Operations
Saucito
The Saucito project is aiming to develop another world-class mine, located approximately eight kilometres southwest of the Fresnillo mine.
There is a prefeasibility study approved by the Board in August 2009 for the first stage of the Saucito development that considers a 3,000 tpd capacity flotation plant based only on the reserves and resources of the Saucito and Jarillas veins.
The planned capex is US$309 million to be spent as follows (US$m):
| 2008 | 2009 | 2010 | 2011 |
|---|---|---|---|
| $50 | $51 | $140 | $68 |
The prefeasibilty also considers a sustaining capex of US$68m over a life of mine of 17 years
The expected production would be ramping up according to the following:
| 2011 | 2012 | 2013 | 2014 | |
|---|---|---|---|---|
| Silver (moz) | 4.7 | 6.2 | 9.1 | 9.2 |
| Gold (koz) | 22.5 | 28.0 | 36.9 | 45.0 |
The second stage of the project would double the capacity of the flotation plant to 6,000 tpd and it would be further defined and presented to the Board as the resources for Mezquite, Santa Natalia and Valdecañas East continue to be upgraded. Infill diamond drilling on the three veins and drifting along the Jarillas vein is in progress to convert resources into the indicated category.
Development work currently includes land acquisition, environmental studies, engineering studies and underground access to explore and define ground conditions.
At the Jarillas area a shaft is in construction and will have approximately 750 metres, the first stage of 550 metres will be in operation in early 2013. In the northern area of the same zone, ramp construction began which will be used as access to the veins, and to confirm resources and ground conditions for mine planning and development in the Saucito and Jarillas area. Engineering of the plant, tailings dam, access roads, electric lines and required infrastructure for a future mine has already begun, with all of the major equipment for the plant already been purchased.