Fortuna reports record third quarter 2021 production of 87,950 gold
equivalent (1) ounces
Fortuna Silver Mines Inc. (NYSE: FSM)
(TSX: FVI) reports production results for the third
quarter from its four operating mines in the Americas and West
Africa, the Lindero Mine in Argentina, the San Jose Mine in Mexico,
the Caylloma Mine in Peru, and the Yaramoko Mine in Burkina Faso.
The company produced 65,425 ounces of gold and 1,711,881 ounces of
silver or 87,950 gold equivalent1 ounces. Gold and silver
production for the first nine months of 2021 totaled 131,029 ounces
and 5,518,458 ounces, respectively, or 203,640 gold equivalent1
ounces.
Third Quarter Consolidated
Production
- Gold production of 65,425 ounces;
411 percent increase over Q3 2020
- Silver production of 1,711,881
ounces; 20 percent decrease over Q3 2020
- Lead production of 8,245,289
pounds; 23 percent increase over Q3 2020
- Zinc production of 12,436,276 pounds;
21 percent increase over Q3 2020
Third Quarter Consolidated Operating
Highlights
|
Third Quarter 2021 |
Third Quarter 2020 |
|
Caylloma, Peru |
San Jose, Mexico |
Lindero, Argentina |
Yaramoko4, Burkina
Faso |
Consolidated |
Caylloma, Peru |
San Jose, Mexico |
Lindero,Argentina |
Consolidated |
OPERATIONAL FIGURES |
|
Tonnes milled |
136,410 |
248,985 |
|
126,677 |
|
107,002 |
255,226 |
|
|
|
Average tpd milled |
1,516 |
2,862 |
|
1,377 |
|
1,189 |
2,934 |
|
|
|
Ore placed on pad2 (t) |
|
|
1,387,134 |
|
|
|
|
675,000 |
|
SILVER2 |
Grade (g/t) |
78 |
195 |
|
|
|
74 |
254 |
|
|
|
Recovery (%) |
80.97 |
91.84 |
|
|
|
83.06 |
91.87 |
|
|
|
Production (oz) |
275,223 |
1,436,658 |
|
|
1,711,881 |
210,206 |
1,917,540 |
|
|
2,127,746 |
GOLD |
Grade (g/t) |
0.48 |
1.22 |
1.10 |
7.28 |
|
0.60 |
1.52 |
0.83 |
|
Recovery (%) |
71.97 |
91.27 |
|
97.8 |
|
65.96 |
91.66 |
|
|
|
Production3 (oz) |
1,529 |
8,910 |
26,235 |
28,751 |
65,425 |
1,366 |
11,425 |
|
|
12,791 |
LEAD |
Grade (%) |
3.14 |
|
|
|
|
3.15 |
|
|
|
|
Recovery (%) |
87.26 |
|
|
|
|
90.17 |
|
|
|
|
Production (lbs) |
8,245,289 |
|
|
|
8,245,289 |
6,702,053 |
|
|
|
6,702,053 |
ZINC |
Grade (%) |
4.74 |
|
|
|
|
4.93 |
|
|
|
|
Recovery (%) |
87.31 |
|
|
|
|
88.59 |
|
|
|
|
Production (lbs) |
12,436,276 |
|
|
|
12,436,276 |
10,313,225 |
|
|
|
10,313,225 |
Notes:
- Gold equivalent production does not
include lead or zinc, and is calculated using gold to silver ratio
of 1 to 76
- Metallurgical recovery for silver
at the Caylloma Mine is calculated based on silver content in lead
concentrate
- Lindero production includes gold in
carbon columns and electrolytic cement; Yaramoko production
includes only doré
- Includes production from the
Yaramoko Mine, subsequent to the completion of the business
combination with Roxgold Inc. on July 2, 2021
- Totals may not add due to
rounding
Lindero Mine, Argentina: Record production
of 26,235 ounces of gold, in line with guidance
During the third quarter of 2021, the onsite
impact of COVID-19 diminished resulting in less disruptions to the
operations, with the company screening 74 positive cases compared
to 160 cases registered in the second quarter of 2021. To date,
including company and contractor personnel, 94 percent of the
workforce has been vaccinated with one dose and 40 percent with two
doses. The government of Argentina has announced that travel
restrictions will start to ease in November, which should improve
lead times and onsite technical assistance from foreign
vendors.
In the third quarter of 2021, a total of
1,387,134 tonnes of ore were placed on the leach pad averaging
1.10 g/t gold containing an estimated 49,247 ounces of
gold.
