Fortuna Reports Record Production of 1.5 Million Ounces of Silver and 8,150 Ounces of Gold for First Quarter 2014
14 April 2014 - 1:00PM
Marketwired Canada
Fortuna Silver Mines Inc. (NYSE:FSM)(TSX:FVI)(BVLAC:FVI)(FRANKFURT:F4S) is
pleased to announce first quarter 2014 production figures from its two operating
mines in Latin America, the San Jose mine in Mexico and the Caylloma mine in
Peru. The company produced 1.5 million ounces of silver, 8,150 ounces of gold
plus base metal by-products. Fortuna is on schedule to produce 6 million ounces
of silver and 32,300 ounces of gold or 7.9 million Ag Eq(i) ounces in 2014.
Jorge A. Ganoza, President and CEO, commented: "I am very pleased with the
strong production figures for the first quarter of the year. Gold and silver
outputs were both above plan and costs remained well in line with our guidance
for the year. The mill expansion to 2,000 tpd at San Jose was completed in early
April and we expect to be at this new run rate during the month."
First Quarter Production Highlights
-- Silver production of 1,536,859 ounces; 55 % increase over Q1 2013
-- Gold production of 8,150 ounces; 81 % increase over Q1 2013
-- Lead production of 3,892,624 pounds; 16 % decrease over Q1 2013
-- Zinc production of 6,529,041 pounds; 10 % increase over Q1 2013
-- Cash cost(ii) for San Jose is US$66.61/t; in line with annual guidance
of US$67.1/t
-- Cash cost(ii) for Caylloma is US$87.85/t; in line with annual guidance
of US$88.3/t
(i) Ag Eq is calculated using metal prices of US$1,200/oz for gold
andUS$20/oz for silver
(ii) Preliminary estimates of cash operating costs per tonne, subject to
modification on final cost consolidation
Consolidated Operating Highlights:
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First Quarter 2014 First Quarter 2013
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Caylloma, San Jose, Consol- Caylloma, San Jose, Consol-
Peru Mexico idated Peru Mexico idated
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Processed
Ore
----------------------------------------------------------------------------
Tonnes
milled 114,115 150,708 264,823 111,416 93,478 204,894
Average tpd
milled 1,297 1,748 1,266 1,076
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Silver(i)
----------------------------------------------------------------------------
Grade (g/t) 174 229 173 184
Recovery (%) 84.80 89.74 80.61 88.94
Production
(oz) 539,824 997,035 1,536,859 499,445 492,773 992,218
----------------------------------------------------------------------------
((i)) Metallurgical recovery for silver at Caylloma mine is calculated based
on silver contents in lead concentrate
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First Quarter 2014 First Quarter 2013
----------------------------------------------------------------
Caylloma, San Jose, Consol- Caylloma, San Jose, Consol-
Peru Mexico idated Peru Mexico idated
----------------------------------------------------------------------------
Gold
----------------------------------------------------------------------------
Grade (g/t) 0.32 1.74 0.38 1.48
Recovery (%) 44.40 90.29 39.53 88.78
Production
(oz) 524 7,627 8,150 532 3,960 4,492
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Lead
----------------------------------------------------------------------------
Grade (%) 1.66 2.10
Recovery (%) 92.96 89.49
Production
(lbs) 3,892,624 3,892,624 4,614,275 4,614,275
----------------------------------------------------------------------------
Zinc
----------------------------------------------------------------------------
Grade (%) 2.87 2.79
Recovery (%) 90.49 86.48
Production
(lbs) 6,529,041 6,529,041 5,934,843 5,934,843
----------------------------------------------------------------------------
San Jose Mine, Mexico
Silver and gold productions for the first quarter were 12 % and 13 % above
budget respectively. Average head grades for silver and gold were 229 g/t and
1.74 g/t or 13 % above plan for both. Metallurgical recoveries for silver and
gold were 89.74 % and 90.29 % or 1 % above budget for both.
The processing plant expansion from 1,800 to 2,000 tpd was completed according
to plan in the first week of April; mine and mill will be achieving new
production rate during the month. Due to the continuing exploration success at
Trinidad North, the company is assessing the economic robustness of a potential
plant and mine expansion to 3,000 tpd.
Caylloma Mine, Peru
Silver production for the first quarter was 10 % above budget and average head
grade was 174 g/t or 7 % above plan. Metallurgical recovery for silver was 84.80
% or 3 % above budget.
Qualified Person
Boris G. Caro, Technical Services Corporate Manager, is a Qualified Person for
Fortuna Silver Mines Inc. as defined by National Instrument 43-101. Mr. Caro is
a Member of Australasian Institute of Mining and Metallurgy (Membership Number
305462) and a Registered Member of the Chilean Mining Commission (Comision
Calificadora de Competencias en Recursos y Reservas Mineras, Registered Member
Number 0229) 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.
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 throughout the
Americas. For more information, please visit our website at
www.fortunasilver.com.
ON BEHALF OF THE BOARD
Jorge A. Ganoza, President, CEO and Director
Fortuna Silver Mines Inc.
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. Forward-looking statements are statements that are not historical facts
and that are subject to a variety of risks and uncertainties which could cause
actual events or results to differ materially from those reflected in the
forward-looking statements. When used in this document, the words such as
"anticipates", "believes", "plans", "estimates", "expects", "forecasts",
"targets", "intends", "advance", "projects", "calculates" and similar
expressions are forward-looking statements.
The forward-looking statements are based on an assumed set of economic
conditions and courses of actions, including estimates of 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.
Although Fortuna has attempted to identify important factors that could cause
actual results to differ materially from those contained in forward-looking
statements or information, there may be other factors that cause results to be
materially different from those anticipated, described, estimated, assessed or
intended. There can be no assurance that any forward-looking statements or
information will prove to be accurate as actual results and future events could
differ materially from those anticipated in such statements or information.
Accordingly, readers should not place undue reliance on forward-looking
statements or information.
FOR FURTHER INFORMATION PLEASE CONTACT:
Fortuna Silver Mines Inc.
Carlos Baca
Investor Relations
T (Peru): +51.1.616.6060, ext. 0
www.fortunasilver.com
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