Fresnillo nearing completion of San Julián project

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Tuesday, May 23, 2017

Completion of the San Julián mine in Mexico and a turnaround at the company's namesake mine are the key near-term priorities for Fresnillo.

SAN JULIÁN

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Commissioning of phase 2 of the San Julián mine is on track to conclude by end-Q2, according to a statement by chairman Alberto Bailléres, ahead of the company's annual general meeting in London, UK.

The phase 2 flotation plant was previously delayed due to high rainfall, contractor personnel issues linked to the project's remote location and security incidents, and equipment delivery delays.

The US$515mn project, on the border of Chihuahua and Durango states, is expected to produce 10.3Moz/y silver and 44,000oz/y gold once at full capacity.

Phase 1 of the project, involving construction of a leaching plant, was completed in July 2016, and is running above design capacity, Bailléres said.

"We remain confident that San Julián will be a successful new mine and will open up additional growth potential in the district," he added.

FRESNILLO

The company expects a gradual improvement in production at the Fresnillo mine during 2017, as a result of an ongoing turnaround program.

The mine has achieved two consecutive quarters of increased ore grades and silver production, and three quarters of increased ore processed, the chairman said.

The company is on track to achieve its target of 4,800m of development per month by end-2017, he added.

Fresnillo is a subsidiary of Mexico City-based Industrias Peñoles, Latin America's top silver miner and Mexico's biggest gold producer.