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

  2Q17 2Q16 % change 1Q17
Ore processed (t) 322,760 318,330 1.4 313,920
         
Production        
Gold (oz) 18,904 19,651 -3.8 17,453 
Silver (koz) 1,458 1,344 8.5 1,328
Lead (t) 1,715
1,582 8.4 1,536
Zinc (t) 2,070 1,998 3.6 1,960
         
Ore grades        
Gold (g/t) 1.89 1.99 -4.6 1.89
Silver (g/t) 161 149

7.8

160
Lead % 0.78 0.72 7.6 0.78
Zinc % 1.10 1.08 1.8 1.07

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: (2Q17)

  • Quarterly gold production decreased vs. 2Q16 mainly due to the depletion of higher gold ore grade veins at Ciénega and lower grades at the Rosario and Las Casas areas and, to a lesser extent, a lower recovery rate; partly offset by higher ore processed
  • Year to date gold production decreased slightly vs. 1H16 as a result of a lower recovery rate and, to a lesser extent, lower ore processed; partly offset by the higher ore grade from the West and East areas
  • Quarterly gold production increased 8.3% over 1Q17 mainly due to higher volume of ore processed
  • Quarterly and first half silver production increased over 2Q16 and 1H16 mainly due to the higher ore grade at the Taspana and San Ramón areas
  • Quarterly silver production increased 9.8% vs. 1Q17 mainly as a result of the higher volume of ore processed
  • Quarterly and first half by-product lead production increased vs. 2Q16 and 1H16 mainly as a result of higher ore grade; partly compensated for by lower recovery rate
  • Quarterly by-product lead production increased 11.6% over 1Q17 due to higher recovery rate and higher ore processed
  • Quarterly by-product zinc production increased 3.6% and 5.6% vs. 2Q16 and 1Q17 respectively, mainly due to higher ore grade and ore processed
  • Half year by-product zinc production increased vs 1H16 as a result of a higher ore grade and recovery rate

Objectives: 2017

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