Fresnillo Plc · LSE:FRES
Fresnillo — Technical Presentation (September 2019)
41 slides from Fresnillo's technical presentation, September 2019
Slide 1: Fresnillo District Site Visit September 2019
Fresnillo District Site Visit September 2019
Slide 2: Site Visit Hosts
Site Visit Hosts Frenillo Operational Key District FFP Review Messages Overview Corporate & Regional Fresnillo Saucito Andre Sougarret Carlos Vidales Hector Contreras VP Operations General Manager General Manager David Giles Hector Toledo Francisco Gonzales VP Explorations Planning Superintendent Ge
Slide 3: Agenda
Agenda 1 Fresnillo District Overview 2 Operational Review 2.1 Regional Geology 2.2 Fresnillo Operation 2.3 Saucito Operation 3 Fresnillo To Its Full Potential (FFP) 3.1 Main Challenges 3.2 Projects to improve infrastructure 3.3 Projects to improve processes 4 Key Messages Fresnillo Visit - September
Slide 4: Location & developed infrastructure
Location & developed infrastructure Frenillo Operational Key District FFP Review Messages Overview Located in the mining region of Zacatecas Key Facts Geographical Location n Fresnillo, Saucito, and Juanicipio are strategically located in the Fresnillo district, Zacatecas. Ø Close to other important
Slide 5: Fresnillo District Timeline
Fresnillo District Timeline Frenillo Operational Key District FFP Review Messages Overview 1554 1910 1961 2004 1700-1800 1926 1974 1997 2003 Cerro Proaño was The Fresnillo Peñoles adquired Production Pequeños Flotation Discovery of Discovery of Inicial discoverd Company increased Process to treat ¨T
Slide 6: Silver Ounces and Throughput
Silver Ounces and Throughput Frenillo Operational Key District FFP Review Messages Overview 14-14.5 17-18 6
Slide 7: Regional Organisational Structure
Regional Organisational Structure Frenillo Operational Key District FFP Review Messages Overview Sub-director Distrito Fresnillo (Gonzalo Eyzaguirre) Gerente Fresnillo Gerente Saucito Gerente Juanicipio Superintendente General (Carlos Vidales) (Hector Contreras) (TBD) Distrital (Reynaldo Jimenez) (4
Slide 8: Agenda
Agenda 1 Fresnillo District Overview 2 Operational Review 2.1 Regional Geology 2.2 Fresnillo Operation 2.3 Saucito Operation 3 Fresnillo To Its Full Potential (FFP) 3.1 Main Challenges 3.2 Projects to improve infrastructure 3.3 Projects to improve processes 4 Key Messages 8
Slide 9: Local Geology
Local Geology Frenillo Operational Key District FFP Review Messages Overview Key Facts FRESNILLO n The district is composed mainly of DISTRICT structures striking NW 40 SE n Inclination of the veins is around 65° n The vein thickness’ are in a range of 0.5 mts to 20 mts n The mineralogy is composed
Slide 10: Local Geology
Local Geology Frenillo Operational Key District FFP Review Messages Overview 10 10
Slide 11: Agenda
Agenda 1 Fresnillo District Overview 2 Operational Review 2.1 Regional Geology 2.2 Fresnillo Operation 2.3 Saucito Operation 3 Fresnillo To Its Full Potential (FFP) 3.1 Main Challenges 3.2 Projects to improve infrastructure 3.3 Projects to improve processes 4 Key Messages 11
Slide 12: Fresnillo Operation – Resources & Reserves 2018
Fresnillo Operation – Resources & Reserves 2018 Frenillo District Overview Operational Review FFP Key Messages Resources Pb Au Grade Ag Grade Zn Grade Category Tonnes Grade (gr/ton) (gr/ton) (%) (%) Measures 12´741,547 0.91 557 1.05 1.81 Indicated 24´713,485 0.86 362 1.53 3.22 Inferred 37´140,609 0.
