Fortuna reports production of 1.6 million ounces of silver and 9,739 ounces of gold for first quarter 2015
Jorge A. Ganoza, President and CEO, commented: “Production for the quarter has been in line with our budgets and guidance. With respect to first quarter of last year our production increased as a result of the expansion of the San Jose Mine from 1,800 to 2,000 tonnes per day, which took place in April 2014.” Mr. Ganoza continued, “Work on the third expansion of the San Jose Mine to 3,000 tonnes per day is moving as planned with detail engineering and purchase orders for major equipment well advanced. We plan to commission midyear 2016. At the new rate Fortuna will target a consolidated annual production of approximately nine million ounces of silver and fifty-five thousand ounces of gold.”
First Quarter Production Highlights
- Silver production of 1,633,169 ounces; 6 % increase over Q1 2014
- Gold production of 9,739 ounces; 19 % increase over Q1 2014
- Lead production of 4,346,380 pounds; 12 % increase over Q1 2014
- Zinc production of 7,533,714 pounds; 15 % increase over Q1 2014
- Cash cost** for San Jose is US$59.8/t; on track to meet annual guidance of US$62.7/t
- Cash cost** for Caylloma is US$84.0/t; on track to meet annual guidance of US$90.3/t
(*) Ag Eq calculated using silver to gold ratio of 60 to 1
(**) Preliminary estimates of cash operating costs per tonne, subject to modification on final cost consolidation
Consolidated Operating Highlights:
| First Quarter 2015 | First Quarter 2014 | |||||||
|---|---|---|---|---|---|---|---|---|
| Caylloma, Peru | San Jose, Mexico | Consolidated | Caylloma, Peru | San Jose, Mexico | Consolidated | |||
| Processed Ore | ||||||||
| Tonnes milled | 114,451 | 178,647 | 114,115 | 150,708 | ||||
| Average tpd milled | 1,301 | 2,053 | 1,297 | 1,748 | ||||
| Silver* | ||||||||
| Grade (g/t) | 171 | 215 | 174 | 229 | ||||
| Recovery (%) | 85.28 | 88.68 | 84.80 | 89.74 | ||||
| Production (oz) | 535,959 | 1,097,210 | 1,633,169 | 539,824 | 997,035 | 1,536,859 | ||
(*) Metallurgical recovery for silver at Caylloma Mine is calculated based on silver contents in lead concentrate
| First Quarter 2015 | First Quarter 2014 | ||||||
|---|---|---|---|---|---|---|---|
| Caylloma, Peru | San Jose, Mexico | Consolidated | Caylloma, Peru |
San Jose, Mexico | Consolidated | ||
| Gold | |||||||
| Grade (g/t) | 0.28 | 1.83 | 0.32 | 1.74 | |||
| Recovery (%) | 35.81 | 89.08 | 44.40 | 90.29 | |||
| Production (oz) | 372 | 9,367 | 9,739 | 524 | 7,627 | 8,150 | |
| Lead | |||||||
| Grade (%) | 1.86 | 1.66 | |||||
| Recovery (%) | 92.69 | 92.96 | |||||
| Production (lbs) | 4,346,380 | 4,346,380 | 3,892,624 | 3,892,624 | |||
| Zinc | |||||||
| Grade (%) | 3.30 | 2.87 | |||||
| Recovery (%) | 90.58 | 90.49 | |||||
| Production (lbs) | 7,533,714 | 7,533,714 | 6,529,041 | 6,529,041 | |||
San Jose Mine, Mexico
Silver and gold productions for the first quarter were 2 % and 7 % above budget respectively. Average head grades for silver and gold were 215 g/t and 1.83 g/t or 1 % below and 3 % above budget respectively. Metallurgical recoveries for silver and gold were 88.68 % and 89.08 % in line with budget for both.
Caylloma Mine, Peru
Silver production for the first quarter was 1 % below budget and silver average head grade was 171 g/t or 2 % below plan. Metallurgical recovery for silver was 85.28 % or 1 % above budget.
Qualified Person
Boris G. Caro, is an technical consultant and a Qualified Person for Fortuna Silver Mines Inc. as defined by National Instrument 43-101. Mr. Caro is a Member of Australasian Institute of Mining and Metallurgy (Membership Number 305462) and a Registered Member of the Chilean Mining Commission (Comisión Calificadora de Competencias en Recursos y Reservas Mineras, Registered Member Number 0229) and is responsible for ensuring that the information contained in this news release is an accurate summary of the original reports and data provided to or developed by Fortuna Silver Mines.
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 acquisition opportunities throughout the Americas. For more information, please visit our website at www.fortunasilver.com.
ON BEHALF OF THE BOARD
Jorge A. Ganoza
President, CEO and Director
Fortuna Silver Mines Inc.