2011 Total Estimated Production of over 3M ounces pure silver annually plus approximately 6.0M pounds of lead and 4.8M pounds of zinc over LOM Life of Mine (LOM) increases from 2 years to 14 years Post Tax NPV at 5% discount = US$78.6M with an IRR of 40% using $23.85 silver price Cash Costs of $4.16 per ounce of silver on a by-product basis To date, the La Parrilla resource development has exceeded management's expectations due to the continued success of the Company's current drill program. The Company's exploration and development efforts have seen exceptional results in upgrading Measured and Indicated Resources to Proven and Probable Reserves. This positive development has resulted in the life of mine (LOM) being extended to fourteen years from the previously disclosed LOM of two years in the 2008 Technical Report. This new NI 43-101 Technical Report only considers exploration and development work completed up to the cut-off date of June 30th, 2011. The new Reserve / Resource estimates as at cut-off consist of 37.1 million ounces of silver equivalent in Proven and Probable Reserves, which represents a significant increase of 607% percent over previously reported estimates; 8.1 million ounces of silver equivalent in Measured and Indicated Resources, representing a decrease of 74% from the 2008 estimates; plus 61.2 million ounces contained in Inferred Resources representing a 16% increase from the previous estimate. It should also be noted that this significant increase in Reserves comes after continuous mining and production since the previous NI 43-101 released over three years ago which demonstrates not only the Company's ability to identify and process undefined Reserves but the potential of this prolific region of Durango. Keith Neumeyer, CEO and President of First Majestic Silver, states: "This new Reserve / Resource estimate validates our decision to invest over $40 million to increase the capacity of this operation to 2,000 tpd from the previously announced 1,600 tpd. We are extremely pleased with La Parrilla's results and look forward to the increases in production coming in the next few quarters and the release of updated NI 43-101's on the Company's remaining four assets." The following summary tables were taken from the complete La Parrilla Silver Mine NI 43-101 Technical Report prepared by Pincock Allan & Holt, Lakewood, Colorado (PAH). Shareholders and interested parties are encouraged to read this positive report which can be viewed on SEDAR (www.sedar.com) and the Company's web site at www.firstmajestic.com.

Based on the new current Reserves for La Parrilla and economic evaluation, an LOM production plan was completed. This new NI 43-101 Technical Report defines the Pre-Feasibility Study for the planned operation being extended to the year 2024, based on the 2,000 tonnes per day production rate, up from the previously announce LOM of two years. The Reserves from the low-grade open pit oxides are planned to be mined by 2018. The budgeted exploration program is $3.0 million per year with an additional $6.6 million for the remainder of 2011 and 2012. Given the excellent potential near the current mining areas and within the La Parrilla mining district, Pincock Allan & Holt believes that significant mineral resources can be found and developed quickly. Obviously, additional resources will result in added mine life. Underground mines similar to La Parrilla generally carry Reserves for a period of 3 to 5 years. During the period of 2004 to 2011, the Company has replaced all Reserves mined and has continued increasing the Reserves and the life of mine.

The estimated capital cost for this expansion, which was started in December 2010 and is anticipated to be completed by the end of 2012 is estimated at $67.5 million. Total Capital over LOM of 14 years, to 2024, amounts to approximately $169.5 million and includes the new 2,000 tpd dual processing mill, new mine and plant equipment costs, mine development for both open pit and underground mines, as well as on-going exploration, tailings expansion and sustaining capital. The resulting internal rate of return comes in at a robust 40% using US$23.85 per ounces silver.

From the above, FRM has almost no gold and averages 202 g/t silver and a little more than 1% lead and zinc. By comparision, Velerdena has about 2.5 g/t gold, 161 g/t silver and about 1% lead and zinc. At a 45 to 1 gold silver ratio, this adds about 110 grams to our silver which gives us 271 g/t silver plus the lead and zinc. We also have way more than a 12 year life of mine. To be fair, FRM's vein's are mostly wider than ours, but with our higher grades and longer mine life, I would expect us to have an IRR of close to 40% also.