Fresnillo Plc FRES San Julian Approval & Executive Management Change

  Fresnillo Plc (FRES) - San Julian Approval & Executive Management Change

RNS Number : 4817P
Fresnillo PLC
25 October 2012
 



                                                                                                        
Fresnillo plc

28 Grosvenor Street

London W1K 4QR

United Kingdom

www.fresnilloplc.com

For immediate release
25 October 2012

 

             Board Approval for the Development of San Julián and
                         Executive Management Change

Fresnillo plc is pleased to announce that following a board meeting this week,
the Board has approved the feasibility study for the development of the US$500
million San Julián silver project. San  Julián is 100% owned by Fresnillo  plc 
and is a  key project in  reaching the  Company's goal to  produce 65  million 
ounces of silver and 500,000 ounces of gold per year by 2018.

The San Julián  project comprises  a series of  silver-gold veins  as well  as 
disseminated ore  and  management remains  confident  that it  has  sufficient 
geological potential  to become  a  new mining  district  in the  future.  The 
pre-feasibility study envisages the construction of two plants: i) a flotation
plant with a capacity of 6,000 tpd to process ore from the disseminated  body; 
and ii) a dynamic leaching plant to treat 3,000 tpd of ore from the veins. The
expected production levels for the  first year of operation are  approximately 
5.7 million ounces of silver and 1,300 ounces of gold, gradually ramping-up to
an average of 9.6 million ounces of silver and 40,000 ounces of gold per year,
once at full capacity.

The capital cost of the project is estimated at US$500 million with commercial
production expected in the second half of 2014. Cash costs are expected to  be 
in the first quartile  of the international cash  cost curve, and the  updated 
resources include 21.8 million tonnes in the disseminated body with an average
grade of 147 g/t  of silver and  11.8 million tonnes in  the vein system  with 
average grades of 131 g/t of silver and 1.56 g/t of gold. 

The Company also announces that the Board has accepted the resignation of  its 
chief operating officer Manuel Luévanos,  a member of the Company's  Executive 
Committee. Following a  41-year career,  firstly with  Industrias Peñoles  and 
then Fresnillo PLC,  Mr Luévanos, 67,  will now retire.  The Board thanked  Mr 
Luévanos for his long service and contribution to the company and the Group.

Octavio Alvídrez, Chief Executive Officer, will assume the responsibilities of
Mr Luévanos and be supported by the rest of the Executive Committee  including 
Mario Arreguín, Chief  Financial Officer  and David  Giles, Chief  Exploration 
Officer. Mr Alvídrez will be directly responsible for both project development
and mining  operations. These  projects and  operations are  headed by  highly 
experienced general managers who have been working for the Group for more than
20 years and who  have an excellent track  record having been instrumental  in 
developing Fresnillo's three new mines since the IPO.

 

For further information, please visit our website www.fresnilloplc.com or
contact:

Fresnillo plc                                           Tel: +44 (0)20 7399
                                                        2470
London Office                                   
           

Gabriela Mayor, Head of Investor Relations
Mexico City Office                                      Tel: +52 55 52 79 3206

Ana Belem Zárate
Brunswick Group                                         Tel: +44 (0)20 7404
                                                        5959
Carole Cable

David Litterick

                                               
                                                                       

About Fresnillo plc

Fresnillo plc  is the  world's largest  primary silver  producer and  Mexico's 
second largest gold producer,  listed on the London  Stock Exchange under  the 
symbol FRES.

Fresnillo has  seven operating  mines,  all of  them  in Mexico  -  Fresnillo, 
Saucito, Ciénega, San Ramón, Herradura,  Soledad-Dipolos and Noche Buena;  one 
development project - a  dynamic leaching plant to  treat high grade gold  ore 
from the Herradura and  Soledad- Dipolos mine;  and five advanced  exploration 
prospects - San Julián,  Centauro Deep, Juanicipio, Orisyvo  and Las Casas  as 
well as  a number  of other  long term  exploration prospects.  In total,  has 
mining concessions covering approximately 2.1 million hectares in Mexico.

Fresnillo has a strong and long tradition of mining, a proven track record  of 
mine development,  reserve replacement,  and production  costs in  the  lowest 
quartile of the cost curve for both silver and gold.

 

                     This information is provided by RNS
           The company news service from the London Stock Exchange
 
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MSCBKQDQCBDDPKB -0- Oct/25/2012 06:00 GMT