Saucito

Including the Saucito II expansion, Saucito is one of the Group’s most important assets; Saucito contributed 32% to total silver production in 2018 and generated 21.9% of total adjusted revenue.

Ownership: 100% Fresnillo plc
Location: Zacatecas 8km SW of the Fresnillo mine
Commodity: Silver, Gold
Operational since: 2011
Facilities: Underground mine and flotation plant
Workforce: 836 employees, 2,452 contractors
Milling Capacity : 7,800 tpd/2,600,000 tpy
Average ore grade in reserves: 261 g/t Silver, 1.39 g/t Gold
Mine Life: 5.3 years (2017: 5.8)

Quarterly Production

 

3Q19

2Q19

% change

3Q18

Ore processed (t)

703,002

662,023

6.2

713,441

         

Production

       

Silver (koz)

4,040

 4,507

-10.4 

4,897 

Gold (oz)

21,096

17,987 

17.3 

23,558 

Lead (t)

4,906 

4,562 

7.5 

5,791

Zinc (t)

6,655 

5,941 

12.0 

7,909 

         

Ore grades

       

Silver (g/t)

207 

242 

-14.7 

250 

Gold (g/t)

1.22 

1.15

6.1

1.34 

Lead %

0.84 

0.83 

1.6 

0.95 

Zinc %

1.38 

1.33 

3.2 

1.61 

Annual Silver Production

AR18 Saucito Mine Production

AR18 Saucito Financial Performance

History

2004

Drilling commenced

2009

Construction commenced

2011

Commercial production 1H11

Production

Silver (koz)

19,781 (FY18) % (6.8) Change

Gold (oz)

86,092 (FY18) % 23.1 Change

Lead (t)

22,662 (FY18) % 27.9 Change

Zinc (t)

29,506 (FY18) % 45.0 Change

Financial Highlights

Adjusted Revenue (US$m, FY18)

492.0 % (2.4) Change

Segment Profit (US$m, FY18)

274.5 % (12.9) Change

Captial Expenditure (US$m, FY18)

148.4 % 11.0 Change

Exploration (US$m, FY18)

36.6 % 40.2 Change

1H19

  • Silver grade of 243 g/t.

  • Infill drilling programme advanced – update with full year results.

  • Development rates have increased more than 10% vs. average 2018.

  • Jarillas shaft deepening continued.

3Q19

  • Quarterly silver production decreased 10.4% vs. 2Q19, driven by the expected lower ore grade in line with the gradual depletion of higher grade areas and increased dilution, resulting from a decrease in the Jarillas vein width. This was mitigated by a higher volume of ore processed.

  • In line with our expectations, quarterly and year to date silver production decreased 17.5% and 13.5% vs. 3Q18 and YTD18 respectively due to a lower ore grade and to a lesser extent, lower volume of ore processed. The lower ore grade is a result of the gradual depletion of higher ore grade areas.

  • The infill drilling programme to increase the certainty of the geological model continues. In addition, further actions such as adjusting the blasting patterns are being taken to reduce dilution.

  • The silver ore grade for 2019 continues to be in the range of 230-240 g/t, while gold ore grade is estimated to remain around the 1.1 g/t mark.

  • Quarterly by-product gold production increased 17.3% vs. 2Q19 due to a higher volume of ore processed, recovery rate and ore grade. Quarterly and year to date by-product gold production decreased 10.5% and 8.5% vs 3Q18 and YTD18 respectively driven by lower grades and to a lesser extent, lower volume of ore processed.

2H19 Priorities

  • Continue infill drilling programme to increase the geological certainty in the short term.
  • Continue to see gradual improvements in development rates.
  • Continue deepening of the Jarillas shaft.
  • Improvement in contractor performance.