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

  1Q18 1Q17 % change 4Q17
Ore processed (t) 320,006 313,920 1.9 339,347
         
Production        
Gold (oz) 16,377 17,453 -6.2 18,194
Silver (koz) 1,239 1,328 -6.7 1,272
Lead (t) 1,335 1,536 -13.1 1,541
Zinc (t) 1,006 1,960 -48.7 1,336
         
Ore grades        
Gold (g/t) 1.66 1.89 -12.2 1.76
Silver (g/t) 141 160

-12.2

137
Lead % 0.67 0.78 -14.4 0.70
Zinc % 0.72 1.07 -32.9 0.81

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 - 1Q18

  • Quarterly gold production decreased 6.2% vs. 1Q17 as a result of a lower ore grade due to a temporary access delay to higher ore grade areas mainly at the Taspana satellite mine and the Rosario Transversal development works. Notwithstanding, lost production is expected to be recovered over the course of the year. This decrease in gold production was mitigated by a higher recovery rate. Quarterly gold production decreased 10.0% vs. 4Q17 as a result of lower ore processed and lower ore grade due to the previously mentioned factor.
  • Quarterly silver production decreased vs. 1Q17 for the reasons previously described. When compared to the previous quarter, silver production decreased 2.6% as a result of the lower ore processed which was mitigated by a higher ore grade.
  • Quarterly by-product lead production decreased 13.1% vs. 1Q17 as a result of a lower ore grade. When compared to the previous quarter, by-product lead production decreased 13.3% as a result of lower volume of ore processed, ore grade and recovery rate.
  • By-product zinc production decreased 48.7% and 24.8% vs. 1Q17 and 4Q17 respectively as a result of lower ore grades and recovery rates.

Performance Targets - 2018

  • Continue developing the Taspana vein
  • Intensify exploration at the Rosario vein and develop access ramp
  • Continue construction of the third tailings dam
  • Commence basic engineering for the plant expansion to 5,000 tpd at Ciénega