Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) reviews manufacturing outcomes for the primary quarter from its three working mines in Latin America, the San Jose Mine in Mexico, the Caylloma Mine in Peru, and the Lindero Mine in Argentina. The Firm produced 1,913,755 ounces of silver and 34,555 ounces of gold or 59,736 gold equivalent¹ ounces. Fortuna is on schedule to supply between 6.8 to 7.6 million ounces of silver and between 178 to 202 thousand ounces of gold or between 267,000 to 302,000 ounces gold equivalent¹ in 2021, in accordance with our annual manufacturing steerage (discuss with Fortuna information launch dated January 19, 2021 ).
First Quarter Consolidated Manufacturing Highlights
- Silver manufacturing of 1,913,755 ounces; 5 p.c improve over Q1 2020
- Gold manufacturing of 34,555 ounces; 242 p.c improve over Q1 2020
- Lead manufacturing of 8,181,355 kilos; 6 p.c improve over Q1 2020
- Zinc manufacturing of 11,968,896 kilos; 1 p.c improve over Q1 2020
First Quarter Consolidated Working Highlights
|First Quarter 2021||First Quarter 2020|
| Caylloma, |
| San Jose, |
| Lindero, |
|Consolidated|| Caylloma, |
| San Jose, |
| Lindero, |
|Common tpd milled||1,499||3,048||1,491||2,837|
|Ore positioned on pad 2 (t)||2,130,000|
|Gold positioned on pad 2 (oz)||56,330|
|Manufacturing 4 (oz)||1,922||10,301||22,332||34,555||471||9,630||10,101|
1. Gold equal manufacturing doesn’t embody lead or zinc, and is calculated utilizing gold to silver ratio of 1 to 76
2. Lindero tonnes and gold grade are estimated utilizing grade management sampling of blast holes. Numbers are reported to the closest ten thousand for tonnes
3. Metallurgical restoration for silver on the Caylloma Mine is calculated primarily based on silver content material in lead focus
4. Lindero manufacturing contains gold in carbon columns and electrolytic cement
5. Totals could not add attributable to rounding
San Jose Mine, Mexico
The San Jose Mine produced 1,646,444 ounces of silver and 10,301 ounces of gold within the first quarter of 2021, in step with price range. Common head grades for silver and gold had been 217 g/t and 1.36 g/t, 10 and 11 p.c above price range for the quarter, respectively, attributable to higher grades encountered in deliberate manufacturing stopes of the mine with respect to the reserve mannequin.
Caylloma Mine, Peru
Within the first quarter of 2021, the Caylloma Mine produced 267,311 ounces of silver with a median head grade of 77 g/t, 4 and 6 p.c above price range, respectively.
Caylloma continued to contribute important gold manufacturing within the first quarter of 2021. Gold manufacturing was 1,922 ounces, a rise of 308 p.c with respect to the comparable interval of 2020. The rise in gold manufacturing is said to larger head grades encountered within the Animas NE vein. The exploration crew continues to hold out work to raised perceive the continuity of those higher-grade zones.
Lead and zinc manufacturing for the primary quarter of 2021 was 8,181,355 kilos and 11,968,896 kilos, 9 p.c above and in step with price range, respectively. The typical head grades for lead and zinc had been 3.21% and 4.70%, 13 and 11 p.c above price range, respectively.
Lindero Mine, Argentina
Lindero stays on observe to realize 2021 annual gold manufacturing steerage of 140,000 to 160,000 ounces (discuss with Fortuna news release dated January 19, 2021 ).
Authorities mandated worldwide journey restrictions attributable to COVID-19 is limiting onsite entry to international vendor help. This continues to have an effect on Lindero’s ramp up progress in particular areas such because the stacking system and the SART plant. The operation is resolving these challenges by way of the usage of distant help know-how and different initiatives.
Within the first quarter of 2021, a complete of two.13 million tonnes of ore had been positioned on the heap leach pad averaging 0.82 g/t gold, containing an estimated 56,330 ounces of gold. The operation positioned 65 p.c extra ounces on the heap leach pad and produced 53 p.c extra ounces in doré in comparison with the fourth quarter of 2020. Whole gold manufacturing was 22,332 ounces comprised of 20,562 ounces in doré and 1,770 ounces of gold-in-carbon (GIC) stock.
