Fortuna Silver Mines, Inc. (NYSE: FSM)
(TSX: FVI) is pleased to announce a maiden Inferred
Mineral Resource estimate for the Sunbird discovery located at its
Séguéla gold Project in Côte d'Ivoire.
Paul Weedon, Senior Vice President of
Exploration of Fortuna, commented, “The Sunbird discovery, with
important similar geological characteristics to the nearby
previously defined deposits, remains open along strike and at
depth, providing excellent potential for additional growth based on
the successful ongoing expansion drilling program presently being
conducted.” Mr. Weedon continued, “We regard the definition of the
Sunbird deposit as a single step in the discovery journey with many
more exploration targets identified and yet to be tested.” Mr.
Weedon concluded, “We remain very encouraged at the potential for
further exploration work programs to help in determining the
ultimate scale of the Séguéla gold Project.”
Fortuna estimates the Sunbird deposit contains
an Inferred Mineral Resource of 3.4 million tonnes at an average
grade of 3.16 g/t Au containing 350,000 gold ounces (refer to Table
1). The Inferred Mineral Resource will not materially change the
existing Mineral Resource estimate at the Séguéla gold Project or
impact its current construction plan.
Table 1: Sunbird deposit maiden
Inferred Mineral Resource estimate
Classification |
Tonnes |
Au(g/t) |
Contained Au (oz) |
Inferred Mineral Resource |
3,446,000 |
3.16 |
350,000 |
Notes:
- Mineral Reserves and Mineral
Resources are as defined by the 2014 CIM Definition Standards for
Mineral Resources and Mineral Reserves
- Mineral Resources that are not
Mineral Reserves do not have demonstrated economic viability
- 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
- Mineral Resources are estimated and
reported as of December 31, 2021
- Mineral Resources are reported
constrained within an optimized pit shell at a cut-off grade of 0.5
g/t Au based on an assumed gold price of US$1,700/oz, metallurgical
recovery rate of 94.5%, mining cost of US$2.80/t, processing and
G&A costs of US$21.64/t, and refining/selling costs including
state and third-party royalties of US$121.60/oz. The pit design was
completed based on overall slope angle of between 50° and
53.3°
- Matthew Cobb is the Qualified
Person responsible for Mineral Resources, being an employee of
Roxgold Inc.
- Totals may not add due to rounding
procedures
Sunbird deposit geology and
drilling
The Sunbird deposit is located approximately 1.5
kilometers to the southeast of the previously reported Antenna
deposit at the Séguéla gold Project (refer to Figure 1). Sunbird’s
local geology comprises an interlayered package of tholeiitic and
pillow basalts, similar to the Boulder and Agouti deposits, however
where the former two also contain felsic intrusives, Sunbird is
considered to contain extrusive felsic units interlayered with the
basalts (rhyolites). Mineralization is closely associated with the
rhyolitic units similar to the adjacent Antenna deposit. Gold is
contained within quartz carbonate veins, with visible gold common
in the higher-grade portions of the deposit.
This maiden Inferred Mineral Resource estimate
incorporates a total of 73 diamond and reverse circulation (RC)
drill holes totaling 11,330 meters, drilled by Fortuna in 2021.
All RC drilling at the Sunbird deposit used a
5.25-inch face sampling pneumatic hammer with samples collected
into 60-liter plastic bags. Samples were kept dry by maintaining
enough air pressure to exclude groundwater inflow. If water ingress
exceeded the air pressure, RC drilling was stopped, and drilling
converted to diamond core tails. Once collected, RC samples were
riffle split through a three-tier splitter to yield a 12.5%
representative sample for submission to the analytical laboratory.
The residual 87.5% samples were stored at the drill site until
assay results were received and validated. Coarse reject samples
for all mineralized samples corresponding to significant intervals
are retained and stored on-site at the Company-controlled core
yard.
All diamond drill holes at the Sunbird deposit
were drilled with HQ sized diamond drill bits. The core was logged,
marked up for sampling using standard lengths of one meter or to a
geological boundary. Samples were then cut into equal halves using
a diamond saw. One half of the core was left in the original core
box and stored in a secure location at the company core yard at the
project site. The other half was sampled, catalogued and placed
into sealed bags and securely stored at the site until
shipment.
All Sunbird RC and diamond core samples were
shipped to ALS Laboratories preparation laboratory in Yamoussoukro
for preparation and then, via commercial courier, to ALS’s facility
in Ouagadougou, Burkina Faso for finishing. Routine gold analysis
using a 50-gram charge and fire assay with an atomic absorption
finish was completed for all Séguéla samples. Quality control
procedures included the systematic insertion of blanks, duplicates,
and standards into the sample stream. In addition, the ALS
laboratory inserted its own quality control samples.
Inferred Mineral Resource
estimation
Sunbird’s Inferred Mineral Resource estimate was
prepared using data with an effective cut-off date of December 31,
2021. Three dimensional wireframes were generated of the host
lithologies, including the weathering profile and alluvial cover,
as well as for 15 mineralized envelopes based on a nominal cut-off
grade of 0.2 g/t Au and minimum downhole thicknesses of 2 meters
and maximum internal dilution of 2 meters (refer to Figure 2).
Wireframes for each mineralized envelope were
used to select and flag drillhole samples. Samples were
preferentially sampled at 1-meter intervals regardless of drilling
technique. Consequently, all input data was composited to 1
meter.
Composites for each mineralized domain were
reviewed separately and in conjunction with log probability plots,
histograms and box and whisker plots, with no clear evidence for
multiple discrete grade populations identified within the Sunbird
deposit. All data was collectively treated as a single statistical
domain for the purposes of geostatistical analysis.
