Last checked at 9 Oct 2013 07:00
Fresnillo plc
28 Grosvenor Street
London W1K 4QR
United Kingdom
www.fresnilloplc.com
9 October 2013
Temporary explosives suspension lifted
Fresnillo plc is pleased to announce that the temporary suspension of Minera Penmont's explosives permit at Noche Buena has been lifted.
Fresnillo previously reported that the Magistrate in Sonora had issued requests to the Mexican Ministry of Defense ("MOD") which resulted in a suspension of all of Minera Penmont's explosive permits pending an expert's report on the boundaries of land relating to the original court decision dealing with the El Bajío agrarian community, within which the Dipolos pit is located.
Following the review of this report, the Magistrate has issued official communications to the MOD indicating that the Court sees no reason to maintain the explosives suspension outside the boundaries of the Ejido El Bajío agrarian land. As a result, the MOD has officially lifted the suspension of explosives at Noche Buena with immediate effect.
The MOD has sought from the court further clarity with regard to the explosives permit covering Herradura and Soledad, as these are located outside of the affected area but closer to the Dipolos pit. Minera Penmont is confident that this will be provided by the Magistrate within the next two weeks and that the temporary suspension of explosive permits at these mines should also be lifted.
In the meantime, operations have restarted at Noche Buena.
Fresnillo plc is currently evaluating the impact on the 2013 gold production guidance and will be in a position to update the market following the lifting of the suspension of the explosives permit at Herradura and Soledad.
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 | 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 has six operating mines, all of them in Mexico - Fresnillo, Saucito, Ciénega (including the San Ramón satellite mine), Herradura, Soledad-Dipolos and Noche Buena; three development projects - a dynamic leaching plant to treat high grade gold ore from the Herradura and Soledad-Dipolos mine; San Julián and Saucito II and four advanced exploration prospects - Centauro Deep, Juanicipio, Orysivo and Las Casas Rosario as well as a number of other long term exploration prospects. In total, has mining concessions covering approximately 2.1 million hectares in Mexico.
Fresnillo 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'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.