Exploration Day October, 2013

Transcription

1 Advancing our strategy in precious metals Exploration Day October, 2013 Octavio M. Alvídrez, CEO David A. Giles, VP of Exploration LSE: FRES BMV:FRES

2 October Disclaimer This document includes statements that are, or may be deemed to be, forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms believes, estimates, plans, projects, anticipates, expects, intends, may, will, or should or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this document and include, but are not limited to, statements regarding the Fresnillo Group s intentions, beliefs or current expectations concerning, among other things, the Fresnillo Group s results of operations, financial position, liquidity, prospects, growth, strategies and the silver and gold industries. By their nature, 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 the Fresnillo Group s operations, financial position and liquidity, and the development of the markets and the industry in which the Fresnillo Group 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 the Fresnillo Group 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 exchange rates), the Fresnillo Group 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, political and economic uncertainty. Forward-looking statements may, and often do, differ materially from actual results. Any forward-looking statements in this document speak only as of the date of this document, reflect the Fresnillo Group s current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Fresnillo Group s operations, results of operations, growth strategy and liquidity. Investors should specifically consider the factors identified in this document which could cause actual results to differ before making an investment decision. Subject to the requirements of the Prospectus Rules, the Disclosure and Transparency Rules and the Listing Rules or applicable law, the Fresnillo Group explicitly disclaims any obligation or undertaking publicly to release the result of any revisions to any forward-looking statements in this document that may occur due to any change in the Company s expectations or to reflect events or circumstances after the date of this document.

3 3 3 Agenda Refreshments Our exploration strategy An Introduction 9:00-9:15 Octavio Alvídrez, CEO A video guide to Fresnillo s top exploration projects 9:15-9:45 Octavio Alvídrez, CEO and David Giles, VP of Exploration Exploration presentation 9:45-10:30 David Giles, VP of Exploration Question and Answer session 10:30-11:00

4 October Exploration Strategy Where we explore: In countries which have mineral endowment, cultural affinity and stability Mexico Peru Chile Colombia In mining districts where we have operations or projects under construction Fresnillo District Herradura District Ciénega District San Julián District In new districts where we have a competitive strength Guanajuato District Rodeo District (Mesa Central-Durango) Pilarica District (Peru)

5 October Exploration Strategy (cont d) How we do it: People Keep a strong and motivated exploration team Assets Current operations: Maintain 10 years reserves New prospects: Minimum 100m oz silver and/or 2m oz gold potential Focus on high quality, low cost assets: metals grade, mine & metallurgical recoveries, infrastructure, community relations, low environmental impact Financial discipline Invest through cycles Acquistion of early stage assets

6 October Exploration Strategy (cont d) Systematic project generation Mine Operations Development Projects Advanced Exploration Prospects in drilling Early stage Exploration Fresnillo Saucito Herradura Soledad-Dipolos Nochebuena Ciénega - San Ramón DynamicLeaching Saucito II San Julián Pyrites Plant Centauro Deep Juanicipio Cluster Cebollitas Orisyvo Guachichil Fresnillo District Gran Centauro Lucerito Tajitos Candameña San Nicolás Coneto Guanajuato Cebadillas La Yesca Cairo Tocayos Amata (Perú) Pilarica (Perú) Sonora and Sinaloa : San Javier Norias Nudo Carina Bella Vista Cerritos Dorado Rosario Dátil Olivos Chihuahua: S. Brígida Rosetillas SJPinal Bellavista C. Blanco Lucero Los Alisos Durango: Rodeo Pereñita La Huerta El Carmen Zacatecas: Urite Atotonilco Corredor Concha-Nieves Argentum Coyotes Villa García Plateros Michoacán: Otzumatlán Perú: Huacravilca Sto. Domingo Systematic Project Generation 2018 Beyond 2018

