Fortuna updates on infill drill program at the Lindero gold Project
in Argentina
Fortuna Silver Mines Inc. (NYSE: FSM)
(TSX: FVI) is pleased to provide results for its infill
drilling program at the Lindero Project in Argentina. The Lindero
Project is under construction, and commercial operations are
planned to start late in the third quarter of 2019, with an
estimated gold production of 137,000 ounces of gold in the first
full year of operation (Please refer to the Lindero Project
Technical report dated October 31, 2017).
Eric Chapman, Vice President of Technical
Services, commented: "Infill drilling has been carried out with the
express intention of improving the confidence in the estimated
tonnes and grade of material planned for mining in year one at
Lindero. The mineralized intercepts encountered have met or
exceeded our expectations in 44 of the 61 holes drilled when
compared to estimated block model gold grades as of September 9,
2017." Mr. Chapman continued, "Of particular interest are the
results for drill holes LDH-138, LDH-139, and LDH-164 associated
with the mingled diorite porphyry unit in the center of the
deposit, in an area which was previously thought to be
non-mineralized. The new drilling results are presently being
incorporated into an updated internal estimate of Mineral Resources
and Reserves with the intention of optimizing the mine plan to
capture the benefits of these new results. Such updated technical
information will not materially change the existing Mineral
Resources estimates."
The infill drilling program, consisting of 61
diamond drill holes totaling 1,952 meters, focused on the areas
planned for mining at Lindero in year one with holes ranging from
12 meters to 68 meters in length. The program was designed with
three objectives: to improve the estimation of grades in
mineralized areas with lower density of drilling; to better define
the contact between mineralized and non-mineralized material at the
periphery of the deposit and at the boundaries between lithologic
units; and to source fresh samples for complementary metallurgical
column tests on Mineral Reserves scheduled for year one. A map
showing 2018 infill drilling collar location and a longitudinal
section showing updated drilling and 2017 block model can be found
at the following links, respectively:
https://fortunasilver.com/site/assets/files/4406/lindero-infill-drilling-2018-collar-location-map_5sept18.pdf
and
https://fortunasilver.com/site/assets/files/4407/lindero-section-a-a-25m-width-updated-drilling-and_2.pdf.
Infill drill program highlights include:
LDH-138 |
|
• |
1.84 g/t Au over 42 meters from surface |
LDH-146 |
|
• |
2.15 g/t Au over 20 meters from surface |
LDH-164 |
|
• |
1.20 g/t Au over 66 meters from surface |
LDH-186 |
|
• |
2.24 g/t Au over 28 meters from surface |
LDH-187 |
|
• |
2.33 g/t Au over 24 meters from surface |
The following table sets out the assay results for the
infill drill program:
Drill hole |
Easting |
Northing |
Elevation |
From (m) |
To (m) |
Interval²
(m) |
Au (g/t) |
Cu (%) |
Lithology Codes |
Holes to investigate grade
continuity in mineralized areas |
LDH-131 |
7226099.99 |
2623223.46 |
3922.92 |
0.8 |
53 |
52.2 |
0.46 |
0.11 |
PBFD/CPD1 |
LDH-132 |
7226051.85 |
2623225.41 |
