Fresnillo successfully concludes testing of substation equipment at Juanicipio Project

Specifically, Fresnillo confirmed that the site's main substation had been inspected by Mexican state-owned power company Comisión Federal de Electricidad and approved for use.

The FTSE 100-listed group stated the approval was "a key milestone" as the new components of the substation were now fully connected to the grid and the main transformer for the project had been energised.

Tests on the downstream power distribution and control systems for final tie in to the national grid were also said to be continuing in line with CFE requirements.

"Fresnillo is very confident in the integrity of the new systems and that they will meet the stringent requirements of the regulator. In addition, we are confident in our ability to effect a rapid ramp-up of operations once all final elements are formally approved and full load commissioning at Juanicipio commences," said Fresnillo.

"Mine development at Juanicipio is ongoing with a substantial stockpile built in anticipation of the commencement of milling operations, in the interim, ore will continue to be processed at our nearby Saucito and Fresnillo operations."

Fresnillo added that the timing of the testing had made no impact on either its 2022 production level or its 2023 production expectations.

As of 0810 GMT, Fresnillo shares were up 1.11% at 871.20p.

Reporting by Iain Gilbert at Sharecast.com