Total gold production for the quarter was
26,235 ounces, comprised of 24,318 ounces in doré and an
increase of 1,918 ounces of gold-in-carbon (GIC) inventory. Gold
production for the first nine months of 2021 totaled 68,088 ounces,
in line with the updated annual guidance (refer to Fortuna news
release dated July 19, 2021, “Fortuna reports production of 55,953
gold equivalent ounces for the second quarter and issues updated
guidance for 2021”).
|
Third Quarter 2021 |
Second Quarter 2021 |
First Quarter 2021 |
Ore mined1 (kt) |
2,466 |
|
1,817 |
|
1,610 |
|
Waste mined1 (kt) |
2,114 |
|
1,638 |
|
1,220 |
|
Total mined1 (kt) |
4,581 |
|
3,455 |
|
2,830 |
|
Strip ratio (waste to ore) |
0.86 |
|
0.90 |
|
0.76 |
|
Ore placed on leach pad1 – conveyors (kt) |
1,236 |
|
675 |
|
404 |
|
Ore placed on pad1 – trucks (kt) |
152 |
|
802 |
|
1,728 |
|
Ore placed grade1 (g/t) |
1.10 |
|
0.95 |
|
0.82 |
|
Gold placed on pad1 (oz) |
49,247 |
|
44,889 |
|
56,330 |
|
GIC inventory (oz) |
4,483 |
|
2,565 |
|
1,770 |
|
Change in GIC inventory2 (oz) |
1,918 |
|
794 |
|
1,770 |
|
Doré poured (oz) |
24,318 |
|
18,726 |
|
20,562 |
|
Gold produced (oz) |
26,235 |
|
19,521 |
|
22,332 |
|
Notes:
- Lindero tonnes and gold grade are
estimated using grade control sampling of blast holes; tonnes are
reported to the nearest thousand
- Quarter-on-quarter change in GIC
inventory
Mining
The owner operated fleet continues to perform
according to management´s expectations. A total of 2,466,259 tonnes
of ore were mined in the third quarter, at a strip ratio of 0.86:1.
Mine waste movement increased 29 percent compared to the previous
quarter and is in line with plan.
Mine reconciliation and metallurgical
performance
Reconciliation of tonnes, grade and gold ounces
mined as ore, continues to demonstrate a good correlation with the
reserve model with differences for all parameters of less than 6
percent for the third quarter and less than 3 percent for the year
to date.
The metallurgical balance indicates that overall
actual gold recovery from the heap continues to increase and is in
line with expected theoretical recoveries based on the
granulometric composition and metallurgical types of ore placed on
the leach pad and results of ongoing 2.5-meter-tall column test
work conducted to date.
Processing
All processing areas are performing as planned
with 1,235,602 tonnes of crushed ore placed on the leach pad via
conveyor stacking during the third quarter, an 83 percent increase
over the previous quarter.
Material placed during the quarter on the leach
pad was in line with the updated plan, averaging 13,430 tonnes per
day, 41 percent above the previous quarter. The operation has
achieved steady growth in performance through the quarter,
averaging 14,514 tonnes per day during the month of September,
including over 16,000 tonnes per day during the second half of the
month.
The expansion of carbon columns at the ADR plant
is on schedule and commissioning is expected early in the fourth
quarter of 2021.
Quality Assurance & Quality Control
Grade control estimates at Lindero are based on
blast hole chip samples submitted to Lindero’s on-site laboratory
for preparation and assaying for gold, using fire assay with an
atomic absorption finish. The QA-QC program includes the blind
insertion of certified reference standards and assay blanks at a
frequency of approximately 1 per 20 normal samples as well as the
submission of duplicate samples for verification of sampling and
assay precision levels by an ISO 9001:2000 certified umpire
laboratory. ALS Global Laboratory in Mendoza, Argentina prepared
the samples for assaying and then forwarded the samples to ALS
Global Laboratory in Lima, Peru for assay by standard fire assay
methods.
San Jose Mine, Mexico: Quarterly
performance as expected, year to date production results aligned
with guidance
The San Jose Mine produced 1,436,658 ounces of
silver and 8,910 ounces of gold in the third quarter of 2021 with
average head grades for silver and gold of 195 g/t and 1.22
g/t, respectively. Silver and gold production for the first nine
months of 2021 totaled 4,707,496 ounces of silver and 29,477 ounces
of gold. Production for the quarter and year to date are in line
with guidance with lower head grades for silver and gold versus the
third quarter of 2020.
Yaramoko Mine, Burkina Faso
The Yaramoko Mine produced 28,751 ounces of gold
in the third quarter of 2021 with an average gold head grade of
7.28 g/t; slightly below the plan for the quarter.
