GlobeNewswire

Fortuna reports updated first year gold doré production plan for the Lindero Project, Argentina

Share

VANCOUVER, British Columbia, April 04, 2019 (GLOBE NEWSWIRE) -- Fortuna Silver Mines, Inc. (NYSE: FSM ) ( TSX: FVI ) is pleased to provide its updated estimated gold doré production plan for the first year of commercial production and an updated Mineral Reserve and Mineral Resource estimate as of March 31, 2019 for the Lindero Project located in Argentina.

Jorge A. Ganoza, President and CEO, commented, “Based on the results of the 2018 infill drill program and optimization of our mine plan, we have been able to identify higher grade mineralized areas for mining in Lindero´s first year of commercial production.” Mr. Ganoza added, “As we conduct additional studies on expanding the leach pad facility, the Company will be in a position to assess the ability to upgrade material from measured and indicated resources to reserves.”

Highlights of Update             

  • Gold doré production in the first year of commercial production is estimated to be between 145,000 and 160,000 ounces
  • Combined Proven and Probable Mineral Reserves are reported at 84.2 Mt containing 1.7 Moz of gold, representing a decrease of 5 percent in tonnes and 2 percent in contained gold ounces
  • Combined Measured and Indicated Mineral Resources exclusive of Mineral Reserves are reported at 18.9 Mt containing 302,000 ounces of gold, representing an increase of 51 percent in tonnes and 211 percent in contained gold ounces             
  • Inferred Mineral Resources exclusive of Mineral Reserves are reported at 8.6 Mt containing 106,000 ounces of gold, representing an increase of 51 percent in tonnes and 63 percent in contained gold ounces

Mineral Reserves and Mineral Resources

Mineral Reserves and Mineral Resources are reported as of March 31, 2019 based on 212 diamond drill holes totaling 44,550 meters. The estimates incorporate an updated geological interpretation based on the infill drilling conducted in 2018 (see Fortuna news release dated September 6, 2018), updated metal prices and estimated operating costs. The updated technical information does not materially change the information presented in the Technical Report entitled “Fortuna Silver Mines Inc.: Lindero Property, Salta Province, Argentina”, with an effective date of October 31, 2017 prepared by Eric Chapman, Edwin Gutierrez, Geoff Allard, and Denys Parra Murrugarra (“Technical Report”).

Mineral Resource estimation involved the usage of drill hole samples in conjunction with surface mapping to construct three-dimensional wireframes defining lithologic, alteration, and grade domains. Samples were selected inside these wireframes, coded, composited and top cut. Boundaries were treated as hard, firm or soft based on statistical and geostatistical analysis. Gold and copper grades were estimated by ordinary kriging into a geological block model consisting of 10 meter x 10 meter x 4 meter selective mining units representing each domain. Estimated grades were validated globally, locally, and visually prior to classification and are reported above a 0.20 g/t Au cut-off grade within a conceptual pit shell.

The updated Mineral Resource and Mineral Reserve estimates use the same methodology (key assumptions, parameters and methods) as the Technical Report which is available on the Company’s website, on SEDAR, and on the SEC’s website. However, Mineral Reserve estimates have been conducted taking into account the new updated resource block model, revised cost estimates, metal prices, projected exchange rates, and the updated detailed design capacity of the leach pad. Mineralized material inside the ultimate pit shell that cannot be accommodated by the updated leach pad design has been classified as a Mineral Resource.

Mineral Reserves Contained
Metal
Property Classification Tonnes
(000)
Au
(g/t)
Cu
(%)
Au
(koz)
Lindero Project, Argentina Proven 25,352  0.76  0.11  618 
Probable 58,875  0.58  0.11  1,096 
Proven + Probable 84,226  0.63  0.11  1,714 


Mineral Resources Contained
Metal
Property Classification Tonnes
(000)
Au
(g/t)
Cu
(%)
Au
(koz)
Lindero Project, Argentina Measured 2,092  0.55  0.12  37 
Indicated 16,774  0.49  0.10  265 
Measured + Indicated 18,866  0.50  0.11  302 
Inferred 8,600  0.38  0.10  106 

Notes:

