Fresnillo Plc · LSE:FRES
Fresnillo — Investor Day (October 2013)
68 slides from Fresnillo's investor day presentation, October 2013
Slide 1: Advancing our strategy in precious metals – Exploration Day
Advancing our strategy in precious metals Exploration Day October, 2013 Octavio M. Alvídrez, CEO David A. Giles, VP of Exploration LSE: FRES BMV:FRES www.fresnilloplc.com
Slide 2: Disclaimer
October 2013 2 Disclaimer This document includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “plans”, “projects”, “anticipates”, “
Slide 3: Agenda
3 3 Agenda Refreshments Our exploration strategy – An Introduction 9:00-9:15 Octavio Alvídrez, CEO A video guide to Fresnillo’s top exploration projects 9:15-9:45 Octavio Alvídrez, CEO and David Giles, VP of Exploration Exploration presentation 9:45-10:30 David Giles, VP of Exploration Question and
Slide 4: Exploration Strategy
October 2013 4 Exploration Strategy Where we explore: • In countries which have mineral endowment, cultural affinity and stability Mexico Peru Chile Colombia • In mining districts where we have operations or projects under construction Fresnillo District Herradura District Ciénega District San Juliá
Slide 5: Exploration Strategy (cont’d)
October 2013 5 Exploration Strategy (cont’d) How we do it: People • Keep a strong and motivated exploration team Assets • Current operations: • Maintain 10 years reserves • New prospects: • Minimum 100m oz silver and/or 2m oz gold potential • Focus on high quality, low cost assets: metals grade, min
Slide 6: Systematic project generation
October 2013 6 Exploration Strategy (cont’d) Systematic project generation Fresnillo Saucito Mine Operations Herradura Soledad-Dipolos Nochebuena Ciénega - San Ramón DynamicLeaching Saucito II 2018 Development Projects San Julián Pyrites Plant Centauro Deep Juanicipio Advanced Exploration Cluster Ce
Slide 7: Mining Districts
October 2013 7 Mining Districts
Slide 8: Districts of the Future
October 2013 8 Districts of the Future
Slide 9: 2012 Business Review
October 2013 9 2012 Business Review
Slide 10: Achieving 65moz silver by 2018
October 2013 10 Achieving 65moz silver by 2018
Slide 11: Exploration Projects
October 2013 11 Exploration Projects Main projects’ location HERRADURA DISTRICT Soledad Centauro Deep Noche Buena Tajitos Orisyvo Guazapares SAN JULIAN DISTRICT CIENEGA DISTRICT Rodeo San Ramon Lucerito Cienega Sur Guachichil Fresnillo mines Exploration projects FRESNILLO DISTRICT La Yesca Cebadilla
Slide 12: Fresnillo District
October 2013 12 Fresnillo District
Slide 13: Fresnillo District
October 2013 13 Fresnillo District History - Discovered by Diego Fernandez de Proano in 1552. Francisco de Ibarra named and settled the “Fresnillo springs” in 1554.. - Proaño mine developed in 1717-1754, sold to Compania Zacatecano-Mexicana, 1836 to 1872. - 1910: the Fresnillo Company (New York), 40
Slide 14: Fresnillo District
October 2013 14 Fresnillo District PLATEROS FRESNILLO SAUCITO STA. ROSA 5 Km
Slide 15: Fresnillo District Geology Map
October 2013 15 Fresnillo District Geology Map FORTUNA SHAFT BUENOS AIRES SHAFT LEGEND N Litology GENERAL SHAFT B Co. Proaño Santo Niño vein Gravel Qal Quaternary SAN CARLOS SHAFT SAN LUIS SHAFT Ba TBAD TIRO JARILLAS RY Tertiary Upper Volcanics RTAV VOLCANIC GLASS SAUCITO SHAFT Tertiary RTP Lower Vo
