Fresnillo production jumps as San Julián ramp up continues

By
Wednesday, July 26, 2017

Mexican miner Fresnillo's gold and silver output increased in Q2 as a result of the ramp up at San Julián and improvements at the Fresnillo mine.

Silver production was 14.5Moz, including from streaming agreements, up 11.7% from 13.0Moz in 2Q16, with gold at 223,479oz, or 2.7% higher than 217,645oz.

Start your 15 day free trial now!

cta-arrow

Already a subscriber? Please, login

San Julián contributed 1.59Moz silver and 20,912oz gold.

Commercial production of the phase 1 leach plant began in July 2016. Commercial production at the phase 2 flotation plant started earlier this month, Fresnillo said in its quarterly production report.

Production was also lifted by improvements at the Fresnillo mine, where a turnaround plan is advancing ahead of a planned expansion.

"Our short-term focus will be on ramping up San Julián (phase 2) to full capacity within the next two months and operating the Fresnillo mine once again at full capacity by year-end, whilst continuing to develop the infrastructure in order to prepare the mine for the future expansion," CEO Octavio Alvídrez said.

Fresnillo expects to meet full year guidance of 58-61Moz silver and 870-900,000oz gold.

SILVER

Silver output at the Fresnillo mine was 4.49Moz, up from 4.0Moz, on increased volume of ore processed.

The increase in Fresnillo and San Julián's contribution was partly offset by lower output at Saucito (pictured), which generated 5.67Moz silver, down from 6.27Moz, on lower grades and recoveries.

Access to higher grade zones was limited by safety improvements.

GOLD

Production fell at the company's three primary gold mines. Herradura produced 116,267oz, down from 119,445oz, due to lower grades and a smaller decrease in inventory levels, partly offset by higher ore processed.

Noche Buena produced 42,097oz gold, down from 48,014oz, on lower recoveries and ore processed, with Ciénega generating 18,904oz, down from 19,651oz, on lower grades and recoveries.

Saucito's gold production was 15,896oz, down from 20,186oz.

Fresnillo is controlled by Industrias Peñoles, Mexico's biggest gold and silver producer.