Fortuna reports updated Mineral Reserves and Mineral Resources
Fortuna reports updated Mineral Reserves and Mineral Resources
Vancouver, February 15, 2024-- Fortuna Silver Mines, Inc. (NYSE: FSM) (TSX: FVI) provides its updated
Mineral Reserve and Mineral Resource estimates as of December 31, 2023 for its five operating mines in
West Africa and the Americas, and the Arizaro Project located at the Lindero Mine in Salta, Argentina. All
references to dollar amounts in this news release are expressed in US dollars.
Highlights of Mineral Reserve and Mineral Resource Update
• Consolidated Proven and Probable Mineral Reserves are reported containing 3.1 Moz Au Eq1
representing a year-over-year decrease of 11 percent.
• Consolidated Measured and Indicated Resources exclusive of Mineral Reserves are reported
containing 1.1 Moz Au Eq1 representing a year-over-year decrease of 19 percent.
• Consolidated Inferred Mineral Resources are reported containing 1.7 Moz Au Eq1 representing a
year-over-year decrease of 22 percent.
• Primary drivers for changes in Mineral Reserves and Mineral Resources are production related
depletion in 2023 of 452 koz Au Eq and the application of higher cut-off values as a result of
increased operational costs.
• Technical Reports to support the disclosure of Mineral Reserves and Mineral Resources for the
Séguéla, Caylloma, and San Jose mines will be filed within the next 45 days.
• The Diamba Sud Gold Project JORC historical estimate2 of 625 koz Au of Indicated Resources and
235 koz Au of Inferred Resources has not been incorporated into this consolidated Mineral
Resources and Mineral Reserves update. Confirmatory drilling to update the historical resources
is ongoing and planned for completion later in 2024.
Notes:
1. Gold equivalent calculated using metal prices of $1,600/oz for Au, $21/oz for Ag, $2,000/t for Pb, and $2,600/t for Zn.
2. Refer to historical JORC mineral resource estimate tabulation and cautionary statements regarding historical estimates on page 4.
2023 Mineral Reserves and Mineral Resources
Mineral Reserves – Proven and Probable Contained Metal
Property Classification Tonnes (000) Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag (Moz) Au (koz)
Silver
Mines Caylloma,
Peru
Proven 20 261 0.94 2.23 2.62 0.2 1
Probable 2,269 81 0.13 2.79 4.06 5.9 9
Proven + Probable 2,288 83 0.13 2.78 4.04 6.1 10
San Jose,
Mexico
Proven 37 172 1.23 N/A N/A 0.2 2
Probable 695 155 0.97 N/A N/A 3.5 22
Proven + Probable 733 156 0.98 N/A N/A 3.7 23
Total Proven + Probable 3,021 101 0.34 N/A N/A 9.8 33
Gold
Mines Lindero,
Argentina
Proven 24,295 N/A 0.60 N/A N/A 0.0 468
Probable 47,210 N/A 0.54 N/A N/A 0.0 816
Proven + Probable 71,505 N/A 0.56 N/A N/A 0.0 1,284
Yaramoko,
Burkina Faso
Proven 21 N/A 5.44 N/A N/A 0.0 4
Probable 842 N/A 7.96 N/A N/A 0.0 216
Proven + Probable 863 N/A 7.90 N/A N/A 0.0 219
Séguéla,
Côte d’Ivoire
Proven 436 N/A 2.06 N/A N/A 0.0 29
Probable 11,327 N/A 3.09 N/A N/A 0.0 1,125
Proven + Probable 11,763 N/A 3.05 N/A N/A 0.0 1,154
Total Proven + Probable 84,131 N/A 0.98 N/A N/A 0.0 2,658
Total Proven + Probable 9.8 2,691
NEWS RELEASE
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Mineral Resources – Measured and Indicated Contained Metal
Property Classification Tonnes (000) Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag (Moz) Au (koz)
Silver
Mines Caylloma,
Peru
Measured 524 98 0.30 2.09 3.16 1.6 5
Indicated 1,262 82 0.21 1.47 2.54 3.3 9
