VANCOUVER, Oct. 17, 2013 /CNW/ - Fortuna Silver Mines
Inc. (NYSE: FSM) | (TSX:FVI) | (BVL: FVI) | (Frankfurt: F4S.F)
is pleased to announce updated Mineral Reserve and Mineral Resource
estimates as of July 4, 2013 for the
San Jose Mine located in Oaxaca,
Mexico. Included in the update is an initial estimate of the
Mineral Resources for the Trinidad North discovery.
Highlights of Reserve and Resource
Update
- Proven and Probable Reserves total 3.9 Mt containing an
estimated 24.8 Moz silver and 215.1 koz gold, reflecting increases
of 22 percent in contained silver ounces and 27 percent in
contained gold ounces relative to the Dec.
31, 2012 reserve estimate
- Inferred Resources total 5.4 Mt containing an estimated 35.3
Moz silver and 272.3 koz gold, reflecting increases of 39 percent
in contained silver ounces and 27 percent in contained gold ounces
relative to the Dec. 31, 2012 reserve
and resource estimate
- Inferred Resources for the Trinidad North discovery total 1.9
Mt at a 70 g/t Ag Eq cutoff containing an estimated 16.3 Moz silver
and 101 koz gold or 21.8 Moz Ag Eq
"2013 has been a very successful year at our San
Jose Mine," commented Dr. Thomas
Vehrs, Vice President of Exploration for Fortuna Silver.
"Through infilling drilling of the Stockwork zone in the central
part of the deposit, approximately 1.7 million tonnes of Inferred
Resources were upgraded to Measured and Indicated Resources at a
conversion rate of 92 percent in terms of tonnes, 104 percent in
terms of silver grade and 95 percent in terms of gold grade. These
materials have subsequently been converted to reserves and will
enter into the mine plan starting in 2014. The Stockwork zone is
characterized by wide widths ranging from approximately 15 to 70
meters leading to a potential decrease in overall mining
costs."
"Similarly, Brownfields exploration at the
northern limit of the deposit led to the discovery of the
high-grade Trinidad North zone," added Dr. Vehrs. "While
exploration continues to test the extension of the zone to the
north and to depth, we are very pleased with the results of the
initial resource estimate for Trinidad North. The above average
grades and wide widths of the mineralized structures bode well for
the future development of the Trinidad North zone."
San Jose Reserve and Resource Update
|
|
|
|
Mineral Reserves - Proven and
Probable |
Contained Metal |
Property |
Classification |
Tonnes
(000) |
Ag (g/t) |
Au (g/t) |
Ag (Moz) |
Au (koz) |
San Jose, Mx |
Proven |
314 |
203 |
2.03 |
2.0 |
20.5 |
|
Probable |
3,618 |
196 |
1.67 |
22.8 |
194.6 |
|
Proven + Probable |
3,933 |
196 |
1.70 |
24.8 |
215.1 |
|
|
|
|
|
|
|
Mineral Resources -
Measured and Indicated |
|
|
Contained Metal |
Property |
Classification |
Tonnes
(000) |
Ag (g/t) |
Au (g/t) |
Ag (Moz) |
Au (koz) |
San Jose, Mx |
Measured |
44 |
170 |
1.62 |
0.2 |
2.3 |
|
Indicated |
844 |
112 |
0.97 |
3.0 |
26.3 |
|
Measured + Indicated |
888 |
73 |
0.64 |
2.1 |
18.2 |
|
|
|
|
|
|
|
Mineral Resources -
Inferred |
Contained Metal |
Property |
Classification |
Tonnes
(000) |
Ag (g/t) |
Au (g/t) |
Ag (Moz) |
Au (koz) |
San Jose, Mx |
Inferred |
5,422 |
202 |
1.56 |
35.3 |
272.3 |
- Mineral Reserves and Mineral Resources are as defined by CIM
Definition Standards on Mineral Resources and Mineral Reserves
- Mineral Resources are exclusive of Mineral Reserves
- Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability
- There are no known legal, political, environmental, or other
risks that could materially affect the potential development of the
Mineral Resources or Mineral Reserves at San Jose
- San Jose Mineral Resources and Mineral Reserves are estimated
and reported as of July 4, 2013
- San Jose Mineral Reserves are estimated using break-even
cut-off grades based on assumed metal prices of US$24.00/oz Ag and US$
1,400.00/oz Au, estimated metallurgical recovery rates of
89% for Ag and 89% for Au and projected operating costs. San Jose
Mineral Resources are estimated and reported at a Ag Equivalent
cut-off grade of 70 g/t, with Ag Eq in g/t = Ag (g/t) + Au (g/t)*
((US$1,391.63/US$25.14)*(89/89))
- Totals may not add due to rounding procedures
Trinidad North Discovery
Included in the above reported resources are 1.9
Mt of Inferred Resources containing 16.3 Moz silver and 100.8 koz
gold at a 70 g/t Ag Eq cutoff corresponding to the Trinidad North
discovery. The discovery of high-grade silver-gold mineralization
over wide vein widths was confirmed by surface drilling from
January through June of 2013 (see Fortuna Silver news releases of
Feb. 4, 2013, Apr. 22, 2013, May 22,
2103 and Aug. 15, 2013). The
below table summarizes the Trinidad North Inferred Resources at a
range of Ag Eq cutoff values. Of significant importance is the
presence of high-grade mineralization in the Bonanza Vein system.