|First Quarter 2021|
|Ore mined 1 (t)||1,610,000|
|Waste mined 1 (t)||1,220,000|
|Whole mined 1 (t)||2,830,000|
|Strip ratio (waste to ore)||0.76|
|Common crushing throughput (tpd)||860|
|Ore positioned on leach pad 1 (t)||2,130,000|
|Ore positioned grade 1 (g/t)||0.82|
|GIC stock (oz)||1,770|
|Doré poured (oz)||20,562|
|Gold produced (oz)||22,332|
|Gold offered (oz)||21,297|
1. Lindero tonnes and gold grade are estimated utilizing grade management sampling of blast holes. Numbers are reported to the closest ten thousand for tonnes
A complete of 1.6 million tonnes of ore had been mined within the first quarter of 2021 at a strip ratio of 0.76:1. Mining of ore was in step with expectation, whereas waste rock motion was 47 p.c decrease than deliberate as a result of prioritization of mining vehicles to stack ore on the leach pad. Waste motion is scheduled to extend in the course of the second half of the 12 months to align the operation with the waste stripping plan for 2021. Reconciliation of the reserve mannequin estimate signifies a great correlation with tonnes, grade, and gold ounces mined inside 5 p.c of predicted.
The ramp up of the first and secondary crushing circuits is progressing based on plan with crushing in March averaging 15,770 tonnes per day and throughput averaging 960 tonnes per hour, representing 84 and 92 p.c of design capability, respectively. Throughout March, crushing peaked at 20,000 tonnes per day.
The tertiary-HPGR crusher, agglomeration plant, and stacking system throughput averaged 7,600 tonnes per day in March, reaching 41 p.c of design capability. Throughout the quarter, the limiting issue for larger throughput was the stacking system, the place the operation encountered challenges with automation, mechanical, and operational points. As on the finish of March, the automation and mechanical points had been largely resolved whereas coaching of the workforce continues. Within the first days of April, the stacking system peaked at 14,780 tonnes per day, 79 p.c of design capability.
With the intention to stay on observe to realize annual gold manufacturing steerage, the operation continues to put coarse ore from the secondary crusher’s stockpile by way of vehicles and run of mine materials representing 81 p.c of ore positioned on the heap leach pad within the quarter.
Restoration of gold for the completely different granulometries of ore positioned on the heap leach pad is in step with expectations with 22,332 ounces of gold produced within the quarter.
The ADR plant is working as per design capability. The SART plant ramp up was suspended on the finish of February to handle operational points with the copper and gypsum filters. Bypassing the SART plant isn’t anticipated to have a important affect on gold manufacturing in the course of the upcoming months as a result of relative low ranges of soluble copper within the pregnant answer. The operation expects to include the SART plant into the method within the second quarter of 2021.
High quality Assurance & High quality Management
Grade management estimates are primarily based on blast gap chip samples submitted to Lindero’s on-site laboratory for preparation and assaying for gold, utilizing hearth assay with an atomic absorption end. The QA – QC program contains the blind insertion of licensed reference requirements and assay blanks at a frequency of roughly 1 per 20 regular samples in addition to the submission of duplicate samples for verification of sampling and assay precision ranges by an ISO 9001:2000 licensed umpire laboratory. ALS International Laboratory in Mendoza, Argentina ready the samples for assaying after which forwarded the samples to ALS International Laboratory in Lima, Peru for assay by customary hearth assay strategies.
Certified Particular person
Amri Sinuhaji is the Technical Companies Director – Mine Planning for the Firm and is a Skilled Engineer registered with the Affiliation of Skilled Engineers and Geoscientists of the Province of British Columbia (#48305) and a Certified Particular person as outlined by Nationwide Instrument 43-101- Requirements of Disclosure for Mineral Tasks. Mr. Sinuhaji has reviewed and accepted the scientific and technical data contained on this information launch and has verified the underlying information.
About Fortuna Silver Mines Inc.
Fortuna Silver Mines Inc. is a Canadian valuable metals mining firm with operations in Peru, Mexico and Argentina. Sustainability is integral to all our operations and relationships. We produce silver and gold and generate shared worth over the long-term for our shareholders and stakeholders by means of environment friendly manufacturing, environmental safety and social duty. For extra data, please go to our web site at www.fortunasilver.com .
ON BEHALF OF THE BOARD
Jorge A. Ganoza
President, CEO, and Director
Fortuna Silver Mines Inc.
