Fortuna provides an update on the extension of the environmental impact authorization at its San Jose Mine, Mexico
Fortuna provides an update on the extension of the environmental impact
authorization at its San Jose Mine, Mexico
Vancouver, October 25, 2021 – Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) is providing an update
on the status of its application for an extension of the environmental impact authorization at the San Jose
Mine, located in Oaxaca, Mexico.
In 2009, the Secretar ía de Medio Ambiente y Recursos Naturales (“SEMARNAT”) gran ted an
Environmental Impact Authorization (“EIA”) to Fortuna’s Mexican subsidiary, Companía Minera Cuzcatlán
(“CMC”), which authorized the construction, execution and maintenance of the San Jose Mine for a period
of 12 years effective until October 23, 2021. In May 2021, CMC filed an application to extend the term of
the EIA for an additional period of 10 years. SEMARNAT requested additional information pertaining to
the application which has been provided. A decision from SEMARNAT is outstanding.
The filing of an extension of the EIA is a normal and recurrent administrative procedure that is customarily
granted so long as the filer is in compliance in all material respects with its environmental obligations, as
is CMC. Under the curr ent SEMARNAT administration and COVID -19 restrictions, the administrative
process has become more cumbersome and is taking longer than in the past.
CMC is working with SEMARNAT and government authorities to resolve this matter and has obtained a
provisional injunction from a Mexican federal court that allows the continued operation of the San Jose
Mine beyond the expiry date of the EIA . CMC has also initiated legal proceedings in the Federal
Administrative Court in Mexico City to protest the lack of formal response to the application to extend the
EIA and to seek an additional injunction to permit the continued operation of the San Jose Mine until the
extension to the EIA is granted.
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 Director
Fortuna Silver Mines Inc.
Investor Relations:
Carlos Baca | [email protected]
NYSE: FSM | TSX: FVI
www.fortunasilver.com NEWS RELEASE
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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 legal
proceedings initiated by Compania Minera Cuzcatlan (“CMC”) to protest the lack of formal response to CMC’s application to extend
its environmental impact authorization at the San Jose mine, which includes an application for an injunction to permit the
operation of the San Jose mine beyond the expiry date of the EIA until the EIA is granted; the Company’s business strategy, plans
and outlook; the merit of the Company’s mines and mineral properties; 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, the ability of CMC to obtain
an extension from SEMARNAT to the EIA; obtaining an injunction from the Mexican Court to allow the continued operation at the
San Jose mine, changes in general econom ic 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 in dustry 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 wave s 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 f inancial condition; the easing of travel restrictions imposed in
Argentina which were put in place to curb the spread of COVID-19; 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 rat es; 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 publ ic 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 Company’s mines remains
consistent with the mineral reserve model; changes to producti on 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 d uration 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 unles s
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 m ay affect may aspects of the
Company’s operations, including transportation of personnel to and from site, contractor and supplier availability and the ab ility
to sell or deliver concentrate and doré; the expected trends in mineral prices and currency exch ange 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 advers e
change affecting the Company or its properties; that all required approvals and permits will be ob tained for the Company’s
business and operations; that there will be no significant disruptions affecting operations and such other assumptions as set out
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herein. Forward-looking Statements are made as of the date hereof and the Company disclaims any oblig ation 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 r esults and future
events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue relia nce
on Forward-looking Statements.