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
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:
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.
Silver Mountain Resources Inc. (TSX-V: AGMR) (OTCQB: AGMRF) is ... READ MORE
Mandalay Resources Corporation (TSX: MND) (OTCQB: MNDJF) announce... READ MORE
Collective Mining Ltd. (TSX: CNL) (OTCQX: CNLMF) (FSE: GG1) is pl... READ MORE
Significant copper and molybdenum intersections include: HM19: 11... READ MORE
Red Pine Exploration Inc. (TSX-V: RPX) (OTCQB: RDEXF) is pleased ... READ MORE