  1. Mineral Reserves and Resources are as defined by the 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves
  2. Mineral Resources are exclusive of Mineral Reserves
  3. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
  4. Factors that could materially affect the reported Mineral Resources or Mineral Reserves include; changes in metal price and exchange rate assumptions; changes in local interpretations of mineralization; changes to assumed metallurgical recoveries, mining dilution and recovery; and assumptions as to the continued ability to access the site, retain mineral and surface rights titles, maintain environmental and other regulatory permits, and maintain the social license to operate
  5. Mineral Resources and Mineral Reserves for Lindero are reported as of March 31, 2019
  6. Mineral Reserves for Lindero are reported based on open pit mining within designed pit shells based on variable gold cut-off grades and gold recoveries by metallurgical type. Met type 1 cut-off 0.27 g/t Au, recovery 75.4%; Met type 2 cut-off 0.26 g/t Au, recovery 78.2%; Met type 3 cut-off 0.26 g/t Au, recovery 78.5%; and Met type 4 cut-off 0.30 g/t Au, recovery 68.5%. The cut-off grades and pit designs are considered appropriate for long term gold prices of $1,320/oz. Mineral Reserves are restricted to leach pad design capacity. Assumptions used in the pit design are the same as those for the Mineral Resources
  7. Lindero Mineral Resources are reported within a conceptual pit shell above a 0.2 g/t Au cut-off grade using a long-term gold price of $1,320/oz, mining costs at $1.28 per tonne of material, with total processing and process G&A costs of $8.29 per tonne of ore and an average process recovery of 75%. The refinery costs net of pay factor were estimated to be $6.90 per ounce of gold. Slope angles are based on 3 sectors (39°, 42°, and 47°) consistent with geotechnical consultant recommendations
  8. Eric Chapman, P.Geo. (APEGBC #36328) is the Qualified Person for resources and Amri Sinuhaji (APEGBC #48305) is the Qualified Person for reserves, both being employees of Fortuna Silver Mines Inc.
  9. Totals may not add due to rounding procedures

First year production plan

For the first year of commercial production, Lindero´s mine plan has been optimized so that the operation will benefit from mining the higher grade mineralization outcropping that was identified through the infill drilling completed in 2018. As a result, gold doré production for Lindero’s first year of commercial production is estimated to be between 145,000 ounces and 160,000 ounces and is based on the factors set out in the Technical Report.

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) and has reviewed and approved the scientific and technical information contained in this news release.

About Fortuna Silver Mines Inc.

Fortuna is a growth oriented, precious metal producer with its primary assets being 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 its 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

Investor Relations:

Carlos Baca- T (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; the merit of the Company’s mines and mineral properties; mineral resource and reserve estimates; timelines; production at the mines, including planned production at the Lindero Project in the first year of its commercial production;  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, whether the Company’s activities at its properties will proceed as planned; delays in construction at the Lindero Project; delays in commissioning of the mine at Lindero; delays in the commencement of commercial production; changes in general economic conditions and financial markets; changes in prices for silver, gold 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: that the Company’s activities at its properties will proceed as planned; expectations regarding mine production costs; doré production guidance for the first year of  commercial production is based on certain estimates and assumptions, including but not limited to: construction at the Lindero Project continues according to current time and cost scheduling, Mineral Resources and Mineral Reserves, geological formations, grade and continuity of deposits and metallurgical characteristics; 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.

Cautionary Note to United States Investors Concerning Estimates of Reserves and Resources

