08:49:39 EST Sun 15 Dec 2019
Enter Symbol
or Name
USA
CA



Login ID:
Password:
Save
Fortuna Silver Mines Inc
Symbol FVI
Shares Issued 159,939,595
Close 2019-04-04 C$ 4.58
Recent Sedar Documents

Fortuna releases updated Lindero gold production plan

2019-04-04 11:55 ET - News Release

Mr. Jorge Ganoza reports

FORTUNA REPORTS UPDATED FIRST YEAR GOLD DORE PRODUCTION PLAN FOR THE LINDERO PROJECT, ARGENTINA

Fortuna Silver Mines Inc. has provided its updated estimated gold dore production plan for the first year of commercial production and an updated mineral reserve and mineral resource estimate as of March 31, 2019, for the Lindero project located in Argentina.

Jorge A. Ganoza, president and chief executive officer, commented: "Based on the results of the 2018 infill drill program and optimization of our mine plan, we have been able to identify higher-grade mineralized areas for mining in Lindero's first year of commercial production. As we conduct additional studies on expanding the leach pad facility, the company will be in a position to assess the ability to upgrade material from measured and indicated resources to reserves."

Highlights of update:

  • Gold dore production in the first year of commercial production is estimated to be between 145,000 ounces and 160,000 ounces;
  • Combined proven and probable mineral reserves are reported at 84.2 million tonnes containing 1.7 million ounces of gold, representing a decrease of 5 per cent in tonnes and 2 per cent in contained gold ounces.
  • Combined measured and indicated mineral resources exclusive of mineral reserves are reported at 18.9 million tonnes containing 302,000 ounces of gold, representing an increase of 51 per cent in tonnes and 211 per cent in contained gold ounces.
  • Inferred mineral resources exclusive of mineral reserves are reported at 8.6 million tonnes containing 106,000 ounces of gold, representing an increase of 51 per cent in tonnes and 63 per cent in contained gold ounces.

Mineral reserves and mineral resources

Mineral reserves and mineral resources are reported as of March 31, 2019, based on 212 diamond drill holes totalling 44,550 metres. The estimates incorporate an updated geological interpretation, based on the infill drilling conducted in 2018 (see Fortuna news release dated Sept. 6, 2018), updated metal prices and estimated operating costs. The updated technical information does not materially change the information presented in the technical report entitled, "Fortuna Silver Mines Inc.: Lindero Property, Salta Province, Argentina," with an effective date of Oct. 31, 2017, prepared by Eric Chapman, Edwin Gutierrez, Geoff Allard and Denys Parra Murrugarra.

Mineral resource estimation involved the usage of drill hole samples in conjunction with surface mapping to construct three-dimensional wireframes defining lithologic, alteration and grade domains. Samples were selected inside these wireframes, coded, composited and top cut. Boundaries were treated as hard, firm or soft, based on statistical and geostatistical analysis. Gold and copper grades were estimated by ordinary kriging into a geological block model consisting of 10-metre-by-10-metre-by-four-metre selective mining units representing each domain. Estimated grades were validated globally, locally and visually prior to classification, and are reported above a 0.2-gram-per-tonne-gold cut-off grade within a conceptual pit shell.

The updated mineral resource and mineral reserve estimates use the same methodology (key assumptions, parameters and methods) as the technical report, which is available on the company's website, SEDAR and the U.S. Securities and Exchange Commission's website. However, mineral reserve estimates have been conducted taking into account the new updated resource block model, revised cost estimates, metal prices, projected exchange rates and the updated detailed design capacity of the leach pad. Mineralized material inside the ultimate pit shell that cannot be accommodated by the updated leach pad design has been classified as a mineral resource.

                                         MINERAL RESERVES
                                                                                        
Property                           Classification    Tonnes (000s)   Au (g/t)   Cu (%)  Contained metal
                                                                                                Au (koz)
     
Lindero project, Argentina                 Proven          25,352       0.76     0.11               618 
                                         Probable          58,875       0.58     0.11             1,096 
                              Proven and probable          84,226       0.63     0.11             1,714 

                                            MINERAL RESOURCES

Property                              Classification    Tonnes (000s)   Au (g/t)   Cu (%)  Contained metal
                                                                                                   Au (koz)
    
Lindero project, Argentina                  Measured           2,092       0.55     0.12                37 
                                           Indicated          16,774       0.49     0.10               265 
                              Measured and indicated          18,866       0.50     0.11               302 
                                            Inferred           8,600       0.38     0.10               106 

First year production plan

For the first year of commercial production, Lindero's mine plan has been optimized so that the operation will benefit from mining the higher-grade mineralization outcropping that was identified through the infill drilling completed in 2018. As a result, gold dore production for Lindero's first year of commercial production is estimated to be between 145,000 ounces and 160,000 ounces, and is based on the factors set out in the technical report.

Qualified person

Eric Chapman, vice-president of technical services, is a professional geoscientist of the Association of Professional Engineers and Geoscientists of the Province of British Columbia (registration No. 36328). Mr. Chapman 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.

We seek Safe Harbor.

© 2019 Canjex Publishing Ltd. All rights reserved.