LONDON–Mexican silver producer Fresnillo PLC said Thursday the Board has approved the feasibility study for the development of the 500 million dollar San Julian silver project, 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.
MAIN FACTS:
-San Julian 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.
-Expected production levels for the first year of operation are 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.
-Capital cost of the project is estimated at $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 tons in the disseminated body with an average grade of 147 g/t of silver and 11.8 million tons in the vein system with average grades of 131 g/t of silver and 1.56 g/t of gold.
-Company also announces that Chief Operating Officer, Manuel Luevanos, has resigned and will be replaced by Octavio Alvidrez.
-Mr Alvidrez will be directly responsible for both project development and mining operations.
-Shares closed Wednesday at 1889 pence valuing the company at 13.55 billion pounds.
