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

 

3Q19

2Q19

% change

3Q18

Ore processed (t)

335,493

329,117

1.9

332,493

         

Production

       

Gold (oz)

17,858

15,075

18.5

18,214

Silver (koz)

1,384

1,457

-5.0

1,539

Lead (t)

1,826

1,353

34.9

1,105

Zinc (t)

2,755

2,130

29.4

1,889

         

Ore grades

       

Gold (g/t)

1.78

1.57

13.8

1.79

Silver (g/t)

151

162

-7.0

169

Lead %

0.81

0.64

26.6

0.57

Zinc %

1.35

1.10

22.6

0.95

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

1H19

  • Exploration intensified at the Rosario Transversal fault as well as to the West of the San Ramón vein, to identify further opportunities in the Ciénega District.

  • 1st phase of the construction of the third tailings dam advanced, now expected to be concluded by year end.

  • The installation of a high compact thickener to optimise water consumption advanced according to plan.

  • Increased development at Taspana and Ciénega.

3Q19

  • Quarterly gold production increased 18.5% vs. 2Q19 while quarterly silver production decreased 5.0% vs. 2Q19 driven by the ore grades. This was in line with the mine plan, as we extracted a higher proportion of material from the eastern zone of the district with higher gold content and lower silver content.

  • Quarterly gold and silver production decreased 2% and 10% vs. 3Q18 respectively driven by lower grades in line with the mine plan.

  • Year to date gold production decreased 7.1% vs. YTD18 driven by a lower ore grade resulting from the natural depletion of high ore grade areas in the deeper levels at Las Casas and East Taspana. A lower recovery rate further impacted the YTD19 gold production.

  • 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.

2H19 Priorities

  • With the results of this exploration campaign, resources and reserves estimates will be updated and a new preliminary economic assessment will be produced.
  • 2nd phase of the construction of the third tailings dam expected to be concluded in 2020.
  • Secure permits and begin engineering for the fourth tailings dam.