Fresnillo posts increase in quarterly silver production

17th Jul 2013 08:05

Fresnillo reported a rise in second quarter production of silver, driven by a ramp-up at Saucito and increased volumes milled at Ciénega.Attributable silver production was up 6.3% year-on-year to 10.9m ounces for the three months to end of June. On the quarter, it grew 8.6%, as the company gained access to stopes with higher ore grades at the Fresnillo mine and exploiting areas with higher than average ore grades at Saucito in Mexico.Gold production came to 118,315 tonnes, slightly above the first quarter but down 6.8% compared to the previous year, due to slower rates of recovery and reduced volume of ore deposited at Soledad-Dipolos, as well as the anticipated lower ore grade at Ciénega in Mexico.Construction of the dynamic leaching plant at Herradura continued during the quarter and remained on track for start-up in in the fourth quarter. Construction at San Julián also continued while detailed engineering for the processing plant at Saucito II progressed ahead of schedule.Encouraging exploration results were obtained at Fresnillo and Herradura Districts, where good gold grades were intersected at Centauro Deep and Mega Centauro. "I am pleased to announce another strong quarter of silver and gold production. Saucito is ramping up on track, volumes at Cienega are up and the ore grades at Fresnillo will meet guidance this year," said Chief Executive Officer, Octavio Alvidrez. He said the company was on track to achieve its 2013 production targets of 41m ounces of silver. But for gold, the group has lowered its production guidance for 2013 to 465,000 ounces, reflecting the court ordered stoppage at Minera Penmont's Dipolos open pit mine. "Our growth pipeline remains robust and on track with development projects and encouraging exploration results," Alvidrez added."Fresnillo plc's Tier 1 low cost assets, strong pipeline and management's long term focus on sustainable and profitable growth positions us well through the cycle."Shares rose 1.87% to 1,035p at 08:26 on Wednesday.RD