7 October Mining Districts

8 October Districts of the Future

9 October Business Review

10 October Achieving 65moz silver by 2018

11 11 October 2013 Exploration Projects Main projects location HERRADURA DISTRICT Centauro Deep Soledad Noche Buena Tajitos Orisyvo Guazapares SAN JULIAN DISTRICT CIENEGA DISTRICT San Ramon Rodeo Lucerito Cienega Sur Guachichil Fresnillo mines FRESNILLO DISTRICT La Yesca Cebadillas GUANAJUATO DISTRICT Lima Pilarica Santo Domingo Exploration projects

12 October Fresnillo District

13 October Fresnillo District History - Discovered by Diego Fernandez de Proano in Francisco de Ibarra named and settled the Fresnillo springs in Proaño mine developed in , sold to Compania Zacatecano-Mexicana, 1836 to : the Fresnillo Company (New York), 400 to 3,000tpd. Flotation of sulphides started in Mexicanisation in 1961, 60% bought by Peñoles. - Early 1970 s operations facing closure. Discovery of Santo Niño vein in 1975, San Carlos vein in Peñoles bought the remaining 40% from Amax in Discovery of Saucito vein in 2002, Valdecañas in 2006 by Juanicipio JV. - The Fresnillo mine became part of Fresnillo plc which listed in the London Stock Exchange May Opening of Saucito mine in 2011, 3000 tpd. - Approximate total production: 886 Moz silver, second largest silver district of the world. Sources: Ruvalcaba-Ruiz & Thompson, 1988; Querol & Palacios, 1990

14 October Fresnillo District PLATEROS FRESNILLO SAUCITO STA. ROSA 5 Km

15 October Fresnillo District Geology Map B Co. Proaño FORTUNA SHAFT BUENOS AIRES SHAFT GENERAL SHAFT Santo Niño vein Litology Gravel LEGEND N Qal Quaternary SAN CARLOS SHAFT SAN LUIS SHAFT Ba TIRO JARILLAS TBAD RY RTAV Tertiary Upper Volcanics SAUCITO SHAFT VOLCANIC GLASS Tertiary RTP Lower Volcanics CG LUAR Tertiary Fresnillo CG CZA RVL Cretaceous Guerrero Terrain A ALUNITE SILICIF/Ox+Py VEINS 2Km

16 October Fresnillo District Long Section TBAD RY RTAV RTP Litology Tertiary Upper Volcanics Tertiary Lower Volcanics CG LUAR RVL LEGEND Tertiary Fresnillo CG Cretaceous Guerrero Terrain Alteration/Mineralization SILICIF. & ARGILLIC VEINS FAULTS

17 October Fresnillo District Hydrothermal system - Two types: Base-metal rich mantos at depth (Fortuna zone) and intermediate sulphidation epithermal veins. - Vein field 15 x 8 km, south-dipping E-W to ENE, secondary to sinistral shear along NW master structures. - Veins m wide; veins up to 8 km long,shoots 400 m high. - Alteration: upper level silicification (Buchanan s model), silicification and argillic (illite) close to vein walls, propylitic outwards. - Geochemical zonation, upper level precious metals with base metals increasing at depth. - Text book epithermal textures: banded, cockade, breccia. - Five veins stages documented at Jarillas and Valdecañas (Velador, 2010). - Age of mineralisation: 29.7 Ma (Jarillas / Valdecañas) - Sources of mineralizing fluid: Magmatic + deeply circulating meteoric.

18 October Valdecañas Long Section Mineral Resource Dec (attributable) Mton Au gpt Ag gpt Pb % Zn % Au (cont) Ag (cont) M & I koz 77.7 Moz Inferred koz 37.3 Moz

19 October Ciénega District

20 October Ciénega District 0 5 km

21 October San Ramón Geology Map La Pereñita Prospect Porvenir-Bandera Las Guásimas N Candelaria El Manzano San Gregorio El Campo Republicana 1,000 Mts

22 October San Ramón Long Section Mineral Resource Dec (San Ramón + Las Casas) Mton Au gpt Ag gpt Pb % Zn % Au (cont) Ag (cont) Indicated Moz 71.0 Moz Inferred Moz 39.7 Moz

