Fortuna reports positive reconciliation of reserves for the fourth quarter 2019 at the Lindero Mine, Argentina
Fortuna reports positive reconciliation of reserves for the fourth quarter 2019 at
the Lindero Mine, Argentina
Vancouver, January 13, 2020-- Fortuna Silver Mines, Inc. (NYSE: FSM) (TSX: FVI) is pleased to report
pre-production mining reconciliation results at the Lindero Mine located in the Province of Salta,
Argentina. In the fourth quarter of 2019 , an estimated 452,000 tonnes of mineralized material was
stockpiled averaging 0.58 g/t Au containing 8,400 ounces of gold, representing 12 percent more gold
ounces than was predicted in the reserve block model. The operation also benefitted from handling five
percent less waste tonnes than expected.
Eric Chapman, Vice - President Technical Services, commented, “The encouraging maiden reconciliation
results reflect a good correlation in gold grade between the mine and the reserve model.” Mr. Chapman
continued, “ In the first quarter of 2020 , the mining rate is planned to increase as mining activities
expose higher grade mineralized areas located in the southeast of the deposit for direct feeding to the
crushing circuit.”
In September 2019, pre -production mining activities commenced at Linder o with blasting and the
development of production platforms. A total of 452,000 tonnes of mineralized material and 929,000
tonnes of waste were mined in the fourth quarter of 2019.
The table below details material movements from the pit as estimated from the grade control model
versus the Mineral Reserve block model for comparable volumes.
Location Parameter
Grade Control Model1, 3 Mineral Reserve Model2, 3 Difference
Stockpile Tonnes 452,000 397,000 13.9 %
Au (g/t) 0.58 0.59 -0.9 %
Au (oz) 8,400 7,500 12.0 %
Waste Dump Tonnes 929,000 974,000 -4.6 %
Notes:
1. Grade control model numbers are based on estimates from blast holes
2. Mineral Reserve model numbers are based on the Mineral Reserve estimates as of March 31, 2019 (refer to Fortuna
news release dated April 4, 2019). See also the Technical Report entitled “Fortuna Silver Mines Inc.: Lindero Property,
Salta Province, Argentina” with an effective date of October 31, 2017 prepared by Eric Chapman, Edwin Gutierrez,
Geoff Allard and Denys Parra Murrugarra. The updated Mineral Reserve estimate does not materially change the
information presented in the Technical Report.
3. Based on a cut-off grade of 0.26 g/t Au
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The increase in mineralized tonnes and gold ounces mined is primarily due to variations in the geological
boundary between the post -mineralized intrusive and the mineralized crowded porphyry diorite and
mingled diorite porphyry units. Th e boundary variation is near surface and is not expected to extend at
depth.
Quality Assurance & Quality Control
Grade control estimates are based on blast hole chip samples submitted to Lindero’s on-site laboratory
for preparation and assaying for gold , using fire assay with an atomic absorption finish . The QA -QC
program includes the blind insertion of certified reference standards and assay blanks at a frequency of
approximately 1 per 20 normal samples as well as the submission of duplicate samples for verification of
sampling and assay precision levels by an ISO 9001:2000 certified umpire laboratory . ALS Global
Laboratory in Mendoza, Argentina prepared the samples for assaying and then forwarded the samples
to ALS Global Laboratory in Lima, Peru for assay by standard fire assay methods.
Qualified Person
Eric Chapman, Vice President of Technical Services, is a Professional Geoscientist of the Association of
Professional Engineers and Geoscientists of the Province of British Columbia (Registration Number
36328). Mr. Chapman has reviewed and verified the reconciliation data disclosed in this news release
and has approved the scientific and technical information contained in this news release.
About the Lindero gold Project, Argentina
In September 2017, the commencement of construction at Lindero was officially launched (see Fortuna
news releases dated September 21, 2017 and December 21, 2017 ). Lindero has been designed as an
18,750 tonnes per day owner operated open pit mine with a pit life of 13 years based on current
Mineral Reserves. Crushed ore will be placed on a leach pad with the pregnant solution pumped to SART
and ADR plants prior to electrowinning and refining where gold will be poured to doré bars.
About Fortuna Silver Mines Inc.
Fortuna is a growth oriented, precious metal producer with its primary assets being 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. For more information, please visit its website at
www.fortunasilver.com.
ON BEHALF OF THE BOARD
Jorge A. Ganoza
President, CEO and Director
Fortuna Silver Mines Inc.
Trading symbols: NYSE: FSM | TSX: FVI
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Investor Relations:
Carlos Baca- T (Peru): +51.1.616.6060, ext. 0
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 ou tlook; the merit of the Company’s
mines and mineral properties; mineral resource and reserve estimates; timelines; production at the mines , including
planned production at the Lindero Project in the first year of its commercial production ; the future fina ncial 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”, “projecte d”, “used”, “detailed”, “has been”, “gain”, “planned”, “reflecting”, “will”,
“containing”, “remaining”, “to be”, or statements that events, “could” or “should” occur or be achieved and similar
expressions, including negative variations.
