Fortuna reports on Yaramoko´s updated reserves and resources evaluation work and its Brownfields exploration program
Fortuna reports on Yaramoko´s updated reserves and resources evaluation work
and its Brownfields exploration program
Vancouver, January 27, 2023 - Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) provides an update on
the evaluation work of the Mineral Reserve s and Mineral Resource s and the brownfields exploration
program at the Yaramoko Mine complex in Burkina Faso.
Following the completion of Fortuna´s acquisition of Roxgold Inc. on July 2, 2021, the Company updated
the technical report previously filed by Roxgold in 2017 and filed a new technical report on March 30, 2022
(the “2022 Technical Report”) to describe the proposed open pit mining operation at the 55 Zone as
disclosed by Roxgold on November 10, 2020. During the first half of 2022, the Company carried out
additional exploration drilling and a re-evaluation of the modeling and estimation techniques to improve
the definition of the mineralization. A summary of the drilling and evaluation programs completed at
Yaramoko during 2022 are summarized below, together with the highlights of its brownfields exploration
program.
2022 Drilling Programs and Studies
55 Zone underground drilling
Underground drilling of the 55 Zone concentrated on grade control drilling within the Mineral Resource
and Mineral Reserve boundaries to provide increased confidence in the mine plans. Step-out drilling
associated with the 2022 grade control drilling program returned encouraging results, incrementally
extending the western limit of the drill defined mineralization a further 20 to 50 meters, where it remains
open. Additional step-out drilling is planned for the first half of 2023.
In addition, four holes totaling 1,490 meters were drilled to test the area between the 4900 and
5100 meters above Relative Level (mRL) on the eastern side of the 55 Zone, which confirmed an up -dip
extension of a high-grade shoot previously intersected in the development drives between the 4800 and
4900 mRL.
109 Zone open pit exploration drilling and first-time estimate of Mineral Reserves
A total of 60 reverse circulation and diamond core drill holes totaling 4,922 meters were completed at the
109 Zone during 2022, including 13 holes drilled for geotechnical purposes. Drilling was designed to infill
and upgrade the geological confidence to support the estimation of Mineral Resources and Mineral
Reserves.
55 Zone open pit drilling
Reverse circulation drilling to test projections of near surface structural splays identified from mapping of
the underground openings was completed during 2022, with 25 holes completed for a total of
1,500 meters. Historic resource drilling had intersected several isolated high -grade intervals related to
sub-parallel mineralized veins associated with the main 55 Zone and which coincided with structures
identified from detailed mapping of the near surface 55 Zone underground workings.
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The drilling was successful in identifying the mineralized structures and veins although continuity of
economic intervals and strike lengths resulted in downgrading of the potential.
55 Zone open pit re-evaluation
Roxgold´s proposal to build an open pit at the 55 Zone was based on extracting high-grade near surface
material that formed the crown pillar by mining both remnant mineralization identified as being adjacent
to existing mine workings and additional sub-parallel structures related to the main 55 Zone structure.
Based on recommendations in the 2022 Technical Report, Fortuna completed a n evaluation of the
mineralization that was identified as potentially recoverab le from surface, which was to include an
underground transition study and the preparation of a void management plan.
During this evaluation process, the Company identified a spatial discrepancy attributed to a surveying
error which occurred prior to August 2020 . This resulted in horizontal differences averaging from 2 to 3
meters between the drill holes used to define the 55 Zone main mineralized structure and the
underground face channel samples collected during underground development . The updated estimate ,
having corrected for this inconsistency , results in a reduction of 120,000 ounces of gold previously
identified as modelled remnant mineralized material. Subsequently, an economic evaluation of the open
pit resulted in a reduction of a further 46,000 ounces of mineralized material which the Company
determined cannot be economically extracted from surface or underground due to its isolated location
and low-grade nature.