Measured + Indicated 1,786 87 0.24 1.65 2.72 5.0 14
San Jose,
Mexico
Measured 45 141 1.09 N/A N/A 0.2 2
Indicated 1,001 148 1.11 N/A N/A 4.7 35
Measured + Indicated 1,046 147 1.11 N/A N/A 5.0 37
Total Measured + Indicated 2,832 109 0.56 N/A N/A 9.9 51
Gold
Mines Lindero,
Argentina
Measured 1,981 N/A 0.48 N/A N/A 0.0 30
Indicated 28,482 N/A 0.42 N/A N/A 0.0 382
Measured + Indicated 30,464 N/A 0.42 N/A N/A 0.0 412
Yaramoko,
Burkina Faso
Measured 18 N/A 4.33 N/A N/A 0.0 2
Indicated 452 N/A 2.82 N/A N/A 0.0 41
Measured + Indicated 469 N/A 2.87 N/A N/A 0.0 43
Séguéla,
Côte d’Ivoire
Measured 0 N/A - N/A N/A 0.0 0
Indicated 4,659 N/A 2.54 N/A N/A 0.0 381
Measured + Indicated 4,659 N/A 2.54 N/A N/A 0.0 381
Total Measured + Indicated 35,592 N/A 0.73 N/A N/A 0.0 837
Total Measured + Indicated 9.9 888
Mineral Resources – Inferred Contained Metal
Property Classification Tonnes (000) Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag (Moz) Au (koz)
Silver
Mines
Caylloma,
Peru Inferred 4,505 99 0.43 2.43 3.70 14.4 63
San Jose,
Mexico Inferred 1,029 147 1.04 N/A N/A 4.9 35
Total Inferred 5,534 108 0.55 N/A N/A 19.3 97
Gold
Mines
Lindero,
Argentina Inferred 25,325 N/A 0.47 N/A N/A 0.0 386
Yaramoko,
Burkina Faso Inferred 159 N/A 3.52 N/A N/A 0.0 18
Séguéla,
Côte d’Ivoire Inferred 3,059 N/A 2.50 N/A N/A 0.0 245
Total Inferred 28,543 N/A 0.71 N/A N/A 0.0 649
Gold
Project
Arizaro,
Argentina Inferred 24,131 N/A 0.40 N/A N/A 0.0 310
Total Inferred 19.3 1,056
Notes:
1. Mineral Reserves and Mineral Resources are as defined by the 2014 CIM Definition Standards for Mineral Resources and
Mineral Reserves.
2. Mineral Resources are exclusive of Mineral Reserves.
3. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
4. Factors that could materially affect the reported Mineral Resources or Mineral Reserves include changes in metal price and
exchange rate assumptions; changes in local interpretations of mineralization; changes to assumed metallurgical recoveries,
mining dilution and recovery; and assumptions as to the continued ability to access the site, retain mineral and surface rights
titles, maintain environmental and other regulatory permits, and maintain the social license to operate.
5. Mineral Resources and Mineral Reserves are reported as of December 31, 2023.
6. Mineral Reserves for the Caylloma Mine are reported above NSR breakeven cut -off values based on underground mining
methods including : mechanized (breasting) that represents 91 % of Mineral Reserves planned for mining at $89.78/t ,
mechanized (uppers) at $79.70/t, semi-mechanized at $93.27/t, sub-level stoping at $88.81/t, and a conventional method at
$170/t; using assumed metal prices of $21/oz Ag, $1,600/oz Au, $2,000/t Pb , and $2,600/t Zn; metallurgical recovery rates
of 82 or 85 % for Ag, 22 or 55 % for Au, 87 or 89 % for Pb and 89 % for Zn. Mining, processing, and administrative costs used
to determine NSR cut-off values were estimated based on actual operating costs incurred from July 2022 through June 2023.
Mining recovery is estimated to average 94 % with average mining dilution of 1 7 % depending on the mining methodology.
Mineral Resources are reported at an NSR cut-off grade of $75/t for veins classified as wide (Animas, Animas NE, Nancy, and
San Cristobal) and $135/t for veins classified as narrow (all other veins) based on the same par ameters used for Mineral
Reserves, and a 15 % upside in metal prices.
