Vancouver,
October 24, 2011-- Fortuna
Silver Mines Inc. (NYSE: FSM / TSX: FVI / BVL: FVI) is pleased
to announce consolidated production figures for the third quarter of 2011
from its San Jose mine located in Mexico and its Caylloma
mine located in Peru. The Company is on schedule to deliver 2.4 million
ounces of silver and 7,530 ounces of gold in 2011.
Planned
silver and gold production expansion over the next 24 months
With
the start of commercial operations at the San Jose mine in September, the
Company is on a path to deliver sustained quarterly production growth to
the planned annual rate of 4.9 million ounces of silver and 26,000 ounces
of gold by Q4 2013. In addition the Company is conducting an
optimization study at the Caylloma
mine. This study is based on the 4 million tonnes
of reserves, and the results, expected for Q1 2012, could lead to
production expansions beyond the current 1270 tpd.
Third
Quarter Consolidated Highlights
�
Silver production of 673,137 ounces; 42%
increase over Q3 2010
�
Gold production of 1,623 ounces; 157% increase
over Q3 2010
�
Lead production of 4,960,154 pounds; 4% decrease
over Q3 2010
�
Zinc production of 5,815,486 pounds; 14%
decrease over Q3 2010
Consolidated Operating
Highlights:
|
Three months
ended September 30, 2011
|
Nine months
ended September 30, 2011
|
|
Caylloma, Peru
|
San Jose, Mexico
|
Consolidated
|
Caylloma, Peru
|
San Jose, Mexico
|
Consolidated
|
Processed Ore
|
|
|
Tonnes milled
|
115,574
|
37,417
|
|
332,503
|
37,417
|
|
Average tpd milled
|
1,270
|
693
|
|
1,250
|
693
|
|
Silver*
|
|
|
Grade (g/t)
|
186
|
108
|
|
169
|
108
|
|
Recovery (%)
|
81
|
87
|
|
82
|
87
|
|
Production (oz)
|
559,959
|
113,178
|
673,137
|
1,472,062
|
113,178
|
1,585,240
|
|
Three months
ended September 30, 2011
|
Nine months
ended September 30, 2011
|
|
Caylloma, Peru
|
San Jose, Mexico
|
Consolidated
|
Caylloma, Peru
|
San Jose, Mexico
|
Consolidated
|
Gold
|
|
|
Grade (g/t)
|
0.35
|
1.06
|
|
0.37
|
1.06
|
|
Recovery (%)
|
43
|
83
|
|
46
|
83
|
|
Production (oz)
|
563
|
1,060
|
1,623
|
1,802
|
1,060
|
2,862
|
Lead
|
|
|
Grade (%)
|
2.11
|
|
|
2.25
|
|
|
Recovery (%)
|
92
|
|
|
93
|
|
|
Production (lbs)
|
4,960,154
|
|
4,960,154
|
15,281,209
|
|
15,281,209
|
Zinc
|
|
|
Grade (%)
|
2.58
|
|
|
2.75
|
|
|
Recovery (%)
|
88
|
|
|
88
|
|
|
Production (lbs)
|
5,815,486
|
|
5,815,486
|
17,736,916
|
|
17,736,916
|
|
|
|
|
|
|
|
|
|
(*) Caylloma mine Ag recovery in Pb concentrate
Mr.
Jorge Ganoza, President & CEO, commented:
�This is the first quarter where we see an initial contribution to our
silver and gold production from San Jose. Over the next twenty four
months we plan to continue deriving quarterly growth from San Jose as we
expand the mine to the designed rate of 1500 tpd
and we access production panels below level 1400, where we have an
increasing grade profile with depth. At the Caylloma
mine we are advancing with an optimization study based on our current
reserves inventory looking to increase mining rate from the current 1270 tpd. We expect to release results in the first
quarter of 2012.�
San
Jose Mine, Mexico
Commercial
production was declared at San Jose on September 1st,
2011. The operation is processing ore at a rate of 1,000tpd with ore
being sourced from production blocks K, L and M. Recovery and grade of
the concentrate are within eighty percent of design parameters. The
start-up of operations has been without major difficulties and management
expects full design parameters will be achieved gradually over the coming
months as the process continues to be fine tuned
at the plant. Average head grades of 108 g/t silver and 1.06 g/t
gold in the quarter come from low grade development stock piles fed to
the mill as part of the commissioning and start-up phase.
Qualified
Person
Mr.
Miroslav Kalinaj, P.
Geo., is the Company�s Qualified Person as defined by National Instrument
43-101 and is responsible for the accuracy of the technical information
in this news release.
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. For more information, please
visit our website at www.fortunasilver.com .
President, CEO and Director
Fortuna Silver Mines Inc.
Trading symbols: NYSE: FSM / TSX: FVI / BVL: FVI
Management Head Office: Carlos Baca - Tel: +51.1.616.6060, ext. 0
Corporate Office: Ralph Rushton - Tel: +1.604.484.4085
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.
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