Mining company Fresnillo plc highlighted an increase in exploration in the Fresnillo silver district, one of the most important in the world.

Along with this exploration activity, gold and silver prices are approaching all-time highs.

Gold prices closed 2023 at $2,066 per ounce, above the 2023 average of $1,944 per ounce. 

Xtra-Gold continues to see positive indicators for gold prices going forward.

Although mining has been going on for centuries in that district, Fresnillo plc’s exploration activities show that it remains underexplored. 

How much exploration is being done there?

• Across the district, mining and exploration crews drilled 416,858 meters during 2023. 
• Sixty-five percent of the drilling by mine crews was infill drilling, both within reserves and inferred resources.
• The remaining 35% were for vein extensions and other purposes. 
• According to the company, at the Fresnillo mine, good results were obtained in the San Alberto, Santa Elena, San Carlos and San Demetrio veins. 
• Good results were also obtained at the Saucito mine, where good silver grades and vein continuity were found in the Natalias, Roble and Ramal Oriente structures, along with the Saucito and Desprendido veins in the southern part of the mine. 

Fresnillo silver district

Exploration seeks to identify and evaluate the viability of mineral deposits for possible extraction.

To do this, Fresnillo plc has an integrated approach based on detailed mapping, geophysics and geochemistry. 

In 2023, several central banks reportedly moved away from U.S. dollar holdings and bought gold. 

Silver and gold

Signs of a move against the U.S. dollar as the world’s reserve currency and expectations that interest rates will decline in the near future have also strengthened gold and silver prices. 

As a result, the comparative strength of the U.S. dollar is expected to decline in 2024.

Several events have generated geopolitical instability, such as the war between Russia and Ukraine and between Hamas and Israel, problems between Taiwan and China, U.S.-China tariff issues, as well as the upcoming U.S. presidential election and attacks on commercial shipping in the Red Sea by Iranian-backed Houthi rebels.