7. Mineral Reserves for the San Jose Mine are based on underground mining within optimized stope designs using an estimated
NSR break-even cut-off grade of $96.54/t to $85.02/t equivalent to 154 to 132 g/t Ag Eq based on assumed metal prices of
$23.90/oz Ag and $1,880/oz Au; estimated metallurgical recovery rates of 91 % for Ag and 90 % for Au and mining costs of
$49.83/t (C&F) - $38.31/t (SLS); processing costs of $20.79/t; and other costs including distribution, general service costs of
$25.92/t based on actual operating costs. Average mining recovery is estimated to 94 % (C&F) and 92 % (SLS) and average
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mining dilution 10 % (C&F) and 14 % (SLS). Mineral Resources are reported at a 130 g/t Ag Eq cut-off grade based on the same
parameters used for Mineral Reserves.
8. Mineral Reserves for the Lindero Mine are reported based on open pit mining within a designed pit shell based on variable
gold cut-off grades and gold recoveries by metallurgical type: Met type 1 cut-off 0.28 g/t Au, recovery 75.4 %; Met type 2 cut-
off 0.27 g/t Au, recovery 78.2 %; Met type 3 cut-off 0.27 g/t Au, recovery 78.5 %; and Met type 4 cut-off 0.31 g/t Au, recovery
68.5 %. Mining recovery and mining dilution have been accounted for during block regularization to 10-meter x 10-meter x
8-meter size. The cut-off grades and pit designs are considered appropriate for long term gold prices of $1,600/oz, estimated
base mining costs of $1.36 per tonne of material, total processing and G&A costs of $9.78 per tonne of ore, and refinery costs
net of pay factor of $12.20 per ounce gold. Reported Proven Reserves include 8.3 Mt averaging 0.4 4 g/t Au of stockpiled
material. Mineral Resources are reported within a con ceptual pit shell above a 0.24 g/t Au cut-off grade based on the same
parameters used for Mineral Reserves and a 15 % upside in metal prices. Mineral Resources for Arizaro are reported within
a conceptual pit shell above a 0.26 g/t Au cut -off grade using the same gold price and costs as Lindero with an additional
$0.52 per tonne of ore to account for haulage costs between the deposit and plant. A slope angle of 47° was used for defining
the pit.
9. Mineral Reserves for the Yaramoko Mine are reported on a 100 % ownership basis at a cut-off grade of 1.57 g/t Au for the
Zone 55 open pit, 0.86 g/t Au for the Zone 109 open pit, 4.5 g/t Au for Zone 55 underground, 3.8 g/t Au for Bagassi South
QV Prime and Bagassi South underground based on an assumed gold price of $1,600/oz, metallurgical recovery rates of
96.8 %, underground mining costs of $154/t, processing cost of $28/t and G&A costs of $27/t, surface mining costs of $4.95/t,
processing cost of $27/t , and G&A costs of $33/t. Underground average mining recovery is estimated at 90 % for Bagassi
South QV Prime and Bagassi South underground, 93 % for Zone 55 SLS stopes, and 86 % for sill drift stopes. A mining dilution
factor of 10 % has been applied for sill drift stopes, 0.7-meter and 0.4-meter dilution skin has been applied for sub-level stopes
and shrinkage mining respectively. Surface mining recovery and mining dilution have been accounted for during block
regularization to 5 -meter x 5-meter x 5-meter size within an optimized pit shell and only Proven and Probable categories
reported within the final pit designs. Yaramoko Mineral Resources are reported at a gold grade cut-off grade of 0.9 g/t Au for
the Zone 55 open pit, 0.5 g/t Au for the Zone 109 open pit, and 2.7 g/t Au and 2.5 g/t Au for underground Zone 55 and Bagassi
South respectively, based on an assumed gold price of $1,840/oz and the same costs, metallurgical recovery and constrained
within an optimized pit shell. The Yaramoko Mine is subject to a 10 % carried interest held by the State of Burkina Faso.
