Peñoles reduces silver and gold exploration in the field due to Covid-19

Industrias Peñoles reported that it reduced its field exploration operations due to the Covid-19 pandemic.

With year-on-year sales growth in the first quarter of 2021, to $ 1.548 billion, the company is a mining group with integrated operations for the smelting and refining of non-ferrous metals and the manufacture of chemicals.

As a consequence of the current health situation, most of the Peñoles Exploration Directorate personnel continues to work under the Work from Home scheme implemented.

Thus, trips and field work were minimized, concentrating on information integration tasks, preparation of reports and maps, work programs, interpretation of 3D models, updating and review of operating procedures, exploration parameters and improvement of key processes.

In the first quarter of 2021, Peñoles produced 15 million 517,000 ounces of silver, an advance of 2.4% annually.

As for gold, its production was 244,217 ounces, 17.8% more than in the first quarter of 2020.

Peñoles

The main field works focused on the drilling of three projects, with a total of 7,238 meters (m) drilled.

Fortuna del Cobre (Sonora)

Here in Mexico, Peñoles drilled 2,553m in the first quarter of the year, looking for the extent of mineralization detected in the previous quarter, as well as the possibility of new bodies.

As a goal, the company aims to achieve mineral resources of 150 million tons (Mton) of disseminated copper ore.

To date, the results achieved «are encouraging», due to some mineral intersections over 100 m thick and with areas still open to exploration.

Peñoles also prepares representative samples for metallurgical research and 3D models are integrated with the interpretation of the information collected. The works continue.

Reina del Cobre (Durango, Mexico)

It is a Cu-Zn project located 20 km east of the Velardeña Unit.

Until now, the company has detected inferred resources of 19 Mton with drilling, and to increase its degree of confidence it is necessary to apply a systematic mesh of holes.

Peñoles Meturgical Operation

To achieve this, a series of mining developments have been projected to locate drilling stations.

Works are planned to begin in the third quarter of the year.

Mining Units

An extensive field survey program was concluded at the Sabinas Unit and a surface drilling plan was integrated in areas of interest.

Meanwhile, 1,354 m are drilled in the Capela Unit in the western portion of the mine, the results obtained indicate the extension of the mineral for 200 m, leaving it open for further growth.

In the Velardeña Unit, in the La Industria zone, the extension of the mineralized structures is drilled with an advance of 4,107 m. The results obtained are positive, extending the veins for an additional 400 m.

Other projects

In Peru, Peñoles has completed preparatory fieldwork for drilling in the northern portion of the advanced Racaycocha Project.

Likewise, in Chile, the design of the drilling campaign that is scheduled to be carried out in the Nemesis and Pichasca projects in 2021 has been completed. These works will begin when the health emergency allows it.

Peñoles registered an increase in Ebitda level of 121.9% year-on-year in the first quarter of 2021, to 481 million dollars.

Finally, the company achieved a net profit of 147 million dollars, while in the same period of 2020 it reported a loss of 150 million dollars.