Saucito

One of our most important assets; contributing 29.3% to total silver production in 2020 and generated 22.8% of total adjusted rev.

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: 882 employees, 2,345 contractors
Milling Capacity : 7,800 tpd/2,600,000 tpy
Mine Life: 5.2 years (2019: 4.7)

Quarterly Production

 

2Q21

1Q21

% change

2Q20

Ore processed (t)

660,039

650,884

1.4

715,388

         

Production

       

Silver (koz)

3,454

3,148

9.7

4,098

Gold (oz)

24,760

26,819

(7.7)

20,398

Lead (t)

7,650

7,841

(2.4)

6,255

Zinc (t)

11,722

11,848

(1.1)

8,842

         

Ore grades

       

Silver (g/t)

190

177

7.1

207

Gold (g/t)

1.51

1.65

(8.5)

1.15

Lead %

1.35

1.40

(3.7)

1.04

Zinc %

2.43

2.48

(2.0)

1.82

Annual Silver Production

AR20 Saucito Mine KPIs

AR20 Saucito Mine Financial Performance

History

2004

Drilling commenced

2009

Construction commenced

2011

Commercial production 1H11

Production

Silver (koz)

15,532 (FY20) % (9.5) Change

Gold (oz)

84,878 (FY20) % 6.7 Change

Lead (t)

28,592 (FY20) % 37.7 Change

Zinc (t)

42,774 (FY20) % 45.7 Change

Financial Highlights

Adjusted Revenue (US$m, FY20)

593.6 % 20.3 Change

Segment Profit (US$m, FY20)

325.1 % 36.5 Change

Captial Expenditure (US$m, FY20)

73.4 % (41.9) Change

Exploration (US$m, FY20)

13.9 % (58.4) Change

2Q21

  • Quarterly silver production increased 9.7% vs. 1Q21 due to a higher ore grade following the short term instability issues reported in 1Q21 limiting access to higher ore grade areas.

  • As seen in previous quarters, quarterly and first half silver production decreased 15.7% and 18.9% vs. 2Q20 and 1H20 respectively as a result of the gradual decrease of ore grade at the Jarillas vein. The lower volume of ore processed was primarily driven by the presence of high temperature water in an underground production area, which temporarily limited access to that zone and a section of the ramps, also resulting in the need for additional ventilation.
  • Quarterly by-product gold production decreased 7.7% vs. 1Q21 driven by a lower ore grade.

  • Quarterly and first half by-product gold production increased 21.4% and 24.1% vs. 2Q20 and 1H20 respectively, driven by higher ore grades, partially offset by lower volumes of ore processed.

  • Given the lower silver grade in 1H21, full year 2021 silver ore grade is expected to be at the lower end of the original estimate of 200-220 g/t, while the gold ore grade is estimated to be around 1.3-1.5 g/t.

2021 Objectives

  • Increase the development rate to 3,200–3,500 metres per month by the end of 2021.
  • Continue to monitor progress against the action plan, including dilution control, sample variability and equipment availability.
  • Implement a strategy to reduce personnel turnover.
  • Continue to deepen the Jarillas shaft to 987 metres.