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

  3Q17 3Q16 % change 2Q17
Ore processed (t) 326,381 305,474 6.8 322,760
         
Production        
Gold (oz) 17,395 18,372 -5.3 18,904 
Silver (koz) 1,335 1,320 1.1 1,458
Lead (t) 1,537 1,323 16.2 1,715
Zinc (t) 1,682 1,925 -12.6 2,070
         
Ore grades        
Gold (g/t) 1.75 1.94 -9.9 1.89
Silver (g/t) 148 154

-3.6

161
Lead % 0.72 0.65 10.6 0.78
Zinc % 0.95 1.04 -9.3 1.10

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: (3Q17)

  • Quarterly and year to date gold production decreased when compared to the same periods last year primarily as a result of the depletion of higher grade gold veins at Ciénega. However, this was mitigated by a higher volume of ore processed from the East and West areas and the increase in equipment availability resulting from efficiencies achieved in the maintenance programme, reducing the number of unproductive hours.
  • Quarterly gold production decreased 8.0% vs. 2Q17 as a result of expected lower ore grade and to a lesser extent, lower recovery rate. These factors were partly offset by the slightly higher volume of ore processed.
  • Year to date silver production increased over YTD16 as a result of the higher ore grade at the Taspana and San Ramón areas and, to a lesser extent, a higher volume of ore processed. This was partly offset by a lower recovery rate. Quarterly silver production remained at similar levels when compared to 3Q16.
  • Quarterly silver production decreased 8.4% vs. 2Q17 as a result of the expected lower ore grade and, to a lesser extent, lower recovery rate.
  • Quarterly and year to date by-product lead production increased over the same periods of 2016 as a result of higher ore grades and volume of ore processed. These more than compensated for the lower recovery rate.
  • Quarterly by-product lead production decreased 10.4% over 2Q17 due to a lower ore grade and lower recovery rate.
  • Quarterly by-product zinc production decreased vs. 3Q16 as a result of a lower recovery rate and ore grade. Year to date by-product zinc production slightly increased over YTD16 due to higher ore grade and volume of ore processed.
  • Quarterly by-product zinc production decreased -18.7% vs. 2Q17 as a result of a lower ore grade and recovery rate.