Unplanned downtime due to the premature
changeout of a SAG mill pinion bearing in August contributed to
slightly lower mill throughput of 126,677 tonnes in the quarter
against a plan of 127,917 tonnes. This, in addition to some
necessary re-sequencing of production stopes at the 55 Zone, due to
isolated ground conditions causing bridging which resulted in a
reprioritization of lower grade stopes, contributed to the minor
production shortfall.
These issues have been remedied and are not
expected to continue nor affect fourth quarter performance which is
expected to be in line with guidance.
Caylloma Mine, Peru: Outperformance; 12
percent increase in gold production, 23 percent increase in lead
production and a 21 percent increase in zinc production compared
with the third quarter of 2020
Since the third quarter of 2020, Caylloma’s
production continues to benefit from higher contribution of
mineralized material from the expansion into the Animas NE
reserves, where the company has focused exploration over the last
couple of years. In the third quarter of 2021, the mine produced
275,223 ounces of silver with an average head grade of 78 g/t.
Silver production for the first nine months of 2021 totaled 810,962
ounces, which is above plan.
Gold production was 1,529 ounces, an increase of
12 percent over the third quarter of 2020. The increase in
production is due to higher head grades located in the Animas NE
vein. Gold production for the first nine months of 2021 totaled
4,712 ounces, which is above plan.
Lead and zinc production for the third quarter
of 2021 was 8,245,289 pounds and 12,436,276 pounds respectively.
Base metal production for the first nine months of 2021 totaled
36,169,039 pounds of zinc and 24,570,519 pounds of lead. The higher
zinc and lead production for the quarter, compared to the same
period in 2020, is mainly due to the voluntary 21-day suspension of
operations in 2020 to sanitize and disinfect the mine site (refer
to Fortuna news release dated July 28, 2021, “Fortuna announces
resumption of production at the Caylloma Mine, Peru”.
The Animas NE vein is emerging as a new center
of gravity for the mine’s production, where exploration potential
remains open in multiple directions.
Qualified Persons
Eric Chapman, Senior Vice President of Technical
Services, is a Professional Geoscientist of the Association of
Professional Engineers and Geoscientists of the Province of British
Columbia (Registration Number 36328). Mr. Chapman has reviewed and
approved the scientific and technical information contained in this
news release.
About Fortuna Silver Mines
Inc.
Fortuna Silver Mines Inc. is a Canadian precious
metals mining company with four operating mines in Argentina,
Burkina Faso, Mexico and Peru, and an advanced development project
in Côte d’Ivoire. Sustainability is integral to all our operations
and relationships. We produce gold and silver and generate shared
value over the long-term for our shareholders and stakeholders
through efficient production, environmental protection, and social
responsibility. For more information, please visit our website.
ON BEHALF OF THE BOARD
Jorge A. Ganoza President, CEO,
and DirectorFortuna Silver Mines Inc.
Investor Relations: Carlos Baca
| info@fortunasilver.com
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 (collectively, “Forward-looking Statements”). All
statements included herein, other than statements of historical
fact, are Forward-looking Statements and are subject to a variety
of known and unknown risks and uncertainties which could cause
actual events or results to differ materially from those reflected
in the Forward-looking Statements. The Forward-looking Statements
in this news release may include, without limitation, statements
about the Company’s plans for its mines and mineral properties; the
Company’s anticipated performance in 2021; estimated production
forecasts and sales for 2021; the duration and impacts of COVID-19
on the Company’s production, workforce, business, operations and
financial condition; metal price estimates, estimated metal grades
in 2021; the estimated amount of ore to be placed on the leach pad
at the Lindero Mine in 2021, the grade of gold and the amount of
gold estimated to be contained therein; the timing of the
commencement of steady state production at the Lindero Mine; the
timing of the expansion of the ADR plant at the Lindero Mine; the
expansion of the heap leach pad at the Lindero Mine; undisclosed
risks and liabilities relating to the Roxgold business combination;
risks that the anticipated benefits of the Roxgold business
combination will not be realized or fully realized; the Company’s
business strategy, plans and outlook; the merit of the Company’s
mines and mineral properties; mineral resource and reserve
estimates; production costs; timelines; the future financial or
operating performance of the Company; expenditures; approvals and
other matters. Often, but not always, these Forward-looking
Statements can be identified by the use of words such as
“estimated”, “potential”, “open”, “future”, “assumed”, “projected”,
“used”, “detailed”, “has been”, “gain”, “planned”, “reflecting”,
“will”, “anticipated”, “estimated” “containing”, “remaining”, “to
be”, or statements that events, “could” or “should” occur or be
achieved and similar expressions, including negative
variations.