Slide 16: Fresnillo District Long Section
October 2013 16 Fresnillo District Long Section LEGEND Alteration/Mineralization Litology SILICIF. & TBAD ARGILLIC Tertiary CG Tertiary Fresnillo CG RY VEINS Upper Volcanics LUAR Cretaceous RTAV RVL Guerrero Terrain FAULTS Tertiary RTP Lower Volcanics
Slide 17: Fresnillo District Hydrothermal system
October 2013 17 Fresnillo District Hydrothermal system - Two types: Base-metal rich mantos at depth (Fortuna zone) and intermediate sulphidation epithermal veins. - Vein field 15 x 8 km, south-dipping E-W to ENE, secondary to sinistral shear along NW master structures. - Veins 1 - +20m wide; veins u
Slide 18: Valdecañas
October 2013 18 Valdecañas Long Section Mineral Resource Dec. 2012 (attributable) Mton Au gpt Ag gpt Pb % Zn % Au (cont) Ag (cont) M&I 3.68 1.92 657 2.16 4.04 227 koz 77.7 Moz Inferred 3.04 1.44 381 1.87 3.31 141 koz 37.3 Moz
Slide 19: Ciénega District
October 2013 19 Ciénega District
Slide 20: Ciénega District
October 2013 20 Ciénega District 0 5 km
Slide 21: San Ramón Geology Map
October 2013 21 San Ramón Geology Map La Pereñita Prospect N Porvenir-Bandera Las Guásimas Candelaria El Manzano San Gregorio El Campo Republicana 1,000 Mts
Slide 22: San Ramón
October 2013 22 San Ramón Long Section Mineral Resource Dec. 2012 (San Ramón + Las Casas) Mton Au gpt Ag gpt Pb % Zn % Au (cont) Ag (cont) Indicated 18.08 1.15 122 0.36 0.67 0.67 Moz 71.0 Moz Inferred 10.67 0.92 116 0.48 0.96 0.31 Moz 39.7 Moz
Slide 23: San Ramón
October 2013 23 San Ramón Bandera vein outcrop
Slide 24: Herradura District
October 2013 24 Herradura District El Pinacate Sierra Pinta Sierra Pinta ZRMN Sierra Prieta Soledad Blanco 7 Ventana Abejas Ocotillo Valles Yaqui Centauro Centauro Profundo
Slide 25: Herradura District
October 2013 25 Herradura District
Slide 26: Centauro Deep
October 2013 26 Centauro Deep LEGEND Drill hole completed Long Section 0 HGT-074 0 HGT-076HPG-17 HPG-21 Open pit 1400 -200 OX -200 MIX SULF -400 -400 -600 -600 -800 -800 -1000 -1000 Au g/t 0.250 – 0.349 -1200 0.350 – 0.499 -1200 0.500 – 0.999 1.000 – 1.499 1.500 – 2.999 -1400> 3.000 -1400 1 Km Miner
Slide 27: Centauro Deep
October 2013 27 Centauro Deep HGT-083 BDS-7F HGT-002 0 HGT-079 0 HGT-125 Tajo 1400 -200 OX -200 MIX SULF -400 -400 -600 -600 -800 -800 -1000 -1000 -1200 -1200 -1400 Au g/t -1400 0.250 – 0.349 -1600 0.350 – 0.499 -1600 Au 0.500 – 0.999 1.000 – 1.499 1.500 – 2.999 > 3.000 HGT-125 BDS-7F 8.95m @ 14.3 g
Slide 28: Centauro Deep
October 2013 28 Centauro Deep HGT-093 HGT-129 BDS-13EF BDS-15A HGT-089 HGT-091 0 0 Tajo 1400 -200 OX -200 Galena MIX SULF -400 -400 -600 -600 -800 -800 -1000 Au g/t -1000 0.250 – 0.349 0.350 – 0.499 0.500 – 0.999 -1200 1.000 – 1.499 -1200 1.500 – 2.999 > 3.000 HGT-129 BDS-13F 4.00m @ 3.5 g/t Au 4.00
Slide 29: Noche Buena
October 2013 29 Noche Buena TORTUGA MILENIO NOCHE BUENA BOTADERO NB ESTE Mineral Resource Dec. 2012 (attributable) Penmont Noche Buena + Noche Buena Este Mton Au gpt Au (cont) Parreña Indicated 40.18 0.55 705 koz Inferred 20.50 0.50 330 koz
Slide 30: Noche Buena
