San Julián (Phase I)

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.

Overview

Ownership: 100% Fresnillo plc
Location: Chihuahua/Durango border
Facilities: Underground mine, flotation plant and a dynamic leaching plant
Commercial Production: 2Q 2016 (phase I) / 2Q 2017 (phase II)
Anticipated Production: Avg. annual production of 10.3 moz silver and 44.0 koz gold
Indicated & inferred resources: 176.6 moz silver, 710 koz gold
Capex: US$515 million
Life of Mine: 13 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. Average commercial production is estimated at 10.3 million ounces of silver and 44,000 ounces gold per year, once at full capacity (2017).

The leaching plant (Phase I) at San Julián has been in operation since mid-August 2016 and has since surpassed its 3,000 tpd nominal milling capacity, reaching 3,600 tpd. As a result of the ramp-up, silver and gold production were 2.1 moz and 31 koz, respectively (2016). With the additional optimisation projects, milling capacity at the leaching plant is expected to further increase to 4,000 tpd in 2017.


Quarterly Production

  4Q16 3Q16 % change YTD16
Ore processed (t) 301,235 121,833 147.3 423,069
         
Production        
Gold (oz) 24,365 7,032 246.5 31,397
Silver (koz) 1,581 485 226.1 2,066
         
Ore grades        
Gold (g/t) 2.67 1.96 36.0 2.47
Silver (g/t) 181.33 150.53 20.5 172.46

Update (4Q16):

  • 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.