Fortuna Reports Production Figures for Second Quarter 2011
VANCOUVER, July 20, 2011 /PRNewswire/ - Fortuna Silver Mines Inc. (TSX: FVI) (Lima Stock Exchange: FVI) is pleased to announce production figures for the second quarter of 2011 from the Caylloma Mine located in Arequipa, Peru.
Second Quarter Highlights
- Silver production of 474,979 ounces; 1% increase over Q2 2010
- Lead production of 5,275,481 pounds; 6% increase over Q2 2010
- Zinc production of 6,176,625 pounds; 2% decrease over Q2 2010
- Cash cost per silver ounce estimate, net of by-product credits, of negative US$4.42
The Company is prioritizing its silver and gold production and is on track to deliver 2.4 million ounces of silver and 7,368 ounces of gold, plus significant base metal production, in 2011. The third quarter of 2011 will be a milestone quarter for the Company with the planned start-up of commercial operations at the San Jose Silver and Gold mine in Mexico.
Caylloma Mine Operating Highlights:
| Q2 - 2011 | Q1 - 2011 | Q2 - 2010 | |
| Processed ore (t) | 111,992 | 104,937 | 108,010 |
| Average tons milled per day | 1,273 | 1,206 | 1,227 |
| Silver* | |||
| Grade (g/t) | 161.57 | 157.56 | 156.35 |
| Recovery (%) | 82 | 82 | 87 |
| Production (oz) | 474,979 | 437,123 | 470,310 |
| Lead | |||
| Grade (%) | 2.28 | 2.36 | 2.30 |
| Recovery (%) | 94 | 92 | 91 |
| Production (lbs) | 5,275,481 | 5,045,582 | 4,966,619 |
| Zinc | |||
| Grade (%) | 2.80 | 2.87 | 3.02 |
| Recovery (%) | 89 | 87 | 88 |
| Production (lbs) | 6,176,625 | 5,744,798 | 6,320,248 |
(*) Ag recovery in Pb concentrate
Silver production at Caylloma for the first two quarters was 912,102 ounces with mill feed being sourced from the Animas, Bateas and Soledad veins. Last month, the Company received the approval of the environmental impact study for the construction of a new tailings dam.
San Jose Mine
At the San Jose project, construction activities are on-time and budget to start commercial production at an initial rate of 1,000 tpd. Commissioning of the processing plant started in mid July, 15 days ahead of schedule. The 8MW power substation, tailings dam and crushing circuit have already been commissioned.
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 Project in Mexico. The Company is selectively pursuing additional acquisition opportunities. For more information, please visit our website at www.fortunasilver.com.
ON BEHALF OF THE BOARD
Jorge Ganoza
President, CEO and Director
Fortuna Silver Mines Inc.
Symbol: TSX: FVI / Lima Stock Exchange: FVI
Forward-Looking Statements
Certain statements in this press release constitute forward-looking statements and as such are based on an assumed set of economic conditions and courses of action. These include 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 calculation 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.
SOURCE Fortuna Silver Mines Inc.
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