October 2013 30 Noche Buena Long Section (Tortuga Area) CERRO TORTUGA TAJO NOCHE BUENA NBH-585 Au MINZ 88m @ 0.36 g/t Au Au_ppm Au MINZ 0.3 to 0.65 140m @ 0.83 g/t Au 0.65 to 1.0 1.0 to 3 > 3.0
Slide 31: Tajitos
October 2013 31 Tajitos Las Flores Prospect “RAB anomalíes, 2012” (open to the valley) PENMONT Mineralization at depth “MII Resource zone zone”” (> New Target Water well 150 m) “open to the North” (Long Section: Section: A – A’) Hole width (m) @ Au (g/t) Interval TJC-221 TJC-247 TJC-221 38.5 m @ 0.3
Slide 32: Tajitos
October 2013 32 Tajitos Long Section A-A’ Mineral Resources Dec. 2012 (attributable) Mton Au gpt Au (cont) Inferred 15.80 0.43 218 koz
Slide 33: San Julián District
October 2013 33 San Julián District
Slide 34: San Julián Geology Map
October 2013 34 San Julián Geology Map Shalom Vein Todos Santos Vein Rocio Vein JM Body San Julian Vein San Atanasio Vein La Dura Vein San Pabellon Vein Ultima Tierra Vein
Slide 35: San Julián Cross Section
October 2013 35 San Julián Cross Section
Slide 36: San Julián
October 2013 36 San Julián Todos Santos Vein JM Body 200 m Mineral Resource Dec. 2012 Mton Au gpt Ag gpt Pb % Zn % Au (cont) Ag (cont) Indicated (JM) 13.26 0.09 216 0.55 1.36 38 koz 92.2 Moz Inferred (JM) - - - - - - - Indicated (Veins) 10.42 1.81 146 - - 605 koz 48.8 Moz Inferred (Veins) 3.73 1.68
Slide 37: San Julián
October 2013 37 San Julián San Julián Vein JM Body 200 m
Slide 38: San Julián
FRESNILLO. < >. e Ba a que andesitico magnético
Slide 39: Guanajuato District
October 2013 39 Guanajuato District N Gigante Guanajuato Cardones Las Torres El Fraile El Chorro 0 20 Km
Slide 40: El Gigante
October 2013 40 El Gigante Carr. a San Felipe El Gigante La Palma Comanjilla La Luz Observatorio Astronómico Tuna Mansa Gilmonene Las Torres Aeropuerto Guanajuato Cubilete GUANAJUATO Santa Teresa N SILAO 0 5 C a r r. S i l a o - I r a p u a t o Km
Slide 41: El Gigante Geology Map
October 2013 41 El Gigante Geology Map 256 600 E El Gigante Depósitos Lacustres Rancho La Huilota 2 334 500 N Socavón San Cayetano 0 500 Metros EXPLICACIÓN Andesita Ignimbrita Tonalita Gabro Mineral Resource Dec. 2012 Toba Andesita El Gigante + other veins Toba Riolíta Mton Au gpt Ag gpt Au (cont) A
Slide 42: El Gigante Cross Section
October 2013 42 El Gigante Cross Section 90° W S 90° 90° E N 90° LR EG Veta EG34 EG 01 El Gigante 02 Ancho Au Ag 8.75 18.96 1748 2000 Tonalita P.T. 117.25 8.75 18.96 1748 1900 P.T. 326.6 0.75 1.06 6 0 100 BD EG- EG-01 Metros 8.75 18.95 1748 P.T. 346.05
Slide 43: Cardones
October 2013 43 Cardones Llanos de La Fragua N Santa Rosa De Lima Observatorio Astronómico Los López de Arriba GUANAJUATO Villalpando El Cubo Las Torres Cardones El Cedro C. Coronel Rosa de Castilla El Fraile Yerbabuena Santa Teresa 0 5 Km 3
Slide 44: Cardones Geology Map
October 2013 44 Cardones Geology Map 1.5350 2 321 900 N N 0.8954 0.66 86 2.96 68 1.35 24 0.3718 0.3718 32 2.11 Conglomerado Gto. Gto. 0 100 Riolita - Bufa Metros FM Cedros FM Calderones 270 200 E
Slide 45: Cardones Cross Section
October 2013 45 Cardones Cross Section 40° W S 40° 40° E N 40° Camino Trb 2300 TIRO CARDONES SOCAVÓN EL REFUGIO 2200 Ttl Tcg 2100 0 100 Metros
Slide 46: El Fraile