23 October San Ramón Bandera vein outcrop

24 October Herradura District Sierra Pinta ZRMN Sierra Pinta El Pinacate Sierra Prieta Soledad Ventana Abejas Blanco 7 Ocotillo Valles Centauro Yaqui Centauro Profundo

25 October Herradura District

26 October Centauro Deep LEGEND Drill hole completed Long Section OX HGT-074 HGT-076 HPG-17 HPG-21 Open pit MIX -400 SULF Au g/t > Km HPG g/t Au 4.5 g/t Au 0.8 g/t Au 0.6 g/t Au HGT g/t Au 8.7 g/t Au 5.7 g/t Au 5.5 g/t Au 0.4 g/t Au Mineral Resource Dec (attributable) Mton Au gpt Au (cont) Indicated koz Inferred koz

27 October Centauro Deep HGT-083 BDS-7F 0 HGT-002 HGT-079 HGT OX Tajo MIX -400 SULF Au g/t > Au HGT g/t Au 3.0 g/t Au 4.8 g/t Au 3.2 g/t Au 3.7 g/t Au 0.8 g/t Au 0.94 g/t Au BDS-7F 3.3 g/t Au 4.1 g/t Au 3.4 g/t Au 0.51 g/t Au

28 October Centauro Deep HGT-093 HGT-089 HGT-129 BDS-13EF BDS-15A 0 HGT Tajo OX -200 Galena MIX SULF Au g/t > HGT g/t Au 8.3 g/t Au 3.5 g/t Au 0.8 g/t Au 0.5 g/t Au BDS-13F 6.5 g/t Au 4.9 g/t Au 11.2 g/t Au 3.6 g/t Au 1.1 g/t Au 1.5 g/t Au Galena Sphalerite

29 October Noche Buena TORTUGA NOCHE BUENA MILENIO BOTADERO NB ESTE Mineral Resource Dec (attributable) Noche Buena + Noche Buena Este Mton Au gpt Au (cont) Penmont Parreña Indicated koz Inferred koz

30 October Noche Buena Long Section (Tortuga Area) CERRO TORTUGA TAJO NOCHE BUENA NBH-585 Au MINZ 0.36 g/t Au Au MINZ 0.83 g/t Au Au_ppm 0.3 to to to 3 > 3.0

31 October Tajitos Las Flores Prospect RAB anomalíes, 2012 (open to the valley) PENMONT New Target open to the North Hole width Au (g/t) Interval TJC m TJC TJC TJC-221 TJC-248 Water well TJC-247 Mineralization at depth MII Resource zone (> 150 m) (Long Section: A A ) Tajitos East Target (MII Resource zone) Drill holes RIVERSIDE RES. Santa Rebeca (surface land, 765 has) Parreña MII Resource zone 2012 PARREÑA Caborca 32 Km 1 km

32 October Tajitos Long Section A-A Mineral Resources Dec (attributable) Mton Au gpt Au (cont) Inferred koz

33 October San Julián District

34 October San Julián Geology Map JM Body San Atanasio Vein Shalom Vein Todos Santos Vein San Julian Vein Rocio Vein La Dura Vein San Pabellon Vein Ultima Tierra Vein

35 October San Julián Cross Section

36 October San Julián Todos Santos Vein JM Body 200 m Mineral Resource Dec Mton Au gpt Ag gpt Pb % Zn % Au (cont) Ag (cont) Indicated (JM) koz 92.2 Moz Inferred (JM) Indicated (Veins) koz 48.8 Moz Inferred (Veins) koz 16.5 Moz

37 October San Julián San Julián Vein JM Body 200 m

38 October San Julián

39 October Guanajuato District N Gigante Guanajuato Las Torres Cardones El Fraile El Chorro 0 20 Km

40 October El Gigante Carr. a San Felipe El Gigante Comanjilla La Palma La Luz Observatorio Astronómico Tuna Mansa Gilmonene Las Torres Aeropuerto Guanajuato Cubilete GUANAJUATO Santa Teresa N SILAO C a r r. S i l a o - I r a p u a t o 0 5 Km

