San Julián (Phase I and II)

San Julian silver-gold mine contributed 26.5% to total silver production and generated 16.1% of total adjusted revenue (2022).

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: 668 employees, 1,262 contractors
Life of Mine: 4.8 Veins (2021: 4.4), 2.8 Disseminated Ore Body (2021: 3.1)

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

  1Q23 4Q22 % change 1Q22
Ore processed: - Veins (t) 283,752 294,582 (3.7) 294,144
Ore processed: - DoB (t) 522,260 517,733 0.9 541,030
         
Total Production San Julian        
Gold (oz) 12,033 11,907 1.0 11,684
Silver (koz) 3,412 3,113 9.6 3,640
         
Production: Phase I - Veins
        
Gold (g/t) 11,139 11,062 0.7 10,844
Silver (g/t) 1,312 1,288 1.9 1,060
Production: Phase II - DOB
            
Gold (g/t) 894 845 5.7 840
Silver (g/t) 2,100 1,825 15.1 2,580
Lead (t) 1,855 1,712 8.4 1,608
Zinc (t) 3,755 3,604 4.2 4,725
Ore grades: Phase I - Veins        
Gold (g/t) 1.28 1.23 3.6 1.21
Silver (g/t) 158 149 6.1 123
Ore grades: Phase II - DOB            
Gold (g/t) 0.09 0.08 9.0 0.08
Silver (g/t) 146 130 11.9 173
Lead (%) 0.46 0.43 8.2 0.39
Zinc (%) 0.96 0.93 3.1 1.11

Production

Gold (oz)

46,727 (FY22) % (16.3) Change

Silver (koz)

14,252 (FY22) % (15.0) Change

Financial Highlights

Adjusted Revenue (US$m, FY22)

417.6 % (22.2) Change

Segment Profit (US$m, FY22)

190.8 % (40.9) Change

Capital Expenditure (US$m, FY22)

64.5 % 57.7 Change

Exploration (US$m, FY22)

32.5 % 36.0 Change

1Q23

San Julián Veins

  • Quarterly silver and gold production slightly increased 1.9% and 0.7% vs. 4Q22 respectively, due to a higher ore grade at the San Antonio, Ultima Tierra and Eliza areas which compensated for the lower volume of ore processed due to the optimisation in the maintenance programme in 4Q22. 

  • Quarterly silver production increased 23.8% vs. 1Q22 mainly driven by the aforementioned higher ore grade which was partly offset by the lower volume of ore processed.

  • Quarterly gold production increased 2.7% vs. 1Q22 due to the higher ore grade and, to a lesser extent, the improved recovery rate which compensated for the lower volume of ore processed.

  • We continue to expect the 2023 silver and gold ore grades to average 130-140 g/t and 1.20-1.30 g/t, respectively.

San Julián Disseminated Ore Body (DOB)

  • Quarterly silver production increased 15.1% vs. 4Q22 mainly due to higher ore grades at the 2,400 level and, to a lesser extent, the higher recovery rate.

  • Quarterly silver production decreased 18.6% vs. 1Q22 due to the lower ore grade in the areas in the periphery of the ore body, as expected. Additionally, the lower volume of ore processed due to unplanned maintenance stoppage at the beneficiation plant in 1Q23 also contributed to the decrease in silver production.

  • We continue to expect the 2023 silver ore grade to be in the range of 130-140 g/t.