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Fortuna reports production of 1.9 million ounces of silver and 11,436 ounces of gold for the third quarter of 2019

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Fortuna reports production of 1.9 million ounces of silver and 11,436 ounces of gold for the third quarter of 2019

 

 

 

 

 

Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) is pleased to report production results for the third quarter of 2019 from its two operating mines in Latin America, the San Jose Mine in Mexico and the Caylloma Mine in Peru.  The Company produced 1.9 million ounces of silver and 11,436 ounces of gold plus base metal by-products.  Silver and gold production for the first nine months of 2019 totaled 6.6 million ounces and 38,247 ounces respectively; being 1 percent above and 4 percent below the Company’s nine month projection respectively.  Fortuna is on schedule to produce between 8.2 to 9.0 million ounces of silver and between 49 to 54 thousand ounces of gold or between 11.7 to 12.9 million Ag Eq1 ounces in 2019 in accordance with our annual production guidance (refer to Fortuna news release dated January 17, 2019).

 

Third Quarter Production Highlights

 

  • Silver production of 1,937,293 ounces; 13 percent decrease over Q3 2018
  • Gold production of  11,436 ounces; 9 percent decrease over Q3 2018
  • Lead production of 7,157,229 pounds; 6 percent decrease over Q3 2018
  • Zinc production of 11,517,861 pounds; 0.3 percent increase over Q3 2018
  • Cash cost2 for San Jose is US$70.8/t, slightly above 2019 annual cost guidance of between $63.5 to $70.1/t
  • Cash cost2 for Caylloma is US$93.0/t, is 5 percent above 2019 annual cost guidance of between $80.0 to $88.4/t

 

Consolidated Operating Highlights

 

 

  Third Quarter 2019 Third Quarter 2018
  Caylloma, Peru San Jose, Mexico Consolidated    Caylloma, Peru San Jose, Mexico Consolidated 
Processed Ore    
Tonnes milled 134,338 267,998   135,996 262,710  
Average tpd milled 1,493 3,045   1,511 2,985  
Silver3    
Grade (g/t) 64 219   65 258  
Recovery (%) 82.42 90.72   84.69 91.47  
Production (oz) 228,168 1,709,125 1,937,293 239,253 1,991,211 2,230,465
                 

 

 

 

  Third Quarter 2019 Third Quarter 2018
  Caylloma, Peru San Jose, Mexico  Consolidated Caylloma, Peru San Jose, Mexico  Consolidated
Gold    
Grade (g/t) 0.25 1.40   0.17 1.61  
Recovery (%) 46.61 90.56   21.37 91.24  
Production (oz) 494 10,942 11,436 155 12,387 12,542
Lead    
Grade (%) 2.68     2.74    
Recovery (%) 90.16     92.23    
Production (lbs) 7,157,229   7,157,229 7,575,541   7,575,541
Zinc    
Grade (%) 4.35     4.24    
Recovery (%) 89.38     90.36    
Production (lbs) 11,517,861   11,517,861 11,482,583   11,482,583
               

 

Notes to the first page and table above, as applicable:

  1. Silver equivalent production does not include lead or zinc and is calculated using a silver to gold ratio of 72 to 1
    2.  Preliminary estimates of cash operating costs per tonne are subject to modification on final cost consolidation
    3.  Metallurgical recovery for silver at the Caylloma Mine is calculated based on silver content in lead concentrate
    4.  Totals may not add due to rounding

 

San Jose Mine, Mexico

 

The San Jose Mine produced 1,709,125 ounces of silver and 10,942 ounces of gold in the third quarter of 2019, 8 percent and 13 percent below budget respectively.  Average head grades for silver and gold were 219 g/t and 1.4 g/t, 8 percent and 14 percent below budget respectively.  The decrease in silver and gold production during the third quarter is mainly due to scheduled mine production activities at lower grade stopes which is in line with the mine’s production program for the quarter.  Silver and gold production for the first nine months of 2019 totaled 5.9 million ounces and 36,887 ounces respectively; being 1 percent above and 7 percent below the mine’s nine month projection.  Annual production of gold and silver at the San Jose Mine is expected to be within the 2019 annual production guidance of between 7.3 to 8.1 million ounces of silver and between 49 to 54 thousand ounces of gold (refer to Fortuna news release dated January 17, 2019).

 

The San Jose Mine cash cost per tonne for the third quarter of 2019 is US$70.8; slightly above the annual guidance range due to higher ground support costs and increased mine contractor tariffs.  Cash cost per tonne for the year is expected to be within the high end of the annual guidance range (refer to Fortuna news release dated January 17, 2019).

 

Caylloma Mine, Peru

 

The Caylloma Mine produced 228,168 ounces of silver in the third quarter of 2019, 1 percent above budget.  The average silver head grade of 64 g/t was 3 percent above budget.  Silver production for the first nine months of 2019 totaled 692,005 ounces; 1 percent above the mine’s nine month projection.

 

Lead and zinc production in the third quarter of 2019 was 7,157,229 pounds and 11,517,861 pounds respectively, 9 percent and 9 percent above budget respectively.  The average head grades for lead and zinc were 2.68 % and 4.35 %, 9 percent and 11 percent above budget respectively.  Base metals production for the first nine months of 2019 totaled 21,304,857 pounds of lead and 33,986,132 pounds of zinc; being 2 percent and 8 percent above the mine’s nine month projection.

 

The Caylloma Mine cash cost per tonne for the third quarter of 2019 is US$93.0; 5 percent above the annual guidance range due to timing of indirect costs related to processing plant maintenance. Cash cost per tonne for the year is expected to be within the high end of the annual guidance range (refer to Fortuna news release dated January 17, 2019).

 

Qualified Person

 

Amri Sinuhaji, Technical Services Director – Mine Planning, is the Qualified Person for Fortuna Silver Mines Inc. as defined by National Instrument 43-101.  Mr. Sinuhaji is a Professional Engineer registered with the Association of Professional Engineers and Geoscientists of the Province of British Columbia (#48305) 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, currently under construction, in Argentina.  The Company is selectively pursuing acquisition opportunities throughout the Americas and in select other areas.  

 

Posted October 15, 2019

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