Fortuna reports production of 2.2 million ounces of silver and
12,542 ounces of gold for the third quarter of 2018
Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI)
is pleased to report production results for the third quarter of
2018 from its two operating mines in Latin America, the San Jose
Mine in Mexico and the Caylloma Mine in Peru. The Company
produced 2.2 million ounces of silver and 12,542 ounces of gold,
plus base metal by-products. Silver and gold production for
the first nine months totaled 7.0 million ounces and 42,140 ounces
respectively; being 13 percent and 16 percent above the Company's
nine month projection. Fortuna is on schedule to produce 8.3
million ounces of silver and 48.3 thousand ounces of gold or 11.4
million Ag Eq1 ounces in 2018 in accordance with our production
guidance (see Fortuna news release dated January 17, 2018).
Third Quarter Production
Highlights
- Silver production of 2,230,465 ounces; 11 percent increase over
Q3 2017
- Gold production of 12,542 ounces; 6 percent decrease over Q3
2017
- Lead production of 7,575,541 pounds; 1 percent decrease over Q3
2017
- Zinc production of 11,482,583 pounds; 2 percent increase over
Q3 2017
- Cash cost2 for San Jose is US$63.30/t
- Cash cost2 for Caylloma is US$88.53/t
Consolidated Operating
Highlights
|
Third Quarter 2018 |
Third Quarter 2017 |
|
Caylloma,Peru |
San Jose,Mexico |
Consolidated |
Caylloma, Peru |
San Jose,Mexico |
Consolidated |
Processed Ore |
|
|
Tonnes milled |
135,996 |
262,710 |
|
133,726 |
263,697 |
|
Average tpd milled |
1,511 |
2,985 |
|
1,486 |
3,038 |
|
Silver3 |
|
|
Grade (g/t) |
65 |
258 |
|
66 |
229 |
|
Recovery (%) |
84.69 |
91.47 |
|
83.29 |
91.40 |
|
Production (oz) |
239,253 |
1,991,211 |
2,230,465 |
234,806 |
1,774,556 |
2,009,362 |
Notes:1. Silver equivalent production does not include
lead or zinc and is calculated using a silver to gold ratio of 65
to 12. Preliminary estimates of cash operating costs per
tonne, subject to modification on final cost consolidation3.
Metallurgical recovery for silver at the Caylloma Mine is
calculated based on silver content in lead concentrate4.
Totals may not add due to rounding
|
|
|
|
Third Quarter 2018 |
Third Quarter 2017 |
|
Caylloma,Peru |
San Jose,Mexico |
Consolidated |
Caylloma, Peru |
San Jose,Mexico |
Consolidated |
Gold |
|
|
Grade (g/t) |
0.17 |
1.61 |
|
0.20 |
1.71 |
|
Recovery (%) |
21.37 |
91.24 |
|
19.18 |
91.39 |
|
Production (oz) |
155 |
12,387 |
12,542 |
164 |
13,248 |
13,412 |
Lead |
|
|
Grade (%) |
2.74 |
|
|
2.87 |
|
|
Recovery (%) |
92.23 |
|
|
90.54 |
|
|
Production (lbs) |
7,575,541 |
|
7,575,541 |
7,650,040 |
|
7,650,040 |
Zinc |
|
|
Grade (%) |
4.24 |
|
|
4.26 |
|
|
Recovery (%) |
90.36 |
|
|
89.60 |
|
|
Production (lbs) |
11,482,583 |
|
11,482,583 |
11,241,371 |
|
11,241,371 |
San Jose Mine, Mexico
The San Jose Mine produced 1,991,211 ounces of
silver and 12,387 ounces of gold in the third quarter of 2018,
11 percent and 9 percent above budget respectively. Average
head grades for silver and gold were 258 g/t and 1.61 g/t, 11
percent and 9 percent above budget respectively. Silver and
gold production for the first nine months of 2018 totaled 6.3
million ounces and 41,692 ounces respectively; being 13 percent and
16 percent above the mine’s nine-month projection.
Caylloma Mine, Peru
The Caylloma Mine produced 239,253 ounces of
silver in the third quarter of 2018, 19 percent above budget.
Average head grade for silver was 65 g/t, 16 percent above budget.
Silver production for the first nine months of 2018 totaled 692,101
ounces; 13 percent above the mine’s nine-month projection.
Lead and zinc production for the third quarter
of 2018 was 7,575,541 pounds and 11,482,583 pounds respectively, 20
percent and 1 percent above budget respectively. Average head
grades for lead and zinc were 2.74% and 4.24%, 17 percent above and
in line with budget respectively. Base metals production for the
first nine months totaled 21,801,786 pounds of lead and 33,947,289
pounds of zinc; being 14 percent and 1 percent above the mine’s
nine-month projection.
Qualified Person
Eric N. Chapman, M.Sc., Vice President of
Technical Services, is the Qualified Person for Fortuna Silver
Mines Inc. 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 Number 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 metals
producer focused on mining opportunities in Latin America.
Our 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. For more information, please visit our website
at www.fortunasilver.com.
Jorge A. Ganoza President, CEO and
DirectorFortuna Silver Mines Inc.
Trading symbols: NYSE: FSM | TSX: FVI
Investor Relations:
Carlos BacaT (Peru): +51.1.616.6060, ext. 0
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 business strategy, plans and outlook; the merit of the
Company’s mines and mineral properties; mineral resource and
reserve estimates; 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”,
“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; 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;
governmental and other approvals; political unrest or instability
in countries where Fortuna is active; 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 expectations regarding
mine production costs; expected trends in mineral prices and
currency exchange rates; 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 all required
approvals will be obtained; 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 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.
This news release also refers to non-GAAP
financial measures, such as cash cost per tonne of processed ore.
These measures do not have a standardized meaning or method of
calculation, even though the descriptions of such measures may be
similar. These performance measures have no meaning under
International Financial Reporting Standards (IFRS) and therefore,
amounts presented may not be comparable to similar data presented
by other mining companies.