VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 12, 2016) - Fortuna Silver Mines Inc. (NYSE:FSM)
(TSX:FVI) is pleased to announce second quarter 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 1.6 million ounces of silver and 9,365 ounces of
gold plus base metal by-products. Silver and gold production for the first six months of the year totaled 3.2 million and 18,629
ounces respectively; being 7 percent and 10 percent above the company's mid-year projection. Fortuna's production guidance
for 2016 is 7.0 million ounces of silver and 42.8 thousand ounces of gold or 9.6 million ounces of Ag Eq* (see Fortuna news release dated January 14, 2016).
Second Quarter Production Highlights:
- Silver production of 1,553,217 ounces; 7 % decrease over Q2 2015
- Gold production of 9,365 ounces; 4 % increase over Q2 2015
- Lead production of 8,825,104 pounds; 85 % increase over Q2 2015
- Zinc production of 11,201,688 pounds; 31 % increase over Q2 2015
- Cash cost** for the San Jose Mine is US$59.5 /t; on track to meet annual guidance of US$57.4/t
- Cash cost** for the Caylloma Mine is US$71.3 /t; on track to meet annual guidance of US$79.4/t
* Ag Eq is calculated using silver to gold ratio of 60 to 1
** Preliminary estimates of cash operating costs per tonne, subject to modification on final cost consolidation
Consolidated Operating Highlights:
|
Second Quarter 2016 |
Second Quarter 2015 |
|
Caylloma, Peru |
San Jose, Mexico |
Consolidated |
Caylloma, Peru |
San Jose, Mexico |
Consolidated |
Processed Ore |
|
|
Tonnes milled |
129,958 |
185,080 |
|
115,973 |
183,001 |
|
Average tpd milled |
1,460 |
2,152 |
|
1,303 |
2,080 |
|
Silver*** |
|
|
Grade (g/t) |
89 |
226 |
|
144 |
228 |
|
Recovery (%) |
85.55 |
91.99 |
|
82.33 |
91.57 |
|
Production (oz) |
318,229 |
1,234,988 |
1,553,217 |
443,553 |
1,227,756 |
1,671,309 |
|
|
|
|
|
|
|
*** Metallurgical recovery for silver at the Caylloma Mine is calculated based on silver content in lead concentrate
|
Second Quarter 2016 |
Second Quarter 2015 |
|
Caylloma, Peru |
San Jose, Mexico |
Consolidated |
Caylloma, Peru |
San Jose, Mexico |
Consolidated |
Gold |
|
|
Grade (g/t) |
0.19 |
1.70 |
|
0.27 |
1.62 |
|
Recovery (%) |
14.94 |
91.65 |
|
32.84 |
91.06 |
|
Production (oz) |
119 |
9,246 |
9,365 |
326 |
8,706 |
9,032 |
Lead |
|
|
Grade (%) |
3.28 |
|
|
2.01 |
|
|
Recovery (%) |
93.77 |
|
|
92.67 |
|
|
Production (lbs) |
8,825,104 |
|
8,825,104 |
4,770,470 |
|
4,770,470 |
Zinc |
|
|
Grade (%) |
4.41 |
|
|
3.68 |
|
|
Recovery (%) |
88.56 |
|
|
91.18 |
|
|
Production (lbs) |
11,201,688 |
|
11,201,688 |
8,574,831 |
|
8,574,831 |
|
|
|
|
|
|
|
San Jose Mine, Mexico
Silver and gold production for the second quarter were 2 % and 10 % above budget, respectively. Average head grades for silver
and gold were 226 g/t and 1.70 g/t or 3 % below and 5 % above budget, respectively. Metallurgical recoveries for silver and gold
were 91.99 % and 91.65 % or 2 % and 1 % above budget, respectively.
Caylloma Mine, Peru
Silver production for the second quarter was 7 % above budget with an average silver head grade of 89 g/t, in line with
budget. Metallurgical recovery for silver was 85.55 % or 5 % above budget. Differences in lead and zinc produced compared to the
second quarter of 2015 are due to an increase in production from levels 12 and 13 of the Animas Vein. Lead and zinc
production was 22 % below and 2 % above the company's mid-year projection, respectively, due to higher than expected grade
variability.
Qualified Person
Edwin A. Gutierrez, Technical Services Corporate Manager, is the Qualified Person for Fortuna Silver Mines Inc. as defined by
National Instrument 43-101. Mr. Gutierrez is a Registered Member of the Society for Mining, Metallurgy and Exploration, Inc.
(SME Registered Member Number 4119110RM) 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.
About 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 acquisition opportunities throughout the Americas and in other select areas. 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.
Trading symbols: NYSE: FSM / TSX: FVI
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 include, without limitation, statements about the
Company's plans for its mines and mineral properties during 2016; the Company's business strategy, plans and outlook; the merit
of the Company's mines and mineral properties; the future financial or operating performance of the Company; and proposed
expenditures. 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; 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; 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 Company's plans for its mines and mineral properties during
2016; mine production costs; expected trends in mineral prices and currency exchange rates; the accuracy of the Company's 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.
This news release also refers to non-GAAP financial measures, such as cash cost per tonne of processed ore; cash cost per
payable ounce of silver; total production cost per tonne; all-in sustaining cash cost; all-in cash cost; adjusted net (loss)
income; operating cash flow per share before changes in working capital, income taxes, and interest income; and adjusted
EBITDA. These measures do not have a standardized meaning or method of calculation, even though the descriptions of such
measures may be similar. These performance measures have no meaning under International Financial Reporting Standards (IFRS)
and therefore, amounts presented may not be comparable to similar data presented by other mining companies.