Mr. Jorge Ganoza reports
FORTUNA REPORTS PRODUCTION OF 2.0 MILLION OUNCES OF SILVER AND 13,412 OUNCES OF GOLD FOR THIRD QUARTER OF 2017
Fortuna Silver Mines Inc. has released its third quarter 2017 production results from its two operating mines in Latin America, the San Jose mine in Mexico and the Caylloma mine in Peru. The company produced 2.0 million ounces of silver and 13,412 ounces of gold, plus base metal byproducts. Silver and gold production for the first nine months totalled 6.2 million ounces and 41,158 ounces, respectively, being 2 per cent and 5 per cent above the company's nine-month projection. Fortuna is on schedule to produce 8.1 million ounces of silver and 52,400 ounces of gold or 11.2 million silver equivalent (AgEq) (1) ounces in 2017 (see Fortuna news release dated Jan. 11, 2017).
Third quarter production highlights:
- Silver production of 2,009,362 ounces, 4-per-cent decrease over third quarter of 2016;
- Gold production of 13,412 ounces, 5-per-cent decrease over third quarter of 2016;
- Lead production of 7,650,040 pounds, 3-per-cent increase over third quarter of 2016;
- Zinc production of 11,241,371 pounds, 6-per-cent increase over third quarter of 2016;
-
Cash cost (2) for San Jose of $62.2 (U.S.)/tonne;
- Cash cost (2) for Caylloma of $76.0 (U.S.)/t.
CONSOLIDATED OPERATING HIGHLIGHTS
Third quarter 2017 Third quarter 2016
Caylloma, San Jose, Caylloma, San Jose,
Peru Mexico Consolidated Peru Mexico Consolidated
Processed ore
Tonnes milled 133,726 263,697 132,558 268,242
Average tpd milled 1,486 3,038 1,473 3,056
Silver (3)
Grade (g/t) 66 229 87 224
Recovery (%) 83.29 91.40 82.87 92.21
Production (oz) 234,806 1,774,556 2,009,362 308,680 1,780,825 2,089,506
Notes:
(1) AgEq calculated using silver-to-gold ratio of 60:1 and does not include lead or zinc.
(2) Preliminary estimates of cash operating costs per tonne, subject to modification on final cost
consolidation.
(3) Metallurgical recovery for silver at Caylloma mine is calculated based on silver contents in lead
concentrate.
Third quarter 2017 Third quarter 2016
Caylloma, San Jose, Caylloma, San Jose,
Peru Mexico Consolidated Peru Mexico Consolidated
Gold
Grade (g/t) 0.20 1.71 0.20 1.76
Recovery (%) 19.18 91.39 18.68 92.09
Production (oz) 164 13,248 13,412 160 13,951 14,111
Lead
Grade (%) 2.87 2.71
Recovery (%) 90.54 94.02
Production (lb) 7,650,040 7,650,040 7,451,624 7,451,624
Zinc
Grade (%) 4.26 4.09
Recovery (%) 89.60 88.83
Production (lb) 11,241,371 11,241,371 10,606,439 10,606,439
San Jose mine, Mexico
The San Jose mine produced 1,774,556 ounces of silver and 13,248 ounces of gold in the third quarter, 4 per cent and 7 per cent above budget, respectively. Silver and gold production for the first nine months totalled 5.5 million ounces and 40,773 ounces, respectively, being 2 per cent and 5 per cent above the mine's nine-month projection. Average head grades for silver and gold in the third quarter were 229 grams per tonne and 1.71 g/t, 4 per cent and 6 per cent above budget, respectively.
Mine production was sourced from Trinidad Central and Trinidad North with each area contributing 53 per cent and 47 per cent of ore, respectively. The processing plant treated 3,038 tonnes per day
Caylloma mine, Peru
The Caylloma mine produced 234,806 ounces of silver in the third quarter, 6 per cent below budget. Average silver head grade of 66 g/t, 9 per cent below budget, was offset by higher metallurgical recovery of 83.29 per cent, 4 per cent above budget. Silver production for the first nine months totalled 704,624 ounces, 2 per cent below the mine's nine-month projection.
Lead and zinc production was 7,650,040 pounds and 11,241,371 pounds, respectively, 3 per cent below budget and 5 per cent above budget. Base metal production for the first nine months totalled 22,030,794 pounds of lead and 32,670,303 pounds of zinc, being 1 per cent and 7 per cent above the mine's nine-month projection. Average head grades for lead and zinc in the third quarter were 2.87 per cent and 4.26 per cent, in line with budget and 7 per cent above budget, respectively.
Mine production was sourced primarily from the Animas northeast and Animas central areas with each contributing 65 per cent and 34 per cent of ore, respectively. The processing plant treated 1,486 tpd.
Qualified person
Edwin A. Gutierrez, technical services corporate manager, is the qualified person for Fortuna Silver Mines as defined by National Instrument 43-101. Mr. Gutierrez is a registered member of the Society for Mining, Metallurgy and Exploration Inc. (SME-registered member No. 4119110RM) and is responsible for ensuring that the information contained in this news release is an accurate summary of the original reports and data provided to or developed by Fortuna Silver Mines.
About Fortuna Silver Mines Inc.
Fortuna is a growth-oriented, precious metal producer focused on mining opportunities in Latin America. The company's primary assets are the Caylloma silver mine in southern Peru, the San Jose silver-gold mine in Mexico and the Lindero gold project in Argentina. The company is selectively pursuing acquisition opportunities throughout the Americas and in select other areas.
We seek Safe Harbor.
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