Herradura

One of Mexico’s largest open-pit gold mines; producing 55.3% of the Group’s total gold (2020) and generating 29.9% 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; two dynamic leaching plants (DLP)
Workforce: 1,629 employees, 1,129 contractors
Mine Life: 12.6 years (2019: 11.7)

Quarterly Production

  3Q21 2Q21 % change 3Q20
Ore processed (t) 4,546,401 5,482,544 (17.1) 4,791,585
Total vol. hauled (t) 33,068,512 33,153,978 (0.3) 28,017,785
         
Production        
Gold (oz) 94,193 108,990 (13.6) 85,102
Silver (koz) 228 227 0.3 251
         
Ore grades        
Gold (g/t) 0.76 0.68 11.2 0.72
Silver (g/t) 2.24 1.74 28.7 2.18

Annual Production

AR20 Herradura Mine Kpis 

12020 reserves as of 31 May 2020.  22020 resources as of 31 May 2020

AR20 Herradura Mine Financial Performance 

History

1991

Drilling commenced

1997

Construction commenced

1998

Commercial production

Production

Gold (oz)

425,288 (FY20) % (11.9) Change

Silver (koz)

1,306 (FY20) % (16.5) Change

Financial Highlights

Adjusted Revenue (US$m, FY20)

778.9 % 12.2 Change

Segment Profit (US$m, FY20)

400.5 % 83.1 Change

Captial Expenditure (US$m, FY20)

30.2 % (19.5) Change

Exploration (US$m, FY20)

17.6 % (37.4) Change

3Q21

  • Quarterly gold production decreased 13.6% vs. 2Q21 due to a lower volume of ore processed and lower recovery rates at the leaching pads, caused by heavier than normal rainfall, which resulted in increased silt restricting the filter capacity at the plant. This has no impact on full year production as the gold in the pregnant solution remains in the circuit and will be recovered in the following months. Further, corrective maintenance to the SAG mills in one of the dynamic leaching plants impacted the volumes of ore processed during the quarter. This was mitigated by a higher ore grade.

  • Quarterly gold production increased 10.7% vs. 3Q20 due to a higher recovery rate as the effects of Covid-19 operational restrictions in 2Q20 last year impacted the recovery cycles at the leaching pads during 3Q20, and to a lesser extent, a higher ore grade in the quarter.

  • Year-to-date gold production increased 21.1% vs. YTD20 due to a higher volume of ore processed following the Covid-19 operational restrictions last year, partially offset by a slower speed of recovery on the leaching pads.

  • The gold ore grade in 2021 is expected to remain in the range of 0.70-0.75 g/t, despite the ore grade being above this guidance YTD.

2021 Objectives

  • Conclude the Carbon in Column project.
  • Advance the construction of the 14th leaching pad.
  • Improve dust suppression at the loading areas.
  • Hire additional personnel to increase utilisation rate of our haulage fleet.
  • Maintain comparative costs.
  • Reduce maintenance times.