15th Apr 2015 06:42
LONDON (Alliance News) - Fresnillo PLC Wednesday said gold and silver production increased sharply in the first quarter, putting it on track to achieve its 2015 production guidance.
The Mexico-based precious metal miner said silver production in the three months to end-March was 12.4 million ounces, up 18.9% on the year as increased processed ore volume and higher ore grade at the Saucito mine more than offset lower production at the Fresnillo mine.
Gold production in the quarter was 182,000 ounces, up 62.4% on the year as the Herradura mine, which had been hit by a temporary explosives permit suspension a year earlier, was fully operational. Production was also buoyed because a dynamic leaching plant at the mine is now in operation, while there was also an increased contribution from the Saucito mine. The gold production figure was a 4.9% increase compared with the fourth quarter of 2014, reflecting the ramp up at Herradura.
The first-quarter production means Fresnillo is on target to achieve its 2015 production guidance of between 45 and 47 million ounces of silver and between 670,000 to 685,000 ounces of gold.
It said the ramp up of the Saucito II mine is successfully underway, and this resulted in a 12.1% increase in silver production at Saucito in the first quarter compared with the previous quarter.
It also said construction at the San Julián development project remains on track, with stage one of the leaching plant expected to be commissioned in the fourth quarter of this year.
By Steve McGrath; [email protected]; @stevemcgrath1
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