The Phaserl


Largest Primary Silver Mine Productivity Falls To Lowest Ever

by Steve St. Angelo, SRS Rocco Report:

The largest primary silver mine in the world saw its average yield fall to the lowest level ever in 2015.  Matter-a-fact, the primary silver mine’s yield fell nearly 16% compared to last year.  This is a substantial decline in productivity from the world’s largest mine in Mexico that starting production in 1824.

Actually, the area where this mine is located–Zacatecas, Spaniards start producing silver all the way back in 1540.  When initial production at the Great Fresnillo Mine started in 1824, Mexico was producing 55% of the world’s silver production.  The ore grades were much higher in those days.

For example, average yields for silver production in the United States and Australia in the late 1800’s was 40-50 oz per ton (oz/tonne).  However, as the world continued to consume greater amounts of silver over the next century, average yields in its primary silver mining industry fell precipitously.

Fresnillo Mine Average Yield Fell To Lowest Level Ever

Fresnillo LLC has several mines in production.  Their flagship operation, is the Fresnillo Mine.  In 2005, the Fresnillo Mine was producing silver at an average yield of 15.2 oz/t, but this fell 57% over the following decade.  In 2015, Fresnillo’s average silver yield was a paltry 6.5 oz/t…. a loss of 8.7 oz/t:


Not only did the Fresnillo Mine average yield fall considerably over the past five years, silver production fell by more than half.  In 2010, the Fresnillo Mine produced 35.9 million oz (Moz) of silver at an average yield of 14.2 oz/t.  However, silver production from the mine fell to 15.6 Moz while the average yield dropped to 6.5 oz/t.

Now, the downside to falling silver yields is the increased cost of production.  For example in 2010, Fresnillo processed 2.5 million tonnes of ore to produce that 35.9 Moz versus processing 2.4 million tonnes of ore in 2015 to extract 15.6 Moz of silver from the mine.  Basically, the amount of processed ore remained about the same (close to it), while silver production fell by 56%.

The company realized the ore grades at its flagship Fresnillo Mine were going to fall, so they have been spending a lot of capital to bring on new primary silver mines.  The company’s second primary silver mine that came on production in 2009 was its Saucito Mine.  Ramp up of production of its Saucito Mine helped to offset losses from the Fresnillo Mine.  However, the average yield of these two primary silver mines also declined in 2015.

The Fresnillo & Saucito Mine’s Combined Average Yield Fell In 2015

This next chart shows the combined production of the Fresnillo and Saucito Mine along with their average yield.  As we can see the average yield of these two mines was 14.2 oz/t in 2009, but this declined to 7.9 oz/t in 2015:

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22 comments to Largest Primary Silver Mine Productivity Falls To Lowest Ever

  • fonestar

    Hopefully a rising silver price will bring new blood and new ideas to this area.

    The current generation of “stacker” ignoramuses badly needs to be flushed down the toilet, or at least have a few cups of bleach added.

  • glitter 1

    My Endeavour(EXK)silver stock is up 150% in the last six weeks and is showing no signs o slowing.The Bull is back in mining stocks.The smart(big) money is piling back in.It portends to what is seen as coming.

    • Eric

      Got that right glitter. No signs of slowing all.

      My EXK is up 70%. Great Panther up 80%. And my First Majestic shares are up 133%!!!

      Brazil Resources got a nice bump the other day.

      The bull is back in Gold and Silver.

      S&P struggling to get over 2000. Looks more like it’s going to drop.

      Vix futures look like they are ready to ride up again.

      And oil is coming off the bottom. So far.

      FOMC meeting in 6 days. Let’s see if Janet Lemonyellenhead has anything new to say.

      • Howard Roark

        Jewnet Yellen(Stanley Fischer) will follow Draghi I’m sure by inserting “a rusty chainsaw….right up the chute…running”

        “Draghi Fires Bazooka, Blows Own Balls Off”

      • glitter 1

        The DXY fell out of bed again today,down over 1%,which is huge.The PPT has pulled the Dow & S&P back from the brink,Gold up ~ $20 & Silver ~ $15.60.It appears TPTB are levitating everything in attempt to hold it together until the Yellen Face Time next Wednesday.The Dollar appears it’s weakening/headed back down and Gold wants to rip higher.May be the inflection point,Markets down/Gold & Silver up.Appears Brother John F’s call,on the divergence of the Dow/Gold chart,to reverse and move back to the mean.It has begun.

  • Howard Roark

    @Sean…just target fonestar’s Provider IP range and perma-ban him.

    Make him drive to Tim Hortons free wi-fi to whistle in the wind

    • fonestar

      fonestar doesn’t need to “drive” anywhere moron.

      It is very difficult to cure a fonestar infection. has almost had to disable their entire comment section because of fonestar. Zerohedge approval times have gone up because of fonestar.

  • Howard Roark

    There’s the confirmation, Sean…NO. LIFE.TROLL.

    Self admitting how utter worthless his existence is and how he revels in being an annoying prick.

    • fonestar

      Oh it’s not “worthless” and believe me I have no problem donating some time to it. You see, if a site is going to be used as a staging ground for disinfo agents (like you) to spread your disinfo and FUD, and the site admins are cool with that… well I have no problem with disruption.

      Now the only question is whether you really want to piss me off and take it to the next level? Because we can do that too.

      • Howard Roark

        “Now the only question is whether you really want to piss me off and take it to the next level? Because we can do that too.”


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