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
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