Slide 13: Fresnillo - Infill drilling Campaigns
Fresnillo - Infill drilling Campaigns Frenillo Operational Key District FFP Review Messages Overview -10400 -10200 -10000 --9600 -9800 -9400 -9200 -9000 -8800 SAN DIEGO VEIN RAMPA CANDELARIA -200 -200 N390 -400 -400 INFILL PROGRAMME N-460 15,000 metres RMPA-1 -600 -600 -800 -800 -1000 -1000 -10400 -
Slide 14: Fresnillo Operation – Underground Operations
Fresnillo Operation – Underground Operations Frenillo District Overview Operational Review FFP Key Messages 550 695 920 990 56% reserves YEAR Bench & Cut & Fill Development Area % de Tonnes # Veins FIll CANDELARIA 20.07% 2 2018 50% 38% 12% SAN ALBERTO 30.28% 3 2019 50% 34% 16% SAN CARLOS 20.68% 8 SA
Slide 15: Fresnillo Operation – Underground Infrastructure & Equipment
Fresnillo Operation – Underground Infrastructure & Equipment Frenillo District Overview Operational Review FFP Key Messages FRESNILLO Workshops: • 250 (Candelaria) • 300 (S Alberto) • 530 (S Ricardo) • 695 (S Carlos) • 370 (S Mateo) • 425 (S Carlos) Pumping Stations • Pump Station 425 “Fresh Water”
Slide 16: Fresnillo Operation – Process Plant Flow Chart
Fresnillo Operation – Process Plant Flow Chart Frenillo District Overview Operational Review FFP Key Messages Fresnillo Visit - September 2019 16
Slide 17: Fresnillo Operation – Production Guidance
Fresnillo Operation – Production Guidance Frenillo District Overview Operational Review FFP Key Messages • Silver Grade FY19 = 190–200 g/t (Original guidance at the beginning of the year 210–220 g/t). • Gold grade FY19 = ~0.85 g/t (Original guidance at the beginning of the year 0.60-0.65 g/t). • Lea
Slide 18: Agenda
Agenda Frenillo District Overview Operational Review FFP Key Messages 1 Fresnillo District Overview 2 Operational Review 2.1 Regional Geology 2.2 Fresnillo Operation 2.3 Saucito Operation 3 Fresnillo To Its Full Potential (FFP) 3.1 Main Challenges 3.2 Projects to improve infrastructure 3.3 Projects
Slide 19: Saucito Operation – Resources & Reserves 2018
Saucito Operation – Resources & Reserves 2018 Frenillo District Overview Operational Review FFP Key Messages Resources Au Grade Ag Grade Pb Grade Zn Grade Category Tonnes (gr/ton) (gr/ton) (%) (%) Measured 6,936,647 2.31 366 1.36 2.23 Indicated 14,382,694 1.58 265 1.54 2.83 Inferred 27,755,412 0.71
Slide 20: Saucito - Infill drilling Campaigns
Saucito - Infill drilling Campaigns Frenillo Operational Key District FFP Review Messages Overview Infill 2018 2019 INFILL 2017 2018 2019 2020 Meters 45,691.00 96,693.55 80,000.00 50,000.00 % 35% 59% 67% 45% 20
Slide 21: Saucito Operation – Underground Operations
Saucito Operation – Underground Operations Frenillo District Overview Operational Review FFP Key Messages 630 mts 1683 382 mts 1301 YEAR Bench & Cut & Development Zone % de Tonnes FIll Fill SAUCITO 14.83 % 2018 34% 59% 7% DESPRENDIDO 1.21% MEZQUITE 6.58% 2019 41% 49% 10% JARILLAS 65.35% Vein Type Ve
Slide 22: Saucito Operation – Underground Infrastructure & Equipment
Saucito Operation – Underground Infrastructure & Equipment Frenillo District Overview Operational Review FFP Key Messages Workshop: • 1767 (Jarillas) • 1680 (Jarillas) • 1772 (Saucito) Pump Station • Natalias 1767 • Saucito1767 • Natalias 1767 • Jarillas (1680) Fresnillo Visit - September 2019 22
Slide 23: Saucito Operation – Process Plant Flow Chart
Saucito Operation – Process Plant Flow Chart Frenillo District Overview Operational Review FFP Key Messages Diagrama de Flujo Esquemático. Flotación plomo y zinc. FLOTAC. PRIMARIA 1 FLOTAC. AGOTATIVA ACONDIC. DE ZINC FLOTAC. PRIMARIA 2 ZINC FLOTAC. PRIMARIA 1 FLOTAC. AGOTATIVA ZINC. ZINC ESPESADOR D
Slide 24: Saucito Operation – Pyrites Plant Flow Chart
Saucito Operation – Pyrites Plant Flow Chart Frenillo District Overview Operational Review FFP Key Messages Flotación Fe Saucito. Diagrama de Flujo Esquemático. FLOTAC. PRIMARIA 1 FLOTAC. AGOTATIVA FIERRO FLOTAC. PRIMARIA 2 ZINC ZINC ACONDIC. DE FIERRO ESPESADOR DE COLAS FINALES HRT AIRE AIRE 3 AIRE
Slide 25: Saucito Operation – Production Guidance
Saucito Operation – Production Guidance Frenillo District Overview Operational Review FFP Key Messages • Silver Grade FY19 = 230-240 g/t (original guidance at the beginning of the year 210–220 g/t). • Gold grade FY19 = ~1.10 g/t • Production of ~17.0 – 18.0 moz Ag in 2019 (includes Pyrites Plant) •
Slide 26: Agenda
Agenda Frenillo District Overview Operational Review FFP Key Messages 1 Fresnillo District Overview 2 Operational Review 2.1 Regional Geology 2.2 Fresnillo Operation 2.3 Saucito Operation 3 Fresnillo To Its Full Potential (FFP) 3.1 Main Challenges 3.2 Projects to improve infrastructure 3.3 Projects
Slide 27: FFP - Challenges
FFP - Challenges Frenillo Operational Key District FFP Review Messages Overview Structural Challenges Management Challenges Deeper and larger mining Delayed development and operation preparation Narrower veins Delayed infrastructure Greater ore variability Efficiency and productivity 27