The updated estimate of the 55 Zone crown pillar decreases the life of mine from 5 years to 3 years and
results in a reduction in pit size that reduces risk associated with the plan by lowering the strip ratio from
55:1 to 19:1; optimising throughput during the last t hree years; no longer requir ing the relocation of
infrastructure; removing the need for significant pre-stripping; and eliminating the requirement to expand
the tailings storage facility as a result of processing fewer tonnes.
Bagassi South QV Prime Underground re-evaluation
An evaluation was conducted to assess the optimal mining method proposed for the QV Prime structure
at Bagassi South. Changing the method from the originally propose d long hole stoping to shrinkage
stoping resulted in lower dilution levels and an increase in estimated gold content in the updated Mineral
Reserve.
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Yaramoko Mineral Reserves and Mineral Resources as of June 30, 2022
Mineral Reserves – Proven and Probable as of June 30, 2022
Property Classification Tonnes
(000)
Au
(g/t)
Contained Au
(koz)
55 Zone underground Proven 29 4.83 4
Probable 743 7.42 177
Proven + Probable 772 7.32 182
55 Zone open pit Proven 72 5.79 13
Probable 73 4.69 11
Proven + Probable 145 5.23 24
109 Zone open pit Proven
Probable 160 1.77 9
Proven + Probable 160 1.77 9
Bagassi South QV Prime
underground
Proven
Probable 142 6.75 31
Proven + Probable 142 6.75 31
Bagassi South underground Proven
Probable 10 4.44 1.4
Proven + Probable 10 4.44 1.4
Stockpiles Proven 180 2.59 15
Probable
Proven + Probable 180 2.59 15
TOTAL
Proven 281 3.64 33
Probable 1,128 6.33 230
Proven + Probable 1,409 5.80 263
Mineral Resources– Measured and Indicated (exclusive of Reserves) as of June 30, 2022
Property Classification Tonnes
(000)
Au
(g/t)
Contained Au
(koz)
55 Zone underground Measured 81 6.35 17
Indicated 199 6.42 41
Measured + Indicated 280 6.40 58
55 Zone open pit Measured
Indicated 46 4.18 6
Measured + Indicated 46 4.18 6
109 Zone open pit Measured
Indicated 32 1.63 2
Measured + Indicated 32 1.63 2
Bagassi South QV Prime
underground
Measured
Indicated 74 7.27 17
Measured + Indicated 74 7.27 17
Bagassi South underground Measured
Indicated 54 7.07 12
Measured + Indicated 54 7.07 12
TOTAL
Measured 81 6.35 17
Indicated 404 6.02 78
Measured + Indicated 485 6.08 95
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Mineral Resources– Inferred (exclusive of Reserves) as of June 30, 2022
Property Classification Tonnes
(000)
Au
(g/t)
Contained Au
(koz)
55 Zone underground Inferred 26 6.74 6
55 Zone open pit Inferred 41 3.62 5
109 Zone open pit Inferred 3 1.35 0
Bagassi South QV Prime
underground
Inferred 22 6.12 4
Bagassi South underground Inferred 49 6.07 10
TOTAL Inferred 141 5.39 25
Notes:
1. Mineral Reserves and Mineral Resources are as defined by the 201 4 CIM Definition Standards for Mineral Resources and
Mineral Reserves
2. Mineral Resources are exclusive of Mineral Reserves
3. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
4. Factors that could materially affect the reported Mineral Resources or Mineral Reserves include : changes in metal price and
exchange rate assumptions; changes in local interpretations of mineralization; changes to assumed metallurgical recoveries,
mining dilution and recovery; and assumptions as to the continued ability to access the site, retain mineral and surface rights
titles, maintain environmental and other regulatory permits, and maintain the social license to operate
5. Mineral Resources and Reserves for the Yaramoko Mine are estimated and reported as of June 30, 2022
6. Mineral Reserves for Yaramoko are reported at a cut -off grade of 1.26 g/t Au for the 55 Zone open pit, 0.7 3 g/t Au for the
109 Zone open pit, 4.1 g/t Au for 55 Zone and Bagassi South underground (SLS), 3.1 g/t Au for Bagassi South QV Prime