Reserve and resource estimates included in this news release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards on Mineral Resources and Mineral Reserves. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for public disclosure by a Canadian company of scientific and technical information concerning mineral projects. Equivalent U.S. reporting requirements are currently governed by the United States Securities and Exchange Commission ("SEC") Industry Guide 7 (“Industry Guide 7”) under the U.S. Securities Act of 1933, as amended. Canadian standards, including NI 43-101, differ significantly from the requirements of the SEC currently in effect under Industry Guide 7, and reserve and resource information contained in this news release may not be comparable to similar information disclosed by U.S. companies. In particular, the term "resource" does not equate to the term "reserves". Under the SEC's disclosure standards currently in effect under Industry Guide 7, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. The SEC has not recognized the reporting of mineral deposits which do not meet the Industry Guide 7 definition of “reserve” prior to the adoption of the Modernization of Property Disclosures for Mining Registrants, which rules will be required to be complied with in the first fiscal year beginning on or after January 1, 2021. As a result, the SEC's disclosure standards currently in effect normally do not permit the inclusion of information concerning "measured mineral resources", "indicated mineral resources" or "inferred mineral resources" or other descriptions of the amount of mineralization in mineral deposits that do not constitute "reserves" by U.S. standards in documents filed with the SEC. You are cautioned not to assume that resources will ever be converted into reserves. You should also understand that "inferred mineral resources" have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. You should also not assume that all or any part of an "inferred mineral resource" will ever be upgraded to a higher category. Under Canadian rules, estimated "inferred mineral resources" may not form the basis of feasibility or pre-feasibility studies except in rare cases. You are cautioned not to assume that all or any part of an "inferred mineral resource" exists or is economically or legally mineable. Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian regulations; however, the SEC's disclosure standards currently in effect under Industry Guide 7 normally only permit issuers to report mineralization that does not constitute "reserves" by such standards as in-place tonnage and grade without reference to unit measures. The requirements of NI 43-101 for identification of "reserves" are also not the same as those of the SEC's disclosure standards currently in effect under Industry Guide 7, and reserves reported in compliance with NI 43-101 may not qualify as "reserves" under such SEC standards. Accordingly, information concerning mineral deposits set forth in this news release may not be comparable with information made public by companies that report in accordance with U.S. standards.

About GlobeNewswire

GlobeNewswire
GlobeNewswire
One Liberty Plaza - 165 Broadway
NY 10006 New York

https://globenewswire.com

GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

Subscribe to releases from GlobeNewswire

Subscribe to all the latest releases from GlobeNewswire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from GlobeNewswire

Norsk Hydro: Federal Court lifts one of two embargos on Alunorte’s deposit area DRS220.9.2019 23:06:00 CESTPress release

The Federal Court in Belém, Brazil, today, September 20, lifted the embargo on Alunortes new bauxite residue disposal (DRS2) under the civil lawsuit. Alunorte is still subject to an embargo on DRS2 imposed by the same court in a parallel criminal lawsuit, but Alunorte is expecting an extension of the civil decision to the criminal case shortly. Alunorte will continue utilizing the old bauxite residue disposal area (DRS1) until the DRS2 embargo under the criminal case is lifted. The decision to lift the DRS2 embargo in the civil case against Alunorte came after Ministério Público and Alunorte submitted a joint petition to the federal court on August 30, requesting the embargoes to be lifted. “This is an important step towards resuming installation and commissioning activities of the solid residue deposit DRS2. It is a state-of-the-art deposit system, the only sustainable and long-term solution for Alunorte’s operations. Alunorte is the foundation of the aluminium value chain in Para, an

Norsk Hydro: Den føderale domstolen løfter ett av to embargoer på Alunortes deponiområde DRS220.9.2019 23:06:00 CESTPressemelding

Den føderale domstolen i Belém, Brasil, løftet i dag, 20. september, embargoen på det nye avfallsdeponiet for bauksittrester (DRS2) i den sivilrettslige prosessen. Embargoen på DRS2 fra den samme domstolen i straffesaken er fortsatt gjeldende, men det er forventet at avgjørelsen i den sivile saken vil gjøres gjeldende i straffesaken innen kort tid. Alunorte vil fortsette å bruke det gamle avfallsdeponiet for bauksittrester (DRS1) til DRS2-embargoen i straffesaken er løftet. Beslutningen om å løfte DRS2-embargoen i den sivilrettslige saken mot Alunorte kom etter at Alunorte og Ministério Público den 30. august innga en felles anmodning til den føderale domstolen om å løfte DRS2-embargoene. - Dette er et viktig steg mot å gjenoppta installasjons- og igangsettingsaktivitetene ved det DRS2. Dette er et toppmoderne avfallssystem og er den eneste langsiktige og bærekraftige løsningen for Alunorte. Alunorte er fundamentet for aluminiumverdikjeden i delstaten Pará, og jeg setter stor pris på s