10. Mineral Reserves for the Séguéla Mine are reported on a 100 % ownership basis at an incremental gold grade cut-off of 0.65
g/t Au for Antenna, 0.72 g/t Au for Agouti, 0.69 g/t Au for Boulder, 0.66 g/t Au for Koula, 0.73 g/t Au for Ancien, and 0.66 g/t
Au for Sunbird deposits based on a gold price of $1,600/ounce, metallurgical rec overy rates of 94.5 %, surface mining costs
of $3.12/t, processing cost of $15.42/t and G&A cost of $8.83/t, and only Proven and Probable categories reported within the
final pit designs. The Mineral Reserves pit designs were completed based on overall slope angle recommendations of between
37° and 57° for Antenna, Koula, and Agouti deposits from oxide to fresh weathering profiles, between 34° and 56° for Ancien
deposit from oxide to fresh weathering profiles, 37° and 60° for Boulder deposit from oxide to fresh weathering profiles and
37° and 58° for Sunbird deposit from o xide to fresh weathering profiles . The Mineral Reserves are reported with modifying
factors of mining dilution and mining recovery represented by regularizing the block models to an appropriate selective
mining unit block size. Mineral Resources for Séguéla are reported at a cut-off grade of 0.55 g/t Au for Antenna, 0.55 g/t Au
for Sunbird, 0.60 g/t Au for Koula and Boulder, and 0.65 g/t Au for Ancien and Agouti deposits, based on an assumed gold
price of $1,840/oz and constrained within preliminary pit shells. The Séguéla Mine is subject to a 10 % carried interest held
by the State of Côte d’Ivoire.
11. Eric Chapman, P. Geo. (EGBC #36328), is the Qualified Person responsible for Mineral Resources; Raul Espinoza (FAUSIMM
(CP) #309581) is the Qualified Person responsible for Mineral Reserves; both being employees of Fortuna Silver Mines Inc.
12. N/A = Not applicable.
13. Totals may not add due to rounding.
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Historical Mineral Resources
Property Classification (JORC) Tonnes (Mt) Au (g/t) Au (koz)
Gold
Project
Diamba Sud,
Senegal
Indicated 10.0 1.9 625
Inferred 4.7 0.42 235
This estimate was prepared in accordance with the JORC Code; refer to the Scoping Study Report entitled
“Diamba Sud Project, Senegal, prepared by Chesser Resources Limited ("Chesser") and published on
March 15, 2022 and subsequently amended on October 27, 2022, and December 12, 2022.
Disclosure of the historical estimate in this news release is derived from the Diamba Sud Scoping Study
completed in March 2022 by Chesser Resourced Ltd and updated in October and December 2022 and has
been judged to be relevant and therefore suitable for disclosure, however, it should not be relied upon.
Mineral Resources were reported within a $1,800/oz gold price pit shell and at a cut -off grade of 0.5 g/t
Au. In the Company's view, there are no material differences between the confidence categories assigned
under the 2012 Aust ralasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves prepared by the Australasian Institute of Mining and Metallurgy, Australian Institute of
Geoscientists and Minerals Counsel of Australia, as amended (the “JORC Code”) and the equivalent
confidence categories in the Canadian Institute of Mining 2014 Definition Standards for Mineral Resources
and Re serves. NI 43 -101, defined below, reporting requirements do not allow for "Inferred Mineral
Resources" to be added to other Mineral Resource categories and must be reported separately. The
Inferred Resource category estimates above under the JORC Code were reported separately in each
instance. There are numerous uncertainties inherent in the historical estimate, which is subject to all of
the assumptions, parameters, and methods used to prepare such historical estimates. The historical
estimate has been prepared in accordance with the requirements of the Joint Ore Reserves Committee of
The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals
Council of Australia and does not comply with or fulfill the CIM Definition Standards on Mineral Resources
and Mineral Reserves, as amended, adopted by the Canadian Institute of Mining, Metallurgy and
Petroleum (the “CIM Definition Standards”) as required by National Instrument 43 -101 – Standards of
Disclosure for Mineral Pro jects of the Canadian Securities Administrators (“NI 43 -101”), and may vary
significantly from actual amounts, grade, and quality of minerals recovered from the property. There are
no other more recent estimates. Fortuna has completed 101 diamond drillholes totaling 13,102 meters
and 166 reverse circulation drillholes totaling 19,448 meters as part of an ongoing program to confirm the
historical estimate with no material discrepancies identified to date. A detailed study of the drill results,
technical data and economic parameters relating to the property, together with the preparation of an
updated development plan, is required to be conducted in order to update these historical estimates, as
a current Mineral Resource or Mineral Reserve. A qualified person has not done sufficient work to classify
the historical estimates as current Mineral Resources or current Mineral Reserves and Fortuna is not
treating the historical estimate as current Mineral Resources. Investors are cautioned not to place undue
reliance on the historical estimates contained in this news release.
