Record output lifts Fresnillo for 2012 targets

MEXICAN precious metal miner Fresnillo yesterday posted a record 15.1 per cent increase in gold production in the year to date, putting it on track to meet its targets for the full year.

Fresnillo, which has seven operating mines in Mexico, said gold production hit 375,637 ounces in the year to date. Quarter on quarter, production was up 5.9 per cent to 126,841 ounces, largely due to a strong contribution from the new Noche Buena gold mine.

The mine continues to ramp up, said Fresnillo, and it will reach full capacity of 42,000 ounces of gold a year by early next year.

In the year to date, gold production at the mine was 20 per cent above planned levels.

Silver production also increased over the quarter, up 2.6 per cent to 10.3m ounces.

On a year to date basis though, silver production decreased 3.6 per cent compared to the same period in 2011, as a result of a fall in silver grades at the Fresnillo mine operation.

The miner added it was on track to meet its full-year production targets of 41m ounces of silver and 460,000 ounces of gold.

Chief executive Octavio Alvidrez, who joined the company in July following the resignation of Jaime Lomelin, said yesterday: “Looking to the remainder of the year, Fresnillo is confident that it will continue to deliver growth through existing operations and new deposits and remains on track to meet its short and long term aspirations.”