(shrinkage) based on an assumed gold price of US$1,600/oz, metallurgical recovery rates of 98.0%, underground mining costs
of US$135/t, processing cost of US$31/t and G&A costs of US$28/t, surface m ining costs of US$3.44/t, processing cost of
US$27/t and G&A costs of US$25/t. Underground average mining recovery is estimated at 86% (SLS) and 90% (shrinkage) for
Bagassi South, 92% (SLS) for 55 Zone stopes and 100% for sill drifts. A mining dilution factor of 10% has been app lied for sill
drifts, 0.6 meter and 0.4 meter dilution skin has been applied for SLS and shrinkage mining respectively. Surface mining
recovery is estimated to average 100% and mining dilution 0% having been accounted for during block regularization to
5 meters x 5 meters x 5 meters size within an optimized pit shell and only Proven and Probable categories reported within
the final pit designs. Yaramoko Mineral Resources are reported in situ at a gold grade cut -off grade of 0. 9 g/t Au for the
55 Zone open pit, 0.5 g/t Au for the 109 Zone open pit, and 2.9 g/t Au for underground (Zone 55 and Bagassi South) , based
on an assumed gold price of US$1,700/oz and the same costs, metallurgical recovery and constrained within an optimised pit
shell. The Yaramoko Mine is subject to a 10% carried interest held by the government of Burkina Faso.
7. Matthew Cobb, (MAIG #5486) is the Qualified Person responsible for Mineral Resources being an employee of Roxgold Inc. (a
wholly-owned subsidiary of Fortuna), Raul Espinoza (FAUSIMM (CP) #309581) is the Qualified Person responsible for Mineral
Reserves, being an employee of Fortuna
8. Totals may not add due to rounding procedures
Changes to the Yaramoko Mine Mineral Reserves and Mineral Resources since December 31, 2021
Proven and Probable Reserves decreased from 2.1 million tonnes averaging 6.78 g/t Au containing
464,000 ounces of gold to 1.4 million tonnes averaging 5.80 g/t Au containing 263 ,000 ounces of gold in
the first six months of 2022 representing a 34 percent decrease in tonnes and 43 percent decrease in gold
ounces. Reasons for the changes include:
• 55 Zone underground and Bagassi South underground: decrease of 12 percent or
53,000 ounces due to production related depletion and sterilization
• 55 Zone open pit: decrease of 26 percent or 120,000 ounces due to a reduction of remnant
mineralized material related to a survey discrepancy identified in the historical model that
was corrected in the updated resource model evaluation
• 55 Zone open pit: decrease of 10 percent or 46,000 ounces due to changes in pit size as
material at depth cannot be economically extracted from surface due to increased strip ratios
as a result of the depletion of the aforementioned remnant material
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• 55 Zone underground and Bagassi South underground: increase of 1 percent or 5,000 ounces
due to updated geological interpretation as a result of brownfields drilling counteracting
marginal increases in cut-off grades
• 109 Zone open pit: gain of 2 percent or 9,000 ounces due to infill drilling and first time
estimation of resources and reserves
• Bagassi South QV Prime: gain of 2 percent or 8,000 ounces in the Bagassi South underground
mine due to a change in the proposed mining method to shrinkage stoping and subsequent
re-evaluation of the Mineral Reserves
Measured and Indicated Resources excluding reserves remain relatively unchanged at 0.5 million tonnes
averaging 6.10 g/t Au containing 95,000 ounces of gold.
Inferred Resources decreased slightly from 0.25 million tonnes averaging 4.41 g/t Au containing
35,000 ounces of gold to 0.14 million tonnes averaging 5.39 g/t Au containing 25 ,000 ounces of gold in
the first 6 months of 2022. Reasons for the changes are related to geological reinterpretation and
upgrading based on the exploration and infill drilling.
