Fortuna reports production of 2.4 million ounces of silver and 15,041 ounces of gold for the first quarter of 2018
Fortuna reports production of 2.4 million ounces of silver and 15,041 ounces of gold
for the first quarter of 2018
Vancouver, April 16, 2018-- Fortuna Silver Mines, Inc. (NYSE: FSM) (TSX: FVI) is pleased to report first
quarter 2018 production results from its two operating mines in Latin America, the San Jose Mine in
Mexico and the Caylloma Mine in Peru. The C ompany produced 2.4 million ounces of silver and 15,041
ounces of gold or 3.4 million Ag Eq 1 ounces, plus base metal by -products. Fortuna is on schedule to
meet annual production guidance of 8.3 million ounces of silver and 48.3 thousand ounces of gold or
11.4 million Ag Eq ounces in 2018 (see Fortuna news release dated January 17, 2018).
First Quarter Production Highlights
Silver production of 2,401,458 ounces; 18 percent increase over Q1 2017
Gold production of 15,041 ounces; 14 percent increase over Q1 2017
Lead production of 7,039,703 pounds; 2 percent decrease over Q1 2017
Zinc production of 11,028,463 pounds; 2 percent increase over Q1 2017
Cash cost2 for San Jose is US$65.3/t
Cash cost2 for Caylloma is US$78.7/t
Consolidated Operating Highlights
First Quarter 2018 First Quarter 2017
Caylloma,
Peru
San Jose,
Mexico
Consolidated
Caylloma,
Peru
San Jose,
Mexico
Consolidated
Processed Ore
Tonnes milled 129,620 258,204 129,369 267,268
Average tpd milled 1,473 3,011 1,470 3,108
Silver3
Grade (g/t) 61 284 68 226
Recovery (%) 84.23 92.76 84.73 92.18
Production (oz) 215,545 2,185,913 2,401,458 240,224 1,792,967 2,033,191
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 Caylloma Mine is calculated based o n silver contents in lead concentrate
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First Quarter 2018 First Quarter 2017
Caylloma,
Peru
San Jose,
Mexico
Consolidated
Caylloma,
Peru
San Jose,
Mexico
Consolidated
Gold
Grade (g/t) 0.20 1.94 0.16 1.67
Recovery (%) 19.07 92.34 12.97 91.30
Production (oz) 159 14,882 15,041 84 13,116 13,200
Lead
Grade (%) 2.72 2.76
Recovery (%) 90.55 91.76
Production (lbs) 7,039,703 7,039,703 7,210,706 7,210,706
Zinc
Grade (%) 4.31 4.17
Recovery (%) 89.64 90.86
Production (lbs) 11,028,463 11,028,463 10,816,289 10,816,289
San Jose Mine, Mexico
The San Jose Mine produced 2,185,913 ounces of silver and 14,882 ounces of gold in the first quarter,
19 percent and 22 percent above budget respectively. Average head grades for silver and gold were
284 g/t and 1.94 g/t, 18 percent and 22 percent above budget respectively. Higher s ilver an d gold
production was primarily due to a change in the planned mining sequence for the quarter and to higher
than expected grades at level 1000.
The Mine’s mining sequence was modified to improve efficiency and productivity taking advantage of
the flexibility of having multiple stopes in inventory . Planned stopes with lower grades at levels 1200
and 1000 were rescheduled for production later in the year and replaced with ore from stopes at level
1100, with higher scheduled grades. Mining of scheduled stopes at level 1000 encountered a 30 percent
positive grade reconciliation with the long term reserve model used for planning ; contributing to an
overall increase of 5 percent and 10 percent in silver and gold ounces for the quarter, respectively.
The processing plant treated 3,011 tpd.
Caylloma Mine, Peru
The Caylloma Mine produced 215,545 ounces of silver in the first quarter, 5 percent above budget, at an
average silver head grade of 61 g/t, 6 percent above budget. Zinc and lead production were 11,028,463
pounds and 7,039,703 pounds respectively, 3 percent and 10 percent above budget . Average head
grades for zinc and lead were 4.31% and 2.72%, 5 percent and 12 percent above budget respectively.
The processing plant treated 1,473 tpd.
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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 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.
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 informa tion,
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 (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 loo king
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; mi neral 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 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 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 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 expectations 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.