Fortuna reports production of 93,454 gold equivalent ounces for the second quarter of 2023
Fortuna reports production of 93,454 gold equivalent ounces
for the second quarter of 2023
Vancouver, July 12, 2023 – Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) reports production results
for the second quarter of 2023 from its five operating mines in West Africa and Latin America.
Q2 2023 Production highlights
• The Séguéla Mine poured first gold on May 24 and produced 4,023 ounces during the initial ramp
up weeks of the second quarter with first sales planned for July
• Gold equivalent production of 93,454 ounces1
• Gold production of 64,348 ounces; 4 percent increase over Q2 2022
• Silver production of 1,262,561 ounces; 24 percent decrease over Q2 2022
• Zinc and l ead production of 14 million and 10 million pounds; 29 and 34 percent increase over
Q2 2022, respectively
Gold Production
(oz)
Silver Production
(oz)
Lead Production
(lbs)
Zinc Production
(lbs)
Q2 2023 H1 2023 Q2 2023 H1 2023 Q2 2023 H1 2023 Q2 2023 H1 2023
Lindero Mine 25,456 50,714 - - - - - -
Yaramoko Mine 29,002 55,439 - - - - - -
Séguéla Mine 4,023 4,023 - - - - - -
San Jose Mine 5,778 14,009 957,265 2,260,577 - - - -
Caylloma Mine 89 255 305,296 588,362 10,207,403 19,715,940 14,036,832 27,088,198
Total 64,348 124,440 1,262,561 2,848,939 10,207,403 19,715,940 14,036,832 27,088,198
Gold production of 64,348 ounces included contributions of 25,456 ounces from the Lindero Mine,
29,002 ounces from the Yaramoko Mine, and 4,023 ounces from the Séguéla Mine, our newest flagship
mine located in Côte d´Ivoire. The higher year -over-year gold production is primarily due to the start of
production at the Séguéla Mine which offset lower gold and silver production from the San Jose Mine,
which was impacted by a 15-day illegal union worker blockade (refer to Fortuna news release dated June
5, 2023).
Consolidated gold and silver production for the first six months of 202 3 totaled 124,440 ounces and
2.8 million ounces, respectively. Fortuna reiterates its 2023 annual production guidance range of 6. 3 to
6.9 million ounces of silver and 282 to 320 thousand ounces of gold or between 412,000 and 463,000 gold
equivalent ounces, including lead and zinc by-products2 (refer to Fortuna news release dated January 17,
2023).
Notes:
1. Au Eq includes gold, silver, lead and zinc and is calculated using the following metal prices: $1,975/oz Au, $24.10/oz Ag, $0.96/t Pb and
$1.23/t Zn or Au:Ag = 1:81.96, Au:Pb = 1:0.93, Au:Zn = 1:0.73
2. Au Eq includes gold, silver, lead and zinc and is calculated using the following metal prices: $1,700/oz Au, $21/oz Ag, $2,000/t Pb and
$3,200/t Zn or Au:Ag = 1:81.00, Au:Pb = 1:0.85, Au:Zn = 1:0.53
NEWS RELEASE
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West Africa Region
Séguéla Mine, Côte d’Ivoire: First gold pour at our new flagship mine took place on May 24, 2023
Second quarter 2023 Second quarter 2022
Tonnes milled 109,605 -
Average tpd milled 1,611 -
Gold grade (g/t) 1.56 -
Gold recovery (%) 89.6 -
Gold production (oz) 4,023 -
Notes:
1. Au Production includes doré only
2. First gold pour on May 24, 2023
In the second quarter of 2023, mine production at the Antenna pit totaled 383,100 tonnes of mineralized
material at a strip ratio of 2.3:1, averaging 2.35 g/t Au and containing an estimated 28,958 ounces of gold.
Initial mill feed was sourced from lower grade thin saprolite with the operation changing the feed as
mining progressed into higher grade transitional and fresh mineralized material . At the plant,
109,605 tonnes of ore were processed at an average grade of 1.56 g/t Au producing 4,023 ounces of gold.
Grade control infill drill program
Prior to the commencement of mining, grade control drilling was undertaken at the Antenna pit. Results
from this initial campaign of grade control drilling have been positive in terms of reconciliation against the
geological model with an increase in tonnes and gold grade of 2 percent and 13 percent, respectively, for
an overall increase in contained gold ounces of 15 percent.
