Peñoles churns out 91Moz Ag in 2005

Mexican mining and metals group Industrias Peñoles (BMV: PE&OLES) increased its refined gold, silver and zinc output to record levels in 2005, the company said in a statement. The world's biggest refined silver producer, Peñoles churned out 91.3Moz of the precious metal last year, up 13.5% compared to 2004, while gold production rose 49.3% to 1.13Moz. The increases were due to larger volumes of material rich in concentrates delivered to the lead smelter and lead-silver refinery, the statement said. Zinc output hit an annual high of 232,465t, Peñoles said, without giving a comparative figure. Lead production rose 8.3% to 142,526t, also because the material put into the lead smelter was higher in concentrates. CONCENTRATES PRODUCTION Also during the period, output of silver in concentrates increased by 2.97Moz to 47.4Moz as a result of a capacity expansion at the Fresnillo mine and increased output from the Francisco I. Madero and Sabinas mines, Peñoles said. Gold concentrates production grew 11% to 376,091oz due to improved operative efficiency at the La Herradura mine and larger crushed ore volumes at La Ciénega. At Fresnillo, Francicso I. Madero and La Ciénega, higher grades and better recoveries lifted lead concentrates production 14.3% to 211,688t. PROJECTS Testing began during the fourth quarter at Peñoles' US$215mn Milpillas copper mine construction project in Sonora state, which is slated to produce 55,000t/y of fine copper. In addition, exploration spending grew 41.8% in 2005, with work focused on Francisco I. Madero, Fresnillo, La Herradura, La Ciénega and Pecobre. Peñoles did not reveal how much it invested in exploration, but it said results have been positive and provide "certainty" in the long term.