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

 

1Q19

1Q18

% change

4Q18

Ore processed (t)

320,990

320,006

0.3

340,529

         

Production

       

Gold (oz)

14,681

16,377

-10.4

15,588

Silver (koz)

1,463

1,239

18.1

1,703

Lead (t)

981

1,335

-26.5

1,007

Zinc (t)

1,712

1,006

70.2

1,767

         

Ore grades

       

Gold (g/t)

1.53

1.66

-7.7

1.49

Silver (g/t)

165

141

16.7

180

Lead %

0.49

0.67

-27.4

0.48

Zinc %

0.89

0.72

23.1

0.87

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 - 1Q19

  • First quarter gold production decreased 10.4% vs. 1Q18 due to the lower gold ore grade resulting from the depletion of the higher ore grade areas, and to a lesser extent, a lower recovery rate.

  • Quarterly gold production decreased 5.8% vs 4Q18 mainly due to a lower volume of ore processed resulting from one-off excess efficiency gains in the maintenance programme seen in the previous quarter, which further reduced downtime and resulted in two additional days of production.

  • Quarterly silver production increased 18.1% vs. 1Q18 resulting from a higher ore grade as a result of the access to higher silver ore grade areas, particularly at Taspana and Rosario. When compared to the previous quarter, silver production decreased 14.1% driven by an expected lower ore grade and lower volume of ore processed.

  • Expected gold ore grade (2019) remains in range of 1.60-1.70 g/t; silver ore grade anticipated to be between 150-160 g/t.

  • Quarterly by-product lead production decreased 26.5% vs. 1Q18 as a result of a lower ore grade. Compared to 4Q18, by-product lead production decreased 2.6% due to a lower volume of ore processed, mitigated by a higher recovery rate.

  • By-product zinc production increased 70.2% vs. 1Q18 due to a higher ore grade and recovery rate. Compared to the previous quarter, by-product zinc production decreased 3.1% driven by a lower volume of ore processed.

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