Fortuna reports production of 2.3 million ounces of silver and 14,557 ounces of gold for the second quarter of 2018
Fortuna reports production of 2.3 million ounces of silver and 14,557 ounces of gold
for the second quarter of 2018
Vancouver, July 16, 2018-- Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) is pleased to report
production results for the second quarter of 2018 from its two operating mines in Latin America, the San
Jose Mine in Mexico and the Caylloma Mine in Peru. The Company produced 2.3 million ounces of silver
and 14,557 ounces of gold plus base metal by -products. Silver and gold production for the first six
months totaled 4.7 million ounces and 29,597 ounces respectively; being 13 percent and 20 percent
above the C ompany´s mid -year projection. Fortuna is on schedule to produce 8. 3 million ounces of
silver and 48.3 thousand ounces of gold or 11.4 million Ag Eq1 ounces in 201 8 in accordance with our
production guidance (see Fortuna news release dated January 17, 2018).
Second Quarter Production Highlights
Silver production of 2,321,315 ounces; 10 percent increase over Q2 2017
Gold production of 14,557 ounces; in line with Q2 2017
Lead production of 7,186,541 pounds; in line with Q2 2017
Zinc production of 11,436,243 pounds; 8 percent increase over Q2 2017
Cash cost2 for San Jose is US$60.5/t
Cash cost2 for Caylloma is US$76.9/t
Consolidated Operating Highlights
Second Quarter 2018 Second Quarter 2017
Caylloma,
Peru
San Jose,
Mexico
Consolidated
Caylloma,
Peru
San Jose,
Mexico
Consolidated
Processed Ore
Tonnes milled 134,123 263,383 131,974 268,456
Average tpd milled 1,507 2,987 1,483 3,016
Silver3
Grade (g/t) 65 268 64 238
Recovery (%) 84.84 91.67 84.55 91.84
Production (oz) 237,303 2,084,013 2,321,315 229,594 1,887,269 2,116,863
Notes:
1. Silver equivalent production does not include lead or zinc and is calculated using a silver to gold ratio of 65 to 1
2. Preliminary estimates of cash operating costs per tonne, subject to modification on final cost consolidation
3. Metallurgical recovery for silver at the Caylloma Mine is calculated based on silver content in lead concentrate
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Second Quarter 2018 Second Quarter 2017
Caylloma,
Peru
San Jose,
Mexico
Consolidated
Caylloma,
Peru
San Jose,
Mexico
Consolidated
Gold
Grade (g/t) 0.17 1.86 0.19 1.82
Recovery (%) 17.91 91.54 16.60 91.55
Production (oz) 134 14,422 14,557 137 14,410 14,547
Lead
Grade (%) 2.65 2.70
Recovery (%) 91.63 91.25
Production (lbs) 7,186,541 7,186,541 7,170,027 7,170,027
Zinc
Grade (%) 4.27 4.04
Recovery (%) 90.57 90.36
Production (lbs) 11,436,243 11,436,243 10,613,417 10,613,417
San Jose Mine, Mexico
The San Jose Mine produced 2,084,013 ounces of silver and 14,422 ounces of gold in the second quarter
of 2018, 9 percent and 17 percent above budget respectively. Average head grades for silver and gold
were 268 g/t and 1.86 g/t, 10 percent and 19 percent above budget respectively. Silver and gold
production for the first six months of 2018 totaled 4.3 million ounces and 29,304 ounces respectively;
being 13 percent and 19 percent above the mine’s mid-year projection.
Caylloma Mine, Peru
The Caylloma Mine produced 237,303 ounces of silver in the second quarter of 2018, 16 percent above
budget. Average silver head grade of 65 g/t, 13 percent above budget. Silver production for the first six
months of 2018 totaled 452,848 ounces; 11 percent above the mine’s mid-year projection.
Lead and zinc production for the second quarter of 2018 was 7,186,541 pounds and 11,436,243 pounds
respectively, 11 percent above and in line with budget. Average head grades for lead and zinc were
2.65% and 4.27%, 9 percent above and in line with budget respectively. Base metals production for the
first six months totaled 14,226,245 pounds of lead and 22,464,705 pounds of zinc; being 10 percent and
2 percent above the mine´s mid-year projection.
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Qualified Person
Eric N. Chapman, M.Sc., Vice President of Technical Services, is the Qualified Person for Fortuna Silver
Mines Inc. as defined by National Instrument 43-101. Mr. Chapman is a Professional Geoscientist of the
Association of Professional Engineers and Geoscientists of the Province of British Columbia (Registration
Number 36328) and has reviewed and approved the scientific and technical information contained in
this news release.
About Fortuna Silver Mines Inc.
Fortuna is a growth oriented, precious metals producer focused on mining opportunities in Latin
America. Our primary assets are the Caylloma silver Mine in southern Peru, the San Jose silver- gold
Mine in Mexico and the Lindero gold Project in Argentina. The company is selectively pursuing
acquisition opportunities throughout the Americas and in select other areas. For more information,
please visit our website at www.fortunasilver.com.
Jorge A. Ganoza
President, CEO and Director
Fortuna Silver Mines Inc.
Trading symbols: NYSE: FSM | TSX: FVI
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 (collectiv ely, “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 result s 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 bus iness strategy, plans and outlook; the merit of the Company’s
mines and mineral properties; mineral resource and reserve estimates; 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”, “ 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
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factors include, among others, changes in general economic conditions and financial markets; changes in prices for
silver and other metals; technological and operational hazards in Fortuna’s mining and mine development
activities; risks inherent in mineral exploration; uncertainties inherent in th e estimation of mineral reserves, mineral
resources, and metal recoveries; governmental and other approvals; political unrest or instability in countries where
Fortuna is active; labor relations issues; as well as those factors discussed under “Risk Factor s” 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 ex pectations regarding mine production costs; 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 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; 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 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 Forward looking
Statements will prove to be accurate, as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, investors should not place undue reliance on Forward looking
Statements.
This news release also refers to non- GAAP financial measures, such as cash 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.