Diamba Sud Gold Project, Senegal
Fortuna plans to prepare a Mineral Resource estimate in accordance with the disclosure requirements of
Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects upon the completion
of the current Brownfields exploration program that includes 42,700 meters of drilling, including
extension and resource development, in addition to the testing and advancement of previously identified
geochemistry anomalies (refer to Fortuna news release dated January 18, 2024). The program is expected
to finish by the end of August 2024 with the updated evaluation planned for completion by the end of
2024.
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Caylloma Mine, Peru
As of December 31, 2023, the Caylloma Mine has Proven and Probable Mineral Reserves of 2.3 Mt
containing 6.1 Moz Ag, 10 koz Au, 64 kt Pb, and 93 kt Zn in addition to Inferred Resources of 4.5 Mt
containing 14.4 Moz Ag, 63 koz Au, 110 kt Pb, and 162 kt Zn.
Year-over-year, Mineral Reserve tonnes decreased by 28 percent, while silver grade increased 2 percent
to 83 g/t, lead grade increased 5 percent to 2.78 %, and zinc grade increased 4 percent to 4.04 %. Changes
are due to mining related depletion of 544,000 tonnes, a decrease by 51,000 tonnes due to higher cut-off
values related to increases in operati ng costs, a decrease of 188,000 tonnes as a result of changes in
commercial terms and metal price , a decrease of 218,000 tonnes due to adjustments in the estimation
parameters and geologic interpretation , and conve rsion of 23,000 tonnes of Inferred Resources to
Mineral Reserves.
Measured and Indicated Resource tonnes, exclusive of Mineral Reserves, decreased by 37 percent year-
over-year to 1.8 Mt with silver and lead grades increasing slightly by 9 and 1 percent, respectively, and
zinc grades decreasing by 12 percent, due to an increase in cut-off value as a result of higher operati ng
costs and the application of operational dilution based on mineable shape optimizer evaluation to remove
isolated and narrow mineralized structures from the inventory.
Inferred Resource tonnes decreased by 10 percent year-over-year. Silver grades decreased 6 percent,
whereas lead and zinc grades increased by 9 and 8 percent, respectively. The decrease in Inferred Mineral
Resources is a result of an increase in cut-off values used for reporting Mineral Resources from $65/t to
$75/t resulting in a decrease of 416,000 t onnes and adjustments in the geologic interpretation, changes
in commercial terms , and sterilization of material associated with isolated or narrow mineralization
resulting in a decrease of 929,000 tonnes, offset by the discovery of 900,000 tonnes through exploration
drilling of the Animas and Animas NE veins.
The Brownfields exploration program budget for 2024 at Caylloma is $2.0 million, supporting field
exploration, regional geophysics, and ongoing studies of the structural controls to mineralization on the
Animas vein (refer to Fortuna news release dated January 18, 2024).
San Jose Mine, Mexico
As of December 31, 2023, the San Jose Mine has Proven and Probable Mineral Reserves of 0.7 Mt
containing 3.7 Moz Ag and 23 koz Au, in addi tion to Inferred Resources of 1.0 Mt containing a further
4.9 Moz Ag and 35 koz Au.
Year-over-year, Mineral Reserves decreased 66 percent in terms of tonnes, while silver grade decreased
9 percent and gold grade decreased 16 percent after net changes of minus 1 Mt resulting from production-
related depletion, and a further decrease of 0. 4 Mt due to the application of higher cut -off grades as a
result of significant cost increments related to the appreciation of the Mexican Peso, higher contractor
costs for transportation, distribution, shotcrete, maintenance, and mining services, higher labor costs and
new labor reform mandates, change from owner’s mining fleet to contractor fleet for mine development,
and higher costs in fuel, energy, materials, and consumables related to 2023 inflation.
