Fresnillo plc, the world’s largest silver miner, produced 37.0Moz of silver in the first nine months of 2016, 6.3% higher than the corresponding period in 2015, with the start-up of San Julián, increased volumes at Saucito II and higher ore grade at Ciénega and Fresnillo. Q3 production came in at 11.8Moz, 6.7% up on Q3 15. The company states that it is on track to meet its 2016 production target of 49-51Moz of silver, with an ultimate aim of 65Moz/y by 2018.
The US$515million San Julián silver-gold project has an expected average production of 10.3Moz/y of silver and 44koz/y of gold once phase 2 is commissioned and it reaches full capacity. Phase 1 is now fully operational but a delay in construction of the flotation plant means that the Phase 2 plant is now expected to be commissioned in Q2 17.
The company has also produced a significant amount of gold, with year-to-date gold production of 667koz, up 22.3% on the same period of 2015 mainly due to higher volumes processed with faster recoveries at Herradura.
Q3 gold production was 220koz, up 20.9% versus Q3 15 owing to increased volumes processed at higher grades at Herradura and Noche Buena. The company’s 2016 guidance for gold production is 850-870 koz.
Fresnillo has six operating mines, all of them in Mexico – Fresnillo, Saucito, Ciénega (including the San Ramón satellite mine), Herradura, Soledad-Dipolos (currently suspended as a result of a court ruling to vacate the area at the site of the mine) and Noche Buena.
Fresnillo on track to produce 49-51Moz of silver in 2016:FRES