The aforementioned updated Mineral Resources and Mineral Reserves for the Yaramoko Mine will be
included in the Company’s consolidated Mineral Resource and Mineral Reserve update to be released
prior to the end of the first quarter of 2023 , subject to the completion of depletion for the period from
June 30, 2022 to December 31, 2022. The Company will also prepare an updated technical report for the
Yaramoko Mine to be filed together with its annual continuous disclosure filings prior to the end of the
first quarter. The aforementioned changes in the Mineral Resources and Mineral Reserves are not
material to the Company´s consolidated Mineral Resources and Mineral Reserves.
Brownfields Exploration Highlights
A program of 11 reverse circulation holes totaling 1,182 meters was completed in 2022 as part of a scout
drilling program to test the projected northwest extension of the QV and QV Prime veins approximately
300 to 400 meters along strike from Bagassi South.
Hosted in similar variably sheared granite a nd mafic volcanic lithologies to the Bagassi South
mineralization (refer to Figure 1), drilling intersected quartz vein hosted mineralization interpreted as a
continuation of the Bagassi South vein system. At Bagassi South this system comprises several veins
including the QV, QV Prime, QV1 to QV3 veins and is characterized by anastomosing and steeply plunging
high-grade shoots within the vein system. Refer to Appendix 1 for full results.
Highlight intervals include:
• YRM-22-RC-BGR-006: 7.36 g/t Au over an estimated true width of 5.5 meters from 119 meters
downhole, including 17.43 g/t Au over an estimated true width of 2.2 meters from 123 meters
• YRM-22-RC-BGR-004: 1.92 g/t Au over an estimated true width of 7.3 meters from 22 meters
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Figure 1. Plan view of scout drilling testing strike projections of the QV and QV Prime veins at Bagassi
South.
Quality Assurance & Quality Control (QA-QC)
All drilling data completed by the Company utilized the following procedures and methodologies. All
drilling was carried out under the supervision of the Company’s personnel.
All RC drilling used a 5.25 -inch face sampling pneumatic hammer with samples collected into 60 -liter
plastic bags. Samples were kept dry by maintaining enough air pressure to exclude groundwater inflow. If
water ingress exceeded the air pressure, RC drilling was stopped, and drilling converted to diamond core
tails. Once collected, RC samples were riffle split through a three-tier splitter to yield a
12.5% representative sample for submission to the analytical laboratory. The residual 87.5% sample were
stored at the drill site until assay results were received and validated. Coarse reject samples for all
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mineralized sampl es corresponding to significant intervals are retained and stored on -site at the
company-controlled core yard.
All DD drill holes at Yaramoko were drilled with HQ sized diamond drill bits. The core was logged, marked
up for sampling using standard lengths of one meter or to a geological boundary. Samples were then cut
into equal halves using a diamond saw. One half of the core was left in the original core box and stored in
a secure location at the company core yard at the project site. The other half was s ampled, catalogued,
and placed into sealed bags and securely stored at the site until shipment.
All Yaramoko RC and DD core samples were transported to ALS Laboratories in Ouagadougou for
preparation. Routine gold analysis using a 50-gram charge and fire assay with an atomic absorption finish
was completed for all samples. Quality control procedures included the systematic insertion of blanks,
duplicates and sample standards into the sample stream. In addition, the ALS laboratory inserted its own
quality control samples.
Qualified Persons
Eric Chapman, Senior Vice President of Technical Services at Fortuna, is a Professional Geoscientist of the
Association of Professional Engineers and Geoscientists of the Province of British Columbia (Registration
Number 36328) and a Qualified Person as defined by National Instrument 43-101- Standards of Disclosure
for Mineral Projects (“NI 43-101”). Mr. Chapman has reviewed and approved the scientific and technical
information contained in this news release related to the Mineral Resources and Mineral Reserves at the
Yaramoko Mine and has verified the underlying data.
Paul Weedon, Senior Vice President of Exploration at Fortuna, is a member of the Australian Institute of
Geoscientists (Membership #6001) and a Qualified Person as defined by NI 43-101. Mr. Weedon has
reviewed and approved the scientific and technical information contained in this news release related to
the exploration programs at the Yaramoko Mine. Mr. Weedon has verified the data disclosed, and the
sampling, analytical and test data underlying th e information or opinions contained herein by reviewing
geochemical and geological databases and reviewing diamond drill core. There were no limitations to the
verification process.
