Ciénega (incl. San Ramón satellite)

Ciénega has long been classified a gold mine, with more recent years becoming a strong secondary profile in silver.  

Ownership: 100% Fresnillo plc
Location: Durango
Commodity: Gold, Silver
Operational since: 1992
Facilities: Underground mine, flotation and leaching plant
Workforce: 469 employees, 489 contractors
Milling Capacity: 4,000 tpd / 1,340,000 tpy
Average ore grade in reserves: 2.22 Gold g/t, Silver 189 g/t
Total Reserves: 635 oz Gold, 54.1 moz Silver
Mine Life: 6.9 years (2016: 10.0)

Quarterly Production

  2Q18 2Q17 % change 1Q18
Ore processed (t) 330,879 322,760 2.5 320,006
         
Production        
Gold (oz) 16,689 18,904 -11.7 16,377
Silver (koz) 1,518 1,458 4.1 1,239
Lead (t) 1,352 1,715 -21.2 1,335
Zinc (t) 1,231 2,070 -40.5 1,006
         
Ore grades        
Gold (g/t) 1.65 1.89 -12.7 1.66
Silver (g/t) 166 161

3.5

141
Lead % 0.67 0.78 -14.2 0.67
Zinc % 0.77 1.10 -29.9 0.72

History

1987

Drilling commenced

1992

Construction commenced

1995

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

Production

Gold (oz)

71,947 (FY17) % (1.2) Change

Silver (koz)

5,394 (FY17) % 5.1 Change

Lead (t)

6,328 (FY17) % 7.6 Change

Zinc (t)

7,048 (FY17) % (5.4) Change

Financial Highlights

Adjusted Revenue (US$m, FY17)

198.3 % 7.2 Change

Segment Profit (US$m, FY17)

97.1 % (3.0) Change

Captial Expenditure (US$m, FY17)

46.5 % 42.2 Change

Exploration (US$m, FY17)

16.5 % (17.5) Change

Perfomance Highlights - 2Q18

  • Quarterly and year to date gold production decreased 11.7% and 9.1% respectively vs. their corresponding periods of 2017 primarily due to the lower than expected ore grade following the depletion of higher grade veins at Taspana, Las Casas and San Ramón. This was mitigated by the higher volume of ore processed due to the increased availability of equipment following improvements in the maintenance programme. Quarterly gold production increased 1.9% vs. 1Q18 as a result of the higher volume of ore processed.
  • The expected gold grade for the full year 2018 is expected to remain approximately 1.8 g/t.
  • Quarterly silver production increased 4.1% vs. 2Q17 and 22.4% vs. 1Q18 due to increased access to higher silver ore grade areas at Taspana and Rosario and increased volume of ore processed. Year to date silver production was in line with 1H17.
  • The expected silver grade for the full year 2018 remains unchanged at approximately 160 g/t.
  • Quarterly and first half by-product lead and zinc production decreased when compared to the same periods of 2017 as a result of lower ore grades and recovery rates, which were mitigated by the higher volume of ore processed. Quarterly by-product lead production was in line with 1Q18.
  • Quarterly by-product zinc production increased 22.4% vs. 1Q18 as a result of a higher recovery rate, ore grade and volume of ore processed.

Performance Highlights - 1H18

  • Lower than expected ore grade following the depletion of higher grade veins
  • Reduced dilution by around 20%
  • Increased availability of equipment
  • One more contractor company hired to develop new areas
  • Increased contribution from Taspana (28,000 tonnes per month) to the overall mine production
  • Total development of 14,700 mts increased 16.5% half on half

Performance Targets - 2H18

  • Continue development at Taspana and Las Casas
  • Continue construction of third tailings dam
  • Further evaluate a 2,000 tpd expansion of milling capacity at the main Ciénega mine