41 41 October 2013 El Gigante Geology Map E El Gigante Depósitos Lacustres N Rancho La Huilota Socavón San Cayetano Metros EXPLICACIÓN Andesita Ignimbrita Tonalita Gabro Toba Andesita Toba Riolíta Mineral Resource Dec El Gigante + other veins Inferred Mton Au gpt Ag gpt Au (cont) Ag (cont) koz 9.0 Moz

42 October El Gigante Cross Section S 90 W N 90 E Veta El Gigante LR EG34 EG 01 EG Tonalita Ancho Au Ag P.T P.T Metros BD EG P.T

43 October Cardones N Llanos de La Fragua Santa Rosa De Lima Observatorio Astronómico Los López de Arriba GUANAJUATO El Cubo Villalpando Las Torres El Cedro Cardones Santa Teresa Yerbabuena C. Coronel Rosa de Castilla El Fraile 0 5 Km 3

44 October Cardones Geology Map N N Conglomerado Gto. Riolita - Bufa FM Cedros FM Calderones Metros E

45 October Cardones Cross Section S 40 W N 40 E 2300 Camino Trb TIRO CARDONES SOCAVÓN EL REFUGIO 2200 Ttl Tcg Metros

46 October El Fraile Llanos de La Fragua N Observatorio Astronómico Santa Rosa De Lima Los López de Arriba GUANAJUATO El Cubo Villalpando Las Torres El Cedro C. Coronel Rosa de Castilla El Fraile Santa Teresa Yerbabuena Santo Niño - La Unión 0 5 Km

47 October El Fraile Geology Map N N EL FRAILE Km Coluvión FM Loseros Conglomerado FM Calderones R. V. Cenozoico Riolita Riolita Bufa Argilización FM Cedros Chichindaros F. Ajenos F. Propios Falla Villalpando Falla Villalpando E

48 October El Fraile Cross Section Veta La Sorda Arroyo El Fraile Arroyo Riachuelos Obra Antigua 2300 Trch Tac Metros

49 October El Chorro N La Sauceda El Chorro San José de los Allendes Ignacio Allende Potrerillos Cañada de la Virgen San Antonio Corrales Nautla Neutla Juventino Rosas 0 10 Km 49

50 October E El Chorro Geology Map N Nivel 11 EL CHORRO CH-3 CH-1 Nivel 5 Nivel 0 CH-2 T TR CH N T Bxp CH-8 El Chorro CH-27 CH-9 CH-10 CH-6 CH-16 CH-15 CH-13 CH-4 CH-17 CH-19 CH-12 CH-18 CH-21 CH-7 CH-20 CH-5 CH-14 CH-11 CH-24 Barreno Realizado CH-26 CH-25 CH-23 Tr Metros CAÑADA DE ORO CO-1

51 October El Chorro Cross Section N 30 W S 30 E L.R. CH V. San Francisco Veta San Gregorio Sagrado Corazón Nivel 0 CH-16 CH-17 Ignimbrita Nivel Nivel Riolitas P.T P.T P.T Metros

52 52 October 2013 Advanced Exploration Projects Mexico Soledad Orisyvo Guazapares Lucerito Guachichil Fresnillo mines Advanced Exploration projects

53 October Orisyvo

54 October Orisyvo Geologic Map

55 October Orisyvo Long Section 250 SE Syvo Au gr/t Sulphides Syvo Au gr/t Sulphides Syvo Au gr/t Sulphides Mineral Resource Dec m Mton Au gpt Ag gpt Au (cont) Ag (cont) M & I Moz 8.6 Moz Inferred Moz 5.2 Moz Au (cont): 30% in oxide material and 70% in the sulphide zone

