San Julián (Phase I and II)

The San Julián silver-gold project is a cornerstone of the Company’s 2018 production goals. The geological potential identified in the region thus far may be sufficient to establish a new mining district in the future.

Ownership: 100% Fresnillo plc
Location: Chihuahua/Durango border
Facilities: Underground mine, flotation plant and a dynamic leaching plant
Commercial Production: 2H16 (Phase I) / 1H17 (Phase II)
Anticipated Production: Avg. annual production of 11.6 moz silver, 63.7 koz gold
Pre-operative Capex: US$515 million
Life of Mine: 12 Years

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

  3Q17 3Q16 % change 2Q17
Ore processed - Phase I (t) 333,674

121,833

174.0 308,342
Ore processed - Phase II (t) 448,150

-

N/A -
         
Production        
Gold (oz) 23,460 7,032 233.6 20,912
Silver (koz) 3,499 484 621.4 1,592
Lead (t) 1,661 - N/A -
Zinc (t) 3,282 - N/A -
         
Ore grades - Phase I        
Gold (g/t) 2.12 1.96 7.9 2.19
Silver (g/t) 148.09 150.53 -1.6 171.58
Ore grades - Phase II        
Gold (g/t) 0.13 - N/A -
Silver (g/t) 169.26 - N/A -
Lead (%) 0.52 - N/A -
Zinc (%) 1.13 - N/A -

Production Highlights: (3Q17)

  • Quarterly gold production at San Julián (phase I) increased over 3Q16 due to the mine operating at full capacity in 2017. Similarly, YTD gold production increased vs. YTD16 reflecting the first full year of operations.
  • Quarterly gold production increased 12.2% vs. 2Q17 as a result of higher volumes of ore processed and higher recovery rate due to the ramp up of operations.
  • Silver production for 3Q17 increased when compared to the same period 2016 as a result of higher volumes of ore processed and recovery rate due to the start of operations last year.
  • YTD silver production increased when compared to YTD16 reflecting the start and ramp up of both phases.
  • Quarterly silver production increased vs. 2Q17 as a result of the start of operations of San Julián (phase II).
  • Silver production is expected to be around 10 moz and gold production c. 80 koz for the full year in line with expectations given commercial production began mid-July.