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Fortuna Silver Mines Inc
Symbol C : FVI
Shares Issued 159,800,317
Close 2018-09-05 C$ 5.73
Recent Sedar Documents

Fortuna Silver drills 42 m of 1.84 g/t Au at Lindero

2018-09-06 07:07 ET - News Release

Mr. Jorge Ganoza reports

FORTUNA UPDATES ON INFILL DRILL PROGRAM AT THE LINDERO GOLD PROJECT IN ARGENTINA

Fortuna Silver Mines Inc. has provided results for its infill drilling program at the Lindero project in Argentina. The Lindero project is under construction, and commercial operations are planned to start late in the third quarter of 2019, with an estimated gold production of 137,000 ounces of gold in the first full year of operation (please refer to the Lindero project technical report dated Oct. 31, 2017).

Eric Chapman, vice-president of technical services, commented: "Infill drilling has been carried out with the express intention of improving the confidence in the estimated tonnes and grade of material planned for mining in year 1 at Lindero. The mineralized intercepts encountered have met or exceeded our expectations in 44 of the 61 holes drilled when compared to estimated block model gold grades as of Sept. 9, 2017." Mr. Chapman continued: "Of particular interest are the results for drill holes LDH-138, LDH-139 and LDH-164 associated with the mingled diorite porphyry unit in the centre of the deposit, in an area which was previously thought to be non-mineralized. The new drilling results are presently being incorporated into an updated internal estimate of mineral resources and reserves with the intention of optimizing the mine plan to capture the benefits of these new results. Such updated technical information will not materially change the existing mineral resources estimates."

The infill drilling program, consisting of 61 diamond drill holes totalling 1,952 metres, focused on the areas planned for mining at Lindero in year 1 with holes ranging from 12 metres to 68 metres in length. The program was designed with three objectives: to improve the estimation of grades in mineralized areas with lower density of drilling; to better define the contact between mineralized and non-mineralized material at the periphery of the deposit and at the boundaries between lithologic units; and to source fresh samples for complementary metallurgical column tests on mineral reserves scheduled for year 1. A map showing 2018 infill drilling collar location and a longitudinal section showing updated drilling and 2017 block model can be found at the company's website.

Infill drill program highlights include:

  • LDH-138 -- 1.84 grams per tonne gold over 42 metres from surface;
  • LDH-146 -- 2.15 g/t Au over 20 metres from surface;
  • LDH-164 -- 1.20 g/t Au over 66 metres from surface;
  • LDH-186 -- 2.24 g/t Au over 28 metres from surface;
  • LDH-187 -- 2.33 g/t Au over 24 metres from surface.

                   ASSAY RESULTS FOR THE INFILL DRILL PROGRAM

Drill hole                           From           To     Interval       Au     Cu 
                                      (m)          (m)          (m)    (g/t)    (%)