Slide 28: Agenda
Agenda Frenillo District Overview Operational Review FFP Key Messages 1 Fresnillo District Overview 2 Operational Review 2.1 Regional Geology 2.2 Fresnillo Operation 2.3 Saucito Operation 3 Fresnillo To Its Full Potential (FFP) 3.1 Main Challenges 3.2 Projects to improve infrastructure 3.3 Projects
Slide 29: Fresnillo – San Carlos Shaft Sinking
Fresnillo – San Carlos Shaft Sinking Frenillo Operational Key District FFP Review Messages Overview • Capex: US$ 35 million • Length: 440 meters (level 550 to 990) • Start date: June 2016 • Estimated Finish date: Q4 2020 • Developed: 59% • Spent: 63% • Access to 56% of the reserves 29
Slide 30: Fresnillo – Tunnel Boring Machine
Fresnillo – Tunnel Boring Machine Frenillo Operational Key District FFP Review Messages Overview Ø Start date: December 2016 Ø Commissioning: November 2019 Ø Capex: US$22,700,000 Ø Completion: 95% Ø Spent: 50% PERFORMANCE Ø 300 mts/month Ø Ramp-up: First quarter 2020 Ø A total of 11 km will be devel
Slide 31: Fresnillo – Projects to Improve Infrastructure
Fresnillo – Projects to Improve Infrastructure Frenillo Operational Key District FFP Review Messages Overview Vertical conveyor belt • CAPEX US$12.7 Million • Reduce haulage and fleet cost, improve safety and ventilation conditions at the Candelaria section • In operation since Q4 2017 San Alberto G
Slide 32: Fresnillo – Pyrites Plant Project
Fresnillo – Pyrites Plant Project Frenillo Operational Key District FFP Review Messages Overview Pyrites Plant project n DESCRIPTION: The project will increase the Au and Ag recovery from the current and historical tailings from the flotation plants at the Fresnillo and Saucito Mines, based on metal
Slide 33: Fresnillo – Plant Conditioning Project
Fresnillo – Plant Conditioning Project Frenillo Operational Key District FFP Review Messages Overview Plant Conditioning Project n DESCRIPTION: Following the higher grades of Pb and Zn in recent years, its has been necessary to make adjustments to the current Flotation plant, including the installat
Slide 34: Saucito – Jarillas Shaft Sinking
Saucito – Jarillas Shaft Sinking Frenillo Operational Key District FFP Review Messages Overview • Capacity: 8,200 ton/day • Actual depth : 630m JARILLAS SHAFT • Final depth: 1,000m • Diameter: 6.5m Jarillas´ shaft sinking project n CAPEX US$ 69.9 Million n Improve hoisting capacity of the Jarillas v
Slide 35: Agenda
Agenda Frenillo District Overview Operational Review FFP Key Messages 1 Fresnillo District Overview 2 Operational Review 2.1 Regional Geology 2.2 Fresnillo Operation 2.3 Saucito Operation 3 Fresnillo To Its Full Potential (FFP) 3.1 Main Challenges 3.2 Projects to improve infrastructure 3.3 Projects
Slide 36: Main Projects to Improve Processes
Main Projects to Improve Processes Frenillo Operational Key District FFP Review Messages Overview Operations n Implementation of a Dispatch system: PITRAM using radio communications Planning, and short term planning control Control & Ø Improve activity coordination, status and productivity informati
Slide 37: Operations Planning, Control & Info System ( COM )
Operations Planning, Control & Info System ( COM ) Frenillo Operational Key District FFP Review Messages Overview Weekly Planning Programming Control Analisis q Align with the monthly production q Daily programming of activities is q Control the execution of the q Generates detailed forecasts displa
Slide 38: Improve Geological & Mining Models
Improve Geological & Mining Models Frenillo Operational Key District FFP Review Messages Overview n OBJECTIVE Review and strenghten the current geological & mining modelling processes to generate better models and ensure best industry practices n TASK TEAM Structure: (4) internal teams coordinated b
Slide 39: Maintenance Project
Maintenance Project Frenillo Operational Key District FFP Review Messages Overview Objetives: • Increase the availability and reliability of the critical equipment • Improve the reliability thereby increasing production capacity • Introduce the best practices of the industry 1. Re-define and Improve
Slide 40: Agenda
Agenda Frenillo District Overview Operational Review FFP Key Messages 1 Fresnillo District Overview 2 Operational Review 2.1 Regional Geology 2.2 Fresnillo Operation 2.3 Saucito Operation 3 Fresnillo To Its Full Potential (FFP) 3.1 Main Challenges 3.2 Projects to improve infrastructure 3.3 Projects
Slide 41: Key Messages
Key Messages Frenillo Operational Key District FFP Review Messages Overview v Fresnillo and Saucito are world class assets with a high potential. v The structural conditions of our operations have changed, having deeper and larger operations with narrower veins, and higher ore variability. v The lac