Fortuna Silver Mines, Inc. (NYSE: FSM)
(TSX: FVI) is pleased to
announce fourth quarter and full year 2019 production figures from
its two underground operating mines, the San Jose Mine in Mexico
and the Caylloma Mine in Peru. For the full year 2019, the
Company produced 8.8 million ounces of silver and 50.5 thousand
ounces of gold or 12.4 million silver equivalent1 ounces.
2019 Consolidated Production
Highlights
- Silver and gold production was in-line with 2019 guidance of
8.2 to 9.0 Moz Ag and 49 to 54 koz Au2
- Silver production of 8,809,767 ounces; 1 percent decrease over
2018
- Gold production of 50,525 ounces; 7 percent decrease over
2018
- Zinc production of 45,600,414 pounds; 0.3 percent increase over
2018
- Lead production of 28,746,074 pounds; 2 percent increase over
2018
- Cash cost3 for San Jose is US$69.60/t, within 2019 annual cost
guidance of between US$63.5 to US$70.1/t
- Cash cost3 for Caylloma is US$86.13/t, within 2019 annual cost
guidance of between US$80.0 to US$88.4/t
2019 Consolidated Operating
Results
|
Q4 2019 |
2019 |
|
Caylloma, Peru |
San Jose, Mexico |
Consolidated |
Caylloma, Peru |
San Jose, Mexico |
Consolidated |
Processed Ore |
|
|
Tonnes milled |
133,271 |
273,066 |
|
531,307 |
1,068,722 |
|
Average tpd milled |
1,481 |
3,034 |
|
1,488 |
3,028 |
|
Silver |
|
|
Grade (g/t) |
71 |
249 |
|
66 |
252 |
|
Recovery (%)4 |
82.33 |
91.45 |
|
83.15 |
90.92 |
|
Production (oz) |
249,284 |
2,002,633 |
2,251,917 |
941,289 |
7,868,478 |
8,809,767 |
Notes:
- Silver equivalent production does not include lead or zinc, and
is calculated using silver to gold ratio of 72 to 1
- Refer to Fortuna news release dated January 17, 2019
- Preliminary estimates of cash operating costs per tonne are
subject to modification on final cost consolidation
- Metallurgical recovery for silver at the Caylloma Mine is
calculated based on silver content in lead concentrate
- Totals may not add due to rounding
|
Q4 2019 |
2019 |
|
Caylloma, Peru |
San Jose, Mexico |
Consolidated |
Caylloma, Peru |
San Jose, Mexico |
Consolidated |
Gold |
|
|
Grade (g/t) |
0.19 |
1.50 |
|
0.23 |
1.57 |
|
Recovery (%) |
35.84 |
91.11 |
|
42.35 |
90.50 |
|
Production (oz) |
286 |
11,993 |
12,279 |
1,645 |
48,880 |
50,525 |
Lead |
|
|
Grade (%) |
2.84 |
|
|
|
2.72 |
|
|
Recovery (%) |
89.25 |
|
|
90.39 |
|
|
Production (lbs) |
7,440,601 |
|
7,440,601 |
28,746,074 |
|
28,746,074 |
Zinc |
|
|
Grade (%) |
4.48 |
|
|
4.36 |
|
|
Recovery (%) |
88.24 |
|
|
89.38 |
|
|
Production (lbs) |
11,613,952 |
|
11,613,952 |
45,600,414 |
|
45,600,414 |
Note: Totals may not add due to rounding
San Jose Mine, Mexico
In the fourth quarter of 2019, the San Jose Mine
produced 2,002,633 ounces of silver and 11,993 ounces of gold, 7
percent above and 3 percent below quarterly budget respectively.
Average head grades for silver and gold were 249 g/t and 1.5 g/t, 7
percent above and 3 percent below quarterly budget
respectively.
Silver and gold production for 2019 totaled
7,868,478 ounces and 48,880 ounces respectively; being within the
mine’s annual guidance range for silver and slightly below the
lower end for gold. Average head grades for silver and gold
were 252 g/t and 1.57 g/t, 2 percent above and 5 percent below the
mine’s annual guidance of 247 g/t Ag and 1.66 g/t Au (refer to
Fortuna news release dated January 17, 2019).
Caylloma Mine, Peru
In the fourth quarter of 2019, the Caylloma Mine
produced 249,284 ounces of silver, 7 percent above quarterly
budget. Average head grade for silver was 71 g/t, 11 percent
above quarterly budget.
Silver production for 2019 totaled 941,289
ounces; in-line with the mine’s annual guidance. Average head grade
for silver was 66 g/t, 3 percent above the mine’s annual guidance
of 64 g/t Ag (refer to Fortuna news release dated January 17,
2019).
In the fourth quarter of 2019, lead and zinc
production was 7,440,601 pounds and 11,613,952 pounds respectively,
13 percent and 10 percent above quarterly budget
respectively. Average head grades for lead and zinc were
2.84% and 4.48%, 16 percent and 14 percent above budget
respectively.
Base metal production for 2019 totaled
28,746,074 pounds of lead and 45,600,414 pounds of zinc; in-line
with and slightly above the mine’s annual guidance, respectively.
Average head grades for lead and zinc were 2.72% and 4.36%, 8
percent and 13 percent above annual guidance of 2.53% Pb and 3.87%
Zn (refer to Fortuna news release dated January 17, 2019).
Qualified Person
Eric Chapman, 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). Mr. Chapman 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 the Company. Mr. Chapman has approved the
scientific and technical information contained in this news
release.
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 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.
ON BEHALF OF THE BOARD
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 may include, without limitation, statements
about the Company’s plans for its mines and mineral properties; the
Company’s business strategy, plans and outlook; future operating
performance such as the Company´s production forecasts and plan;
the merit of the Company’s mines and 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; 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; changes
to current estimates of mineral reserves and resources; changes to
production estimates; 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
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 all in sustaining cash cost; cash cost
per tonne of processed ore. 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.
Fortuna Mining (NYSE:FSM)
Historical Stock Chart
From Aug 2024 to Sep 2024
Fortuna Mining (NYSE:FSM)
Historical Stock Chart
From Sep 2023 to Sep 2024