Carlos Baca | T (Peru): +51.1.616.6060, ext. 0
This information launch comprises forward-looking statements which represent “forward-looking data” inside the which means of relevant Canadian securities laws and “forward-looking statements” inside the which means of the “secure harbor” provisions of the Non-public Securities Litigation Reform Act of 1995 (collectively, “Ahead-looking Statements”). All statements included herein, aside from statements of historic reality, are Ahead-looking Statements and are topic to a wide range of recognized and unknown dangers and uncertainties which may trigger precise occasions or outcomes to vary materially from these mirrored within the Ahead-looking Statements. The Ahead-looking Statements on this information launch could embody, with out limitation, statements in regards to the Firm’s plans for its mines and mineral properties; the Firm’s anticipated efficiency in 2021; estimated manufacturing forecasts and gross sales for 2021; estimated manufacturing prices and all-in sustaining money prices for 2021; the length and impacts of COVID-19 on the Firm’s manufacturing, workforce, enterprise, operations and monetary situation; metallic value estimates, estimated metallic grades in 2021; the estimated quantity of ore to be positioned on the leach pad on the Lindero Mine in 2021, the grade of gold and the quantity of gold estimated to be contained therein; the Firm’s enterprise technique, plans and outlook; the benefit of the Firm’s mines and mineral properties; mineral useful resource and reserve estimates; manufacturing prices; timelines; the long run monetary or working efficiency of the Firm; expenditures; approvals and different issues. Usually, however not all the time, these Ahead-looking Statements may be recognized by means of phrases reminiscent of “estimated”, “potential”, “open”, “future”, “assumed”, “projected”, “used”, “detailed”, “has been”, “achieve”, “deliberate”, “reflecting”, “will”, “anticipated”, “estimated” “containing”, “remaining”, “to be”, or statements that occasions, “may” or “ought to” happen or be achieved and comparable expressions, together with destructive variations.
Ahead-looking Statements contain recognized and unknown dangers, uncertainties and different components which can trigger the precise outcomes, efficiency or achievements of the Firm to be materially completely different from any outcomes, efficiency or achievements expressed or implied by the Ahead-looking Statements. Such uncertainties and components embody, amongst others, adjustments on the whole financial circumstances and monetary markets; the affect of the COVID-19 pandemic on the Firm’s mining operations and development actions; the length and impacts of COVID-19 on the Firm’s manufacturing, workforce, enterprise, operations and monetary situation, and the dangers referring to a worldwide pandemic, which except contained may trigger a slowdown in world financial progress; uncertainties associated to the impacts of COVID-19 which can embody: altering market circumstances, altering restrictions on the mining business within the international locations during which the Firm operates, the flexibility to function on account of authorities imposed restrictions, together with restrictions on journey, the transportation of concentrates and doré, entry to refineries, the affect of extra waves of the pandemic or will increase of incidents of COVID-19 within the international locations during which we function; the length of any suspension of operations on the Firm’s mines on account of COVID-19 which can have an effect on manufacturing and the Firm’ enterprise operations and monetary situation; adjustments in costs for gold, silver and different metals; adjustments within the costs of key provides; technological and operational hazards in Fortuna’s mining and mine improvement actions; dangers inherent in mineral exploration; uncertainties inherent within the estimation of mineral reserves, mineral assets, and metallic recoveries; adjustments to present estimates of mineral reserves and assets; adjustments to manufacturing and value estimates; governmental and different approvals; adjustments in authorities, political unrest or instability in international locations the place Fortuna is energetic; fluctuations in currencies and change charges; the imposition of capital management in international locations during which the Firm operates; labor relations points; in addition to these components mentioned underneath “Threat Components” within the Firm’s Annual Data Type. Though the Firm has tried to establish essential components that would trigger precise actions, occasions or outcomes to vary materially from these described in Ahead-looking Statements, there could also be different components that trigger actions, occasions or outcomes to vary from these anticipated, estimated or supposed.
