Herradura

One of Mexico’s largest open-pit gold mines; producing 51.4% of the Group’s total gold in 2018 and generated 27.1% 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: 1,500 employees, 516 contractors
Mine Life: 13.2 years (2017: 11.6)

Quarterly Production

 

1Q19

1Q18

% change

4Q18

Ore processed (t)

5,695,073

5,984,641

-4.8

4,707,145

Total vol. hauled (t)

29,132,741

34,153,768

-14.7

26,592,044

         

Production

       

Gold (oz)

116,879

125,243

-6.7

121,409

Silver (koz)

354

241

46.9

427

         

Ore grades

       

Gold (g/t)

0.81

0.68

19.7

0.88

Silver (g/t)

2.90

1.86

55.9

3.64

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

Highlights - 1Q19

  • Quarterly gold production decreased 6.7% vs. 1Q18 as expected primarily due to a slower overall speed of recovery resulting from the higher level of the leaching pads,which increased the residence time of the solution in the pads. This was mitigated by a higher ore grade mainly as a result of the contribution of the 2nd line of the Dynamic Leaching Plant, which is now operating at full capacity. Additionally, 1Q19 gold production compared negatively to that of 1Q18 as there was a higher than expected gold production during 1Q18 following a further inventory reduction on the leaching pads.

  • Construction of an additional leaching pad is underway and due to be concluded in the second half of this year.

  • Quarterly gold production decreased 3.7% vs. previous quarter due to lower overall speed of recovery and lower ore grade, mitigated by higher volume of ore processed as heavy rainfall (4Q18) impacted operations at the Merrill Crowe plant.

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

2018 - Summary

  • The second line at the DLP was commissioned at the end of 2018

  • 102,592 metres of exploration drilling to strengthen metrics for the Centauro Pit expansion

  • Tests undertaken on the leaching pads confirmed additional gold content, resulting in an increase of 98.9 thousand ounces of gold as at 1 January 2018

  • The increase in resources/reserves led to a new pit design, resulting in the need to change from 2 to 1 components, resulting in an effect on costs

  • Pilot project to evaluate the use of dual fuel systems for haulage equipment

  • Installation of vibrating screens at the DLP Phase I

Performance Targets - 2019

  • Ramp-up of the second line at the DLP
  • Conclude construction of leaching pad number 13
  • 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