Fortuna reports production of 1.9 million ounces of silver and 34,555 ounces of gold for the first quarter of 2021
Fortuna reports production of 1.9 million ounces of silver and 34,555 ounces of
gold for the first quarter of 2021
Vancouver, April 12, 2021 – Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) reports production results
for the first quarter from its t hree operating mines in Latin America, the San Jose Mine in Mexico , the
Caylloma Mine in Peru, and the Lindero Mine in Argentina. The Company produced 1,913,755 ounces of
silver and 34,555 ounces of gold or 59,736 gold equivalent1 ounces. Fortuna is on schedule to produce
between 6.8 to 7.6 million ounces of silver and between 178 to 202 thousand ounces of gold or between
267,000 to 302,000 ounces gold equivalent1 in 2021, in accordance with our annual production guidance
(refer to Fortuna news release dated January 19, 2021).
First Quarter Consolidated Production Highlights
• Silver production of 1,913,755 ounces; 5 percent increase over Q1 2020
• Gold production of 34,555 ounces; 242 percent increase over Q1 2020
• Lead production of 8,181,355 pounds; 6 percent increase over Q1 2020
• Zinc production of 11,968,896 pounds; 1 percent increase over Q1 2020
First Quarter Consolidated Operating Highlights
First Quarter 2021 First Quarter 2020
Caylloma,
Peru
San Jose,
Mexico
Lindero,
Argentina Consolidated Caylloma,
Peru
San Jose,
Mexico
Lindero,
Argentina Consolidated
OPERATIONAL FIGURES
Tonnes milled 131,887 259,803 132,741 246,826
Average tpd milled 1,499 3,048 1,491 2,837
Ore placed on pad2 (t) 2,130,000
SILVER3
Grade (g/t) 77 217 70 216
Recovery (%) 81.45 90.79 83.53 91.66
Production (oz) 267,311 1,646,444 1,913,755 249,111 1,570,201 1,819,312
GOLD
Grade (g/t) 0.62 1.36 0.82 0.24 1.33
Gold placed on pad2 (oz) 56,330
Recovery (%) 73.09 90.51 46.39 91.34
Production4 (oz) 1,922 10,301 22,332 34,555 471 9,630 10,101
LEAD
Grade (%) 3.21 2.96
Recovery (%) 87.69 89.28
Production (lbs) 8,181,355 8,181,355 7,722,793 7,722,793
ZINC
Grade (%) 4.70 4.58
Recovery (%) 87.63 88.22
Production (lbs) 11,968,896 11,968,896 11,821,186 11,821,186
Notes:
1. Gold equivalent production does not include lead or zinc, and is calculated using gold to silver ratio of 1 to 76
2. Lindero tonnes and gold grade are estimated using grade control sampling of blast holes. Numbers are reported to the nearest
ten thousand for tonnes
3. Metallurgical recovery for silver at the Caylloma Mine is calculated based on silver content in lead concentrate
4. Lindero production includes gold in carbon columns and electrolytic cement
5. Totals may not add due to rounding
NYSE: FSM | TSX: FVI
www.fortunasilver.com NEWS RELEASE
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San Jose Mine, Mexico
The San Jose Mine produced 1,646,444 ounces of silver and 10,301 ounces of gold in the first quarter of
2021, in line with budget. A verage head grades for silver and gold were 217 g/t and 1.36 g/t, 10 and
11 percent above budget for the quarter, respectively, due to better grades encountered in planned
production stopes of the mine with respect to the reserve model.
Caylloma Mine, Peru
In the first quarter of 2021, the Caylloma Mine produced 267,311 ounces of silver with an average head
grade of 77 g/t, 4 and 6 percent above budget, respectively.
Caylloma continued to contribute significant gold production in the first quarter of 2021. Gold production
was 1,922 ounces, an increase of 308 percent with respect to the comparable period of 2020. The increase
in gold production is related to higher head grades encountered in the Animas NE vein. The exploration
team continues to carry out work to better understand the continuity of these higher-grade zones.
