One of the world’s oldest continuously operating mines; producing 33% of the Group’s total silver in 2015 and generating 20.1% of total adjusted revenue
||100% Fresnillo plc
||Underground mine and flotation plant
||980 employees, 1,703 contractors
||8,000 tpd / 2,640,000 tpy
|Average ore grade in reserves:
||258 Silver g/t, 0.75 Gold g/t
||205.5 moz Silver, 600 oz Gold
||9.4 years (2015: 8)
|Ore processed (t)
Peñoles acquires 60% interest in Cia Fresnillo
Peñoles acquires remaining 40% interest in Cia Fresnillo
Mill capacity is increased from 4,500 to 7,000 tpd
% 1.6 Change
% 24.3 Change
% 17.0 Change
% 36.1 Change
% 20.1 Change
% 49.5 Change
% (74.3) Change
% 42.6 Change
Perfomance Highlights: (3Q17)
- Quarterly silver production decreased vs. 3Q16. This was due to the lower ore grade resulting from the temporary limited access to higher ore grade areas following delays in development and mining equipment outtages which impeded progress at the long drilling areas of San Carlos and San Alberto. Additionally, increased dilution during the quarter contributed to the lower silver ore grade. These adverse effects were mitigated by a slight increase in the volume of ore processed.
- YTD silver production increased vs. YTD16 due to higher volumes of ore processed as a result of the progress made towards operating at full capacity.
- When compared to the previous quarter, 3Q17 silver production decreased -21.7% primarily due to the lower ore grade (-14.0%) and to a lesser extent, a lower volume of ore processed (-7.6%). The lower grade was a result of the temporary limited access to high grade veins at the San Alberto and San Carlos areas due to delays in development as mentioned above.
- Development rate for the year has been approximately 3,500m per month reaching a maximum of 3,800m p/m. Lower productivity from on site contracting personnel and drilling equipment mechanical failures prevented increasing the development rate as planned; the Company is in the process of hiring a new contractor and expects to increase the development rate to levels above 4,000m per month next year.
- Silver ore grade for 2017 is expected to be within the range of 220-225 g/t and the increase in silver production for the full year vs. 2016 to be 7-8%.
- Quarterly and YTD by-product gold production decreased when compared to corresponding periods in 2016 as a result of the lower ore grades; however, partially offset by the higher volume of ore processed. When compared to previous quarter, byproduct gold production decreased 6.2% as a result of the lower volume of ore processed and recovery rate; partly offset by the higher ore grade.
- Quarterly and YTD by-product lead production decreased when compared to the same period in 2016 as a result of lower ore grades which was partly offset by the higher volume of ore processed.
- YTD by-product zinc production increased vs. YTD16 as a result of the higher ore grade, increased volume of ore processed and higher recovery rate. However, quarterly byproduct zinc production decreased -7.0% when compared to 2Q17 as a result of lower volume of ore processed.