Comparative results table for the Antenna grade control drilling:
Resource Model (> 0.5 g/t Au) Grade Control Model (> 0.5 g/t Au) Difference in Models
Elevation Tonnes Au Grade
(g/t) Au Ounces Elevation Tonnes Au Grade
(g/t)
Au
Ounces Elevation Tonnes
(%)
Au Grade
(%)
Au Ounces
(%)
387.5 64,158 2.54 5,238 387.5 77,344 2.68 6,665 387.5 21 6 27
385.0 80,731 2.60 6,736 385.0 84,722 2.69 7,339 385.0 5 4 9
382.5 91,983 2.65 7,837 382.5 93,897 3.05 9,214 382.5 2 15 18
380.0 99,740 2.67 8,554 380.0 100,305 3.09 9,978 380.0 1 16 17
377.5 94,651 3.07 9,341 377.5 92,663 3.57 10,627 377.5 -2 16 14
375.0 82,228 3.30 8,722 375.0 79,466 3.77 9,640 375.0 -3 14 11
372.5 75,510 3.43 8,315 372.5 73,670 4.11 9,735 372.5 -2 20 17
370.0 71,362 3.52 8,083 370.0 70,622 4.22 9,591 370.0 -1 20 19
367.5 65,031 3.75 7,838 367.5 66,389 4.13 8,824 367.5 2 10 13
365.0 59,172 3.88 7,389 365.0 60,191 4.35 8,408 365.0 2 12 14
Total 784,566 3.09 78,056 Total 799,269 3.50 90,022 Total 2 13 15
Notes:
1. Material mined from surface to 390 m elevation excluded from comparison due to near surface artisanal mining impacting estimation results
Mining
Mining of mineralized material commenced in the second quarter with first ore being delivered to the run
of mine (ROM) pad on April 2. Mining began in free dig oxide saprolite with the first blast in transitional
material taking place on May 28. Waste mined was used to construct and expand the ROM pad and to
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commence construction of the next lift of the tailings storage facility. Total movement of waste and ore
was 877,143 and 383,100 tonnes, respectively.
During the secon d quarter, site preparation and access road construction to the Ancien pit was
undertaken along with initiating the first grade control drilling program for this deposit. The high grade
Ancien pit is planned to commence contributing mill feed in the fourth quarter of this year.
The mine is operating with a complete fleet consisting of eight 100 -ton CAT 777 trucks, four excavators,
four production/grade control drill rigs, and ancillary equipment.
Antenna pit mining activities
Processing
The processing plant consists of a single stage crushing circuit with crushed ore being fed to a SAG mill
followed by conventional carbon-in-leach and gravity recovery circuits prior to electro winning and
smelting of gold doré.
First ore was fed to the SAG mill on April 26 with first gold pour occurring ahead of schedule on May 24.
After five weeks of successful ramp up activities, process plant throughput has progressively increased to
reach nameplate capacity of 154 t/hr at the end of the quarter.
Average gold recovery in the initial weeks of the operations´ ramp up phase was 89.6 percent, tracking as
per expectations and marginally below design recovery of 94 percent. Management expects the
processing plant will achieve design recovery parameters during the third quarter, as mine feed transitions
into fresh and transitional ore and the processing plant throughput becomes stable at nameplate capacity.
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Séguéla Mine gold being poured on July 7, 2023
Yaramoko Mine, Burkina Faso: On-track to meet upper end of annual guidance range
Second quarter 2023 Second quarter 2022
Tonnes milled 144,202 138,787
Average tpd milled 1,546 1,567
Gold grade (g/t) 6.51 5.42
Gold recovery (%) 97.9 97.1
Gold production (oz) 29,002 24,553
Notes:
1. Production includes doré only.
In the second quarter of 2023, the Yaramoko Mine produced 29,002 ounces of gold at an average head
grade of 6.51 g/t Au, an 18 and 20 percent increase, respectively, compared to the comparable period in
2022. Production benefitted from higher grades mined and an increase in milled tonnes. Better than
expected grades were sourced from the extension of the deposit beyond the current resource boundary
on the western side of the 55 Zone. Production at Yaramoko is expected to be at the upper end of annual
guidance range. In light of the recent success encountering extensions of mineralization on the fringes of
the resource bo undary at Zone 55, the Company expects to provide a Mineral Reserve and Mineral
Resource update before year end.