Lead and zinc production for the first quarter of 2021 was 8,181,355 pounds and 11,968,896 pounds,
9 percent above and in line with budget, respectively. The average head grades for lead and zinc were
3.21% and 4.70%, 13 and 11 percent above budget, respectively.
Lindero Mine, Argentina
Lindero remains on track to achieve 2021 annual gold production guidance of 140,000 to 160,000 ounces
(refer to Fortuna news release dated January 19, 2021).
Government mandated international travel restrictions due to COVID -19 is limiting onsite access to
foreign vendor support. This continues to affect Lindero’s ramp up progress in specific areas such as the
stacking system and the SART plant. The operation is resolving these challenges via the use of remote
assistance technology and other initiatives.
In the first quarter of 202 1, a total of 2.13 million tonnes of ore were placed on the heap leach pad
averaging 0.82 g/t gold, containing an estimated 56,330 ounces of gold. The operation placed 65 percent
more ounces on the heap leach pad and produced 53 percent more ounces in doré compared to the fourth
quarter of 2020. Total gold production was 22,332 ounces comprised of 20,562 ounces in doré and
1,770 ounces of gold-in-carbon (GIC) inventory.
First Quarter 2021
Ore mined1 (t) 1,610,000
Waste mined1 (t) 1,220,000
Total mined1 (t) 2,830,000
Strip ratio (waste to ore) 0.76
Average crushing throughput (tpd) 860
Ore placed on leach pad1 (t) 2,130,000
Ore placed grade1 (g/t) 0.82
GIC inventory (oz) 1,770
Doré poured (oz) 20,562
Gold produced (oz) 22,332
Gold sold (oz) 21,297
Note:
1. Lindero tonnes and gold grade are estimated using grade control sampling of blast holes. Numbers are reported to the nearest
ten thousand for tonnes
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Mining
A total of 1.6 million tonnes of ore were mined in the first quarter of 2021 at a strip ratio of 0.76:1. Mining
of ore was in line with expectation, while waste rock movement was 47 percent lower than planned due
to the prioritization of mining trucks to stack ore on the leach pad. Waste movement is scheduled to
increase during the second half of the year to align the operation with the waste stripping plan for 2021.
Reconciliation of the reserve model estimate indicates a good correlation with tonnes, grade, and gold
ounces mined within 5 percent of predicted.
Processing
The ramp up of the primary and secondary crushing circuits is progressing according to plan with crushing
in March averaging 15,770 tonnes per day and throughput averaging 960 tonnes per hour, representing
84 and 92 percent of design capacity, respectively. During March, crushing peaked at 20,000 tonnes per
day.
The tertiary-HPGR crusher, agglomeration plant, and stacking system throughput averaged 7,600 tonnes
per day in March, achieving 41 percent of design capacity. During the quarter, the limiting factor for higher
throughput was the stacking system , where the operation encountered challenges with automation,
mechanical, and operational issues. As at the end of March, the automation and mechanical issues were
largely resolved while training of the workforce continues. In the first days of April, the stacking system
peaked at 14,780 tonnes per day, 79 percent of design capacity.
In order to remain on track to achieve annual gold production guidance, the operation continues to place
coarse ore from the secondary crusher ’s stockpile via trucks and run of mine material representing
81 percent of ore placed on the heap leach pad in the quarter.
Recovery of gold for the different granulometries of ore placed on the heap leach pad is in line with
expectations with 22,332 ounces of gold produced in the quarter.
The ADR plant is operating as per design capacity. The SART plant ramp up was suspended at the end of
February to address operational issues with the copper and gypsum filters. Bypassing the SART plant is
not expected to have a critical impact on gold production during the upcoming months due to the relative
low levels of soluble copper in the pregnant solution. The operation expects to incorporate the SART plant
into the process in the second quarter of 2021.
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.
