Welcome!

News Feed Item

Fortuna Reports Production of 1.6 Million Ounces of Silver and 8,519 Ounces of Gold for the Second Quarter 2014

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/10/14 -- Fortuna Silver Mines Inc. (TSX: FVI)(NYSE: FSM)(FRANKFURT: F4S)(BVLAC: FVI) is pleased to announce second quarter production figures from its two 100 percent owned 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, 8,519 ounces of gold and significant base metal by-products. Silver and gold productions for the first six months of the year totaled 3.2 million and 16,669 ounces respectively; reflecting 53 and 52 percent of the company's annual guidance (see Fortuna news release dated January 13, 2014). Fortuna is on schedule to produce 6 million ounces of silver and 32,300 ounces of gold or 7.9 million ounces of Ag Eq(i) in 2014.

Jorge A. Ganoza, President and CEO, commented, "With San Jose operating at the new throughput rate of 2,000 tpd successfully behind us, we are now focusing on our next phase of organic growth. We are already working with our consultants conducting engineering and trade-off studies to assess the economic robustness of a potential expansion of San Jose to 3,000 tpd." Mr. Ganoza continued, "Mineralization at both the Trinidad North discovery and the central portion of the main Trinidad deposit remains wide open in multiple directions. Management continues to feel very excited with the prospective resource growth opportunities. With respect to the unit costs at both our mines, we are pleased with the positive results of the cost cutting measures implemented in mid-2013. We are on track to deliver on our all-in sustaining cash cost per ounce of silver guidance for 2014 of US$17.14, a 16 percent reduction compared to 2013."

Second Quarter Production Highlights:

--  Silver production of 1,630,422 ounces; 52% increase over Q2 2013
--  Gold production of 8,519 ounces; 64% increase over Q2 2013
--  Lead production of 3,962,049 pounds; 15% decrease over Q2 2013
--  Zinc production of 6,697,341 pounds; 9% increase over Q2 2013
--  Cash cost(ii) for the San Jose Mine is US$64.1 /t; in line with annual
    guidance of US$67.1 /t
--  Cash cost(ii) for the Caylloma Mine is US$91.7 /t; in line with annual
    guidance of US$88.3 /t

(i) Ag Eq is calculated using metal prices of US$1,200/oz for gold and US$20/oz for silver

(ii) Preliminary estimates of cash operating costs per tonne, subject to modification on final cost consolidation

Consolidated Operating Highlights:

----------------------------------------------------------------------------
                   Second Quarter 2014             Second Quarter 2013
            ----------------------------------------------------------------
            Caylloma, San Jose,             Caylloma, San Jose,
                 Peru    Mexico Consolidated     Peru    Mexico Consolidated
----------------------------------------------------------------------------
Processed
 Ore
----------------------------------------------------------------------------
Tonnes
 milled       115,920   167,437               113,906   102,264
Average tpd
 milled         1,302     1,925                 1,280     1,147
----------------------------------------------------------------------------
Silver(iii)
----------------------------------------------------------------------------
Grade (g/t)       170       229                   167       199
Recovery (%)    83.50     89.50                 80.91     88.66
Production
 (oz)         529,011 1,101,411    1,630,422  493,438   580,570    1,074,007
----------------------------------------------------------------------------

(iii) Metallurgical recovery for silver at the Caylloma Mine is calculated
based on silver contents in lead concentrate

----------------------------------------------------------------------------
                   Second Quarter 2014             Second Quarter 2013
            ----------------------------------------------------------------
            Caylloma, San Jose,             Caylloma, San Jose,
                 Peru    Mexico Consolidated     Peru    Mexico Consolidated
----------------------------------------------------------------------------
Gold
----------------------------------------------------------------------------
Grade (g/t)      0.35      1.65                  0.34      1.61
Recovery (%)    43.13     89.32                 40.03     88.36
Production
 (oz)             562     7,957        8,519      502     4,681        5,183
----------------------------------------------------------------------------
Lead
----------------------------------------------------------------------------
Grade (%)        1.68                            2.05
Recovery (%)    92.02                           90.79
Production
 (lbs)      3,962,049              3,962,0494,666,444              4,666,444
----------------------------------------------------------------------------
Zinc
----------------------------------------------------------------------------
Grade (%)        2.92                            2.81
Recovery (%)    89.76                           86.88
Production
 (lbs)      6,697,341              6,697,3416,131,316              6,131,316
----------------------------------------------------------------------------