Ahead-looking Statements contained herein are primarily based on the assumptions, beliefs, expectations and opinions of administration, together with however not restricted to the accuracy of the Firm’s present mineral useful resource and reserve estimates; that the Firm’s actions will probably be in accordance with the Firm’s public statements and said targets; that there will probably be no materials adversarial change affecting the Firm or its properties; that the reconciliation of mineral reserves on the Lindero Mine stays in line with the mineral reserve mannequin; adjustments to manufacturing estimates (which assume accuracy of projected ore grade, mining charges, restoration timing, and restoration charge estimates and could also be impacted by unscheduled upkeep, labour and contractor availability and different working or technical difficulties); the length and impacts of COVID-19 on the Firm’s manufacturing, workforce, enterprise, operations and monetary situation, and the dangers referring to a worldwide pandemic, which except contained may trigger a slowdown in world financial progress; authorities mandates in Peru, Mexico and Argentina with respect to mining operations usually or auxiliary companies or providers required for the Firm’s operations; authorities and the Firm’s makes an attempt to cut back the unfold of COVID-19 which can have an effect on could facets of the Firm’s operations, together with transportation of personnel to and from web site, contractor and provider availability and the flexibility to promote or ship focus and doré; the anticipated developments in mineral costs and foreign money change charges; that the Firm’s actions will probably be in accordance with the Firm’s public statements and said targets; that there will probably be no materials adversarial change affecting the Firm or its properties; that each one required approvals will probably be obtained for the Firm’s enterprise and operations; that there will probably be no important disruptions affecting operations and such different assumptions as set out herein. Ahead-looking Statements are made as of the date hereof and the Firm disclaims any obligation to replace any Ahead-looking Statements, whether or not on account of new data, future occasions or outcomes or in any other case, besides as required by regulation. There may be no assurance that these Ahead-looking Statements will show to be correct, as precise outcomes and future occasions may differ materially from these anticipated in such statements. Accordingly, traders mustn’t place undue reliance on Ahead-looking Statements.
Non-GAAP Monetary Measures
This information launch additionally refers to non-GAAP monetary measures, reminiscent of money value per tonne of processed ore. These measures don’t have a standardized which means or methodology of calculation, although the descriptions of such measures could also be comparable. These efficiency measures don’t have any which means underneath Worldwide Monetary Reporting Requirements (IFRS) and due to this fact, quantities introduced will not be akin to comparable information introduced by different mining firms.
Cautionary Notice to United States Traders Regarding Estimates of Reserves and Assets
Reserve and useful resource estimates included on this information launch have been ready in accordance with Nationwide Instrument 43-101 Requirements of Disclosure for Mineral Tasks (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Requirements on Mineral Assets and Mineral Reserves. NI 43-101 is a rule developed by the Canadian Securities Directors that establishes requirements for public disclosure by a Canadian firm of scientific and technical data regarding mineral initiatives. Equal U.S. reporting necessities are presently ruled by the USA Securities and Change Fee (“SEC”) Trade Information 7 (“Trade Information 7”) underneath the U.S. Securities Act of 1933, as amended. Canadian requirements, together with NI 43-101, differ considerably from the necessities of the SEC presently in impact underneath Trade Information 7, and reserve and useful resource data contained on this information launch will not be akin to comparable data disclosed by U.S. firms. Particularly, the time period “useful resource” doesn’t equate to the time period “reserves”. Below the SEC’s disclosure requirements presently in impact underneath Trade Information 7, mineralization will not be labeled as a “reserve” except the dedication has been made that the mineralization could possibly be economically and legally produced or extracted on the time the reserve dedication is made. Whereas the SEC acknowledges the reporting of mineral deposits which don’t meet the Trade Customary Information 7 definition of “reserve” as of February 25, 2019, the efficient adoption of the Modernization of Property Disclosures for Mining Registrants, such guidelines are usually not required to be compiled with till the primary fiscal 12 months starting on or after January 1, 2021. Because of this, the SEC’s disclosure requirements presently in impact usually don’t allow the inclusion of data regarding “measured mineral assets”, “indicated mineral assets” or “inferred mineral assets” or different descriptions of the quantity of mineralization in mineral deposits that don’t represent “reserves” by U.S. requirements in paperwork filed with the SEC. You’re cautioned to not assume that assets will ever be transformed into reserves. You must also perceive that “inferred mineral assets” have a large amount of uncertainty as to their existence and nice uncertainty as to their financial and authorized feasibility. You must also not assume that each one or any a part of an “inferred mineral useful resource” will ever be upgraded to the next class. Below Canadian guidelines, estimated “inferred mineral assets” could not type the idea of feasibility or pre-feasibility research besides in uncommon circumstances. You’re cautioned to not assume that each one or any a part of an “inferred mineral useful resource” exists or is economically or legally mineable. Disclosure of “contained ounces” in a useful resource is permitted disclosure underneath Canadian rules; nonetheless, the SEC’s disclosure requirements presently in impact underneath Trade Information 7 usually solely allow issuers to report mineralization that doesn’t represent “reserves” by such requirements as in-place tonnage and grade irrespective of unit measures. The necessities of NI 43-101 for identification of “reserves” are additionally not the identical as these of the SEC’s disclosure requirements presently in impact underneath Trade Information 7, and reserves reported in compliance with NI 43-101 could not qualify as “reserves” underneath such SEC requirements. Accordingly, data regarding mineral deposits set forth on this information launch will not be comparable with data made public by firms that report in accordance with U.S. requirements.