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 a fifth mine under construction 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 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] | Twitter: @Fortuna_Silver | LinkedIn: fortunasilvermines
| YouTube: Fortuna Silver Mines
- 8 -
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
Company’s plans for its mines and mineral properties; the Company’s business strategy, plans and outlook; the merit of the
Company’s mines and mineral properties; the Yaramoko Mine Mineral Resource and Mineral R eserve estimates; expected
metallurgical recoveries; the Company’s ability to convert Inferred Mineral Resources to Indicated Mineral Resources and to
convert Mineral Resources to Mineral Reserves; timelines; production at the Yaramoko Mine; the future financial or operating
performance of the Company; the effects of laws, regulations and government policies affecting our operations or potential future
operations; future successful development of the Yaramoko Mine; the estimates of expected or anticipated economic returns from
the Company’s mining operations in cluding future sales of metals, doré and concentrate or other products produced by the
Company and the Company’s ability to achieve its production and cost guidance; capital expenditures at the Company’s
operations; estimated brownfields and greenfields expenditures in 202 3; the success of the Company’s exploration activities,
including infill drill programs at its mines and development projects; the duration and impacts of COVID -19 on the Company’s
production, workforce, business, operations and financial condition; metal price estimates, estimated metal grades in 202 3;
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”, “pr ojected”, “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, operational risks associated
with mining and mineral processing; uncertainty relating to Mineral Resource and Mineral Reserve estimates; uncertainty relating
to capital and operating costs, production schedules and economic returns; risks relating to the C ompany’s ability to replace its
Mineral Reserves; risks associated with mineral exploration and project development; uncertainty relating to the repatriation of
funds as a result of currency controls; environmental matters including obtaining or renewing environmental permits and potential
liability claims; uncertainty relating to nature and climate conditions; risks associated with political instability and changes to the
regulations governing the Company’s business operations; changes in national and loca l government legislation, taxation,
controls, regulations and political or economic developments in countries in which the Company does or may carry on business;
risks associated with war, hostilities or other conflicts, such as the Ukrainian – Russian conflict, and the impact it may have on
global economic activity; risks relating to the termination of the Company’s mining concessions in certain circumstances;
developing and maintaining relationships with local communities and stakeholders; risks associate d with losing control of public
perception as a result of social media and other web -based applications; potential opposition to the Company’s exploration,
development and operational activities; risks related to the Company’s ability to obtain adequate fi nancing for planned
exploration and development activities; property title matters; risks relating to the integration of businesses and assets acquired
by the Company; impairments; risks associated with climate change legislation; reliance on key personnel; adequacy of insurance
coverage; operational safety and security risks; legal proceedings and potential legal proceedings; the ability of the Company to
successfully contest and revoke the resolution issued by SEMARNAT which annuls the extension of the e nvironmental impact
authorization for the San Jose mine; uncertainties relating to general economic conditions; risks relating to a global pandemic,
including COVID-19, which could impact the Company’s business, operations, financial condition and share pr ice; competition;
fluctuations in metal prices; risks associated with entering into commodity forward and option contracts for base metals
production; fluctuations in currency exchange rates and interest rates; tax audits and reassessments; risks related t o hedging;
uncertainty relating to concentrate treatment charges and transportation costs; sufficiency of monies allotted by the Company
for land reclamation; risks associated with dependence upon information technology systems, which are subject to disrup tion,
damage, failure and risks with implementation and integration; risks associated with climate change legislation; 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 thos e
described in Forward -looking Statements, there may be other factors that cause actions, events or results to differ from t hose
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 r eserve estimates; that the Company’s
activities will be conducted in accordance with the Company’s public statements and stated goals; that there will be no mater ial
adverse change affecting the Company, its properties or its production estimates (which assume accuracy of projected ore grade,