VANCOUVER, April 26 /PRNewswire/ - Fortuna Silver Mines Inc. (TSX: FVI) (Lima Stock Exchange: FVI) is pleased to announce production figures for the first quarter of 2011 from the Caylloma Mine located in Arequipa, Peru. Fortuna's production guidance for 2011 is 2.4 million ounces of silver, 7,530 ounces of gold, 25.2 million pounds of zinc, 16.6 million pounds of lead and 760,000 pounds of copper.
First Quarter Highlights
- Silver production of 437,123 ounces; 8.9% decrease over Q1 2010
- Lead production of 5,045,582 pounds; 14.8% decrease over Q1 2010
- Zinc production of 5,744,798 pounds; 16.4% decrease over Q1 2010
- Cash cost per silver ounce, net of by-product credits, estimate of negative US$4.52
The drop in silver production for the quarter is explained by lower mill throughput, related to power outages as a result of unusual winter conditions, and to two percentage points lower than expected metallurgical recoveries associated with sourcing approximately 20% of production from mixed sulfide-oxide ore from level six of Animas vein. Management does not anticipate climatic conditions to continue affecting production into the second quarter.
Caylloma Mine Operating Highlights:
|Q1 - 2011||Q4 - 2010||Q1 - 2010|
|Processed ore (t)||104,937||112,257||101,503|
|Average tonnes milled per day||1,206||1,261||1,167|
(*) Ag recovery in Pb concentrate
In January 2011 production of copper-silver concentrate was discontinued at Caylloma due to an unfavorable material change in smelter refining and treatment charges with respect to 2010. The Company is periodically evaluating market conditions to assess the reinitiating of the circuit.
Updated mineral reserve and mineral resource estimates were published for the Caylloma Mine and San Jose Project in a news release dated April 12th, 2011 and are also available on the Company's website at www.fortunasilver.com.
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
President, CEO and Director
Fortuna Silver Mines Inc.
Symbol: TSX: FVI / Lima Stock Exchange: FVI
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.