Mr. Jorge Ganoza reports
FORTUNA REPORTS HEAVY SEASONAL RAINS CAUSED AN OVERFLOW IN A CONTINGENCY POND OF THE DRY STACK TAILINGS FACILITY AT THE SAN JOSE MINE, MEXICO
In the early morning of Oct. 8, 2018, abnormally high rainfall caused a contingency pond to overflow at the dry stack tailings facility at the San Jose mine located in Oaxaca, Mexico. The contingency pond collects water from a ditch system at the dry stack facility designed to capture and manage rainwater. The company wants to emphasize that no industrial process water was discharged in this incident and that the San Jose operation uses a cyanide-free process to produce concentrate.
The dry stack contingency pond's holding capacity is 7,000 cubic metres, and it is equipped with a 600-cubic-metre-per-hour pumping capacity, which was surpassed by the volume of rainfall. The overflow occurred for about two hours at approximately 4 a.m. and resulted in the spill of approximately 1,500 cubic metres of water carrying sediment and minor amounts of fine tailings from the facility's drainage system into the nearby Coyote Creek. The company is mitigating the risk of future overflows by immediately increasing its pumping capacity at the contingency pond. No damage has occurred to the tailings dam or to the dry stack infrastructure and both are fully operational. San Jose tailings are monitored and sampled continuously, are free of heavy metals or other contaminants, and are characterized as sterile.
Officials at the Procuraduria Federal de Proteccion al Ambiente (PROFEPA) were notified of the overflow on the day of the incident. The company is currently working with federal, state and local authorities as they conduct inspections of the company's facilities at San Jose and the Coyote Creek.
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.
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