Holes to investigate grade continuity in mineralized areas
LDH-131                               0.8           53         52.2     0.46   0.11
LDH-132                                 1           40           39     0.87   0.09
LDH-136                                24           52           28     0.29   0.13
LDH-138                                 2           44           42     1.84   0.25
LDH-139                               0.3           52         51.7     0.84   0.17
LDH-141                               0.4           28         27.6     0.82   0.14
LDH-142                                 0           24           24     0.48   0.14
LDH-143                                 0           16           16     0.65   0.15
LDH-146                                 0           20           20     2.15   0.19
LDH-147                                 0           20           20     0.46   0.11
LDH-148                                 0           24           24     0.90   0.09
LDH-149                                 0           24           24     1.62   0.12
LDH-150                                 0           32           32     0.45   0.10
LDH-151                                 0           20           20     0.36   0.15
LDH-163                                 1           24           23     1.01   0.14
LDH-164                                 0           66           66     1.20   0.19
LDH-170                               0.7           32         31.3     0.35   0.08
LDH-171                                28           64           64     0.88   0.21
LDH-173                              11.2           24         12.8     1.36   0.26
LDH-174                                 4           12            8     0.18   0.07
LDH-175                                 0           24           24     0.21   0.04
LDH-176                               0.5           16         15.5     0.41   0.10
LDH-177                                 0           24           24     0.42   0.14
LDH-180                                 0           32           32     1.20   0.08
LDH-181                                 0           20           20     1.72   0.18
LDH-182                                 0           24           24     1.39   0.28
LDH-183                                 0           40           40     1.14   0.16
LDH-184                                 0           38           38     0.33   0.04
LDH-185                                 0           12           12     1.76   0.11
LDH-186                                 0           28           28     2.24   0.13
LDH-187                                 0           24           24     2.33   0.20
                                        6           18           12     3.65   0.27
LDH-188                                 0           20           20     1.64   0.20
Holes to investigate mineralized contacts
LDH-129                                 0           56           56     0.61   0.08
LDH-130                                                no intervals of significance
LDH-133                               1.1           52         50.9     0.17   0.06
LDH-134                                                no intervals of significance
LDH-135                                                no intervals of significance
LDH-137                                                no intervals of significance
LDH-140                                                no intervals of significance
LDH-144                                 0           16           16     0.22   0.08
                                        6           12            6     0.38   0.09
LDH-145                                 8           20           12     0.42   0.09
LDH-152                                 0           12           12     0.28   0.07
LDH-153                                                no intervals of significance
LDH-154                                                no intervals of significance
LDH-155                                                no intervals of significance
LDH-156                                 0           32           32     0.25   0.13
                                       27           32            5     0.61   0.26
LDH-157                                                no intervals of significance
LDH-158                                26           38           12     0.40   0.13
LDH-159                                36           48           12     0.67   0.15
LDH-160                                                no intervals of significance
LDH-161                                                no intervals of significance
LDH-162                                                no intervals of significance
LDH-165                                28           60           32     0.44   0.14
LDH-166                                                no intervals of significance
LDH-167                                                no intervals of significance
LDH-168                                                no intervals of significance
LDH-169                                                no intervals of significance
LDH-172                                                no intervals of significance
LDH-178                                 0           12           12     0.31   0.09
LDH-179                                 8           26           18     0.30   0.04
LDH-189                                 7           11            4     0.43   0.06

Notes
All holes drilled vertically. The Lindero deposit is a gold-rich porphyry with 
mineralization permeating throughout the deposit, making the calculation of true 
thickness impossible as no definitive across-strike direction exists.

Quality assurance and quality control

Following detailed geological and geotechnical logging, drill core samples are split on-site by diamond sawing. One-half of the core is submitted to the ALS Global Laboratory in Mendoza, Argentina, for preparation. The remaining half core is retained on site for verification and reference purposes. Following preparation, the samples are assayed in the ALS Global Laboratory in Lima, Peru, for gold by standard fire assay methods; for silver and base metals by inductively coupled plasma and atomic emission spectroscopy methods utilizing four-acid digestion; and for cyanide-soluble copper by atomic absorption methods. The QA/QC program includes the blind insertion of certified reference standards and assay blanks at a frequency of approximately one per 20 normal samples as well as the inclusion of duplicate samples for verification of sampling and assay precision levels.

About the Lindero gold project

In September, 2017, the commencement of construction at Lindero was officially launched (see Fortuna news releases dated Sept. 21, 2017, and Dec. 21, 2017). Lindero has been designed as an 18,750-tonne-per-day owner-operated open-pit mine with a pit life of 13 years based on existing mineral reserves. The initial capital cost budget estimate for the construction of Lindero is $239-million (U.S.); this amount does not include VAT (value-added tax) which is expected to be recovered in the first 24 months from the start of mining operations. The technical report of the Lindero project is available on SEDAR and on the company's website.

Qualified person

Eric N. Chapman, MSc, vice-president of technical services, is the qualified person for Fortuna Silver Mines as defined by National Instrument 43-101. Mr. Chapman is a professional geoscientist of the Association of Professional Engineers and Geoscientists of the province of British Columbia (registration No. 36328) and has reviewed and approved the scientific and technical information contained in this news release.

About Fortuna Silver Mines Inc.

Fortuna is a growth-oriented, precious metal producer with its primary assets being 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.

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