Measured and Indicated Resource tonnes exclusive of Mineral Reserves increased by 1 5 percent year-
over-year, while silver and gold grades increased 35 and 54 percent, respectively. The change is due to an
increase in cut-off grade from 110 g/t to 130 g/t Ag Eq due to cost increases as detailed above combined
with the upgrading of Inferred Resources to Indicated Resources in the Victoria mineralized zone. An
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evaluation is ongoing as to whether sufficient tonnage at a high enough grade is located in localized areas
of the Victoria mineralized zone to cover development and infrastructure costs allowing conversion of
Inferred Resources to Mineral Reserves and inclusion in the mine plan.
Year-over-year, Inferred Resources decreased 59 percent in terms of tonnes, with grades increasing for
silver and gold by 25 percent. The net variation is due primarily to the increase in cut -off grade used for
reporting, as described above, the upgrading of Inferred Resources to Indicated Resources through infill
drilling of the Victoria mineralized zone and changes in the geologic interpretation and removal of isolated
mineralization through the application of a mineable stope optimizer.
The Brownfields exploration program budget for 2024 at San Jose is $4.9 million, which includes 13,900
meters of diamond drilling, focused on testing and extending the Yessi vein as well as exploring additional
targets within the mine area (refer to Fortuna news release dated January 18, 2024).
Lindero Mine, Argentina
As of December 31, 202 3, the Lindero Mine has Proven and Probable Mineral Reserves of 71.5 Mt
containing 1.3 Moz Au, in addition to Measured and Indicated Resources, exclusive of Mineral Reserves,
of 30.5 Mt containing 412 koz Au, and Inferred Resources of 25.3 Mt containing 386 koz Au.
Since December 31, 2022, Mineral Reserve tonnes decreased by 10 percent, while gold grade remained
relatively unchanged at 0.56 g/t Au. Changes are primarily due to mining related depletion and
sterilization of 6.5 Mt of material containing 122 koz Au delivered to the heap leach pad in 2023 and an
increase in the reporting cut -off grade due to higher operating costs resulting in a decrease of 2.3 Mt
containing 21 koz Au.
Measured and Indicated Resource gold ounces , exclusive of Mineral Reserves, remained relatively
unchanged year-over-year.
Inferred Resource tonnes increased by 1.1 Mt or 5 percent, to 25.3 Mt since December 31, 2022 with the
gold grade remaining unchanged at 0.47 g/t. The slight increase in Inferred Resources is due to minor
adjustments in the optimization of the pit shell.
Yaramoko Mine, Burkina Faso
As of December 31, 202 3, the Yaramoko Mine has Proven and Probable Mineral Reserves of 0.9 Mt
containing 219 koz Au, in addition to Measured and Indicated Resources, exclusive of Mineral Reserves,
of 0.5 Mt containing 43 koz Au, and Inferred Resources of 0.16 Mt containing 18 koz Au.
Year over year, Mineral Reserve tonnes decreased 26 percent, while gold grades increased 34 percent to
7.90 g/t Au. The changes are due to mining related depletion in 2023 of 0.5 Mt of material containing
118 koz Au offset by successful underground exploration and delineation drilling of the Zone 55 and
Bagassi South QV Prime veins that, after the application of modifying factors , resulted in an increase of
0.3 Mt containing 124 koz Au of new Probable Reserves.
Measured and Indicated Resource gold ounces, exclusive of Mineral Reserves, decreased by 46 koz and
Inferred Resources by 7 koz as a result of the application of updated cut -off grades and operational
dilution based on mineable stope optimizer evaluation to remove isolated non-economic mineralization.
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The Brownfields exploration program budget for 2024 at Yaramoko is $6.1 million, which includes
41,450 meters of exploration drilling, with underground drilling testing western and depth extensions to
the Zone 55 deposit, surface drilling testing several anomalies along the Boni Shear, Bagassi South surface
extensions, and other surface targets (refer to Fortuna news release dated January 18, 2024).
