FVI.TO · 2017-10-11 12:00:00

Fortuna provides Brownfields and Greenfields exploration update

Exploration Programs

Vancouver, October 11, 2017-- Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) is pleased to

provide an overview of Brownfields and Greenfields exploration activities in Peru, Mexico,

Argentina and Serbia.

David F. Volkert, Vice President of Exploration, commented: " Our exploration p riority at

Fortuna is adding to the longevity of our operations . Concurrently, we are populating the base

of our exploration pyramid with new opportunities from our internal Brownfields and

Greenfields reconnaissance programs and selected equity investments and option agreements

as completed with Prospero Silver in Mexico and Medgold Resources in Serbia.”

Brownfields Exploration Update

Caylloma Mine, Peru

Exploration drilling ahead of production is an ongoing program at Caylloma. Further to

previously reported successful step-out drilling results at the Animas NE silver-polymetallic vein

(see Fortuna news release dated May 18, 2017 ), recent drilling continues to support the

discovery of a significant high-grade mineralized shoot that remains open in two directions.

Drill highlights include:

ANIS048117

• 72 g/t Ag, 4.80% Pb and 4.90% Zn over an estimated true width of 10.3 meters

ANIS048917

• 160 g/t Ag, 4.98% Pb and 7.19% Zn over an estimated true width of 5.7 meters

ANIS050217

• 235 g/t Ag, 6.51% Pb and 6.50% Zn over an estimated true width of 6.6 meters

-2-

Animas NE vein step -out drilling assay results for principal mineralized intervals ( June

2017 through mid-September 2017)

Drill Hole From

(m)

Interval

(m)

ETW1

(m)

(g/t)

(%)

ANIS047517 374.7 380.2 5.5 5.1 46 0.04 3.68 7.68

ANIS047617A 386.1 392.5 6.4 5.5 75 0.04 5.01 4.24

ANIS047917 397.7 408.3 10.6 8.8 41 0.04 2.24 3.99

ANIS048117 468.4 479.9 11.5 10.3 72 0.04 4.80 4.90

ANIS048317A 352.6 358.2 5.6 4.9 36 0.06 2.06 6.29

ANIS048417 505.5 514.0 8.5 7.6 38 0.04 2.35 4.76

ANIS048917 594.3 600.4 6.1 5.7 160 0.11 4.98 7.19

ANIS049317 483.3 486.8 3.5 3.3 83 0.05 3.74 4.69

ANIS049817 403.8 408.6 4.8 3.8 75 0.02 2.70 1.83

ANIS050217 606.8 614.1 7.3 6.6 235 0.09 6.51 6.50

Note:

1. Estimated True Width

A longitudinal section showing the location of the step- out drill hole results is available at the

following link: https://www.fortunasilver.com/site/assets/files/4102/animas-ne-vein-step-out-

drilling_6oct17.pdf

Step-out drilling has been carried out below the present limit of the estimated Mineral

Resources with drill holes spaced approximately 50 meters to 100 meters apart in two different

locations over areas covering 150 meters and 700 meters along strike and 150 meters and 300

meters down dip, respectively . The mineralized intercepts show that the Animas NE vein

remains open along strike to the northeast and southwest and at depth.

The Caylloma Mine and processing plant currently operate at a capacity of 1,470 tpd with 2017

annual production projected at 1.0 million ounces of silver, 30 million pounds of lead and 41

million pounds of zinc . The operation is expected to process 535,000 tonnes of ore averaging

71 g/t Ag, 2.73% Pb and 3.86% Zn (see Fortuna news release dated January 11, 2017 ). The

Brownfields exploration budget for 2017 is US$3.9 million, which includes 22,000 meters of

diamond drilling of which 18,700 meters have been drilled through mid-September.

In the second quarter of 2017, mine production was sourced mainly from the Animas NE and

Animas Central areas with each contributing 57 % and 3 3 % of ore , respectively (see Fortuna

news release dated July 13, 2017).

-3-

San Jose Mine, Mexico

Exploration drilling is currently underway at San Jose with four drill rigs. One rig is working

along strike of the Trinidad –Bonanza-Stockwork complex , immediately to the north of the

current Inferred Resource shell ; another is conducting step-out drilling farther to the north at

the Trinidad North Extension target; and two rigs are drilling on the s ub-parallel Victoria vein

(formerly the Ocotlan vein) , a blind discovery made in 2015, located 350 meters to the east of

current mine workings.