Forward looking S tatements 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 F orward looking Statements. Such uncertainties and
factors include, among others, whether the Company’s activities at its properties will proceed as planned; delays in
construction at the Lindero Project; delays in commissioning of the mine at Lindero; dela ys in the commencement of
commercial production; changes in general economic conditions and financial markets; changes in prices for silver,
gold 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; governmental and other approvals; political unrest or instability in countries where
Fortuna is active; labor relat ions 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 tho se 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, expect ations and opinions of
management, including but not limited to: that the Company’s activities at its properties will proceed as planned;
expectations regarding mine production costs; doré production guidance for the first year of commercial
production is based on certain estimates and assumptions, including but not limited to: construction at the Lindero
Project continues according to current time and cost scheduling, Mineral Resources and Mineral Reserves,
geological formations, g rade and continuity of deposits and metallurgical characteristics; expected trends in
mineral prices and currency exchange rates; the accuracy of the Company’s current mineral resource and reserve
estimates; that the Company’s activities will be in accorda nce with the Company’s public statements and stated
goals; that there will be no material adverse change affecting the Company or its properties; that all required
approvals will be obtained; that there will be no significant disruptions affecting operatio ns and such other
assumptions as set out herein. Forward looking Statements are made as of the date hereof and the Company
disclaims any obligation to update any Forward looking Statements, whether as a result of new information, future
events or results o r otherwise, except as required by law. There can be no assurance that Forward looking
Statements will prove to be accurate, as actual results and future events could differ materially from those
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anticipated in such statements. Accordingly, investors shoul d not place undue reliance on Forward looking
Statements.
Cautionary Note to United States Investors Concerning Estimates of Reserves and Resources
Reserve and resource estimates included in this news release have been prepared in accordance with National
Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43 -101") and the Canadian Institute of Mining,
Metallurgy, and Petroleum Definition Standards on Mineral Resources and Mineral Reserves. NI 43 -101 is a rule
developed by the Canad ian Securities Administrators that establishes standards for public disclosure by a Canadian
company of scientific and technical information concerning mineral projects. Equivalent U.S. reporting
requirements are currently governed by the United States Sec urities and Exchange Commission ("SEC") Industry
Guide 7 (“Industry Guide 7”) under the U.S. Securities Act of 1933, as amended. Canadian standards, including NI
43-101, differ significantly from the requirements of the SEC currently in effect under Indust ry Guide 7, and reserve
and resource information contained in this news release may not be comparable to similar information disclosed by
U.S. companies. In particular, the term "resource" does not equate to the term "reserves". Under the SEC's
disclosure standards currently in effect under Industry Guide 7, mineralization may not be classified as a "reserve"
unless the determination has been made that the mineralization could be economically and legally produced or
extracted at the time the reserve determi nation is made. The SEC has not recognized the reporting of mineral
deposits which do not meet the Industry Guide 7 definition of “reserve” prior to the adoption of the Modernization
of Property Disclosures for Mining Registrants, which rules will be requi red to be complied with in the first fiscal
year beginning on or after January 1, 2021. As a result, the SEC's disclosure standards currently in effect normally
do not permit the inclusion of information concerning "measured mineral resources", "indicated mineral resources"
or "inferred mineral resources" or other descriptions of the amount of mineralization in mineral deposits that do
not constitute "reserves" by U.S. standards in documents filed with the SEC. You are cautioned not to assume that
resources will ever be converted into reserves. You should also understand that "inferred mineral resources" have a
great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility.
You should also not assume that a ll or any part of an "inferred mineral resource" will ever be upgraded to a higher
category. Under Canadian rules, estimated "inferred mineral resources" may not form the basis of feasibility or pre -
feasibility studies except in rare cases. You are caution ed not to assume that all or any part of an "inferred mineral
resource" exists or is economically or legally mineable. Disclosure of "contained ounces" in a resource is permitted
disclosure under Canadian regulations; however, the SEC's disclosure standard s currently in effect under Industry
Guide 7 normally only permit issuers to report mineralization that does not constitute "reserves" by such standards
as in-place tonnage and grade without reference to unit measures. The requirements of NI 43 -101 for identification
of "reserves" are also not the same as those of the SEC's disclosure standards currently in effect under Industry
Guide 7, and reserves reported in compliance with NI 43 -101 may not qualify as "reserves" under such SEC
standards. Accordingly, i nformation concerning mineral deposits set forth in this news release may not be
comparable with information made public by companies that report in accordance with U.S. standards.