Input composite data for each individual domain
were assessed for the existence of outliers. Top cut grade capping
was applied on a semi-quantitative basis per-domain, based on the
histograms, log probability and mean/variance plots for each
domain. Very poorly informed domains typically did not have grade
caps applied and were left untreated. Grade caps were generally
applied at the 98th percentile or above.
An experimental semi-variogram was generated for
the collective input data from all domains. From this, a model
semi-variogram was developed, typified by a moderate nugget, and
two spherical structures.
A block model was built to encompass the Sunbird
deposit mineralization in its entirety. The block model was aligned
with the national grid utilising the same UTM coordinate system as
the input data with consideration of the likely selective mining
unit used to define block size.
The wireframes defining mineralized domains were
used as hard boundaries in the grade interpolation. Only grades
inside each mineralized wireframe were used to interpolate the
blocks inside the same wireframe. Ordinary kriging (OK) was
selected for grade interpolation in the mineralized domains. It is
considered by the Qualified Person to be appropriate for this style
of deposit.
All estimates were performed on a parent block
basis. Search parameters for estimation were determined based on
Quantitative Kriging Neighbourhood Analysis (QKNA). Single block
QKNA within a well-informed portion of the deposit was utilised.
The search radii used a quadrant search method to improve sample
selectivity for each estimate. An oriented ellipsoid search was
used to select data for interpolation. Search ellipsoid
orientations were based on orientations derived from variogram
analysis. A two-pass expanding search was used to complete the
estimation for gold within the individual mineralization objects,
based on the variogram ranges. The Sichel mean, an expected value,
was used to inform remaining un-estimated blocks. Typically,
greater than 98% of the blocks were estimated consistently in the
first two passes.
Fixed bulk density values were assigned to
individual lithologies based on more than 1,000 water immersion
measurements of drill core taken from across the Séguéla gold
Project. Mineralization was assigned the average density of 2.8
g/cm3 for mineralized fresh material and 2.2 g/cm3 for oxide
material.
Initial validation of the Sunbird deposit block
model was undertaken using a variety of methods, including checks
for un-estimated mineralization blocks, incorrect or absent
assignation of density values, and mineralized blocks or blocks
with density values above topography.
Following these checks, swath plots were
generated along the three principal axes to assess the
representativity of estimated grade profiles in comparison to the
input composite grades. Swath plots were generated on a
per-mineralization solid basis. Swath plots and log-probability
plots from the two largest, volumetrically, and most well-informed
mineralized domains indicate a suitable level of adherence of the
estimated grades to the expected values observed within the input
composite data.
Ongoing exploration work
program
Drill activities are ongoing at the Sunbird
deposit. This work is targeting extensions down dip and along
strike from the currently modelled Inferred Mineral Resource, and
infilling areas of lower density of drilling within the currently
modelled Inferred Mineral Resource.
Following on from the receipt of all data
associated with this drilling campaign, the Sunbird Inferred
Mineral Resource estimate will be updated, with a view to
potentially upgrading portions of the Inferred Mineral Resource to
higher confidence classifications, and to better define the extents
of the mineralization, which currently remains open at depth and
along strike.
Qualified Person
Eric Chapman, Fortuna’s Senior Vice President of
Technical Services, is a Professional Geoscientist of the
Association of Professional Engineers and Geoscientists of the
Province 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.
Figure 1 accompanying this
announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/43ad3551-73d2-466a-a15c-7a1ab101adc6
Figure 2 accompanying this
announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/3d11c8a8-bdac-4c11-bca5-fcd3c04098cd
About Fortuna Silver Mines
Inc.
Fortuna Silver Mines Inc. is a Canadian precious
metals mining company with four operating mines in Argentina,
Burkina Faso, Mexico and Peru, and a fifth mine under construction
in Côte d'Ivoire. 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 DirectorFortuna Silver Mines Inc.
Investor Relations: Carlos Baca
| info@fortunasilver.com
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 drilling at the Sunbird deposit in
2022 and prospective targets at the Séguéla gold Project; the
anticipated exploration and development programs at the Sunbird
deposit and the Séguéla gold Project, the anticipated results of
the exploration program at the Sunbird deposit, and the intention
to expand mineralization at the Séguéla gold Project; the Company’s
business strategy, plans and outlook; the merit of the Company’s
mineral properties; mineral 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 factors include, among others, changes in general
economic conditions and financial markets; the duration and effects
of the COVID-19 pandemic on our operations and workforce and the
effects on the global economy and society; changes in prices for
silver, gold and other metals; the success of the Company’s
exploration program at the Sunbird deposit and the Séguéla gold
Project; technological and operational hazards in Fortuna’s mining
and mine development activities; risks inherent in mineral
exploration; fluctuations in prices for energy, labor, materials,
supplies and services; fluctuations in currencies; uncertainties
inherent in the estimation of mineral reserves, mineral resources,
and metal recoveries; our ability to obtain all necessary permits,
licenses and regulatory approvals in a timely manner; 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 the
results from the exploration programs conducted at the Sunbird
Prospect; expected trends in mineral prices and currency exchange
rates; the accuracy of the Company’s information derived from its
exploration programs at the Sunbird Prospect 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.
Mineral resources that are not mineral reserves
do not have demonstrated economic viability. Inferred mineral
resources are considered too speculative geologically to have the
economic considerations applied to them that would enable them to
be categorized as mineral reserves.
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 company 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 Canadian 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.
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