Herradura

One of Mexico’s largest open-pit gold mines; producing 51.4% of the Group’s total gold (2018) and generating 27.1% of total adj. rev.

Ownership: Minera Penmont (100% Fresnillo plc)
Location: Sonora
Commodity: Gold
Operational since: 1997
Facilities: Open-pit, heap leach & Merrill-Crowe plants; DLP
Workforce: 1,500 employees, 516 contractors
Mine Life: 13.2 years (2017: 11.6)

Quarterly Production

 

3Q19

2Q19

% change

3Q18

Ore processed (t)

5,591,746

5,466,791

2.3

5,859,579

Total vol. hauled (t)

33,396,651

32,100,458

4.0

29,718,422

         

Production

       

Gold (oz)

102,439

119.987

-14.6

109,630

Silver (koz)

412

280

47.4

492

         

Ore grades

       

Gold (g/t)

0.71

0.84

-16.0

0.76

Silver (g/t)

3.27

2.48

31.4

3.05

AR18 Herradura Mine Production

AR18 Herradura Financial Performance

History

1991

Drilling commenced

1997

Construction commenced

1998

Commercial production

Production

Gold (oz)

474,168 (FY18) % 0.1 Change

Silver (koz)

1,523 (FY18) % 176.4 Change

Financial Highlights

Adjusted Revenue (US$m, FY18)

608.2 % 0.2 Change

Segment Profit (US$m, FY18)

323.0 % (9.2) Change

Captial Expenditure (US$m, FY18)

116.0 % (24.3) Change

Exploration (US$m, FY18)

33.0 % 21.8 Change

1H19

  • Construction of the 13th leaching pad concluded and irrigation commenced.

  • Infill drilling in the Centauro pit continued - Pit expansion continues to be reviewed on an on-going basis.

  • Positive results following dual fuel systems pilot for haulage equipment – further rollout on-going.

3Q19

  • Quarterly gold production decreased 14.6% vs. 2Q19 due to a temporary lower ore grade resulting from lower availability of the dynamic leaching plant, partly mitigated by a higher volume of ore processed.

  • Quarterly gold production decreased 6.6% vs. 3Q18 driven by a lower ore grade and a decrease in the volume of ore deposited due to the expected higher stripping ratio. This was partly mitigated by a higher speed of recovery.

  • Year to date gold production decreased 3.8% vs. YTD18 driven by a lower volume of ore processed and a slower overall speed of recovery, as set out in the prior quarters.

  • The 13th leaching pad started operations in 3Q19 and is expected to improve the overall speed of recovery in 4Q19.

  • Expected gold ore grade in 2019 remains at 0.70-0.75 g/t.

2H19 Priorities

  • Continue infill drilling in the Centauro pit to re-assess pit expansion.
  • Drilling and exploration to continue at Centauro Deep and areas of influence.
  • Continue gradual conversion of haulage equipment to a dual fuel system.
  • Installation of tails thickener at the Dynamic Leaching Plants.