Saucito

Including the Saucito II expansion, Saucito is one of the Group’s most important assets, critical to achieving the 2018 production target of 65 moz silver. Saucito contributed 36% to total Silver production in 2017 and generated 22.6% 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: 763 employees, 1,824 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: 5.8 (2016: 5.9)

Quarterly Production

 

3Q18

3Q17

% change

2Q18

Ore processed (t)

713,441

693,269

2.9

711,463

         

Production

       

Silver (koz)

4,897

5,016

-2.4

5,162

Gold (oz)

23,558

18,490

27.4

22,722

Lead (t)

5,791

4,368

32.6

5,327

Zinc (t)

7,909

5,357

47.6

7,549

         

Ore grades

       

Silver (g/t)

250

264

-5.3

260

Gold (g/t)

1.34

1.12

19.5

1.25

Lead %

0.95

0.76

25.4

0.86

Zinc %

1.61

1.26

28.4

1.64

Annual Silver Production

1H18 Saucito Annual Silver Production

History

2004

Drilling commenced

2009

Construction commenced

2011

Commercial production 1H11

Production

Silver (koz)

21,215 (FY17) % (3.3) Change

Gold (oz)

69,948 (FY17) % (18.9) Change

Lead (t)

17,714 (FY17) % (15.4) Change

Zinc (t)

20,348 (FY17) % (13.4) Change

Financial Highlights

Adjusted Revenue (US$m, FY17)

504.2 % (4.5) Change

Segment Profit (US$m, FY17)

315.2 % (13.4) Change

Captial Expenditure (US$m, FY17)

133.7 % 30.6 Change

Exploration (US$m, FY17)

26.1 % 59.1 Change

Perfomance Highlights - 3Q18

  • Quarterly silver production decreased 2.4% and 5.1% vs. 3Q17 and 2Q18 respectively due to the lower than expected ore grade at two high grade stopes in the upper levels of the mine. As at the Fresnillo mine, an infill drilling programme has commenced to increase the accuracy of the geological model to address these grade issues.

  • Year to date silver production decreased 6.0% vs. YTD17 as a result of the lower than expected ore grade at high grade stopes in the upper levels of the mine, the increase in dilution and reduced stope preparation of the mine. This was mitigated by the higher volume of ore processed.

  • Expected silver ore grade for the full year continues to be in the range of 255-265 g/t.

  • Quarterly and YTD18 by-product gold production increased 27.4% and 20.7% vs. 3Q17 and YTD17 respectively principally due to a higher ore grade, increased volume of ore processed and higher recovery rate.

  • Quarterly by-product gold production increased 3.7% vs. 2Q18 as a result of higher ore grade which offset the lower recovery rate.

  • Quarterly by-product lead and zinc production increased 32.6% and 47.6% respectively vs. 3Q17 mainly as a result of higher ore grade, and to a lesser extent higher recovery rates and volume of ore processed. 

  • Quarterly by-product lead production increased 8.7% vs. 2Q18 as a result of a higher ore grade. Year to date by-product lead production increased 3.6% vs. YTD17 as a result of higher volume of ore processed and recovery rate, offsetting the lower ore grade. 

  • Quarterly by-product zinc production increased 4.8% vs. 2Q18 as a result of the higher recovery rate. Year to date by-product zinc production increased 25.7% vs. YTD17 as a result of higher ore grade, higher recovery rate and to a lesser extent, volume of ore processed.

Perfomance Highlights - 1H18

  • 1H18 silver grade of 262 g/t. Full year 2018 silver grade expected to be: 255-265 g/t

  • US$59.2 million invested in development, infrastructure and sustaining capex

  • Additional contractor to increase development rates successfully hired

  • Purchase of smaller equipment to better control dilution

  • Production from Natalias veins continued to ramp up

Performance Targets - 2H18

  • Further reduce dilution
  • Development of the Huizache veins
  • Ramp up Pyrites plant
  • Initiate the deepening of the Jarillas shaft