San Julián (Phase I and II)

San Julian silver-gold mine contributed 31.6% to total silver production and generated 18.9% of total adjusted revenue (2021).

Ownership: 100% Fresnillo plc
Location: Chihuahua/Durango border
Commodity: Silver/Gold
Operational since: 2H16 (Vein System) / 2Q17 (Disseminated Ore Body)
Facilities: Underground mine, flotation plant and a dynamic leaching plant
Workforce: 465 employees, 1,577 contractors
Life of Mine: 4.4 Veins (2020: 2.8), 3.1 Disseminated Ore Body (2020: 3.6)

The San Julián silver-gold project is a cornerstone of our current and future production goals. The geological potential identified in the region thus far may be sufficient to establish a new mining district in the future. The San Julián project includes construction of two plants: i) a dynamic leaching plant to treat ore from the veins and ii) a flotation plant with 6,000 tpd capacity to process ore from the disseminated body.

Quarterly Production

  2Q22 1Q22 % change 2Q21
Ore processed: Phase I - Veins (t) 289,821 294,144 (1.5) 302,475
Ore processed: Phase II - DoB (t) 535,326 541,030 (1.1) 555,055
         
Total Production San Julian        
Gold (oz) 11,748 11,684 0.5 15,546
Silver (koz) 4,328 3,640 18.9 5,219
         
Production: Phase I - Veins
       
Gold (g/t) 10,865 10,844 0.2 14,320
Silver (g/t) 1,175 1,060 10.9 1,027
Production: Phase II - DOB
           
Gold (g/t) 883 840 5.1 1,226
Silver (g/t) 3,152 2,580 22.2 4,192
Lead (t) 2,325 1,608 44.6 2,813
Zinc (t) 5,368 4,725 13.6 5,751
Ore grades: Phase I - Veins        
Gold (g/t) 1.22 1.21 0.5 1.56
Silver (g/t) 138 123 11.9 115
Ore grades: Phase II - DOB            
Gold (g/t) 0.09 0.08 13.0 0.12
Silver (g/t) 213 173 23.4 275
Lead (%) 0.51 0.39 31.5 0.61
Zinc (%) 1.29 1.11 17.1 1.38

Production

Gold (oz)

55,847 (FY21) % 14.0 Change

Silver (koz)

16,772 (FY21) % 26.0 Change

Financial Highlights

Adjusted Revenue (US$m, FY21)

537.0 % 31.2 Change

Segment Profit (US$m, FY21)

322.7 % 52.4 Change

Capital Expenditure (US$m, FY21)

40.9 % 12.7 Change

Exploration (US$m, FY21)

23.9 % 16.0 Change

2Q22

San Julián Veins

  • Quarterly silver production increased 10.9% and 14.5% vs. 1Q22 and 2Q21 respectively, due to higher ore grades driven by an operational decision to adjust the mine plan to prioritise extraction from wider veins of the mine with higher silver content but a lower gold ore grade.

  • Quarterly gold production remained at a similar level to 1Q22.
  • Quarterly and first half gold production decreased 24.1% and 20.0% vs. 2Q21 and 1H21 respectively, mainly as a result of a lower ore grade for the reasons explained above.

  • First half silver production increased 12.2% vs. 1H21 due to a higher ore grade as explained above.

  • We continue to expect the 2022 silver and gold ore grades to average 120-130 g/t and 1.35-1.55 g/t, respectively.

San Julián Disseminated Ore Body (DOB)

  • Quarterly silver production increased 22.2% vs. 1Q22, due to a higher ore grade as a result of an updated mining sequence, increasing the proportion of higher grade ore extracted from the central area of the ore body.

  • Quarterly silver production decreased 24.8% vs. 2Q21 due to the expected lower ore grade following the higher than anticipated ore grade in 2Q21 as a result of: i) the positive variation with the geological model in the central area of the ore body; and ii) access to higher ore grade areas following the mine resequencing in 2019, as set out at the time.
  • First half silver production decreased 13.9% vs. 1H21 due to the expected lower ore grade for the reasons explained above, mitigated by a higher volume of ore processed.

  • We continue to expect the 2022 silver ore grade to be in the range of 150-170 g/t as we advance towards the lower grade areas in the periphery of the ore body.