3914.05 |
1 |
40 |
39 |
0.87 |
0.09 |
CPD1 |
LDH-136 |
7226206.97 |
2622983.99 |
3940.49 |
24 |
52 |
28 |
0.29 |
0.13 |
DDP |
LDH-138 |
7226165.65 |
2622984.51 |
3931.91 |
2 |
44 |
42 |
1.84 |
0.25 |
DDP |
LDH-139 |
7226124.55 |
2623023.58 |
3938.25 |
0.3 |
52 |
51.7 |
0.84 |
0.17 |
DDP |
LDH-141 |
7226047.11 |
2622985.12 |
3908.88 |
0.4 |
28 |
27.6 |
0.82 |
0.14 |
FPD |
LDH-142 |
7226165.33 |
2622866.27 |
3900.94 |
0 |
24 |
24 |
0.48 |
0.14 |
CPD1 |
LDH-143 |
7226082.61 |
2622908.28 |
3899.15 |
0 |
16 |
16 |
0.65 |
0.15 |
CPD1 |
LDH-146 |
7225965.14 |
2623224.75 |
3884.60 |
0 |
20 |
20 |
2.15 |
0.19 |
S1/FPD |
LDH-147 |
7226004.47 |
2623301.49 |
3879.90 |
0 |
20 |
20 |
0.46 |
0.11 |
S1 |
LDH-148 |
7226123.29 |
2623333.85 |
3886.19 |
0 |
24 |
24 |
0.90 |
0.09 |
CPD1 |
LDH-149 |
7226205.15 |
2623345.56 |
3887.53 |
0 |
24 |
24 |
1.62 |
0.12 |
FPD/CPD1 |
LDH-150 |
7226326.21 |
2623338.44 |
3914.58 |
0 |
32 |
32 |
0.45 |
0.10 |
CPD1 |
LDH-151 |
7226402.07 |
2623265.21 |
3910.70 |
0 |
20 |
20 |
0.36 |
0.15 |
CPD1 |
LDH-163 |
7226275.73 |
2623372.92 |
3898.69 |
1 |
24 |
23 |
1.01 |
0.14 |
PBFD |
LDH-164 |
7226163.52 |
2623061.14 |
3953.17 |
0 |
66 |
66 |
1.20 |
0.19 |
DDP |
LDH-170 |
7226326.20 |
2623297.81 |
3927.06 |
0.7 |
32 |
31.3 |
0.35 |
0.08 |
CPD1 |
LDH-171 |
7226207.03 |
2623019.15 |
3953.44 |
28 |
64 |
64 |
0.88 |
0.21 |
DDP/CPD2 |
LDH-173 |
7226164.59 |
2622907.84 |
3916.12 |
11.2 |
24 |
12.8 |
1.36 |
0.26 |
DDP |
LDH-174 |
7226204.85 |
2622864.55 |
3902.69 |
4 |
12 |
8 |
0.18 |
0.07 |
FPD |
LDH-175 |
7226086.05 |
2622944.01 |
3908.68 |
0 |
24 |
24 |
0.21 |
0.04 |
FPD |
LDH-176 |
7226006.21 |
2622991.53 |
3901.43 |
0.5 |
16 |
15.5 |
0.41 |
0.10 |
FPD |
LDH-177 |
7225966.95 |
2623068.30 |
3892.02 |
0 |
24 |
24 |
0.42 |
0.14 |
FPD |
LDH-180 |
7226005.98 |
2623226.39 |
3900.41 |
0 |
32 |
32 |
1.20 |
0.08 |
FPD |
LDH-181 |
7225977.42 |
2623183.11 |
3900.19 |
0 |
20 |
20 |
1.72 |
0.18 |
FPD/S1 |
LDH-182 |
7225969.81 |
2623137.46 |
3899.92 |
0 |
24 |
24 |
1.39 |
0.28 |
FPD |
LDH-183 |
7226009.20 |
2623185.12 |
3911.37 |
0 |
40 |
40 |
1.14 |
0.16 |
FPD |
LDH-184 |
7226164.99 |
2623280.62 |
3911.07 |
0 |
38 |
38 |
0.33 |
0.04 |
FPD |
LDH-185 |
7226205.91 |
2623387.06 |
3879.19 |
0 |
12 |
12 |
1.76 |
0.11 |
CPD1 |
LDH-186 |
7226169.57 |
2623336.10 |
3888.51 |
0 |
28 |
28 |
2.24 |
0.13 |
CPD1 |
LDH-187 |
7225968.08 |
2623266.00 |
3876.14 |
0 |
24 |
24 |
2.33 |
0.20 |
FPD/S1 |
including |
6 |
18 |
12 |
3.65 |
0.27 |
FPD |
LDH-188 |
7226058.84 |
2623325.32 |
3882.33 |
0 |
20 |
20 |
1.64 |
0.20 |
FPD |
Holes to investigate mineralized
contacts |
LDH-129 |
7226084.78 |
2623142.84 |
3932.60 |
0 |
56 |
56 |
0.61 |
0.08 |
PBFD |
LDH-130 |
7226125.40 |
2623185.44 |
3926.50 |
No intervals of significance |
PMI |
LDH-133 |
7226162.53 |
2623102.03 |
3934.68 |
1.1 |
52 |
50.9 |
0.17 |
0.06 |
CPD2/DDP |
LDH-134 |
7226204.08 |
2623104.63 |
3934.82 |
No intervals of significance |
CPD2 |
LDH-135 |
7226203.64 |
2623182.71 |
3919.25 |
No intervals of significance |
CPD2 |
LDH-137 |
7226206.02 |
2622947.00 |
3935.77 |
No intervals of significance |
DDP |
LDH-140 |
7226085.50 |
2623025.55 |
3924.89 |
No intervals of significance |
CPD2 |
LDH-144 |
7226007.07 |
2622943.37 |
3891.29 |
0 |
16 |
16 |
0.22 |
0.08 |
S1 |
including |
6 |