Drill highlights include:

Victoria vein

SJOM-591

• 247 g/t Ag and 1.8 1 g/t Au over an estimated true width of 4.1 meters, including

2,860 g/t Ag and 22.8 g/t Au over an estimated true width of 0.3 meters

SJOM-649

• 153 g/t Ag and 0.88 g/t Au over an estimated true width of 21.0 meters, including

918 g/t Ag and 6.29 g/t Au over an estimated true width of 0.7 meters

SJOM-676

• 356 g/t Ag and 3.53 g/t Au over an estimated true width of 4.5 meters, including 803

g/t Ag and 8.23 g/t Au over an estimated true width of 1.6 meters

SJOM-684

• 1,106 g/t Ag and 6.34 g/t Au over an estimated true width of 3.7 meters

Trinidad/ Bonanza veins and Stockwork

SJOM-597

• 218 g/t Ag and 1.33 g/t Au over an estimated true width of 6.7 meters

SJOM-600

195 g/t Ag and 1.13 g/t Au over an estimated true width of 2.2 meters

-4-

Assay results for principal mineralized intervals (December 2016 through October 2,

2017)

Structure Drill Hole From

(m)

Interval

(m)

ETW1

(m)

(g/t)

Victoria vein SJOM-591 426.8 434.5 7.7 4.1 247 1.81

including 428.0 429.1 1.1 0.6 373 2.31

433.2 433.5 0.3 0.2 2,860 22.8

SJOM-598 363.0 366.0 3.0 2.1 175 1.18

SJOM-649 350.0 396.0 46.0 21.0 153 0.88

including 383.0 390.4 7.4 3.6 281 1.24

394.5 396.0 1.5 0.7 918 6.29

409.5 414.3 4.8 2.2 230 1.45

SJOM-665 290.7 294.1 3.4 1.5 146 0.99

SJOM-670 401.4 424.7 23.2 8.4 73 0.59

including 401.4 404.9 3.5 1.3 107 0.70

417.6 424.7 7.1 2.5 110 0.90

SJOM-675 288.9 290.8 1.8 1.1 643 4.28

SJOM-676 381.4 388.4 7.0 4.5 356 3.53

including 383.7 386.2 2.5 1.6 803 8..23

SJOM-681A 208.3 209.3 1.0 0.6 270 1.50

and 280.8 283.5 2.7 1.8 88 0.88

SJOM-684 194.6 202.2 7.6 3.7 1,106 6.34

Trinidad / Bonanza

veins and

Stockwork

SJOM-590 374 375 1.0 0.9 152 0.92

SJOM-597 261.6 269 7.4 6.7 218 1.33

SJOM-600 419.4 423.2 3.8 2.2 195 1.13

SJOM-615 487.6 491.2 3.6 2.1 17 1.13

SJOM-624 249.7 260.9 11.2 4.0 68 0.30

SJOM-647 268.3 269.4 1.1 0.4 155 0.86

SJOM-682 301.8 304.4 2.6 0.4 114 0.67

Note:

1. Estimated True Width

Longitudinal sections showing the location of the step- out drill hole results are available at the

following links: https://www.fortunasilver.com/site/assets/files/4103/victoria-vein-

ls_6oct17.pdf and https://www.fortunasilver.com/site/assets/files/4104/trinidad-and-bonanza-

veins-and-stockwork-ls_6oct17.pdf.

The San Jose Mine and processing plant currently operate at a capacity of 3,000 tpd with 2017

annual production projected at 7.1 million ounces of silver and 51,900 ounces of gold. The

operation is expected to process 1,050,000 tonnes of ore averaging 230 g/t Ag and 1.67 g/t Au

(see Fortuna news release dated January 11, 2017 ). The Brownfields exploration budget for

2017 is US$7.0 million, which includes 31,000 meters of diamond drilling of which 18,045

meters have been drilled through mid-September 2017.

-5-

In the second quarter of 2017, mine production was sourced from Trinidad Central and Trinidad

North with each area contr ibuting 60% and 40% of ore, respectively (see Fortuna news release

dated July 13, 2017).

