Ciénega (incl. San Ramón satellite)

Long been classified as a gold mine, but silver revenues have risen markedly in recent years reflecting the mine’s rich silver resources

Ownership: 100% Fresnillo plc
Location: Durango
Commodity: Gold, Silver
Operational since: 1992
Facilities: Underground mine, flotation and leaching plant
Workforce: 469 employees, 340 contractors
Milling Capacity: 4,000 tpd / 1,340,000 tpy
Average ore grade in reserves: 2.00 Gold g/t, Silver 162 g/t
Total Reserves: 820 oz Gold, 66.3 moz Silver
Mine Life: 10.0 years

Quarterly Production

  1Q17 1Q16 % change 4Q16
Ore processed (t) 313,920 323,719 -3.0 327,416
         
Production        
Gold (oz) 17,453 17,245 1.2 17,583 
Silver (koz) 1,328 1,169 13.6 1,298
Lead (t) 1,536 1,543 -0.5 1,435
Zinc (t) 1,960 1,635 19.9 1,892
         
Ore grades        
Gold (g/t) 1.89 1.72 10.2 1.74
Silver (g/t) 160 128

24.8

143
Lead % 0.78 0.67 15.5 0.66
Zinc % 1.07 0.91 17.4 0.99

History

1987

Drilling commenced

1992

Construction commenced

1995

First full year of production, with 300,000 tpy capacity

Production

Gold (oz)

72,851 (FY16) % (15.0) Change

Silver (koz)

5,131 (FY16) % 6.3 Change

Lead (t)

5,883 (FY16) % 8.4 Change

Zinc (t)

7,450 (FY16) % 24.8 Change

Financial Highlights

Adjusted Revenue (US$m, FY16)

185.0 % 9.1 Change

Segment Profit (US$m, FY16)

100.1 % 40.8 Change

Captial Expenditure (US$m, FY16)

32.7 % 32.9 Change

Exploration (US$m, FY16)

20.0 % (2.4) Change

Perfomance Highlights:

  • Full year and quarterly gold production decreased as a result of: i) an expected lower ore grade due to the depletion of higher grade ore veins and increased dilution from narrower veins at the East and West areas, and ii) lower ore processed resulting from the extraction of harder mineral from the Rosario, Las Casas and Carmen areas
  • Quarterly gold production decreased 4.3% vs. 3Q16 due to a lower ore grade resulting mainly from temporary development delays limiting access to richer stopes at the Taspana vein; partly offset by a higher volume of ore processed
  • Annual silver production increased as a result of higher ore grades from the Rosario and Las Casas areas; partly offset by lower ore processed
  • Quarterly silver production increased vs. 4Q15 as a result of a higher ore grade
  • Full year by-product lead production increased vs. 2015 as a result of the higher ore grade which compensated for the lower ore processed, however, quarterly by-product lead production decreased vs. 4Q15 mainly due to the lower recovery rate
  • Quarterly by-product lead production increased vs. 3Q16 due to an increase in ore processed
  • Annual and quarterly by-product zinc production increased as a result of higher ore grades and recovery rates which compensated for the lower volume of ore processed

Objectives: 2017

  • Continue development of Rosario & Las Casas
  • Ciénega expansion evaluation progressing