Explosives permit - further update

RNS Number : 1253V

Fresnillo PLC

10 December 2013

 

                                                                                                        Fresnillo Plc

28 Grosvenor Street

London W1K 4QR

United Kingdom

www.fresnilloplc.com

10 December 2013

Explosives permit - further update

Further to the announcement on 7 November, Fresnillo plc ("Fresnillo" or the "Company") reconfirms that the temporary stay order that the Ejido El Bajio had requested to avoid the lifting of the explosives suspension was not granted by the district court and also that the agrarian magistrate's ruling only applies within the boundaries of the Ejido itself and not outside of the Ejido, where Herradura and Soledad are located.

Fresnillo has received the relevant court document and has presented a certified copy to the Ministry of Defense ("MOD"), which is responsible for granting explosives permits. The Company understands that the MOD is analysing this document and expects a response shortly. The Company is confident that there are no outstanding reasons why the temporary suspension of the explosives permit relating to Herradura and Soledad should not be lifted.

The company believes that it is now in a position to give guidance gold production for the year to end 31 December 2013, which is estimated approximately at 425,900 ounces. This represents an 8.4% reduction compared with the previous guidance. Silver production guidance for 2013 of 41 million ounces remains unchanged.

For further information, please visit our website www.fresnilloplc.com or contact:

Fresnillo plc            London Office                                                Gabriela Mayor, Head of Investor Relations	Tel: [phone]
Mexico City Office Ana Belem Zárate García	Tel: [phone]
Brunswick Group Carole Cable David Litterick	Tel: [phone]

About Fresnillo plc

Fresnillo plc is the world's largest primary silver producer and Mexico's second largest gold producer, listed on the London and Mexican Stock Exchanges under the symbol FRES. 

Fresnillo plc has six operating mines, all of them in Mexico - Fresnillo, Saucito, Ciénega (including the San Ramón satellite mine), Herradura, Soledad and Noche Buena; three development projects - a dynamic leaching plant to treat high grade gold ore from the Herradura and Soledad mines; San Julián and Saucito II and four advanced exploration prospects - Centauro Deep, Juanicipio, Orisyvo and Las Casas Rosario as well as a number of other long term exploration prospects. In total, Fresnillo plc has mining concessions covering approximately 2.1 million hectares in Mexico.

Fresnillo plc has a strong and long tradition of mining, a proven track record of mine development, reserve replacement, and production costs in the lowest quartile of the cost curve for both silver and gold.

Fresnillo plc's goal is to maintain the group's position as the world's largest primary silver company, producing 65 million ounces of silver and 500,000 ounces of gold by 2018.

Forward Looking Statements

Information contained in this announcement may include 'forward-looking
statements'.  All statements other than statements of historical facts included
herein, including, without limitation, those regarding Fresnillo plc's
intentions, beliefs or current expectations concerning, amongst other things,
Fresnillo plc's results of operations, financial position, liquidity,
prospects, growth, strategies and the silver and gold industries are
forward-looking statements. Such forward-looking statements involve risk and
uncertainty because they relate to future events and circumstances.
Forward-looking statements are not guarantees of future performance and the
actual results of Fresnillo plc's operations, financial position and
liquidity, and the development of the markets and the industry in which
Fresnillo plc operates, may differ materially from those described in, or
suggested by, the forward-looking statements contained in this document. In
addition, even if the results of operations, financial position and liquidity,
and the development of the markets and the industry in which Fresnillo plc
operates are consistent with the forward-looking statements contained in this
document, those results or developments may not be indicative of results or
developments in subsequent periods. A number of factors could cause results and
developments to differ materially from those expressed or implied by the
forward-looking statements including, without limitation, general economic and
business conditions, industry trends, competition, commodity prices, changes in
regulation, currency fluctuations (including the US dollar and Mexican Peso
exchanges rates), Fresnillo plc's ability to recover its reserves or
develop new reserves, including its ability to convert its resources into
reserves and its mineral potential into resources or reserves, changes in its
business strategy and political and economic uncertainty.

-

 

END

 

 

MSCKMMMZKGNGFZG