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Access to the underground mine was impacted for 27 days in April due to a failure of the Armtec tunnelling
structure at the mine portal ( refer to Q1 2023 MD&A ). Throughout this period, processing operations
were maintained by milling surface ore stockpiles. Underground mine production resumed on May 1.
Gold production for the first six months of 2023 totaled 55,439 ounces.
Latin America Region
Lindero Mine, Argentina: On-track to meet annual production guidance
Second quarter 2023 Second quarter 2022
Ore placed on pad (t) 1,503,323 1,502,074
Gold grade (g/t) 0.62 0.74
Gold production (oz) 25,456 29,016
Notes:
1. Lindero production includes doré, gold-in-carbon and gold in copper concentrate.
During the second quarter of 2023, mine production was 0.8 million tonnes of mineralized material with
a stripping ratio of 2.69:1. The stripping ratio for the second quarter of 2023 is aligned with the operation’s
plan for the year of 1.17:1 (refer to Lindero Mine and Arizaro Project technical report with an effective
date of December 31, 2022 ). A total of 1.5 million tonnes was placed on the leach pad containing
29,984 ounces of gold averaging 0.62 g/t Au.
Gold production in the quarter was 25,456 ounces, comprised of 24,599 ounces of doré , an estimated
731 ounces of gold contained in fine carbon, and 126 ounces contained in copper concentrate . Gold
production for the second quarter of 2023 is 12 percent lower when compared to the second quarter of
2022 mainly due to the lower head grade of mineralized material placed on the leach pad that is aligned
with the Mineral Reserves and mining sequence.
Gold production for the first six months of 2023 totaled 50,714 ounces.
San Jose Mine, Mexico: Production impacted by 15-day illegal blockade
Second quarter 2023 Second quarter 2022
Tonnes milled 194,887 251,945
Average tpd milled 2,6331 2,831
Silver grade (g/t) 168 187
Silver recovery (%) 90.83 91.33
Silver production (oz) 957,265 1,385,336
Gold grade (g/t) 1.02 1.13
Gold recovery (%) 90.24 90.50
Gold production (oz) 5,778 8,295
Notes:
1. Excludes 15-day full shutdown of operation
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The San Jose Mine produced 0.96 million ounces of silver at an average head grade of 168 g/t Ag and
5,778 ounces of gold at an average head grade of 1.02 g/t Au; reflecting a 31 and 30 percent decrease in
production when compared to the second quarter 2022 . The processing plant milled 194,887 tonnes at
an average of 2,633 tonnes per day.
The decrease in production is explained by the 15-day full shutdown of operations due to the illegal
blockade by the workers’ union. This reduced planned production for the quarter by 47,200 tonnes and
impacted mine preparation, delaying access to higher grade stopes planned in the quarter. The Company
has adjusted the mine plan to access these stopes in the third quarter and expects to achieve the lower
end of annual guidance.
Silver and gold production for the first six months of 2023 totaled 2.3 million ounces and 14,009 ounces,
respectively.
Caylloma Mine, Peru: Strong performance, on-track to meet upper end of annual guidance
Second quarter 2023 Second quarter 2022
Tonnes milled 137,004 135,977
Average tpd milled 1,539 1,528
Silver grade (g/t) 84 77
Silver recovery (%) 82.59 79.43
Silver production (oz) 305,296 267,559
Gold grade (g/t) 0.12 0.17
Gold recovery (%) 16.32 42.52
Gold production (oz) 89 307
Lead grade (%) 3.72 3.00
Lead recovery (%) 90.92 85.04
Lead production (lbs) 10,207,403 7,636,813
Zinc grade (%) 5.18 4.09
Zinc recovery (%) 89.67 88.7
Zinc production (lbs) 14,036,832 10,886,426
Notes:
1. Metallurgical recovery for silver is calculated based on silver content in lead concentrate.
The Caylloma Mine produced 305,296 ounces of silver at an average head grade of 84 g/t Ag in the second
quarter of 2023, a 14 percent increase from the comparable period in 2022 . Production has benefitted
from higher grade stopes at the lower levels of the Animas vein. Silver production for the first six months
totaled 0.59 million ounces.
