|Fresnillo PLC - FRES.l is the world’s largest primary silver producer and Mexico’s second largest gold producer.|
Total resources measured indicated and inferred inclusive of reserves stand at 1.5 billion oz silver and 20.1m oz gold.
for the three months ended 31 March 2016
· Quarterly gold production of 230 koz, up 26.3% vs. 1Q15 and up 6.5% vs. 4Q15 mainly due to a higher speed of recovery at Herradura now steady state has been reached, and a higher speed of recovery at Noche Buena
· Quarterly silver production of 12.2 moz (including Silverstream), broadly in line with 1Q15 and 4Q15
· Third consecutive quarter of improvements in grade and production at the Fresnillo mine, evidence of progression of turnaround plan
· Construction at San Julián remains on track. The leaching plant (stage 1) is expected to be commissioned in 2Q16 and the flotation plant (stage 2) in 4Q16
· On track to achieve 2016 production guidance of 49-51 moz silver, (including 4.0 moz from the Silverstream), and 775-790 koz gold
Octavio Alvídrez, Chief Executive Officer, said:
"I am pleased to report a solid quarter of production, with 230 thousand ounces of gold and 12.2 million ounces of silver produced across our mines and from the Silverstream contract. In particular, we saw a significant improvement in grades at the Fresnillo mine during the quarter, to 236 grammes per tonne - the third consecutive quarter of improvement in both grade and production - as the turnaround at this mine progresses following the measures we have put in place. This continues to be a core area of focus for the Group.
Our San Julián project is advancing towards production, with commissioning of the first phase on track for the second quarter, and the second phase by the year end.
We continue to focus on maximising efficiency and productivity across all our mines, and are on course to meet our 2016 production guidance of 49-51 million ounces of silver and 775-790 thousand ounces of gold."
Total silver (koz)
Quarterly silver production (including the Silverstream) slightly decreased (1.7%) vs. 1Q15 as a result of the expected lower ore grade at Saucito due to the unusually high ore grade in 1Q15 (above reserve average). However, this was partly offset by higher ore throughput following the ramp up of Saucito II and the capacity increase achieved with the installation of vibrating screens at both Saucito I and II. Higher silver ore grades at Ciénega due to richer veins at the San Ramón satellite mine and development ore from the new Taspana vein, and higher ore grades at Fresnillo also supported production levels. Silver grades at Fresnillo reached 236 g/t in the quarter, the third consecutive quarter of improved grades and production levels as we see the results of the measures taken as part of the turnaround plan, and move gradually towards operating the Fresnillo beneficiation plant at full capacity once again.