Fresnillo Plc (FRES) - San Julian Approval & Executive Management Change
RNS Number : 4817P
25 October 2012
28 Grosvenor Street
London W1K 4QR
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
Fresnillo plc Tel: +44 (0)20 7399
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
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
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
MSCBKQDQCBDDPKB -0- Oct/25/2012 06:00 GMT
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