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. Construction
progress in December and January was delayed due to a shortfall in
contractor personnel; however, the Project continues to advance and
is now scheduled to transition from construction and commissioning
to operations in the second quarter of 2020.
Jorge A. Ganoza, President, CEO and Director,
commented, “Lindero encountered challenges during December and
January due to a shortfall in manpower in our main
electro-mechanical and piping contractor. We have reduced the scope
of this contractor and have brought in additional resources to
address this issue.” Mr. Ganoza added, “Early in January, the
Project underwent a leadership change. Since then, the Company has
completed an extensive review of the Project’s remaining schedule
through to operations. Placement of ore on the leach pad and first
doré pour is now scheduled for the second quarter of
2020.”
Construction, pre-commissioning and
commissioning highlights:
- As at the end of January, the overall project is 89%
complete
- Primary and secondary crushing circuits:
Pre-commissioning activities are concluded; crushing circuits are
being commissioned with ore
- Tertiary crushing circuit: Vendor
representatives returned to site on January 24th and are dedicated
to finalizing the mechanical completion of the HPGR;
pre-commissioning activities have commenced on the conveyors and
transfer systems of this circuit
- Agglomeration plant: Mechanical work almost
completed; piping and electrical installation is in its final
stages due to the delay caused by shortfalls in contractor manpower
during December and January; pre-commissioning activities have been
pushed back to March
- Power generation: 8-megawatt power plant and
medium voltage power distribution system have been commissioned and
are sourcing power to the project and unit operations
- Industrial water supply: Commissioning of the
industrial water system is scheduled to be completed this
month
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/00680065-4e1d-4a03-b7a0-013e80a5a105
18,750 tonnes per day crushing circuit
and agglomeration plant
Primary and secondary crushing circuits
Pre-commissioning activities of the main
equipment has been completed; commissioning with ore to stockpile
has been initiated.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/0dc08324-7e33-45c3-8ab3-530f44714381
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/4e2f7559-909f-4c52-910d-06635cbf0b70
Tertiary crushing circuit
Vendor technicians are concluding with final
mechanical and instrumentation activities on the HPGR.
Pre-commissioning of the conveyors and transfer systems were
initiated this month.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/399047ff-24d3-45ed-a159-7be3d48c845e
Agglomeration plant
Delays in mechanical and electrical activities
during December and January due to a shortfall in contractor
manpower have pushed back pre-commissioning to March.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/d86fc182-bb64-44ac-bea6-5a60a3552f13
8-megawatt power plant
Commissioning of the mine’s 8-megawatt power
plant and medium voltage power distribution system has been
completed. The plant has been connected to the mine’s grid and is
sourcing power to the mine and project.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/759d0abf-e350-4a63-a7dd-165385d01e0a
Leach pad and solution
ponds
Leach pad
Construction of the 31-hectare start-up leach
pad area and solution ponds has been completed. Assembly and
installation of the stacking system from the agglomeration plant to
the leach pad is in progress but behind schedule due to a shortfall
in contractor manpower during December and January and is expected
to be completed in April; making it on the critical path of the
project.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/355d3303-7fb4-43af-8816-211f91ef12b5
Solution ponds
Mechanical and piping installations are in
progress. Pumping and solution management systems are planned to be
commissioned in April.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/fe3eae4e-4b76-4d7a-9016-55d4bda9a320
Process Area
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/aed79348-351a-4578-9c52-d6ca85daca10
ADR plant
Equipment installation has been completed with
piping and electrical work in progress. Pre-commissioning
activities are planned to conclude in May.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/95358985-2161-479e-85d1-e93de161a979
SART plant
Mechanical and piping installation work is
progressing with pre-commissioning activities scheduled to conclude
in May. The SART plant is not mission critical for the start of
gold production.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/c60b6079-b9a0-4342-a686-2e48e699308e
Industrial water supply
The 13-kilometer water pipeline to the mine site
is being pre-commissioned. Commissioning of the industrial water
system is scheduled to be completed this month.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/a71beccf-3f93-4a66-bf17-806b5b2d41e7
Assay laboratory
Construction and implementation of the on-site
assay laboratory has been completed. Sample preparation and
analysis for gold using fire assay with an atomic absorption finish
has been conducted at this facility since the end of January
2020.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/44ba3a70-fba6-46e4-b8ae-e9fe2cc76cd7
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 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.
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; the Company’s exploration
activities, including related capital expenditures; the timing of
the completion of construction at Lindero; the timing of the
completion and commissioning of the plant, the timing of the
placing of ore on the leach pad and the first doré pour; the stock
piling of ore prior to first production; 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; further delays in the completion of the
construction and commissioning at Lindero may cause delays in the
commencement of production; start up delays in production may
increase the costs of the Lindero Project; 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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