Zinc and lead production was 14.0 and 10.2 million pound s at an average head grade of 5.18 % and
3.72 %, respectively; a 29 and 34 percent increase in production from the comparable period in 2022.
Increased production is the result of higher head grades sourced from lower levels at the Animas vein.
Zinc and lead production for the first six months totaled 27.1 million pounds and 19.7 million pounds,
respectively.
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Qualified Person
Eric Chapman, Senior Vice President of Technical Services of Fortuna , is a Professional Geoscientist
registered with Engineers and Geoscientists British Columbia (Registration Number 36328) and a Qualified
Person as defined by National Instrument 43 -101- Standards of Disclosure for Mineral Projects. Mr.
Chapman has reviewe d 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 five operating mines i n
Argentina, Burkina Faso, Côte d'Ivoire, Mexico, and Peru. 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] | www.fortunasilver.com | Twitter | LinkedIn | YouTube
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; changes in general economic conditions and financial markets; the impact
of inflationary pressures on the Company’s business and operations; production from the Company’s mines in the second quarter
of 2023 that remain subject to verification and adjustment; the Company’s anticipated financial and operat ional performance in
2023; estimated production forecasts for 2023; the expected timing for reaching design recovery parameters at the processing
plant at the Séguéla Mine ; the timing for the Ancien pit to contribute to mill feed at the Séguéla Mine; the timing of the
construction of the next lift at the storage tailings facility at the Séguéla Mine; expectations with respect to metal grade estimates
and the impact of any variations relative to metals grades experienced; metal prices, currency exchange ra tes and interest rates
in 2023; timing of and possible outcome of litigation; mineral resource and mineral reserve estimates; life of mine estimates ; the
ability to update the Mineral Reserve and Mineral Resource estimates at the Yaramoko Mine by the end of 2023; the Company’s
business strategy, plans and outlook; the merit of the Company’s mines and mineral properties; the future financial or operat ing
performance of the Company; the Company’s ability to comply with contractual and permitting or other regulatory requirements;
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”, “g ain”, “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.
- 8 -
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; uncertainties related to new mining operations such
as the Séguéla Mine; risks relating to the Company’s ability to replace its Mineral Reserves; risks associated with mineral
exploration and project develop ment; 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 local 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 associated 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 financing for planned exploration and development activities; property title matters;
risks relating to the inte gration 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 environmental impact authorization for the San Jose mine; uncertainties relating
to general economic conditions; risks relating to a global pandemic, which could impact the Company’s business, operations,
financial condition and share price; 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 to hedging; uncertainty relating to concentrate treatment charges and transportation costs;
sufficiency of monies allotted by the Co mpany for land reclamation; risks associated with dependence upon information
technology systems, which are subject to disruption, damage, failure and risks with implementation and integration; risks
associated with climate change legislation; 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 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 conducted in accordance with the Company’s public statements and stated goal s; that there will be no material
adverse change affecting the Company, its properties or its 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 difficulties); the duration and effect of global and local inflation ; geo-
political uncertainties on the Company’s production, workforce, business, operations and financial condition; the expected trends
in mineral prices, inflation and currency exchange rates; that the Company will be successful in challenging the annulment of the
extension to the San Jose environmental impact authorization; that all required approvals and per mits will be obtained for the
Company’s business and operations on acceptable terms; that there will be no significant disruptions affecting the Company's
operations and such other assumptions as set out herein. Forward -looking Statements are made as of th e 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 these 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.
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 c ompany of scientific and technical information
concerning mineral projects. Unless otherwise indicated, all mineral reserve and mineral resource estimates contained in the
technical disclosure have been prepared in accordance with NI 43 -101 and the Canadia n Institute of Mining, Metallurgy and
Petroleum Definition Standards on Mineral Resources and Reserves.
Canadian standards, including NI 43 -101, differ significantly from the requirements of the Securities and Exchange Commission,
and mineral reserve and resource information included in this news release may not be comparable to similar information
disclosed by U.S. companies.