Our San Jose Mine in the Taviche Mining District, Oaxaca, Mexico, produces silver and gold. The underground mine is operated by Compañia Minera Cuzcatlan S.A. de C.V., a Mexican subsidiary 100% owned by 365bet. It is a low sulfidation epithermal vein deposit and based on reserves reported as of December 31 2021, the operation has a three year mine life.
The San Jose Mine was commissioned in July 2011 and began commercial production in September 2011 at 1,000 tonnes per day. With strategic investment over many years, we increased the mill’s capacity to 3,000 tonnes per day by mid-2016. In 2021, the mine produced 6.43 million ounces of silver and 39,406 ounces of gold.
We recognize the role our San Jose Mine plays to support sustainable development in our areas of influence around the mine. As the largest employer in the area, we employed 214 community members from San Jose del Progreso and 349 from Oaxaca in 2020.
San Jose Mine Video
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Commodity
Silver, gold
Ownership
100%
Operation
3,000
tonnes per day
Claim block area
48,000
hectares
Deposit type
Low sulphidation
epithermal vein
deposit
epithermal vein
deposit
Mining method
Underground
cut-and-fill
cut-and-fill
OPERATING HIGHLIGHTS
|
20211 |
2022E1,2 |
|
|---|---|---|
|
Tonnes milled (000) |
1,041 |
1,059 |
|
Average milled (tpd) |
2,964 |
3,000 |
|
Silver production (Moz) |
6.43 |
5.2 - 5.8 |
|
Gold production (koz) |
39.41 |
32 - 36 |
|
AISC2,3,4,5 (US$/oz Ag Eq) |
-- |
$13.7 - $16.1 |
Notes:
- Refer to 365bet news releases dated January 18, 2022, "365bet reports 2021 full year production of 305,859 gold equivalent ounces and issues 2022 annual guidance ".
- Cash Cost and all-in sustaining cost (AISC) are non-GAAP financial measures which are not standardized financial measures under the financial reporting framework used to prepare the financial statements of the Company and might not be comparable to similar financial measures disclosed by other issuers. Refer to "Non-IFRS Financial Measures" in the Company’s 2021 management discussion and analysis (“MD&A”) for the three and nine months ended September 30, 2021 dated November 10, 2021 (“Q3 MD&A 2021”), which is available under 365bet's SEDAR profile, and the note regarding “Non-IFRS Financial Measures” on this website.
- The following table provides the cash costs and AISC for the four operating mines for the nine months ended September 30, 2021 as follows:
-
Mine Cash Cost(a) AISC(a),(b),(c) SILVER (US$/t) (US$/oz Ag Eq) San Jose, Mexico 74.22 14.13 Caylloma, Peru 85.17 18.17 GOLD (US$/oz Au) (US$/oz Au) Lindero, Argentina 635 1,182 Yaramoko, Burkina Faso 720 1,188 - (a) Cash Cost and AISC are non-GAAP financial measures. Refer to the note regarding "Non-IFRS Financial Measures" on this Website
- (b) Presented on a cash basis
- (c) Silver equivalent was calculated using the realized prices for gold (US$1,783 per ounce), silver (US$25.80 per ounce), lead US$0.98 per pound) and zinc (US$1.31 per pound) for the nine months ended September 30, 2021
- (d) Further details on the cash costs and AISC for the nine months ended September 30, 2021 are disclosed on pages 21, 23 and 24 (with respect to cash costs) and pages 22, 24 and 25 (with respect to AISC) of the Q3 MD&A 2021 which is available under 365bet's SEDAR profile at www.sedar.com and is incorporated by reference into this news release, and the note regarding “Non-IFRS Financial Measures” on this website
- (e) The estimated increase in all in sustaining costs at Yaramoko for 2022 are due to decreased estimated gold ounce production coupled with increased operating and capital costs as mining moves to the deeper regions of the underground mine
-
- The most comparable financial measure to cash costs is cost of sales. Please see the condensed interim consolidated financial statements of the Company for the three and nine months ended September 30, 2021 and pages 21, 23 and 24 of the Q3 MD&A 2021 for a reconciliation
- AISC includes production cash cost, commercial and government royalties, mining tax, export duties (as applicable), worker’s participation (as applicable), subsidiary G&A, sustaining capital expenditures, and Brownfields exploration and is estimated at metal prices of US$1,700/oz Au, US$22/oz Ag, US$2,100/t Pb, and US$2,700/t Zn. AISC excludes government mining royalty recognized as income tax within the scope of IAS-12.
- The most comparable financial measure to AISC is cost of sales. Please see the condensed interim consolidated financial statements of the Company for the three and nine months ended September 30, 2021 and pages 22, 24 and 25 of the Q3 MD&A 2021 for a reconciliation.
- Totals may not add due to rounding.
PARTNERS IN SUSTAINABLE DEVELOPMENT
CLEAN WATER AND SANITATION
- Water monitoring
- Tailings management
- Pollution reduction
DECENT WORK AND ECONOMIC GROWTH
-
Local employees
-
Local suppliers
-
Supporting entrepreneurs
CLIMATE ACTION
-
Optimize energy consumption
-
Reduce freshwater collection
-
Reduce GHG emissions
RESPONSIBLE CONSUMPTION AND PRODUCTION
-
Hazardous material management
-
Reduce and recycle
-
Closure plan
LOCATION
Our San Jose Mine is located in the Taviche Mining District in central Oaxaca, southern Mexico (Latitude 16° 41’ 40” N, Longitude: 96° 42’ 00” W). Mining occurs year-round.
