JOHANNESBURG (miningweekly.com) – The world’s largest primary silver producer, Fresnillo, on Thursday reported record quarterly output, with production increasing by 6,7% to 9,6-million ounces.

Fresnillo attributed the production to an increase in ore milled, owing to a more efficient maintenance programme, and higher ore grades at the Ciénega and the Herrandura projects, in Mexico.

In May, additional ore extracted from the development works at Saucito were processed at the Fresnillo mill, which contributed about 67 000 oz silver.

Total attributable silver production for the first half 2009 increased by 7,8% when compared with the same period of 2008, which is a new half-year silver production record.

The second quarter gold production at 68 000 oz was steady when compared with same period last year, Fresnillo said. Quarterly attributable gold production increased by 5,3% when compared with the first quarter 2009, as a result of higher ore grade at Ciénega and an increase in ore deposited and better recoveries at Herradura.

Gold production at Ciénega has stabilised at around 24 000 oz a quarter for the last nine months, which Fresnillo said confirmed the successful control of the ore grade. Total attributable gold production for the fist half of 2009 decreased by 4,6% when compared with the first six months of 2008.

"I am very pleased with our record silver production for the quarter and the stabilisation of our gold production. The production of all metals was in line with the company's budget, and the drilling and exploration programmes are, in most cases, delivering encouraging results,” said Fresillo CEO Jaime Lomelín.

Fresnillo was “well ahead” of its development schedule at the Soledad and Dipolos project, he said, adding that the board was expected to make a decision on the Saucito pre-feasibility study on August 5.

“Despite the current economic climate, volatile commodities prices and several challenges presented during this year, the company has met its production, development and exploration targets for the period,” Lomelín added.

The engineering of the Soledad and Dipolos project was completed over the quarter, and the construction of the administrative offices, warehouses, and other adjacent buildings was advancing according to the company's programme.

The construction of the first stage of the leaching pads has begun, and all the equipment for the Merrill-Crowe plant has been received and was already in place, including the deoxygenation tank, the clarifying filter and the furnaces.

“Management remains confident of concluding the construction on time in order to start operations at Soledad and Dipolos during the first quarter of 2010. The personnel for this project have been hired and trained in the simulator and at the Herradura mine and beneficiation plant,” it stated.

Construction and engineering at Saucito remained on track during the June quarter. The construction of the ramps, raised bore holes and cross-cuts at this project continued to advance and mining works have reached a total of 9 662 m. Diagrams of the milling and flotation process and infrastructure have been completed in order to continue advancing the engineering of the Saucito project.

At the Saucito shaft, mining works have been concluded and the installment of the production and services hoists and crushers have started. The construction of the hoist room and the installment of a service hoist were completed at the Jarillas shaft.
Owing to the long lead times for delivery, the company has placed the order for the SAG mill and ball mills for this project.

Ore from Saucito continued to be processed at the Fresnillo mill during the June quarter and achieved higher recoveries than in the pilot test, yielding 67 000 oz silver.

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