October 2013 46 El Fraile Llanos de La Fragua N Santa Rosa De Lima Observatorio Astronómico Los López de Arriba GUANAJUATO Villalpando El Cubo Las Torres El Cedro Rosa de Castilla C. Coronel El Fraile Yerbabuena Santo Niño Santa - La Unión Teresa 0 5 Km
Slide 47: El Fraile Geology Map
October 2013 47 El Fraile Geology Map 0.27 5 N 0.15 12 2 320 000 N 0.10 3 3.73 4 EL FRAILE 1.60 310 1.10 176 1.80 330 1.01 27 1.40 47 0.63 7 2.38 12 0 1 1.67 106 Km Falla Villalpando Falla Coluvión Riolita Bufa Villalpando Argilización FM Loseros Conglomerado FM Cedros FM Calderones Chichindaros R.
Slide 48: El Fraile Cross Section
October 2013 48 El Fraile Cross Section Riachuelos Obra Antigua Veta La Sorda Arroyo Arroyo El Fraile 2300 Trch 2200 2100 0 100 Tac Metros
Slide 49: El Chorro
October 2013 49 El Chorro N Ignacio La Allende Sauceda San José de El Chorro los Allendes Potrerillos Cañada de la Virgen San Antonio Corrales Nautla Neutla 0 10 Juventino Rosas Km 49
Slide 50: El Chorro Geology Map
October 2013 50 El Chorro Geology Map 281 200 E N T TR Nivel 11 EL CHORRO CH-1 CH-2 CH-3 CH-22 Nivel 5 Nivel 0 2309 400 N CH-10 CH-6 T Bxp CH-16 CH-15 CH-8 CH-13 CH-4 CH-17 CH-27 CH-12 CH-21 CH-19 CH-18 CH-7 CH-20 CH-5 Barreno Realizado El Chorro CH-9 CH-11 CH-14 CH-24 CH-23 Tr CH-26 CH-25 CAÑADA DE
Slide 51: El Chorro Cross Section
October 2013 51 El Chorro Cross Section L.R. 30° W N 30° 30° E S 30° CH-20 CH-16 CH-17 Sagrado Corazón 2400 V. San Francisco Ignimbrita Veta San Gregorio Nivel 0 Nivel 5 43.4 0.57 12 52.85 3.47 26 Nivel 11 4.00 1.20 18 2200 1.00 0.36 140 0.80 6.89 29 3.55 7.47 12 8.65 0.66 10 1.15 0.36 142 0.45 0.68
Slide 52: Advanced Exploration Projects
October 2013 52 Advanced Exploration Projects Mexico Soledad Orisyvo Guazapares Lucerito Guachichil Fresnillo mines Advanced Exploration projects
Slide 53: Orisyvo
October 2013 53 Orisyvo
Slide 54: Orisyvo Geologic Map
October 2013 54 Orisyvo Geologic Map
Slide 55: Orisyvo Long Section
October 2013 55 Orisyvo Long Section 250 SE Syvo-151. 212m @ 2.0 Au gr/t Syvo-44. 216m @ 2.9 Au gr/t Sulphides Sulphides Syvo-121. 287m @ 3.3 Au gr/t Sulphides Mineral Resource Dec. 2012 Mton Au gpt Ag gpt Au (cont) Ag (cont) 250 m M&I 186.8 1.11 1.44 6.67 Moz 8.6 Moz Inferred 147.7 0.69 1 3.28 Moz
Slide 56: Orisyvo Block Model
October 2013 56 Orisyvo Block Model, 1000 elevation Oroguerachi tunnel 500 m
Slide 57: Orisyvo Oroguerachi tunnel, channel sampling
October 2013 57 Orisyvo Oroguerachi tunnel, channel sampling Geología Geología
Slide 58: Guazapares
October 2013 58 Guazapares Geology Map and target areas San Miguel Area Escobedo Area Potential San Antonio Area
Slide 59: Lucerito Geology Map
October 2013 59 Lucerito Geology Map
Slide 60: Lucerito Long Section
October 2013 60 Lucerito Long Section Mineral Resource Dec. 2012 Mton Au gpt Ag gpt Pb % Zn % Au (cont) Ag (cont) Indicated 33.3 0.47 26 0.29 0.46 0.51 Moz 28.1 Moz Inferred 106.2 0.38 25 0.26 0.43 1.30 Moz 86.4 Moz
Slide 61: Guachichil
October 2013 61 Guachichil Surface land acquired Camino Rojo- Guachichil I Magnetometry anomaly Gravimetry anomaly PI_3D chargeability anomaly Drill holes IP anomaly 1750 masl Mineral Resource Dec. 2012 Mton Au gpt Ag gpt Pb % Zn % Au (cont) Ag (cont) 0 1 Inferred 45.96 0.67 11 0.11 0.18 993 koz 16.