San Jose Mine, Mexico

Silver and gold productions for the quarter were 9% and 4% above budget respectively. Average head grade for silver was 229 g/t or 14% above plan and for gold was 1.65 g/t or 9% above budget. The variance in silver head grade with respect to the budget is due to higher grades from mining of the inferred resource extension to the south of the stockwork zone at level 1200. Metallurgical recovery for silver and gold was 89.50% and 89.32% respectively, in line with budget.

The expansion of the processing plant from 1,800 to 2,000 tpd was completed in early April of this year; mill and mine have already achieved the new production rate. Last June, the company engaged engineering consultancy firms to evaluate the different options for expanding mill and mine facilities to potentially produce at 3,000 tpd.

Caylloma Mine, Peru

Silver production for the quarter was 7% above budget and average head grade was 170 g/t or 5% above plan. Metallurgical recovery for silver was 83.50% or 2% above budget.

Qualified Person

Boris G. Caro, Technical Services Corporate Manager, is a Qualified Person for Fortuna Silver Mines Inc. as defined by National Instrument 43-101. Mr. Caro is a Member of Australasian Institute of Mining and Metallurgy (Membership Number 305462) and a Registered Member of the Chilean Mining Commission (Registered Member Number 0229) 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 additional acquisition opportunities throughout the Americas. 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.

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. Forward-looking statements are statements that are not historical facts and that are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements. When used in this document, the words such as "anticipates", "believes", "plans", "estimates", "expects", "forecasts", "targets", "intends", "advance", "projects", "calculates" and similar expressions are forward-looking statements.

The forward-looking statements are based on an assumed set of economic conditions and courses of actions, including 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 estimation 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.

Although Fortuna has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended. There can be no assurance that any forward-looking statements or information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.

Contacts:
Fortuna Silver Mines Inc.
Investor Relations
Carlos Baca
T (Peru): +51.1.616.6060, ext. 0
[email protected]
www.fortunasilver.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"With Digital Experience Monitoring what used to be a simple visit to a web page has exploded into app on phones, data from social media feeds, competitive benchmarking - these are all components that are only available because of some type of digital asset," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Secure Channels, a cybersecurity firm, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Secure Channels, Inc. offers several products and solutions to its many clients, helping them protect critical data from being compromised and access to computer networks from the unauthorized. The company develops comprehensive data encryption security strategie...
An increasing number of companies are creating products that combine data with analytical capabilities. Running interactive queries on Big Data requires complex architectures to store and query data effectively, typically involving data streams, an choosing efficient file format/database and multiple independent systems that are tied together through custom-engineered pipelines. In his session at @BigDataExpo at @ThingsExpo, Tomer Levi, a senior software engineer at Intel’s Advanced Analytics ...
The goal of Continuous Testing is to shift testing left to find defects earlier and release software faster. This can be achieved by integrating a set of open source functional and performance testing tools in the early stages of your software delivery lifecycle. There is one process that binds all application delivery stages together into one well-orchestrated machine: Continuous Testing. Continuous Testing is the conveyer belt between the Software Factory and production stages. Artifacts are m...
Cloud resources, although available in abundance, are inherently volatile. For transactional computing, like ERP and most enterprise software, this is a challenge as transactional integrity and data fidelity is paramount – making it a challenge to create cloud native applications while relying on RDBMS. In his session at 21st Cloud Expo, Claus Jepsen, Chief Architect and Head of Innovation Labs at Unit4, will explore that in order to create distributed and scalable solutions ensuring high availa...
Cloud adoption is often driven by a desire to increase efficiency, boost agility and save money. All too often, however, the reality involves unpredictable cost spikes and lack of oversight due to resource limitations. In his session at 20th Cloud Expo, Joe Kinsella, CTO and Founder of CloudHealth Technologies, tackled the question: “How do you build a fully optimized cloud?” He will examine: Why TCO is critical to achieving cloud success – and why attendees should be thinking holistically abo...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, shared examples from a wide range of industries – including en...
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes a lot of work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost ...
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
"At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.