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

  3Q22 2Q22 % change 3Q21
Ore processed: Phase I - Veins (t) 297,216 289,821 2.6 302,987
Ore processed: Phase II - DoB (t) 498,882 535,326 (6.8) 533,204
         
Total Production San Julian        
Gold (oz) 11,387 11,748 (3.1) 13,612
Silver (koz) 3,171 4,328 (26.7) 4,156
         
Production: Phase I - Veins
       
Gold (g/t) 10,625 10,865 (2.2) 12,550
Silver (g/t) 1,115 1,175 (5.1) 1,033
Production: Phase II - DOB
           
Gold (g/t) 762 883 (13.7) 1,062
Silver (g/t) 2,056 3,152 (34.8) 3,123
Lead (t) 1,461 2,325 (37.2) 2,122
Zinc (t) 3,790 5,368 (29.4) 5,039
Ore grades: Phase I - Veins        
Gold (g/t) 1.17 1.22 (4.1) 1.36
Silver (g/t) 128 138 (7.2) 116
Ore grades: Phase II - DOB            
Gold (g/t) 0.08 0.09 (11.1) 0.11
Silver (g/t) 153 213 (28.2) 217
Lead (%) 0.39 0.51 (23.5) 0.50
Zinc (%) 1.01 1.29 (21.7) 1.24

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

3Q22

San Julián Veins

  • Quarterly gold and silver production decreased 2.2% and 5.1% vs 2Q22 respectively, mainly due to lower ore grades, partly mitigated by a higher volume of ore processed.

  • Quarterly and year to date gold production decreased 15.3% and 18.5% vs. 3Q21 and YTD 21 respectively, mainly due to lower 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 and year to date silver production increased 7.9% and 10.7% vs. 3Q21 and YTD 21 respectively, mainly due to higher ore grades, partially mitigated by the lower volume of ore processed.

  • We continue to expect the 2022 silver ore grade to average 120-130 g/t, however, gold ore grade is anticipated to be in the range of 1.20-1.30 g/t (1.35-1.55 g/t previously), as a result of the strategy to prioritise veins with higher silver content.

San Julián Disseminated Ore Body (DOB)

  • Quarterly gold and silver production decreased 13.7% and 34.8% vs. 2Q22, due to the expected lower ore grades, a decrease in ore processed driven by a short stoppage to fix a failure in the bearing pads of the SAG mill at the plant.

  • Similarly, quarterly and year to date gold and silver production decreased vs 3Q21 and YTD 21, primarily due to the expected lower ore grade following the higher than anticipated ore grade in 2021 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.
  • 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.