Fortuna increases silver production by 96% in 2009, issues production
guidance for 2010
- In 2009 Caylloma produced 1,685,026 ounces of silver, a year-on- year increase of 96% over 2008 production (861,176 oz Ag). - Production of zinc at 28.4M lbs and lead at 25.1M lbs increased 22% and 52% respectively over 2008. - Unaudited financial results indicate gross revenues in excess of US$50m for the full year 2009, an increase of at least 90% on 2008's revenue of $26.3m.
With the recent granting of the Change of Land Use permit (see Fortuna news release dated
Fortuna has also signed a commitment letter to enter into a
Important developments for the San Jose project during the second half of 2009 include: - On October 23rd, the Environmental Impact Study was approved by the SEMARNAT (Mexican Environmental Agency) which allows for the construction of a 1,500 tpd underground operation with a processing plant that will use conventional flotation for production of high grade silver and gold concentrates. - Metallurgical tests run by Metcon Research yield over 90% recoveries for both silver and gold without the use of cyanide. - On October 26th, a new NI 43 - 101 compliant resource estimate was disclosed where the Indicated Resources increased by 112%. Currently, Indicated Resources are 37.6 million ounces of silver equivalent and Inferred Resources are 30.4 million of ounces of silver equivalent.
Production Guidance for 2010
Management is pleased to provide a 2010 production guidance for Caylloma. The Company expects to sustain silver production at 1,700,000 ounces, with base metal production also remaining level at current rates.
2010 Production Guidance ------------------------------------------------------------------------ Metal production 2010 (Forecast) 2009 2008 2007 ------------------------------------------------------------------------ Silver (oz) 1,700,000 1,685,000 860,000 480,000 ------------------------------------------------------------------------ Zinc (lb) 28,400,000 28,439,000 23,300,000 13,900,000 ------------------------------------------------------------------------ Lead (lb) 25,200,000 25,133,000 16,500,000 8,300,000 ------------------------------------------------------------------------ Copper (lb) 1,000,000 189,000 - - ------------------------------------------------------------------------
A Technical Report on Reserves and Resources for the Caylloma Mine is available on the Company's website at www.fortunasilver.com.
Qualified Person
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
Forward-Looking Statements
Certain statements in this presentation constitute forward-looking statements and as such are based on an assumed set of economic conditions and courses of action. These include 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 calculation 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.
ON BEHALF OF THE BOARD Jorge Ganoza President, CEO and Director Fortuna Silver Mines Inc. Symbol:TSX: FVI/Lima Exchange: FVI 2009 Production Performance Figures for Fortuna's Caylloma Mine. ------------------------------------------------------------------------- Q I - Q II - Q III - Q IV - 2009 2009 2009 2009 2009 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Processed ore (t) 91,449 100,881 105,241 97,989 395,561 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Head grade ------------------------------------------------------------------------- Ag (g/t) 147.81 160.42 146.54 165.05 154.96 ------------------------------------------------------------------------- Zn (%) 3.83 3.82 3.58 3.42 3.66 ------------------------------------------------------------------------- Pb (%) 3.11 3.20 2.95 3.14 3.10 ------------------------------------------------------------------------- Cu (%) 0.23 0.26 0.26 0.24 0.25 ------------------------------------------------------------------------- Recovery(%) ------------------------------------------------------------------------- Ag(1) 84.6 86.5 84.2 86.4 85.4 ------------------------------------------------------------------------- Zn 90.0 88.5 88.6 89.1 89.1 ------------------------------------------------------------------------- Pb 93.0 92.5 93.2 93.3 93.0 ------------------------------------------------------------------------- Cu(2) - - - - - ------------------------------------------------------------------------- Metal produced ------------------------------------------------------------------------- Ag (oz)(3) 367,986 450,020 417,571 449,449 1,685,026 ------------------------------------------------------------------------- Zn (lb) 6,948,967 7,527,015 7,365,674 6,597,229 28,438,884 ------------------------------------------------------------------------- Pb (lb) 5,831,316 6,587,799 6,391,655 6,322,356 25,133,125 ------------------------------------------------------------------------- Cu (lb) - 49,865 44,848 94,227 188,940 ------------------------------------------------------------------------- (1) Silver recovery in lead and copper concentrate (2) Copper recovery not reported as circuit was fully commissioned in December 2009 (3) Silver production in lead and copper concentrates
For further information: Investor Relations: Lima office: Carlos Baca, Tel: 51.1.616.6060; Vancouver office: Erin Ostrom, Tel: (604) 484-4085
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