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

 

4Q18

4Q17

% change

3Q18

Ore processed (t)

340,529

339,347

0.4

332,493

         

Production

       

Gold (oz)

15,588

18,194

-14.3

18,214

Silver (koz)

1,703

1,272

33.9

1,539

Lead (t)

1,007

1,541

-34.7

1,105

Zinc (t)

1,767

1,336

32.2

1,889

         

Ore grades

       

Gold (g/t)

1.49

1.76

-15.6

1.79

Silver (g/t)

180

137

31.4

169

Lead %

0.48

0.70

-30.8

0.57

Zinc %

0.87

0.81

7.6

0.95

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

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