Séguéla Mine, Côte d’Ivoire
As of December 31, 2023, the Séguéla Mine has Proven and Probable Mineral Reserves of 11.8 Mt
containing 1.2 Moz Au, in addition to Indicated Resources of 4.7 Mt containing 381 koz Au and Inferred
Resources of 3.1 Mt containing 245 koz Au.
Since December 31, 2022, Mineral Reserve tonnes decreased by 3 percent, while gold grade increased by
9 percent to 3.05 g/t Au. Changes are primarily due to mining related depletion of 0.8 Mt of material
containing 79 koz Au since operations commenced in May 2023, an increase in the reporting cut-off grade
due to higher processing and service costs resulting in a decrease of 1.6 Mt containing 53 koz Au offset by
the reclassification of 2.1 Mt containing 206 koz from Indicated Resources to Probable Reserves related
to delineation drilling and definition of the updated pit shell at the Sunbird deposit.
Measured and Indicated Resource gold ounces, exclusive of Mineral Reserves, decreased 34 percent, by
142 koz, year-over-year, in relation to the reclassification of the Sunbird deposit open pit resources from
Indicated Resources to Probable Reserves and a reduction in pit size based on updated contractor costs
and geologic interpretation , a decrease of 339 koz Au . This reduction w as offset by the inclusion of
underground Indicated Resources for the Koula, Ancien and Sunbird deposits totaling 233 koz Au. The
application of higher cut -off grades in relation to an increase in processing and service costs accounted
for a further decrease of 36 koz Au.
Inferred Resources decreased 2.6 Mt or 365 koz Au in relation to the reduction in the size of the Sunbird
pit shell due to the results of the infill drilling and increased costs as described above resulting in a
decrease of 203 koz, and upgrading to Indicated Resources of underground mineralization, previously
planned for open pit mining of 233 koz Au. These decreases were offset by the inclusion of underground
Inferred Resources for the Koula, Ancien and Sunbird deposits totaling 98 koz Au. Adjustments to the
estimation parameters and pit optimization for the other deposits resulted in a further decrease of 27 koz
Au.
The Brownfields exploration program budget for 2024 at Séguéla is $7.8 million, which includes
41,750 meters of exploration drilling, focused on testing and extending underground targets associated
with the Sunbird, Ancien, and Koula deposits, as well as advancing emerging prospects such as Barana,
Badior, and Kestral, and continuing to explore for additional prospects (refer to Fortuna news release
dated January 18, 2024).
Arizaro Gold Project, Lindero Property, Argentina
As of December 31, 202 3, the Arizaro Gold Project has Inferred Mineral Resources of 24.1 Mt averaging
0.40 g/t Au containing 310 koz Au, remaining relatively unchanged from last year other than minor
adjustments in the pit shell. Mineralization remains open at depth and along the trend of the northeast
to southwest striking porphyry.
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Qualified Person
Eric Chapman, Fortuna´s Senior Vice-President of Technical Services, is a Professional Geoscientist of the
Engineers and Geoscientists of 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
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 five operating mines in
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 | X | 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, mineral resource and mineral
reserve estimates; the ability to expand and prove a mineral resource and reserve at the Diamba Sud Project; statements about
the Company’s plans for its mines and mineral properties , including statements that confirmatory drilling at the Diamba Sud
Project is planned for completion in 2024 and statements regarding the preparation of an updated development plan at the
Diamba Sud Project; changes in general economic conditions and financial markets; the impact of inflationary pressures on the
Company’s business and operations ; estimated Brownfields expenditures in 2024; exploration plans; the future results of
exploration activities; the timing of the implementation and completion of sustaining capital investment projects at the Company’s
mines; expectations with respect to metal grade estimates and the impact of any variations relative to metals grades experienced;
metal prices, currency exchange rates and interest rates in 2024; timing of the filing of Technical Reports; plans to prepare a
mineral resource estimate for the D iamba Sud Project; timing of and possible outcome of litigation; life of mine estimates ; the
Company’s business strategy, plans and outlook; the merit of the Company’s mines and mineral properties; and the future financial
or operating performance of the Company. 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.