======================================================================
Fortuna drills 25.1m averaging 10.9 g/t Au + 588 g/t Ag at San
Jose
======================================================================
July 16, 2007: Fortuna Silver Mines Inc. (FVI: TSX-V) is pleased to
announce additional drill results from the 2007 drill program at the
San Jose silver-gold deposit located in Oaxaca, Mexico. San Jose is
being explored and developed under a joint venture between Fortuna
(76%) and Continuum Resources Ltd (24%).
Analytical results have been received and verified for thirteen drill
holes located in the southern and central portions of the Trinidad
deposit. Highlights of the current drilling include:
.. Hole SJO-060 averaging 10.9 g/t Au + 588 g/t Ag (1141 g/t Ag Eq) over
25.1m.
.. Hole SJO-057 averaging 6.1g/t Au + 588 g/t Ag (897 g/t Ag Eq) over
11.6m.
.. Hole SJO-055 averaging 11.9g/t Au + 1151 g/t Ag (1756 g/t Ag Eq) over
2.5m.
.. Hole SJO-063 averaging 4.4g/t Au + 1224 g/t Ag (1450 g/t Ag Eq) over
2.6m.
.. Hole SJO-065 averaging 1.4g/t Au + 183 g/t Ag (256 g/t Ag Eq) over
20.9m.
Assay results from the thirteen drill holes are summarized below.
Length-weighted assay averages have been calculated for the mineralized
intervals using a lower cut-off of 100 g/t Agequivalent. True widths
are estimated at between 70% to 90% of the drilled intervals.
Drill holes SJO-055, -057, -058, -059, -060, -061 and -062 extend
mineralization beyond the limits of the resource estimate reported in
Fortuna's March 12, 2007 release. Holes SJO-056, - 063, -064, -066 and
-067 are infill drill holes. Drill hole SJO-065 encountered
mineralization in the Bonanza vein approximately 380m below the surface
with the mineralization remaining open to depth. An updated long
section showing the location of the drill holes is in preparation and
will be posted shortly on Fortuna's website at www.fortunasilver.com.
Hole No. From To Interval Au Ag Ag Eq Ag Eq
(m) (m) (m) (g/t) (g/t) (g/t)* (oz/T)*
SJO-055� 173.60 176.10 2.50 11.9 1151 1756 51.2
SJO-056 426.23 427.28 1.05 1.5 260 334 9.7
442.50 443.65 1.15 2.6 415 549 16.0
550.45 551.20 0.75 8.4 577 1003 29.3
SJO-057� 149.90 161.45 11.55 6.1 588 897 26.1
SJO-058� 77.50 78.70 1.20 2.3 432 549 16.0
SJO-059� 131.70 144.90 13.20 1.6 222 305 8.9
SJO-060� 129.70 154.80 25.10 10.9 588 1141 33.3
including 129.70 135.05 5.35 32.5 2017 3674 107.2
and 143.60 147.40 3.80 17.6 637 1535 44.8
and 151.40 152.40 1.00 15.3 533 1313 38.3
SJO-061� 174.40 177.40 3.00 2.3 248 365 10.7
SJO-062� 156.20 156.90 0.70 6.5 1520 1850 54.0
SJO-063 215.35 234.63 19.28 0.6 71 104 3.0
292.70 295.30 2.60 4.4 1224 1450 42.3
SJO-064 486.15 491.05 4.90 1.3 117 181 5.3
SJO-065 423.50 444.40 20.90 1.4 183 256 7.5
SJO-066 312.00 319.60 7.60 1.0 109 160 4.7
333.70 340.07 6.37 0.8 124 166 4.9
SJO-067 207.70 210.05 2.35 1.7 220 307 9.0
*Silver equivalency estimates were derived using US$10.30/oz for silver
and US$525/oz for gold yielding a Ag:Au ratio of 51:1. Metallurgical
recoveries and net smelter returns are assumed to be 100% for purposes
of estimating silver equivalency.
1 these holes extend mineralization beyond the limits of the resource
estimate reported in Fortuna's March 12, 2007 release.
The San Jose deposit is a low sulfidation epithermal system located
within the Taviche Mining District in southern Oaxaca and is
characterized by multiphase, quartz-carbonate-sulfide stockwork veining
and mineralized hydrothermal breccias within a sequence of Tertiary
andesitic volcanic and volcaniclastic rocks. Using a cut-off grade of
150 g/t Ag equivalent, the NI43-101 compliant indicated and inferred
mineral resources for the Trinidad zone at San Jose are estimated at
(see Fortuna News Release dated Mar. 12, 2007):
Indicated Mineral Resources: 1.47 million tonnes grading 262.6 g/t Ag +
2.19 g/t Au
containing 17.7 million Ag equivalent oz
Inferred Mineral Resources: 3.9 million tonnes grading 260.6 g/t Ag +
2.57 g/t Au
containing 49.1 million Ag equivalent oz.
The Fortuna-Continuum joint venture controls mining concessions
covering approximately 47,440 hectares in the Taviche Mining District.
A 25,000 meter drill program is underway at the Trinidad and San
Ignacio zones with 3 diamond drill rigs. Concurrently, surface
geochemical and reconnaissance programs are being conducted throughout
the district to identify and evaluate new target areas.
Quality Control & Quality Assurance
For the current drill program, following detailed geological and
geotechnical logging, drill core samples are split on-site by diamond
saw. One-half of the core is submitted to the ALS Chemex sample
preparation facility in Guadalajara, Mexico. The remaining half core is
retained on-site for verification and reference purposes. Following
preparation, sample pulps are sent to ALS Chemex in Vancouver where
they are assayed for gold and silver by standard fire assay methods
using a gravimetric finish. Multi-element analyses are also completed
for each sample by ICP methods. The QA-QC program at San Jose includes
the blind insertion of certified reference standards for silver and
gold at a frequency of approximately 1 per 20 normal samples and the
insertion of assay blanks at a frequency of approximately 1 per 20
normal samples. All sample results reported in this news release
correspond to HQ- or NQ-diameter core. Further drill results will be
released as analytical data are received and validated.
Qualified Person
Mr. Gregory Smith, P.Geo., is the Company's Qualified Person as defined
by National Instrument 43-101 and is responsible for the accuracy of
this news release.
Background
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
Project in Mexico. The Company is aggressively pursuing additional
acquisition opportunities. For more information, please visit our
website at www.fortunasilver.com.
The TSX Venture Exchange has not reviewed and does not take
responsibility for the adequacy or accuracy of this release.
ON BEHALF OF THE BOARD
Jorge Ganoza Durant, President
Fortuna Silver Mines Inc.
Investor Relations: Ralph Rushton
Tel: 604-484-4085
Symbol: TSX-V:FVI
======================================================================
Copyright (c) 2007 FORTUNA SILVER MINES INC. (FVI) All rights
reserved. For more information visit our website at
http://www.fortunasilver.com/ or send mailto:info@fortunasilver.com
======================================================================
.