Slide 62: Guachichil NE Target
October 2013 62 Guachichil NE Target Section looking to the NE NW SE K12 AG AG--2 M16 O20 Q24 Cg 1800 1800 Fm. Caracol 1600 1600 Fm. Indidura 1400 1400 > 0.2 Au Oxides bottom Fm. Cuesta del Cura 1200 1200 0 200 Intrusive (quartz- quartz-monzonite) monzonite) metros
Slide 63: Exploration Projects - Peru
October 2013 63 Exploration Projects - Peru PILARICA SANTO DOMINGO
Slide 64: Pilarica (Peru)
October 2013 64 Pilarica (Peru) Mantos Mineral Resource Dec. 2012 Mton Au gpt Ag gpt Pb % Zn % Au (cont) Ag (cont) 01 15 Inferred 10.83 - 111 0.31 0.50 - 38.5 Moz 4 m @ 256 g/t Ag 04 05 22 9 m @ 380 g/t Ag 13 07 03 24 Post mineral 25 10 m @ 178 g/t Ag 14 volcanics 09 12 m @ 118 g/t Ag 11 23 12,21 27
Slide 65: Pilarica (Peru) Long Section
October 2013 65 Pilarica (Peru) Long Section 2 m @ 35 g/t Ag 1 m @ 21 g/t Ag 22,21,12,25 6 m @ 108 g/t Ag 27,16,26 19 20 P-02 3 m @ 22 g/t Ag 2 m @ 99 g/t Ag 5 m @ 100 g/t Ag 7 m @ 119 g/t Ag 26 m @ 104 g/t Ag Dacite 22,21,12,25 27,16,26 Mudstone 19 20 P-02 Sandstone Lithic tuff And
Slide 66: Santo Domingo (Peru)
October 2013 66 Santo Domingo (Peru) Minaccasa vein Ichocollo Volcanics Santo Domingo vein Post mineral volcanics Property Victoria vein Sandstone Tertiary Orcopampa Alteration Volcanics zone Limestone
Slide 67: Santo Domingo (Peru)
October 2013 67 Santo Domingo (Peru) TACRACULLO Anta 20 (114m) 2.13m @ 357 g/T Ag y 2.2 g/T Au Anta 2 (182m) 2m @ 344 g/T Ag y 0.81 g/T Au Anta 4 (118m) 1.62m @ 259 g/T Ag y 0.13 g/T Au Anta 6 (222m) 1.44m @ 646 g/T Ag y 1.35 g/T Au 1,000m
Slide 68: Conclusion: On track towards our 2018 goal
68 68 Conclusion: On track towards our 2018 goal annual production 65moz Ag + 500,000oz Au Investment Expected YEAR 2013 2014 2015 2016 2017 2018 (US$ million) Production PROJECT 10 mill Oz Ag & 500 SAN JULIÁN CONSTRUCTION PRODUCTION 44 thds Oz Au 20 thds Oz Au CIENEGA 5,000 TPD DETAILED CONSTRUCTIO