Arizaro Project, Lindero Camp, Argentina

It is management’s view that Arizaro presents the opportunity for a contributing satellite

deposit, adding economic benefit to the Lindero mine once in production. The Arizaro gold -

copper porphyry is located within the Lindero concession, 3.2 kilometers southeast of the

Lindero Project.

Historic work has included regional and local mapping, trenching with surface rock -chip

sampling (27 trenches, 6,568 meters, 495 samples) and drilling (8,854 meters, 29 core holes).

Highlights of drilling completed over four campaigns in 2002 and 2010 into 2013, include:

ARD-13

• 0.61 g/t Au and 0.22% Cu over 168 meters, including 1.81 g/t Au and 0.40% Cu over

30 meters

ARD-21

• 0.43 g/t Au and 0.17% Cu over 339 meters, including 0.66 g/t Au and 0.18% Cu over

94 meters

ARD-24

• 0.64 g/t Au and 0.24% Cu over 160 meters, including 0.82 g/t Au and 0.26% Cu over

104 meters

Note: Estimated true widths are not applicable at Arizaro due to the porphyry style of mineralization

Since August 2016, Fortuna has completed the following work at the Arizaro project aimed at

identifying high-grade gold resources that can materially add economic benefit to the Lindero

Project:

1. Relogged 8,817 meters (29 drill holes) of historic core - similar geology, alteration

and mineralization are found at both Lindero and Arizaro.

2. Remapped (1:2,000 scale) the entire surface area from immediately southeast of

Lindero to and including the area of historic drilling at Arizaro.

3. Submitted 321 samples from historic core pulps for cyanide-soluble copper analyses,

which will be used as a precursor to designing possible future metallurgical testing

and subsequent, shallow drilling at Arizaro.

-6-

Greenfields Exploration Update

Lindero concession and other properties in Salta, Argentina

Exploration work to date on the Lindero concession has been focused on outcropping porphyry

mineralization at the two known porphyry systems: Lindero and Arizaro. Alteration zones and

silica structures located within the Lindero concessions 2.5 kilometers due south of the Lindero

project site remain open for evaluation. Exploration of these areas, as well as the Arizaro gold -

copper porphyry system, are priorities of the exploration program.

Fortuna is also revisiting the extensive reconnaissance exploration database comprising over

fifteen years of sampling and generative work in northern Argentina, acquired from Goldrock

Mines along with the Lindero P roject in 2016 . Evaluations of third -party properties are

ongoing.

Prospero Silver Corp. equity investment agreement, Mexico

Fortuna entered into an equity investment agreement with Prospero Silver Corp. (TSX-V: PSL) in

early 2017 (see Prospero Silver news release dated April 17, 2017 ). This alliance provides for

the initial drilling of multiple targets at Prospero’s Matorral, Petate, Pachuca SE and Bermudez

properties located in Durango, Hidalgo and Chihuahua States, respectively. High-level

epithermal clay alteration with anomalous gold, silver or pathfinder elements are present at

each property, none of which has been previously drilled.

The agreement gives Fortuna the right to select one of the projects to joint venture with

Prospero, potentially earning a 70% interest by spending US $8 million over six years and

completing a Preliminary Economic Analysis on the selected property. Should Fortuna exercise

its Prospero warrants, the right to select a second project under the same terms as above is

retained. The exploration strategy is to complete the planned drilling at all targets, assess the

data and select properties as dictated by the results.

Matorral Project

Three drill holes (1,371 meters) were completed on three different targets in August testing for

potential epithermal precious metal mineralization beneath extensive surface outcrops of

jasperoid. Sporadic anomalous silver from trace up to 32 ppm was intersected and the project

is on hold until completion of the entire drill program (see Prospero Silver news release dated

August 24, 2017).

Petate Project

Drilling was initiated on Sept ember 18, 2017 and the program calls for drilling 11 holes on four

separate targets. The project is the most advanced in the Prospero Silver portfolio with high-

level epithermal alteration exposed over a 5 kilometer by 4 kilometer area with highly

anomalous gold and silver mineralization hosted in extensive outcrops and float of strata-

-7-

bound jasperoid. Surface sampling by Prospero at the Apartadero target at Petate returned a

best continuous channel sam ple of 67.5m @ 0.93 g/t Au (see Prospero Silver news release

dated August 24, 2017).