56 October Orisyvo Block Model, 1000 elevation Oroguerachi tunnel 500 m

57 October Orisyvo Oroguerachi tunnel, channel sampling Geología

58 October Guazapares Geology Map and target areas San Miguel Area Escobedo Area Potential San Antonio Area

59 October Lucerito Geology Map

60 October Lucerito Long Section Mineral Resource Dec Mton Au gpt Ag gpt Pb % Zn % Au (cont) Ag (cont) Indicated Moz 28.1 Moz Inferred Moz 86.4 Moz

61 October Guachichil Surface land acquired Camino Rojo- Guachichil I Magnetometry anomaly Gravimetry anomaly PI_3D chargeability anomaly Drill holes IP anomaly 1750 masl Mineral Resource Dec km 1 Mton Au gpt Ag gpt Pb % Zn % Au (cont) Ag (cont) Inferred koz 16.3 Moz Au (cont): 25% in oxide and transitional material and 80% in the sulphide zone

62 October Guachichil NE Target NW Section looking to the NE SE 1800 K12 Cg AG-2 M16 O20 Q Fm. Caracol > 0.2 Au 1400 Fm. Indidura 1400 Oxides bottom Fm. Cuesta del Cura metros 200 Intrusive (quartz-monzonite)

63 October Exploration Projects - Peru PILARICA SANTO DOMINGO

64 October Pilarica (Peru) Mantos Mineral Resource Dec g/t Ag 01 Mton Au gpt Ag gpt Pb % Zn % Au (cont) Ag (cont) Inferred Moz g/t Ag g/t Ag g/t Ag g/t Ag y g/t Ag P ,21 Fresnillo Post mineral volcanics 2 99 g/t Ag P g/t Ag g/t Ag g/t Ag

65 October Pilarica (Peru) Long Section 2 35 g/t Ag 1 21 g/t Ag g/t Ag 20 P ,16,26 22,21,12, g/t Ag 2 99 g/t Ag g/t Ag g/t Ag g/t Ag 20 P ,16,26 22,21,12,25 Mudstone Dacite Sandstone Lithic tuff And

66 October Santo Domingo (Peru) Minaccasa vein Ichocollo Volcanics Post mineral volcanics Santo Domingo vein Property Victoria vein Sandstone Alteration zone Tertiary Orcopampa Volcanics Limestone

67 67 October 2013 Santo Domingo (Peru) TACRACULLO Anta 20 (114m) 357 g/t Ag y 2.2 g/t Au 1,000m Anta 2 (182m) 344 g/t Ag y 0.81 g/t Au Anta 4 (118m) 259 g/t Ag y 0.13 g/t Au Anta 6 (222m) 646 g/t Ag y 1.35 g/t Au

68 68 68 Conclusion: On track towards our 2018 goal annual production 65moz Ag + 500,000oz Au Investment (US$ million) Expected Production PROJECT YEAR mill Oz Ag & 44 thds Oz Au SAN JULIÁN CONSTRUCTION PRODUCTION thds Oz Au & 1.3 mill Oz Ag CIENEGA 5,000 TPD (Optimization project) DETAILED ENGINEERING CONSTRUCTION PRODUCTION mill Oz Ag & 35 thds Oz Au SAUCITO II CONSTRUCTION PRODUCTION mill Oz Ag FRESNILLO 10,000 TPD (Optimization project) BASIC ENGINEERING CONSTRUCTION PRODUCTION mill Oz Ag & 18 thds Oz Au PYRITES PLANT (Optimization project) BASIC ENGINEERING CONSTRUCTION PRODUCTION thds Oz Au MEGA CENTAURO PIT EXPLORATION DEVELOPMENT PRODUCTION thds Oz Au CENTAURO DEEP EXPLORATION DEVELOPMENT PRODUCTION mill Oz Ag & 30 thds Oz Au JUANICIPIO BASIC ENGINEERING DETAILED ENGINEERING CONSTRUCTION PRODUCTION thds Oz Au ORISYVO EXPLORATION BASIC ENGINEERING DETAILED ENGINEERING CONSTRUCTION PRODUCTION