Peruvian precious metals miner Hochschild Mining reported gold production above expectations for the first quarter of the year.
The company – whose flagship operation is the Inmaculada mine in Ayacucho region – produced 53,790oz of gold (83,030oz gold equivalent) and 2.43Moz of silver (6.89Moz silver equivalent). Gold production was up from 46,440oz in 1Q23 while silver output was flat compared to 2.44Moz.
The figures, which are on a total rather than attributable basis, were in the company’s Q1 production report. Hochschild also has the Mara Rosa mine in Brazil and a 51% stake in the San José mine Argentina. Mara Rosa produced its first gold bar in February.
For 2024, the company expects to achieve gold equivalent production of 343,000-360,000oz and 28.5-29.9Moz of silver equivalent.
INMACULADA
Inmaculada produced 36,700oz of gold in 1Q24, up from 31,210oz in 1Q23. Silver production rose from 1.27Moz to 1.51Moz. According to Hochschild, the figures were in line with what was expected and will allow the mine to meet annual guidance of 200,000-205,005oz gold this year.
Regarding exploration, the company carried out a total of 4,051m in drilling various veins – Tesoro, Nicolás, Andrea, Josefa, Rita, Split Josefa, Laura, and Split JNE – and during 2Q24 the figure will triple.
“During the second quarter, the company expects to complete five remaining drill holes (approximately 2,500m of drilling) before commencing 11,000m of resource drilling in the Tesoro and Nicolás veins,” the report says.
SAN JOSÉ
The San José mine in Argentina’s Santa Cruz province produced 16,030oz of gold in the quarter, up from 13,680oz of 1Q23. The mine is a joint venture with Canada’s McEwen Mining and Hochschild is the operator. Gold production is expected to be 60,000-62,000oz in 2024. Silver output rose from 778,000oz to 919,000oz.
MARA ROSA
Mara Rosa in Brazil’s Goiás state produced its first gold bar in mid-February and the expectation is to begin commercial operations in the coming weeks. According to Hochschild, the mine produced 1,060oz of gold in 1Q24 and the company expects 83,000oz-93,000oz this year.
### Insight into Expansion Plans
Hochschild Mining’s successful gold production in the first quarter of 2024 not only exceeded expectations but also sets the stage for the company’s ambitious expansion plans for the rest of the year. With projects like the Mara Rosa mine in Brazil and ongoing exploration activities in various veins, Hochschild is positioning itself for sustained growth.
### Sustainable Growth Through Diversification
By having operations in multiple regions and a diverse portfolio of mines, including Inmaculada, San José, and Mara Rosa, Hochschild Mining is able to mitigate risks and ensure a more stable production output. This diversification strategy not only enhances the company’s resilience but also provides opportunities for growth in different market conditions.
### Commitment to Responsible Mining
As Hochschild Mining continues to ramp up production and explore new opportunities, the company remains committed to responsible mining practices. With a focus on environmental stewardship and community engagement, Hochschild is not only aiming for profitability but also sustainable development that benefits all stakeholders involved.