Many of our workers and suppliers come from the nearest city, Oaxaca, a 47-kilometre drive to the north, and the nearby communities of San Jose del Progreso and Ocotlán de Morelos. Oaxaca is the nearest international airport, and the mine is less than one kilometre from Federal Highway 175, the major highway between Oaxaca and Puerto Angel on the Pacific coast.
GEOLOGY AND MINERALIZATION
The San Jose deposit is a low sulfidation epithermal vein system characterized by mineralized multiphase quartz-carbonate-sulphide veins, hydrothermal breccias and stockwork veining. The mineralized system is hosted in a sequence of Tertiary andesitic volcanic and volcaniclastic rocks.
MINERAL RESERVES
3.0 million tonnes
averaging 180 g/t Ag and 1.17 g/t Au containing 17.3 Moz Ag and 113 koz Au
Refer to Mineral Reserves and Resources table below for full disclosure
BROWNFIELDS EXPLORATION
The Brownfields exploration program budget for 2022 at the San Jose Mine is US$7.4 million, which includes 26,200 meters of diamond drilling and 1,120 meters of underground development for drilling access, platforms, and services.
Mineral Reserves and Resources
| Mineral Reserves - Proven and Probable | Contained Metal | ||||||
|---|---|---|---|---|---|---|---|
| Property | Classification | Tonnes (000) |
Ag (g/t) |
Au (g/t) |
Ag (Moz) |
Au (koz) |
|
| San Jose Mine, Mexico | Proven | 75 | 205 | 1.40 | 0.5 | 3 | |
| Probable | 2,914 | 180 | 1.17 | 16.8 | 109 | ||
| Proven + Probable | 2,989 | 180 | 1.17 | 17.3 | 113 | ||
| Mineral Reserves - Measured and Indicated | Contained Metal | ||||||
|---|---|---|---|---|---|---|---|
| Property | Classification | Tonnes (000) |
Ag (g/t) |
Au (g/t) |
Ag (Moz) |
Au (koz) |
|
| San Jose Mine, Mexico | Measured | 38 | 121 | 0.82 | 0.2 | 1 | |
| Indicated | 901 | 98 | 0.65 | 2.8 | 19 | ||
| Measured + Indicated | 940 | 99 | 0.66 | 3.0 | 20 | ||
| Mineral Reserves - Inferred | Contained Metal | ||||||
|---|---|---|---|---|---|---|---|
| Property | Classification | Tonnes (000) |
Ag (g/t) |
Au (g/t) |
Ag (Moz) |
Au (koz) |
|
| San Jose Mine, Mexico | Inferred | 3,011 | 125 | 0.93 | 12.1 | 90 | |
-
Notes:
- Mineral Reserves and Mineral Resources are as defined by the 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves
- Mineral Resources are exclusive of Mineral Reserves
- Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
- Factors that could materially affect the reported Mineral Resources or Mineral Reserves include; changes in metal price and exchange rate assumptions; changes in local interpretations of mineralization; changes to assumed metallurgical recoveries, mining dilution and recovery; and assumptions as to the continued ability to access the site, retain mineral and surface rights titles, maintain environmental and other regulatory permits, and maintain the social license to operate
- San Jose Mineral Resources and Reserves are estimated as of June 30, 2021 and reported as of December 31, 2021 taking into account production-related depletion for the period through December 31, 2021
- Mineral Reserves for the San Jose Mine are based on underground mining within optimized stope designs using an estimated NSR break-even cut-off grade of US$62.0/t to US$67.8/t equivalent to 109 to 120 g/t Ag Eq based on assumed metal prices of US$21/oz Ag and US$1,600/oz Au; estimated metallurgical recovery rates of 91% for Ag and 90% for Au and mining costs of US$33.89/t (C&F) - US$28.00/t (SLS); processing costs of US$16.23/t; and other costs including distribution, management, community support and general service costs of US$17.73/t based on actual operating costs. Mining recovery is estimated at 92% (C&F) and 93% (SLS) and mining dilution 14% (C&F) and 24% (SLS). Mineral Resources are reported at a 100 g/t Ag Eq cut-off grade based on the same parameters used for Mineral Reserves and a 15% upside in metal prices. Proven + Probable Reserves include 1.94 Mt containing 11.3 Moz of silver and 63.5 koz of gold reported at a 111 to 122 g/t Ag Eq cut-off grade and Inferred Resources totaling 2.2 Mt containing 8.8 Moz of silver and 65.4 koz of gold reported at a 100 g/t Ag Eq cut-off grade located in the Taviche Oeste concession and subject to a 2.5% royalty
- Eric Chapman, P. Geo. (EGBC #36328) is the Qualified Person for resources and Amri Sinuhaji, P. Eng. (EGBC #48305) is the Qualified Person for reserves, both being employees of 365bet Silver Mines Inc.
- Totals may not add due to rounding procedures
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