Herradura
One of Mexico’s largest open-pit gold mines; producing 52.0% of the Group's total gold (2017) and generating 27.2% of total adjusted revenue.
| Ownership: |
Minera Penmont (100% Fresnillo plc) |
| Location: |
Sonora |
| Commodity: |
Gold |
| Operational since: |
1997 |
| Facilities: |
Open-pit, heap leach & Merrill-Crowe plants; DLP |
| Workforce: |
1,335 employees, 458 contractors |
| Average ore grade in reserves: |
0.79 Gold (g/t) |
| Total Reserves: |
7.7 Gold (moz) |
| Mine Life: |
11.6 (2016: 8.6) |
Quarterly Production
| |
3Q18
|
3Q17
|
% change
|
2Q18
|
|
Ore processed (t)
|
5,859,579
|
6,337,573
|
-7.5
|
5,605,427
|
|
Total vol. hauled (t)
|
29,718,422
|
33,433,070
|
-11.1
|
33,560,118
|
| |
|
|
|
|
|
Production
|
|
|
|
|
|
Gold (oz)
|
109,630
|
131,738
|
-16.8
|
117,886
|
|
Silver (koz)
|
492
|
157
|
213.4
|
363
|
| |
|
|
|
|
|
Ore grades
|
|
|
|
|
|
Gold (g/t)
|
0.76
|
0.75
|
1.0
|
0.76
|
|
Silver (g/t)
|
3.05
|
1.20
|
152.9
|
2.60
|
History
1997
Construction commenced
1998
Commercial production
Production
Gold
(oz)
473,638
(FY17)
% (9.0) Change
Silver
(koz)
551
(FY17)
% (13.6) Change
Financial Highlights
Adjusted Revenue
(US$m, FY17)
606.8
% (7.5) Change
Segment Profit
(US$m, FY17)
355.6
% (3.9) Change
Captial Expenditure
(US$m, FY17)
153.2
% 94.4 Change
Exploration
(US$m, FY17)
27.1
% (11.7) Change
Perfomance Highlights - 3Q18
-
Quarterly gold production decreased 16.8% vs. 3Q17 as a result of: i) a higher than normal speed in the recovery rate due to new layers at the leaching pads which allowed for a rapid decrease in inventories in 3Q17 compared to 3Q18 where normal conditions prevailed; and ii) the lower grade and volume of ore deposited at the leaching pads in 3Q18 resulting from heavy rains causing haulage equipment to temporarily be stopped. These adverse effects were mitigated by a higher ore grades which were processed at the dynamic leaching plant. The heavy rains have continued in October, temporarily impacting operations at the Merrill Crowe plant as electric lines were affected.
-
Quarterly gold production decreased 7.0% vs. 2Q18 as a result of the lower speed of the rate of recovery at the leaching pads in 3Q18 when ore was deposited in a phase of the leaching pads with higher altitude increasing the residence time of the solution in the pads. This adverse effect was mitigated by the higher volume of ore processed.
-
Year to date gold production remained at similar levels, down 0.8% vs. YTD17 due to a lower volume of ore processed, mitigated by a higher ore grade and recovery rate.
-
Expected gold ore grade for the full year continues to be c. 0.75 g/t.
Performance Highlights - 1H18
-
Consistently higher observed resources on the leaching pads lead to inventory re-statement due to higher recovery rates
-
Higher speed of recovery due to an intensive targeted irrigation programme and better dilution
Performance Targets - 2H18
- Continue inventory analysis with an aim to conclude the process by year end
- Complete the installation of vibrating screens to increase gold recovery by 3-4%
- Drilling and exploration to continue at Centauro Deep and areas of influence
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