Last checked at 7 Nov 2013 14:17
Fresnillo Plc
28 Grosvenor Street
London W1K 4QR
United Kingdom
www.fresnilloplc.com
7 November 2013
Explosives permit - further update
On 24 October, Fresnillo plc announced that the Ejido El Bajio agrarian community had presented legal proceedings to try to impede the lifting of the temporary suspension of the explosives permit covering Dipolos as well as Herradura and Soledad, and that the Ejido had obtained a temporary stay order in its favour pending further review by the court in early November.
This review took place yesterday and Fresnillo plc is pleased to announce that the court hearing the case has confirmed that the stay order requested by the Ejido will only apply within the boundaries of the Ejido itself and not outside of the Ejido, where Herradura and Soledad are located.
The process for lifting the explosives suspension will now revert back to the Ministry of Defense which is responsible for granting explosives permits. Minera Penmont is confident that the temporary suspension of the explosives permit covering Herradura and Soledad should be lifted in the coming days.
Fresnillo plc is currently evaluating the impact on its 2013 gold production guidance and will be in a position to update the market once the suspension of explosives has been lifted.
For further information, please visit our website www.fresnilloplc.com or contact:
Fresnillo plc London Office Gabriela Mayor, Head of Investor Relations | Tel: +44 (0)20 7399 2470 |
Mexico City Office Ana Belem Zárate García | Tel: +52 55 52 79 3206 |
Brunswick Group Carole Cable David Litterick | Tel: +44 (0)20 7404 5959 |
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.