Forward-looking Statements involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to be
materially different from any results, performance or achievements
expressed or implied by the Forward-looking Statements. Such
uncertainties and factors include, among others, changes in general
economic conditions and financial markets; the impact of the
COVID-19 pandemic on the Company’s mining operations and
construction activities; the duration and impacts of COVID-19 on
the Company’s production, workforce, business, operations and
financial condition, and the risks relating to a global pandemic,
which unless contained could cause a slowdown in global economic
growth; uncertainties related to the impacts of COVID-19 which may
include: changing market conditions, changing restrictions on the
mining industry in the countries in which the Company operates, the
ability to operate as a result of government imposed restrictions,
including restrictions on travel, the transportation of
concentrates and doré, access to refineries, the impact of
additional waves of the pandemic or increases of incidents of
COVID-19 in the countries in which we operate; the duration of any
suspension of operations at the Company’s mines as a result of
COVID-19 which may affect production and the Company’ business
operations and financial condition; the easing of travel
restrictions imposed in Argentina which were put in place to curb
the spread of COVID-19; the risks associated with the completion of
the business combination with Roxgold, including the ability of the
Company to successfully consolidate functions, integrate
operations, procedures and personnel; changes in prices for gold,
silver and other metals; changes in the prices of key supplies;
technological and operational hazards in Fortuna’s mining and mine
development activities; risks inherent in mineral exploration; the
ability of the current exploration programs to identify and or
expand mineral resources, operational risks in exploration and
development; delays or changes in plans with respect to exploration
or development projects; uncertainties inherent in the estimation
of mineral reserves, mineral resources, and metal recoveries;
changes to current estimates of mineral reserves and resources;
changes to production and cost estimates; governmental and other
approvals; changes in government, political unrest or instability
in countries where Fortuna is active; fluctuations in currencies
and exchange rates; the imposition of capital control in countries
in which the Company operates; labor relations issues; as well as
those factors discussed under “Risk Factors” in the Company's
Annual Information Form. Although the Company has attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in
Forward-looking Statements, there may be other factors that cause
actions, events or results to differ from those anticipated,
estimated or intended.
Forward-looking Statements contained herein are
based on the assumptions, beliefs, expectations and opinions of
management, including but not limited to the accuracy of the
Company’s current mineral resource and reserve estimates; that the
Company’s activities will be in accordance with the Company’s
public statements and stated goals; that there will be no material
adverse change affecting the Company or its properties; that the
reconciliation of mineral reserves at the Lindero Mine remains
consistent with the mineral reserve model; changes to production
estimates (which assume accuracy of projected ore grade, mining
rates, recovery timing, and recovery rate estimates and may be
impacted by unscheduled maintenance, labour and contractor
availability and other operating or technical difficulties); the
duration and impacts of COVID-19 on the Company’s production,
workforce, business, operations and financial condition, and the
risks relating to a global pandemic, which unless contained could
cause a slowdown in global economic growth; government mandates in
Peru, Mexico, Argentina, Burkina Faso and Côte d’Ivoire with
respect to mining operations generally or auxiliary businesses or
services required for the Company’s operations; government and the
Company’s attempts to reduce the spread of COVID-19 which may
affect may aspects of the Company’s operations, including
transportation of personnel to and from site, contractor and
supplier availability and the ability to sell or deliver
concentrate and doré; the expected trends in mineral prices and
currency exchange rates; that the Company’s activities will be in
accordance with the Company’s public statements and stated goals;
that there will be no material adverse change affecting the Company
or its properties; that all required approvals and permits will be
obtained for the Company’s business and operations; that there will
be no significant disruptions affecting operations and such other
assumptions as set out herein. Forward-looking Statements are made
as of the date hereof and the Company disclaims any obligation to
update any Forward-looking Statements, whether as a result of new
information, future events or results or otherwise, except as
required by law. There can be no assurance that these
Forward-looking Statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, investors should not
place undue reliance on Forward-looking Statements.
Cautionary Note to United States
Investors Concerning Estimates of Reserves and
Resources
Reserve and resource estimates included in this
news release have been prepared in accordance with National
Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI
43-101") and the Canadian Institute of Mining, Metallurgy, and
Petroleum Definition Standards on Mineral Resources and Mineral
Reserves. NI 43-101 is a rule developed by the Canadian Securities
Administrators that establishes standards for public disclosure by
a Canadian company of scientific and technical information
concerning mineral projects. Unless otherwise indicated, all
mineral reserve and mineral resource estimates contained in the
technical disclosure have been prepared in accordance with NI
43-101 and the Canadian Institute of Mining, Metallurgy and
Petroleum Definition Standards on Mineral Resources and
Reserves.
Canadian standards, including NI 43-101, differ
significantly from the requirements of the Securities and Exchange
Commission, and mineral reserve and resource information included
in this news release may not be comparable to similar information
disclosed by U.S. companies.
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