At a 100 g/t Ag Eq cutoff value, Inferred Resources in the Bonanza
Vein at Trinidad North are estimated at 1.2 Mt averaging 330 g/t
silver and 1.99 g/t gold (440 g/t Ag Eq) containing 12.5 Moz silver
and 75.5 koz gold. For comparative purposes, these grades are
approximately 50 percent higher than the average of the existing
Proven and Probable Reserves of the San Jose Mine. The high grade
zone at Trinidad North remains open to the north and to depth. An
exploration crosscut and two drilling stations have been completed
on the 1300 m level and drilling from the underground drill
stations was initiated in late September to further explore the
extensions of this important mineralized shoot to the north and to
depth.
Trinidad North Discovery - Inferred Resources
by Cutoff Grade as of July 4,
2013
Ag Eq
Cutoff (g/t) |
Tonnes (000) |
Ag (g/t) |
Au (g/t) |
Ag Eq (g/t) |
Contained Metal |
Ag (Moz) |
Au (koz) |
Ag Eq
(Moz) |
25 |
2,195 |
235 |
1.46 |
316 |
16.6 |
103.3 |
22.3 |
50 |
2,033 |
252 |
1.56 |
339 |
16.5 |
102.3 |
22.1 |
70 |
1,882 |
269 |
1.67 |
361 |
16.3 |
100.8 |
21.8 |
75 |
1,844 |
273 |
1.69 |
367 |
16.2 |
100.4 |
21.8 |
100 |
1,661 |
296 |
1.83 |
398 |
15.8 |
98.0 |
21.2 |
125 |
1,491 |
320 |
1.98 |
430 |
15.4 |
95.1 |
20.6 |
150 |
1,339 |
345 |
2.14 |
464 |
14.9 |
92.0 |
20.0 |
175 |
1,201 |
371 |
2.29 |
498 |
14.3 |
88.6 |
19.2 |
200 |
1,082 |
397 |
2.45 |
532 |
13.8 |
85.3 |
18.5 |
225 |
978 |
422 |
2.61 |
567 |
13.3 |
82.0 |
17.8 |
250 |
885 |
448 |
2.77 |
601 |
12.7 |
78.7 |
17.1 |
Estimation Methodology
Drill hole and channel samples were used in
conjunction with underground mapping to construct three dimensional
wireframes defining individual vein structures. Samples were
selected inside these wireframes, coded and composited. Boundaries
were treated as hard with statistical and geostatistical analysis
conducted on composites for each vein. Silver and gold grades were
estimated into a geological block model representing each vein.
Primary veins including Bonanza, Trinidad, Fortuna and the Stockwork Zone were
estimated by Sequential Gaussian Simulation. Secondary veins were
estimated by inverse power of distance. Estimated grades were
validated globally, locally, and visually prior to tabulation of
the Mineral Resources.
The key economic and operational factors used in
the conversion of the Mineral Resources to Mineral Reserves are
detailed in note 6 of the Mineral Resource and Mineral Reserve
table. A mining dilution factor of 12.2 percent has been applied
based on historical operational experience. Mining recovery is
estimated at 90.2 percent with the losses being primarily
attributable to pillars and bridges.