Drilling at the Pachuca SE and Bermudez projects will follow in order after completion of the

drilling at Petate.

Prospero continues to evaluate new opportunities in Mexico, which will be made available for

consideration by Fortuna.

Medgold Resources Corp. equity investment agreement, Serbia

Fortuna entered into an equity investment agreement with Medgold Resources Corp. (TSX -V:

MED) in mid -2016 (see Medgold Resources news releases dated June 13, 2016 and June 21,

2016). The structure of the agreement gives Fortuna the right to select one of the projects

generated from a reconnaissance program to joint venture with Medgold. Fortuna has the right

to earn a 70% interest by spending US $8 million over six years and completing a Preliminary

Economic Analysis on the selected property. Fortuna exercised its Medgold warrants in early

2017, thus retaining the right to select a second project under the same terms as above , and

exercised its first property right by optioning the Tlamino project in southern Serbia (see

Medgold Resources news releases dated February 9, 2017 and March 7, 2017).

Tlamino Project, Barje Prospect

Preparations are underway to complete a 2,000 meter diamond drill program in spring 2018

following up on two campaigns of surface channel sampling on the Barje outcrop a nd an IP

geophysical survey. Results of the surface channel sampling over an area of approximately 30

meters by 100 meters of the Barje outcrop are:

Channel Length

(m)

(g/t)

1 30 6.6 137

2 and 11 84 5.6 105

3 11 5.6 189

4 12 8.6 352

5 18 5.7 207

6 14.5 3.2 60

7 7 7.0 82

8 3 6.9 292

9 4 0.8 2.8

10 22 4.3 60

The follow-up IP geophysical survey (39 line -kilometer covering 4 km 2) completed in July 2016

shows a 400 meter by 1,000 meter chargeability high extending to the west from the Barje

outcrop (see Medgold Resources news releases dated January 9, 2017 and July 18, 2017).

-8-

The Barje prospect consists of ser icite schists overlying amphibolite gneisses separated by a

low-angle normal fau lt (detachment) that is presumed to be the locale of the mineralization

discovered to date.

Karamanica Prospect

Located approximately 8 kilometers west of the Barje Prospect , Karamanica hosts large -scale,

northwest-trending faults which cut packages of schists, calc -schists and quartz feldspar

porphyries. A mapping and rock -chip and soil sampling program completed over an area of

approximately 3 kilometers by 3 kilometers shows two gold-anomalous areas in soils measuring

1 kilometer by 1 kilometer and 600 meters by 800 meters with gold-in-soil values ranging up to

1 g/t Au and rock sample highs of 5.5 g/t, 7.1 g/t and 11.1 g/t (see Medgold Resources news

release dated October 2, 2017).

Additional work is planned for the 2018 field season.

Strategic Alliance Reconnaissance

Medgold Resources maintains a regional reconnaissance program that is identifying

opportunities for acquiring ground by staking new claims, all of which will be available for

evaluation by Fortuna.

Quality Assurance & Quality Control

Following detailed geological and geotechnical logging, drill core samples are split on -site by

diamond sawing. One half of the core is submitted to the ALS Chemex Laboratory in Lima, Peru,

for samples from the Caylloma Mine , the ALS Chemex Laboratory in Guadalajara, Mexico , for

samples from the San Jose Mine or the ACME Laboratory in Mendoza, Argentina, for samples

from the Arizaro Project . The remaining half core is retained on -site for verification and

reference purposes. Following preparation, the samples are assayed for gold and silver by

standard fire assay methods and for silver and base metals by ICP and atomic absorption

methods utilizing aqua regia digestion. The QA -QC program includes the blind insertion of

certified reference standards and assay blanks at a frequency of approximately 1 per 15 normal

samples as well as the inclusion of duplicate samples for verification of sampling and assay

precision levels.

Qualified Person

David F. Volkert, Vice President of Exploration for Fortuna Silver Mines Inc. , is a Qualified

Person as defined by National Instrument 43 -101 being a member of the American Institute of

Professional Geologists (CPG #10759) and the Association of Professional Engineers and

Geoscientists of British Columbia (P. Geo. #191936) . Mr. Volkert 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 Inc.

← Back to feed