VANCOUVER, Aug. 10, 2011 /PRNewswire/ - Fortuna Silver
Mines Inc. (TSX: FVI / Lima Stock Exchange: FVI) is pleased to
announce that the processing plant at its 100% owned San Jose silver - gold mine has been in
operation since July 15, 2011. The
mill is in a balancing phase which is expected to continue through
the month of August with intermittent silver-gold concentrate
production. Commercial production will be declared when
operating performance is within 80% of design parameters for
throughput and recovery. The start-up and balancing phase to date
has been progressing as planned and Management anticipates
commercial production to commence on September 1, 2011.
Ore being run through the mill during the
balancing phase is being sourced from the 46,000 tonne development
ore stockpile grading 124 g/t silver and 1.15 g/t gold. The size of
the stockpile can sustain over a month of production at the initial
design rate of 1,000 tpd.
Mine production on stopes K, L and M is being
conducted according to mine plan to support the initial 1,000 tpd
throughput. The San Jose
mine is expected to produce 520,000 ounces of silver and 4,600
ounces of gold in 2011 and 1.7 million ounces of silver and 15,000
ounces of gold in 2012 at an estimated cash cost per silver ounce
of US$5.04, net of by-products.
Jorge Ganoza,
President and CEO, commented, "Our management team and contractors
at San Jose have performed
superbly delivering construction and commissioning on time and on
budget. The advancement of the San
Jose project from early stage exploration to production
attests for the organization's commitment to grow Fortuna into a
leading silver miner in Latin America. Start-up of the
San Jose mine is a milestone for
Fortuna as we now have two operating silver mines in the two
largest silver producing countries in the world."
Fortuna Silver Mines Inc.
Fortuna is a growth oriented, silver and base
metal producer focused on mining opportunities in Latin
America. Our primary assets are the Caylloma silver mine in
southern Peru and the San Jose silver-gold mine in Mexico. The
Company is selectively pursuing additional acquisition
opportunities. For more information, please visit our website
at www.fortunasilver.com.
ON BEHALF OF THE COMPANY
Jorge Ganoza
President, CEO and Director
Fortuna Silver Mines Inc.
Symbol: TSX: FVI / Lima Stock Exchange: FVI
Forward-Looking Statements
Certain statements in this press release
constitute forward-looking statements and as such are based on an
assumed set of economic conditions and courses of action. These
include estimates of the time of commencement, commissioning and
full production, future production levels, expectations regarding
mine production costs, expected trends in mineral prices and
statements that describe Fortuna's future plans, objectives or
goals. There is a significant risk that actual results will vary,
perhaps materially, from results projected depending on such
factors as 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, the timing and
availability of financing, governmental and other approvals,
political unrest or instability in countries where Fortuna is
active, labor relations and other risk factors.
SOURCE Fortuna Silver Mines Inc.