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: 513 employees, 544 contractors
Milling Capacity: 4,000 tpd / 1,340,000 tpy
Mine Life: 6.8 years (2017: 6.9)

Quarterly Production

 

2Q19

1Q19

% change

2Q18

Ore processed (t)

329,117

320,990

2.5

330,879

         

Production

       

Gold (oz)

15,075

14,681

2.7

16,689

Silver (koz)

1,457

1,463

-0.4

1,518

Lead (t)

1,353

981

37.9

1,352

Zinc (t)

2,130

1,712

24.4

1,231

         

Ore grades

       

Gold (g/t)

1.57

1.53

2.6

1.65

Silver (g/t)

162

165

-1.8

166

Lead %

0.64

0.49

30.6

0.67

Zinc %

1.10

0.89

23.6

0.77

AR18 Cienega Mine Production

AR18 Cienega Financial Performance

History

1987

Drilling commenced

1992

Construction commenced

1995

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

Production

Gold (oz)

66,869 (FY18) % (7.1) Change

Silver (koz)

5,999 (FY18) % 11.2 Change

Lead (t)

4,799 (FY18) % (24.2) Change

Zinc (t)

5,892 (FY18) % (16.4) Change

Financial Highlights

Adjusted Revenue (US$m, FY18)

187.1 % (5.6) Change

Segment Profit (US$m, FY18)

79.2 % (18.4) Change

Captial Expenditure (US$m, FY18)

72.9 % 56.8 Change

Exploration (US$m, FY18)

22.9 % 38.8 Change

Highlights - 2Q19

  • Quarterly gold production increased 2.7% vs. 1Q19 due to higher volume of ore processed resulting from efficiency gains in the maintenance programme, and a slightly higher ore grade.

  • Quarterly and first half gold production decreased 9.7% and 10.0% vs. 2Q18 and 1H18 respectively driven by lower ore grades resulting from the natural depletion of high ore grade areas in the deeper levels at Las Casas and East Taspana. A lower recovery rate also impacted quarterly and first half gold production.

  • Silver production decreased 4.0% vs. 2Q18 mainly due to lower ore grade at Las Casas and Rosario Transversal.

  • First half silver production increased 5.9% vs. 1H18 driven by a higher ore grade driven by the access to higher silver ore grade areas, particularly at Rosario.

  • Expected gold ore grade in 2019 remains in the range of 1.60-1.70 g/t and silver ore grade is still anticipated to be between 150-160 g/t.

2018 - Summary

  • Contribution from the Taspana satellite mine increased from 15,000 to 30,000 tonnes per month while exploration continued, and the access ramp reached 1,473 metres.

  • Construction of the third tailings dam, a downstream structure, continued, and is expected to be concluded in early 2019, in combination with the conclusion of the installation of a high compact thickener to optimise water consumption.

  • Concluded a PEA for a 2,000 tpd expansion of the beneficiation plant at Ciénega – further evaluation required.

  • One contractor company hired to develop new areas during the year.

Performance Targets - 2019

  • Conduct an updated economic assessment for the expansion of the beneficiation plant at the Ciénega plant
  • Intensify exploration at the Rosario Transversal fault and commence exploration to the west of the San Ramón vein
  • Conclude the construction of the third tailings dam
  • Secure permits and begin engineering for the fourth tailings dam