Fresnillo approves feasibility study as COO departs

published 25 October 2012

Gold and silver miner Fresnillo has approved the feasibility study for the development of its wholly-owned 500m dollar San Julin silver project.

The project is a key part of the company's goal to produce 65m ounces of silver and 500,000 ounces of gold per year by 2018. The firm said it is confident that the project has sufficient geological potential to become a new mining district in the future.

The study envisages the construction of two plants, one of which is a flotation plant and the other a dynamic leaching plant. The expected production levels for the first year of operation are about 5.7m ounces of silver and 1,300 ounces of gold, which will gradually be ramped-up to an average of 9.6m ounces of silver and 40,000 ounces of gold per year, once at full capacity.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Commercial production from the project is expected in the second half of 2014.

Fresnillo also announced the resignation of its Chief Operating Officer Manuel Luvanos, who is set to retire.

Octavio Alvdrez, Chief Executive Officer, will assume the responsibilities of Luvanos and be supported by the rest of the Executive Committee including Mario Arregun, Chief Financial Officer and David Giles, Chief Exploration Officer, the firm said. Alvdrez will be directly responsible for both project development and mining operations.