Fortuna Reports Production of 1.6 Million Ounces of Silver and 8,519 Ounces of Gold for the Second Quarter 2014
July 10 2014 - 7:00AM
Marketwired Canada
Fortuna Silver Mines Inc. (TSX:FVI)(NYSE:FSM)(FRANKFURT:F4S)(BVLAC:FVI) is
pleased to announce second quarter production figures from its two 100 percent
owned operating mines in Latin America, the San Jose Mine in Mexico and the
Caylloma Mine in Peru. The company produced 1.6 million ounces of silver, 8,519
ounces of gold and significant base metal by-products. Silver and gold
productions for the first six months of the year totaled 3.2 million and 16,669
ounces respectively; reflecting 53 and 52 percent of the company's annual
guidance (see Fortuna news release dated January 13, 2014). Fortuna is on
schedule to produce 6 million ounces of silver and 32,300 ounces of gold or 7.9
million ounces of Ag Eq(i) in 2014.
Jorge A. Ganoza, President and CEO, commented, "With San Jose operating at the
new throughput rate of 2,000 tpd successfully behind us, we are now focusing on
our next phase of organic growth. We are already working with our consultants
conducting engineering and trade-off studies to assess the economic robustness
of a potential expansion of San Jose to 3,000 tpd." Mr. Ganoza continued,
"Mineralization at both the Trinidad North discovery and the central portion of
the main Trinidad deposit remains wide open in multiple directions. Management
continues to feel very excited with the prospective resource growth
opportunities. With respect to the unit costs at both our mines, we are pleased
with the positive results of the cost cutting measures implemented in mid-2013.
We are on track to deliver on our all-in sustaining cash cost per ounce of
silver guidance for 2014 of US$17.14, a 16 percent reduction compared to 2013."
Second Quarter Production Highlights:
-- Silver production of 1,630,422 ounces; 52% increase over Q2 2013
-- Gold production of 8,519 ounces; 64% increase over Q2 2013
-- Lead production of 3,962,049 pounds; 15% decrease over Q2 2013
-- Zinc production of 6,697,341 pounds; 9% increase over Q2 2013
-- Cash cost(ii) for the San Jose Mine is US$64.1 /t; in line with annual
guidance of US$67.1 /t
-- Cash cost(ii) for the Caylloma Mine is US$91.7 /t; in line with annual
guidance of US$88.3 /t
(i) Ag Eq is calculated using metal prices of US$1,200/oz for gold and US$20/oz
for silver
(ii) Preliminary estimates of cash operating costs per tonne, subject to
modification on final cost consolidation
Consolidated Operating Highlights:
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Second Quarter 2014 Second Quarter 2013
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Caylloma, San Jose, Caylloma, San Jose,
Peru Mexico Consolidated Peru Mexico Consolidated
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Processed
Ore
----------------------------------------------------------------------------
Tonnes
milled 115,920 167,437 113,906 102,264
Average tpd
milled 1,302 1,925 1,280 1,147
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Silver(iii)
----------------------------------------------------------------------------
Grade (g/t) 170 229 167 199
Recovery (%) 83.50 89.50 80.91 88.66
Production
(oz) 529,011 1,101,411 1,630,422 493,438 580,570 1,074,007
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(iii) Metallurgical recovery for silver at the Caylloma Mine is calculated
based on silver contents in lead concentrate
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Second Quarter 2014 Second Quarter 2013
----------------------------------------------------------------
Caylloma, San Jose, Caylloma, San Jose,
Peru Mexico Consolidated Peru Mexico Consolidated
----------------------------------------------------------------------------
Gold
----------------------------------------------------------------------------
Grade (g/t) 0.35 1.65 0.34 1.61
Recovery (%) 43.13 89.32 40.03 88.36
Production
(oz) 562 7,957 8,519 502 4,681 5,183
----------------------------------------------------------------------------
Lead
----------------------------------------------------------------------------
Grade (%) 1.68 2.05
Recovery (%) 92.02 90.79
Production
(lbs) 3,962,049 3,962,0494,666,444 4,666,444
----------------------------------------------------------------------------
Zinc
----------------------------------------------------------------------------
Grade (%) 2.92 2.81
Recovery (%) 89.76 86.88
Production
(lbs) 6,697,341 6,697,3416,131,316 6,131,316
----------------------------------------------------------------------------
San Jose Mine, Mexico
Silver and gold productions for the quarter were 9% and 4% above budget
respectively. Average head grade for silver was 229 g/t or 14% above plan and
for gold was 1.65 g/t or 9% above budget. The variance in silver head grade with
respect to the budget is due to higher grades from mining of the inferred
resource extension to the south of the stockwork zone at level 1200.
Metallurgical recovery for silver and gold was 89.50% and 89.32% respectively,
in line with budget.
The expansion of the processing plant from 1,800 to 2,000 tpd was completed in
early April of this year; mill and mine have already achieved the new production
rate. Last June, the company engaged engineering consultancy firms to evaluate
the different options for expanding mill and mine facilities to potentially
produce at 3,000 tpd.
Caylloma Mine, Peru
Silver production for the quarter was 7% above budget and average head grade was
170 g/t or 5% above plan. Metallurgical recovery for silver was 83.50% or 2%
above budget.
Qualified Person
Boris G. Caro, Technical Services Corporate Manager, is a Qualified Person for
Fortuna Silver Mines Inc. as defined by National Instrument 43-101. Mr. Caro is
a Member of Australasian Institute of Mining and Metallurgy (Membership Number
305462) and a Registered Member of the Chilean Mining Commission (Registered
Member Number 0229) 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.
About 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 throughout the
Americas. For more information, please visit our website at
www.fortunasilver.com.
ON BEHALF OF THE BOARD
Jorge A. Ganoza, President, CEO and Director
Fortuna Silver Mines Inc.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Fortuna Silver Mines Inc.
Investor Relations
Carlos Baca
T (Peru): +51.1.616.6060, ext. 0
info@fortunasilver.com
www.fortunasilver.com
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