Invitation to the special and extraordinary shareholders' meetings20.9.2019 22:53:00 CESTPress release

Mechelen, Belgium; 20 September 2019, 22.01 CET; regulated information – Galapagos NV (Euronext & NASDAQ: GLPG) invites its shareholders to a special and extraordinary shareholders' meeting. On 14 July 2019, Galapagos NV (the "Company" or "Galapagos") announced that it entered into a collaboration with Gilead Sciences, Inc., Gilead Biopharmaceutics Ireland UC, and Gilead Therapeutics A1 Unlimited Company. In view hereof, Galapagos has the honor to invite its shareholders, warrant holders, directors, and statutory auditor to its special and extraordinary shareholders' meetings that will be held on Tuesday 22 October 2019 at 2:00 p.m. (CEST) at the Company's registered office. The items on the agenda of the special and extraordinary general meetings of shareholders include, amongst other things, the appointment of Mr. Daniel O'Day and Dr. Linda Higgins as directors of the Company, the approval of the issuance of two warrants for the benefit of Gilead Therapeutics A1 Unlimited Company, an

Invitation to the special and extraordinary shareholders' meetings20.9.2019 22:01:00 CESTPress release

Mechelen, Belgium; 20 September 2019, 22.01 CET; regulated information – Galapagos NV (Euronext & NASDAQ: GLPG) invites its shareholders to a special and extraordinary shareholders' meeting. On 14 July 2019, Galapagos NV (the "Company" or "Galapagos") announced that it entered into a collaboration with Gilead Sciences, Inc., Gilead Biopharmaceutics Ireland UC, and Gilead Therapeutics A1 Unlimited Company. In view hereof, Galapagos has the honor to invite its shareholders, warrant holders, directors, and statutory auditor to its special and extraordinary shareholders' meetings that will be held on Tuesday 22 October 2019 at 2:00 p.m. (CEST) at the Company's registered office. The items on the agenda of the special and extraordinary general meetings of shareholders include, amongst other things, the appointment of Mr. Daniel O'Day and Dr. Linda Higgins as directors of the Company, the approval of the issuance of two warrants for the benefit of Gilead Therapeutics A1 Unlimited Company, an

Notice of third quarter 2019 results and conference call20.9.2019 19:00:00 CESTPress release

Notice of third-quarter 2019 results and conference call Luxembourg, 20 September 2019 – Millicom will announce its third-quarter results for the period ending 30 September 2019, on 23 October 2019 at approximately 22:00 (Stockholm) / 21:00 (London) / 16:00 (Miami) via a press release. The company will host a conference call for the global financial community on 24 October 2019 at 15:00 (Stockholm) / 14:00 (London) / 09:00 (Miami). The conference call will be webcast at www.millicom.com Dial-in information: Please dial in 5-10 minutes before the scheduled start time to register your attendance. Dial-in numbers for the call are as follows: Sweden: +46 (0) 8 5069 2180 Luxembourg: +352 2786 0515 UK: +44 (0) 844 571 8892 US: +1 866 966 1396 The access code is: 9380844 Replay information: A replay of the call will be available for 7 days from 24 October 2019 at: UK: +44 (0) 333 300 9785 US: +1 (917) 677-7532 The access code is: 9380844 -END- For further information, please contact Press: Vi

DNO ASA: Mandatory Notification of Trade20.9.2019 17:05:00 CESTPress release

DNO ASA is a Norwegian oil and gas operator focused on the Middle East and the North Sea. Founded in 1971 and listed on the Oslo Stock Exchange, the Company holds stakes in onshore and offshore licenses at various stages of exploration, development and production in the Kurdistan region of Iraq, Norway, the United Kingdom, Netherlands, Ireland and Yemen. This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. Oslo, 20 September 2019 - DNO ASA, the Norwegian oil and gas operator, has today purchased 1,900,000 own shares at an average price of NOK 14.0326 per share. Following this transaction, DNO holds 50,700,000 own shares. -- For further information, please contact: Media: media@dno.no Investors: investor.relations@dno.no -- DNO ASA is a Norwegian oil and gas operator focused on the Middle East and the North Sea. Founded in 1971 and listed on the Oslo Stock Exchange, the Company holds stakes in onshore and offshore l