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

  2Q17 1Q17 % change 1H17
Ore processed (t) 308,342 306,082 0.7 614,423
         
Production        
Gold (oz) 20,912
20,128 3.9 41,041
Silver (koz) 1,592 1,386 14.9 2,979
         
Ore grades        
Gold (g/t) 2.19 2.18 0.2 2.18
Silver (g/t) 171.58 156.68 9.5 164.16

Update (2Q17):

  • Quarterly silver production increased vs. 1Q17 as a result of the higher ore grade and recovery rate
  • Gold production also increased vs. 1Q17 as a result of a higher recovery rate

Key Developments:

  • Good progress made on the grinding bay structure, while construction of the main conveyor belt and thickeners, electric installation of the pumps and flotation cells were all concluded.
  • Plant exceeding 20% above nominal capacity at 3,600 tpd