Gold and silver miner Fresnillo has approved the feasibility study for the development of its wholly-owned 500m dollar San Julián silver project.

The project is a key part of the company's goal to produce 65m ounces of silver and 500,000 ounces of gold per year by 2018. The firm said it is confident that the project has sufficient geological potential to become a new mining district in the future.

The study envisages the construction of two plants, one of which is a flotation plant and the other a dynamic leaching plant. The expected production levels for the first year of operation are about 5.7m ounces of silver and 1,300 ounces of gold, which will gradually be ramped-up to an average of 9.6m ounces of silver and 40,000 ounces of gold per year, once at full capacity.

Commercial production from the project is expected in the second half of 2014.

Fresnillo also announced the resignation of its Chief Operating Officer Manuel Luévanos, who is set to retire.

Octavio Alvídrez, Chief Executive Officer, will assume the responsibilities of Luévanos and be supported by the rest of the Executive Committee including Mario Arreguín, Chief Financial Officer and David Giles, Chief Exploration Officer, the firm said. Alvídrez will be directly responsible for both project development and mining operations.

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