12 |
6 |
0.38 |
0.09 |
S1 |
LDH-145 |
7225967.00 |
2623104.67 |
3895.54 |
8 |
20 |
12 |
0.42 |
0.09 |
CPD2/FPD |
LDH-152 |
7226404.54 |
2623145.93 |
3903.55 |
0 |
12 |
12 |
0.28 |
0.07 |
CPD1 |
LDH-153 |
7226403.40 |
2623183.62 |
3906.08 |
No intervals of significance |
CPD1 |
LDH-154 |
7226403.29 |
2623224.50 |
3909.31 |
No intervals of significance |
CPD1 |
LDH-155 |
7226444.71 |
2623263.79 |
3898.17 |
No intervals of significance |
FPD |
LDH-156 |
7226445.12 |
2623222.02 |
3900.21 |
0 |
32 |
32 |
0.25 |
0.13 |
CPD1/FPD |
including |
27 |
32 |
5 |
0.61 |
0.26 |
FPD |
LDH-157 |
7226445.29 |
2623182.85 |
3902.52 |
No intervals of significance |
CPD1 |
LDH-158 |
7226445.66 |
2623144.89 |
3899.28 |
26 |
38 |
12 |
0.40 |
0.13 |
CPD1 |
LDH-159 |
7226402.69 |
2623104.65 |
3899.57 |
36 |
48 |
12 |
0.67 |
0.15 |
CPD1 |
LDH-160 |
7226401.25 |
2623392.24 |
3897.96 |
No intervals of significance |
CPD1 |
LDH-161 |
7226401.20 |
2623303.54 |
3907.77 |
No intervals of significance |
CPD1 |
LDH-162 |
7226403.97 |
2623343.96 |
3900.63 |
No intervals of significance |
FPD |
LDH-165 |
7226205.29 |
2623064.11 |
3947.10 |
28 |
60 |
32 |
0.44 |
0.14 |
DDP/CPD2 |
LDH-166 |
7226244.43 |
2623065.41 |
3940.71 |
No intervals of significance |
PMI |
LDH-167 |
7226242.66 |
2623022.38 |
3941.63 |
No intervals of significance |
DDP/CPD2 |
LDH-168 |
7226243.74 |
2622984.73 |
3940.40 |
No intervals of significance |
DDP |
LDH-169 |
7226367.30 |
2623225.69 |
3922.33 |
No intervals of significance |
PMI |
LDH-172 |
7226203.58 |
2622905.93 |
3921.17 |
No intervals of significance |
PMI |
LDH-178 |
7225966.14 |
2623026.94 |
3889.20 |
0 |
12 |
12 |
0.31 |
0.09 |
S1 |
LDH-179 |
7226005.87 |
2623104.15 |
3910.91 |
8 |
26 |
18 |
0.30 |
0.04 |
PMI/CPD2 |
LDH-189 |
7226013.72 |
2623344.14 |
3868.03 |
7 |
11 |
4 |
0.43 |
0.06 |
FPD |
|
Units associated with mineralization:FPD = Fine diorite
porphyryCPD1 = Crowded diorite porphyry 1PBFD = Bimodal feldspar
diorite porphyryDDP = Mingled diorite porphyry |
Units associated with non-mineralization:CPD2 = Crowded diorite
porphyry 2PMI = Post mineralized intrusiveS1 = Tertiary sedimentary
rocks |
Notes:
- All holes drilled vertically
- The Lindero Deposit is a gold-rich porphyry with mineralization
permeating throughout the deposit, making the calculation of true
thickness impossible as no definitive across strike direction
exists.
Quality Assurance & Quality
Control
Following detailed geological and geotechnical
logging, drill core samples are split on-site by diamond sawing.
One half of the core is submitted to the ALS Global Laboratory in
Mendoza, Argentina for preparation. The remaining half core is
retained on-site for verification and reference purposes. Following
preparation, the samples are assayed in the ALS Global Laboratory
in Lima, Peru for gold by standard fire assay methods; for silver
and base metals by ICP and atomic emission spectroscopy methods
utilizing four acid digestion; and for cyanide soluble copper by
atomic absorption methods. The QA-QC program includes the blind
insertion of certified reference standards and assay blanks at a
frequency of approximately 1 per 20 normal samples as well as the
inclusion of duplicate samples for verification of sampling and
assay precision levels.
