Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI)
is pleased to provide an update on construction, pre-commissioning
and commissioning activities at its 100 percent owned Lindero gold
Project located in the Province of Salta, Argentina.
Jorge A. Ganoza, President, CEO and Director,
commented, “Minor delays and unavailability of vendors due to
holidays thwarted our best efforts to place ore on the leach pad
prior to year end. Notwithstanding, primary and secondary crushing
circuits are mechanically and electrically complete and are in the
final stages of pre-commissioning. This will be followed by
commissioning of the primary and secondary crushers by placing ore
in the crushing circuit.” Mr. Ganoza continued, “Tertiary crushing
and agglomeration still require minor terminations in the areas of
electromechanical and piping. Pre-commissioning of these facilities
is now scheduled for mid-January, once vendor technicians return to
site.” Mr. Ganoza added, “Main construction contractors will work
through Christmas and break from December 28th to January 3rd. Mine
operations and pre-production work continue non-stop.” Mr. Ganoza
concluded, “We are currently in the final phase of a two year
construction project in Argentina. Our engineers and management
team continue to provide the outstanding leadership required to
ensure completion of the project.”
Construction, pre-commissioning and
commissioning highlights:
- As of the end of November 2019, the
overall project is 85% complete
- Primary and secondary
crushing circuits: Pre-commissioning activities are being
carried out and are in their final stages; placing of first ore to
crushing is scheduled for the end of December
- HPGR circuit:
Final mechanical completion activities and vendor representative
unavailability through the holidays have pushed back
pre-commissioning activities to mid-January 2020
- Agglomeration
plant: Mechanical installation is complete and minor
piping and electrical installation work is in the final stages;
pre-commissioning is expected to commence in mid-January 2020
- Power generation:
8 MW power plant and medium voltage power distribution system have
been commissioned
- Substations and electrical
rooms: Crushing circuit, agglomeration plant substations
and electrical rooms have been commissioned
- Industrial water
supply: Water wells and pumping system have been
successfully tested, and the 13 kilometer water pipeline to the
project site is being pre-commissioned
Lindero gold Project is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/fc9c445c-3dd8-4285-b318-80b68a883d81
18,750 tonnes per day crushing circuit
and agglomeration plant
Primary and secondary crushing circuits are
mechanically and electrically complete. Equipment is in the final
stages of pre-commissioning and will be ready to receive ore at the
end of December 2019. At the tertiary crushing circuit, acid wash
of the HPGR's hydraulic and lubrication systems has concluded and
oil flushing of the systems is being carried out. Final mechanical
adjustments and pre-commissioning of the tertiary crushing circuit
will commence once vendor representatives return from the holiday
roster rotation in the second week of January 2020; commissioning
is expected by mid-February.
At the agglomeration plant mechanical
installation has been completed and electrical installation is in
its final stages. Substation and electrical rooms have been
energized. Piping installation at both, cyanide preparation and
agglomeration plants, is being finalized; pre-commissioning is
expected in January 2020.
Primary crushing circuit is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/51d8e3c6-71e7-48c5-9485-ca4f76047748
Secondary crushing circuit is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/a8165cf6-0982-48c1-97a4-057b5a9873b5
Tertiary crushing circuit is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/42162e9e-e52e-4d31-8dd4-691290f92904
Agglomeration plant is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/59dfcc08-4432-4636-b247-1efbc862e1e5
8 megawatt power plant
The mine’s 8 MW power plant and medium voltage
power distribution system have already been commissioned.
8 MW power plant is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/8e080dde-5d52-443e-8a94-c7f9e645c06b
Leach pad and solution
ponds
Construction of the 31 hectare start-up leach
pad area and solution ponds have been completed. Before ore
stacking begins, the over liner height will be increased by 35
centimeters in a reduced area corresponding to the extent of the
first lift.
Leach pad and solution ponds is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/b35618a1-0530-4120-a828-32a22e29a7af
ADR plant and gold refinery room
Equipment installation has been completed with
piping and electrical work in progress. The substation and
electrical room have already been installed. Pre-commissioning
activities are expected to commence in February 2020.
ADR plant is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/017907de-5329-4b7f-ae70-9b2841f20371
ADR plant equipment installation work is
available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/108ca635-d211-4304-82f4-709025039843
Gold refinery room is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/61668ea8-ade9-4ba4-97a1-0fba60027a68
SART plant
The SART plant is not mission critical for the
start of gold production. Commissioning activities are scheduled to
commence in April 2020. Mechanical and electrical installation
works are 39% and 8% complete, respectively.