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Qualified Person
Amri Sinuhaji is the Technical Services Director – Mine Planning for the Company and is a Professional
Engineer registered with the Association of Professional Engin eers and Geoscientists of the Province of
British Columbia (#48305) and a Qualified Person as defined by National Instrument 43-101- Standards of
Disclosure for Mineral Projects. Mr. Sinuhaji has reviewed and approved the scientific and technical
information contained in this news release and has verified the underlying data.
About Fortuna Silver Mines Inc.
Fortuna Silver Mines Inc. is a Canadian precious metals mining company with operations in Peru, Mexico
and Argentina. Sustainability is integral to all our operations and relationships. We produce silver and gold
and generate shared value over the long -term for our shareholders and stakeholders through efficient
production, environmental protection and social responsibility. For more information, pleas e visit our
website at www.fortunasilver.com.
ON BEHALF OF THE BOARD
Jorge A. Ganoza
President, CEO, and Director
Fortuna Silver Mines Inc.
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 anticipated performance in 2021;
estimated production forecasts and sales for 2021; estimated production costs and all-in sustaining cash costs
for 2021; 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 2021; the estimated amount of ore
to be placed on the leach pad at the Lindero Mine in 2021, the grade of gold and the amount of gold estimated
to be contained therein; the Company’s business strategy, plans and outlook; the merit of the Company’s mines
and mineral properties; mineral resource and reserve estimates; production costs; timelines; 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.
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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 b y the Forward -looking Statements. Such
uncertainties and factors include, among others, changes in general economic 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 industry in the countries in which the Company operates, the
ability to operate as a result of government imposed restrictions, including restric tions on travel, the
transportation of concentrates and doré, access to refineries, the impact of additional waves 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 t he Company’s mines as a result of COVID -19 which may affect production and the Company’
business operations and financial condition; changes in prices for gold, silver and other metals; changes in the
prices of key supplies; technological and operational h azards 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; changes to current estimates of mineral reserves and r esources;
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 rates; 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 actu al 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 wit h the Company’s public 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 Lindero Mine remains consistent with the mineral reserve model;
changes to production 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 dif ficulties); 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; government mandates
in Peru, Mexico and Argentina 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 may affect may aspects of the Company’s operations, including transportation of personnel to
and from site, contractor and supplier availability and the ability to sell or deliver concentrate and doré; the
expected trends in mineral prices and currency exchange 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 adverse
change affecting the Company or its properties; that all required approvals will be obtained for the Company’s
business and operations ; that there will be no significant disruptions affecting operations 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 For ward-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 results and future event s could differ materially from
those anticipated in such statements. Accordingly, investors should not place undue reliance on Forward -
looking Statements.
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Non-GAAP Financial Measures
This news release also refers to non -GAAP financial measures, such as c ash cost per tonne of processed ore.
These measures do not have a standardized meaning or method of calculation, even though the descriptions of
such measures may be similar. These performance measures have no meaning under International Financial
Reporting Standards (IFRS) and therefore, amounts presented may not be comparable to similar data presented
by other mining companies.
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 Canadian Securities Administrators that establishes standards for public disclosure
by a Canadian company of scientific and technical information concerning miner al projects. Equivalent U.S.
reporting requirements are currently governed by the United States Securities 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
Industry 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 min eralization could be
economically and legally produced or extracted at the time the reserve determination is made. While the SEC
recognizes the reporting of mineral deposits which do not meet the Industry Standard Guide 7 definition of
“reserve” as of Febr uary 25, 2019, the effective adoption of the Modernization of Property Disclosures for
Mining Registrants, such rules are not required to be compiled with until 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 deposi ts 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 all 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 cautioned not to assume that all or any
part of an "inferred mineral resource" exists or is economically or legally mineable. Dis closure of "contained
ounces" in a resource is permitted disclosure under Canadian regulations; however, the SEC's disclosure
standards currently in effect under Industry Guide 7 normally only permit issuers to report mineralization that
does not constitut e "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, information 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.