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

  1Q22 4Q21 % change 1Q21
Ore processed: Phase I - Veins (t) 294,144 308,691 (4.7) 288,673
Ore processed: Phase II - DoB (t) 541,030 533,631 1.4 448,674
         
Total Production San Julian        
Gold (oz) 11,684 12,887 (9.3) 13,802
Silver (koz) 3,640 3,967 (8.2) 3,430
         
Production: Phase I - Veins
       
Gold (g/t) 10,844 12,142 (10.7) 12,828
Silver (g/t) 1,060 1,200 (11.7) 966
Production: Phase II - DOB
           
Gold (g/t) 840 745 12.8 974
Silver (g/t) 2,580 2,768 (6.8) 2,465
Lead (t) 1,608 1,914 (16.0) 1,694
Zinc (t) 4,725 4,419 6.9 4,783
Ore grades: Phase I - Veins        
Gold (g/t) 1.21 1.29 (5.6) 1.47
Silver (g/t) 123 131 (5.6) 115
Ore grades: Phase II - DOB            
Gold (g/t) 0.08 0.08 0.0 0.12
Silver (g/t) 173 187 (7.6) 197
Lead (%) 0.39 0.45 (15.2) 0.47
Zinc (%) 1.11 1.10 0.4 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

1Q22

San Julián Veins

  • Quarterly gold and silver production decreased 10.7% and 11.7% vs. 4Q21 respectively due to a lower than expected ore grade following in-situ reconciliation with the geological model and a lower volume of ore processed driven by thinner veins.

  • Quarterly gold production decreased 15.5% vs. 1Q21 due to a lower ore grade as a result of depletion of the mine.
  • Quarterly silver production increased 9.8% vs. 1Q21 due to a higher ore grade, in line with the mining sequence.

  • 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 decreased 6.8% vs. 4Q21 due to an expected lower ore grade as the mining sequence advanced towards the periphery of the ore body.

  • Quarterly silver production increased 4.7% vs. 1Q21 due to a higher volume of ore processed driven by the damage to the lead circuit housing in 1Q21 as previously reported adversely impacting the volumes of ore that could be processed at the time, partially offset by an expected lower ore grade.
  • We continue to expect the 2022 silver ore grade to be in the range of 150-170 g/t as we continue to advance towards the lower grade areas in the periphery of the ore body.