SART plant is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/8757be2b-9a43-4507-bab9-055319379804
Operational readiness and pre-production
mining
As of the end of November 2019, the operational
readiness plan implementation is proceeding according to plan and
is 90 percent complete. Mine, maintenance, processing area, and
logistics procedures have been completed. All key personnel for the
operation are on site. Training for mine operators has been
completed and processing area operators are finishing their
training programs. Main supplies and consumables for the operation
have been listed and are integrated into the logistics purchase
program.
In early September 2019, pre-production mining
at the Lindero deposit commenced. The owner operated mining fleet
is performing according to the operation's ramp-up plan achieving
an average mining rate of 21,000 tonnes per day during November.
The Company will provide an initial conciliation between ore mined
and the geological block model in January 2020.
Lindero deposit mining operations is
available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/9b97a9ee-f626-401c-8517-f7ac71405f9a
Industrial water supply
The water wells and pumping system have been
successfully tested. The 13 kilometer water pipeline to the project
site is being pre-commissioned.
Fresh water wells is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/d1416632-9f8e-4209-8aca-737fd01d718a
Assay laboratory
Sample preparation and analysis for gold using
fire assay with an atomic absorption finish (FA-AA) commenced at
the temporary on-site laboratory in mid-October 2019 before
transferring to the permanent on-site facility. A
comprehensive Quality Assurance/Quality Control (QA/QC) program has
been instigated, which includes the insertion of standards, blanks,
and duplicates to monitor laboratory performance.
Assay laboratory is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/ef4cba8d-3397-48c4-833c-79d716b37ea3
Further updates on the construction of the
Lindero gold Project will be provided as the development of the
Project proceeds. Please click on the
following link to access Lindero’s construction video updates:
https://fortunasilver.com/mines-and-projects/development/lindero-project-argentina/construction-videos/
and on the following link to access Lindero’s construction photo
gallery:
https://fortunasilver.com/mines-and-projects/development/lindero-project-argentina/construction-gallery/crushing-circuit/.
About the Lindero gold Project,
Argentina
In September 2017, the commencement of
construction at Lindero was officially launched (see Fortuna news
releases dated September 21, 2017 and December 21, 2017). Lindero
has been designed as an 18,750 tonnes per day owner operated open
pit mine with a pit life of 13 years based on current Mineral
Reserves. Crushed ore will be placed on a leach pad with the
pregnant solution pumped to SART and ADR plants prior to
electrowinning and refining where gold will be poured to doré
bars.
The initial capital cost budget estimate for the
construction of Lindero as set out in the technical report entitled
“Fortuna Silver Mines Inc.: Lindero Property, Salta Province,
Argentina” dated effective October 31, 2017, including Year 3
investments advanced to pre-production, is forecast to increase to
US$298 million, an increase of 22 percent over what was budgeted in
the technical report; this amount does not include value added tax
which is expected to be recovered in the first 24 months from the
start of mining operations. The technical report of the Lindero
Project is available on SEDAR at www.sedar.com and on the Company's
website at
https://fortunasilver.com/site/assets/files/4098/lindero-project-technical-report-effective-date-31-oct-2017.pdf.
About Fortuna
Silver Mines Inc.
Fortuna is a growth oriented, precious metals
producer focused on mining opportunities in Latin America.
Our primary assets are the Caylloma silver Mine in southern
Peru, the San Jose silver-gold Mine in Mexico and the Lindero gold
Project, currently under construction, in Argentina. The
Company is selectively pursuing acquisition opportunities
throughout the Americas and in select other areas. For more
information, please visit our website at www.fortunasilver.com.
Jorge A. Ganoza President, CEO and
DirectorFortuna Silver Mines Inc.
Trading symbols: NYSE: FSM | TSX: FVI
Investor Relations:
Carlos BacaT (Peru): +51.1.616.6060, ext. 0
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; 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; 2019 production and cost
guidance; 2020 estimated production guidance; the Company’s
exploration activities, including related capital expenditures; the
timing of the completion of construction at Lindero; the timing of
commissioning of the plant and the first doré pour; the timing of
the commencement of commercial production; the construction costs
at the Lindero Project and proposed expenditures at the
Lindero Project. 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 dated March 29, 2019 and filed on
SEDAR at www.sedar.com. 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; 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.
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