San Jose Mine
As of July 4,
2013, the San Jose Mine had Proven and Probable Mineral
Reserves of 3.9 Mt containing 24.8 Moz silver and 215.1 koz gold,
in addition to Inferred Resources of 5.4 Mt containing a further
35.3 Moz silver and 272.3 koz gold. Variations from previously
announced reserves and resources are the result of successful
conversion of previously existing Inferred Resources to Indicated
or Measured Resource categories through infill drilling partially
offset by depletion through the extraction of ore during the period
of Jan. 1st through
June 30th of 2013.
Additionally, approximately 1.9 Mt of Inferred Resources containing
16.3 Moz silver and 100.8 koz gold were added through the discovery
of the Trinidad North zone.
The expansion of the processing plant capacity
to 1,800 tpd was successfully completed in September of this year
and the mine and mill are currently ramping up to the expanded
capacity. The mine is on schedule to meet its annual production
guidance of 2.4 million ounces of silver and 20,900 ounces of gold
for 2013. Based on the updated Mineral Reserves and a plant
capacity of 1,800 tpd, the mine life of the San Jose Mine is
estimated at 6.3 years.
A NI 43-101 technical report supporting the
July 4, 2013 Mineral Reserve and
Mineral Resource update at San
Jose will be filed on SEDAR and posted on the Company's
website upon finalization.
Qualified Persons
The Mineral Resource estimates have been
prepared under the supervision of E. Chapman of Fortuna Silver
Mines Inc. The Mineral Reserve estimate and the tabulation of the
Mineral Resource estimate exclusive of Mineral Reserves were
prepared under the supervision of T. Kelly, a director of Fortuna
Silver Mines Inc.
E. Chapman and T. Kelly are Qualified Persons as
defined by the National Instrument 43-101. Thomas Vehrs, Vice President of Exploration, is
the Qualified Person for Fortuna Silver Mines Inc. as defined by
the National Instrument 43-101. Dr. Vehrs is a Founding Registered
Member of the Society for Mining, Metallurgy, and Exploration, Inc.
(SME Registered Member Number 3323430RM) 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.
Fortuna Silver Mines Inc.
Fortuna is a growth oriented, silver and base
metal producer focused on mining opportunities in Latin America. Our primary assets are the
Caylloma silver Mine in southern Peru and the San
Jose silver-gold Mine in Mexico. The Company is selectively pursuing
additional acquisition opportunities. For more information, please
visit our website at www.fortunasilver.com.
ON BEHALF OF THE BOARD
Jorge Ganoza
President, CEO and Director
Fortuna Silver Mines Inc.
Trading symbols: NYSE: FSM | TSX: FVI | BVL: FVI | Frankfurt: F4S.F
Forward looking Statements
This news release contains forward-looking
statements which constitute "forward-looking information" within
the meaning of applicable Canadian securities legislation and
"forward-looking statements" within the meaning of the "safe
harbor" provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements are statements that are
not historical facts and that are subject to a variety of risks and
uncertainties which could cause actual events or results to differ
materially from those reflected in the forward-looking
statements. When used in this document, the words such as
"anticipates", "believes", "plans", "estimates", "expects",
"forecasts", "targets", "intends", "advance", "projects",
"calculates" and similar expressions are forward-looking
statements.
The forward-looking statements are based on
an assumed set of economic conditions and courses of actions,
including estimates of future production levels, expectations
regarding mine production costs, expected trends in mineral prices
and statements that describe Fortuna's future plans, objectives or
goals. There is a significant risk that actual results will vary,
perhaps materially, from results projected depending on such
factors as changes in general economic conditions and financial
markets, changes in prices for silver and other metals,
technological and operational hazards in Fortuna's mining and
mine development activities, risks inherent in mineral
exploration, uncertainties inherent in the estimation of mineral
reserves, mineral resources, and metal recoveries, the timing and
availability of financing, governmental and other approvals,
political unrest or instability in countries where Fortuna is
active, labor relations and other risk factors.
Although Fortuna has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking statements or
information, there may be other factors that cause results to be
materially different from those anticipated, described, estimated,
assessed or intended. There can be no assurance that any
forward-looking statements or information will prove to be accurate
as actual results and future events could differ materially from
those anticipated in such statements or information. Accordingly,
readers should not place undue reliance on forward-looking
statements or information.
SOURCE Fortuna Silver Mines Inc.