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

 

3Q18

3Q17

% change

2Q18

Ore processed (t)

332,493

326,381

1.9

330,879

         

Production

       

Gold (oz)

18,214

17,395

4.7

16,689

Silver (koz)

1,539

1,335

15.3

1,518

Lead (t)

1,105

1,537

-28.1

1,352

Zinc (t)

1,889

1,682

12.3

1,231

         

Ore grades

       

Gold (g/t)

1.79

1.75

2.4

1.65

Silver (g/t)

169

148

13.5

166

Lead %

0.57

0.72

-19.8

0.67

Zinc %

0.95

0.95

0.4

0.77

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 - 3Q18

  • Quarterly gold production increased 4.7% vs. 3Q17 as a result of a higher ore grade due to lower dilution, and a higher volume of ore processed resulting from a more efficient maintenance programme that has reduced the average maintenance downtime and thus increasing equipment availability.

  • Quarterly gold production increased 9.1% vs. 2Q18 mainly as a result of the higher ore grade driven by a reduction in the dilution.

  • Year to date gold production decreased 4.6% vs. YTD17 as a result of a lower ore grade due to depletion of higher gold ore grade veins at las Casas-Rosario, Taspana and Jessica areas. This was mitigated by the higher volume of ore processed and the higher recovery rate.

  • Quarterly silver production increased 15.3% vs. 3Q17 as a result of a higher ore grade due to increased access to higher silver ore grade areas at Taspana and Rosario and to a lesser extent, the higher volume of ore processed. When compared to 2Q18, quarterly silver production increased 1.4% as a result of a slightly higher ore grade and volume of ore processed, which offset the lower recovery rate.

  • Year to date silver production increased 4.2% vs. YTD17 as a result of higher volume of ore processed due to the previously mentioned improvement in the maintenance programme and a higher ore grade.

  • Expected gold grade for 2018 is now at 1.7 g/t and expected silver ore grade continues to be around 160 g/t.

  • By-product lead production decreased against all comparative periods as a result of lower ore grade and recovery rates, mitigated by a marginally higher volume of ore processed. 

  • Quarterly by-product zinc production increased 12.3% vs. 3Q17 as a result of higher recovery rate, and to a lesser extent, higher volume of ore processed. Quarterly byproduct zinc production increased 53.4% vs. 2Q18 as a result of higher recovery rate and higher ore grade. Year to date by-product zinc production decreased 27.8% vs. YTD17 as a result of lower ore grade and recovery rate.

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