About the Lindero gold
Project
In September 2017, the commencement of
construction at Lindero was officially launched (see Fortuna news
releases dated September 21, 2017 and December 21, 2017). Lindero
has been designed as an 18,750 tonnes per day owner operated open
pit mine with a pit life of 13 years based on existing mineral
reserves. The initial capital cost budget estimate for the
construction of Lindero is US$239 million, forecast to increase
between 10% and 17% (refer to Fortuna news release dated August 7,
2018, “Fortuna provides construction update and reports initial
on-site arrival of mine equipment at its Lindero gold Project in
Argentina”); this amount does not include VAT which is expected to
be recovered in the first 24 months from the start of mining
operations. The technical report of the Lindero Project is
available on SEDAR at www.sedar.com and on the Company's website at
https://www.fortunasilver.com/site/assets/files/4098/lindero-project-technical-report-effective-date-31-oct-2017.pdf.
Qualified Person
Eric N. Chapman, M.Sc., Vice President of
Technical Services, is the Qualified Person for Fortuna Silver
Mines Inc. as defined by National Instrument 43-101. Mr. Chapman is
a Professional Geoscientist of the Association of Professional
Engineers and Geoscientists of the Province of British Columbia
(Registration Number 36328) and has reviewed and approved the
scientific and technical information contained in this news
release.
About Fortuna
Silver Mines Inc.
Fortuna is a growth oriented, precious metal
producer with its primary assets being the Caylloma silver mine in
southern Peru, the San Jose silver-gold mine in Mexico and the
Lindero gold Project in Argentina. The Company is selectively
pursuing acquisition opportunities throughout the Americas and in
select other areas. For more information, please visit its website
at www.fortunasilver.com.
ON BEHALF OF THE BOARD
Jorge A. Ganoza President, CEO and
DirectorFortuna Silver Mines Inc.
Trading symbols: NYSE: FSM | TSX: FVI
Investor Relations:
Carlos BacaT (Peru): +51.1.616.6060, ext. 0
Forward looking Statements
This news release contains forward looking
statements which constitute “forward looking information” within
the meaning of applicable Canadian securities legislation and
“forward looking statements” within the meaning of the “safe
harbor” provisions of the Private Securities Litigation Reform Act
of 1995 (collectively, “Forward looking Statements”). All
statements included herein, other than statements of historical
fact, are Forward looking Statements and are subject to a variety
of known and unknown risks and uncertainties which could cause
actual events or results to differ materially from those reflected
in the Forward looking Statements. The Forward looking Statements
in this news release may include, without limitation, statements
about the Company’s plans for its mines and mineral properties, the
estimated amount of and grade of mineral resources at Lindero,
including the construction and development of the Lindero gold
Project; the Company’s business strategy, plans and outlook; the
merit of the Company’s mines and mineral properties; mineral
resource and reserve estimates; timelines; the future financial or
operating performance of the Company; expenditures; approvals and
other matters. Often, but not always, these Forward looking
Statements can be identified by the use of words such as
“estimated”, “potential”, “open”, “future”, “assumed”, “projected”,
“used”, “detailed”, “has been”, “gain”, “planned”, “reflecting”,
“will”, “containing”, “remaining”, “to be”, or statements that
events, “could” or “should” occur or be achieved and similar
expressions, including negative variations.
Forward looking Statements involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to be
materially different from any results, performance or achievements
expressed or implied by the Forward looking Statements. Such
uncertainties and factors include, among others, whether the
Company’s activities at the Lindero gold Project, including the
construction and development of the project will proceed as
planned; the estimated amount of and grade of mineral resources at
Lindero, 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 estimation of mineral reserves,
mineral resources, and metal recoveries; governmental and other
approvals; political unrest or instability in countries where
Fortuna is active; labor relations issues; as well as those factors
discussed under “Risk Factors” in the Company's Annual Information
Form. Although the Company has attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in Forward looking
Statements, there may be other factors that cause actions, events
or results to differ from those anticipated, estimated or
intended.
Forward looking Statements contained herein are
based on the assumptions, beliefs, expectations and opinions of
management, including but not limited to: that the Company’s
activities at the Lindero gold Project, including the construction
and development of the Project will proceed as planned;
expectations regarding construction and mine production costs;
expected trends in mineral prices and currency exchange rates; the
accuracy of the Company’s current mineral resource and reserve
estimates; that the Company’s activities will be in accordance with
the Company’s public statements and stated goals; that there will
be no material adverse change affecting the Company or its
properties; that all required approvals will be obtained; that
there will be no significant disruptions affecting construction and
operations of the Lindero gold Project and such other assumptions
as set out herein. Forward looking Statements are made as of the
date hereof and the Company disclaims any obligation to update any
Forward looking Statements, whether as a result of new information,
future events or results or otherwise, except as required by law.
There can be no assurance that Forward looking Statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, investors should not place undue reliance on Forward
looking Statements.
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