15 December 2008
Fresnillo plc
("Fresnillo" or the "Company")
Fresnillo / Newmont JV acquisition of Noche Buena gold project in
Mexico
Fresnillo plc, the world's largest primary silver producer and
Mexico's second largest gold producer, announces that Minera El
Bermejal, S de R.L. de C.V. (''Bermejal''), an affiliate of Minera
Penmont S. de R. L. de C. V. ("Penmont") has completed the purchase
of the Noche Buena gold project in Sonora, Mexico, from Seabridge
Gold Inc ("Seabridge", TSX: SEA, NYSE Alternext US: SA).
Bermejal and Penmont each are owned 56 per cent. by Fresnillo plc and
44 per cent. by Newmont USA Limited (''Newmont''), a wholly owned
subsidiary of Newmont Mining Corporation. Penmont is a joint venture
between Fresnillo plc and Newmont, whose primary investment is the
Herradura gold mine in Sonora, Mexico which is operated by Fresnillo
plc.
The price paid to Seabridge was US$25 million in cash at closing and
a further US$5 million is payable upon commencement of commercial
production from Noche Buena and a 1.5% net smelter royalty is payable
on all production sold for US$800 per ounce of gold or greater.
Noche Buena is a disseminated gold deposit amenable to open pit
mining and is located 23 kilometres southeast of the Herradura gold
mine. The present drill indicated resource is 600,000 ounces of gold
and additional exploration is planned in the area. Given the
proximity to Herradura and the development potential, the acquisition
of Noche Buena is consistent with Fresnillo plc's strategy to
consolidate mining districts.
For further information please visit www.fresnilloplc.com or contact:
Fresnillo plc
+-------------------------------------------------------------------+
| London Office | Tel: +44(0)20 7399 2470 |
| Octavio Alvidrez, Head of Investor | |
| Relations | |
|-----------------------------------------+-------------------------|
| Mexico City Office | Tel: +52555 279 3203 |
| Gabriela Mayor | |
|-----------------------------------------+-------------------------|
| Brunswick | Tel: +44(0)20 7404 5959 |
| Patrick Handley | |
| Carole Cable | |
+-------------------------------------------------------------------+
About Fresnillo plc
Fresnillo Plc is the world's largest primary silver producer and
Mexico's second largest gold producer, listed on the London Stock
Exchange under the symbol FRES.
Fresnillo has three producing mines, all of them in Mexico -
Fresnillo, Ciénega and Herradura; two advanced development projects -
Fresnillo II, Soledad & Dipolos; and three exploration prospects -
San Juan, San Julian, Orysivo, as well as a number of other long term
exploration prospects and, in total, has mining concessions covering
approximately 1.3 million hectares in Mexico.
Fresnillo has a strong and long tradition of mining, a proven track
record of mining development and reserves replacement, and a low cost
of production, being in the lowest quartile of the cost curve for
both silver and gold.
Fresnillo intends to maintain its position as the world's largest
primary silver producer with the aim of approximately doubling
production, on a silver equivalent ounce basis, within the next ten
years and increasing its gold production.
---END OF MESSAGE---
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.