VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jul 14, 2014) - Fortuna Silver Mines Inc. (FSM) (FVI.TO) (FVI) (FRANKFURT:F4S.F) is pleased to announce results for additional step-out drilling of the Trinidad North discovery located contiguous with the San Jose Mine in Oaxaca, Mexico. Results are included for eleven drill holes completed from April through June of 2014, confirming that the high-grade silver-gold mineralization remains open along strike to the north and to depth.
Highlights of Step-out Drilling
- 1,029 g/t Ag and 5.94 g/t Au (1,385 g/t Ag Eq) over ETW* of 3.3 m
- 467 g/t Ag and 1.93 g/t Au (583 g/t Ag Eq) over ETW of 4.9 m
- 399 g/t Ag and 2.15 g/t Au (528 g/t Ag Eq) over ETW of 13.0 m
- 636 g/t Ag and 2.93 g/t Au (812 g/t Ag Eq) over ETW of 4.0 m
- 854 g/t Ag and 4.97 g/t Au (1,152 g/t Ag Eq) over ETW of 3.3 m
* ETW = Estimated True Width
Dr. Thomas I. Vehrs, Vice President of Exploration, commented: "The results of the step-out drilling at Trinidad North continue to support the presence of a strong and well developed mineralized system. The mineralization is hosted in hydrothermal boiling breccias, crackle breccias and stockwork vein zones characteristic of a very productive and extensive epithermal system. With the results of each new drill hole, we are refining our interpretations of the geology and the mineralization, and growing increasingly confident of the exploration upside of the system. The crosscut at the 1300 meter level is being advanced a further 300 meters to the north to allow for the development of additional drill stations and exploration of the strike extension of the mineralized system."
The Trinidad North discovery was announced in February of 2013 (see Fortuna news release of February 4, 2013) and a maiden resource for the Trinidad North zone was announced in October of 2013. At a 70 g/t Ag Eq cutoff, Inferred Resources at Trinidad North as of the July 4, 2013 data cutoff date were estimated at 1.9 Mt averaging 269 g/t Ag and 1.67 g/t Au, containing 16.3 Moz Ag and 100.8 koz Au. Resource estimates at higher cutoff grades were also presented and the reader is referred to the October 17, 2013 news release for additional information. Step-out drilling of the Trinidad North discovery was initiated in late September of 2013 with initial results being reported in Fortuna news releases dated November 25, 2013, January 21, 2014, March 10, 2014 and April 29, 2014. An updated resource estimate with a data cutoff date of June 30, 2014 is currently in preparation.
Assay Results for Principal Mineralized Intervals - Trinidad North Step-out Drilling
|Hole_Id||From (m)||To |
|ETW* (m)||Ag |
|Pb (ppm)||Zn |
|Cu (ppm)||Ag Eq** (g/t)|
|* ETW = Estimated True Width|
|** Ag Eq values estimated at Au:Ag ratio of 60 based on metal prices of US$1200/oz Au and US$20.00/oz Ag and metallurgical recoveries of 89 % for both Au and Ag; Averages calculated at cutoff of 70 g/t Ag Eq|
Longitudinal sections showing the location of the step-out drill hole results relative to the Trinidad North maiden resource area are available at the following link: http://www.fortunasilver.com/s/san_jose.asp?ReportID=664325.
San Jose Mine
The San Jose mine and processing plant were successfully expanded to 2,000 tpd in April 2014 (see Fortuna news release of April 14, 2014) and studies are currently underway to assess the potential for a further expansion to 3,000 tpd. Production for the first half of 2014 was 2,098,446 oz silver and 15,583 oz gold, 10 percent and 8 percent above budget, respectively. Production guidance for 2014 is for the processing of 683,000 tonnes of ore averaging 203 g/t Ag and 1.56 g/t Au, resulting in the estimated production of 4.0 million ounces of silver and 30.4 thousand ounces of gold.
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 Chemex Laboratory in Guadalajara, Mexico. The remaining half core is retained on-site for verification and reference purposes. Following preparation, the samples are assayed for gold and silver by standard fire assay methods and for silver and base metals by ICP and atomic absorption methods utilizing aqua regia digestion. The QA-QC program includes the blind insertion of certified reference standards and assay blanks at a frequency of approximately 1 per 15 normal samples as well as the inclusion of duplicate samples for verification of sampling and assay precision levels.
Thomas I. Vehrs, Ph.D., Vice President of Exploration is the Qualified Person for Fortuna Silver Mines Inc. as defined by National Instrument 43-101. Dr. Vehrs is a Founding Registered Member of the Society for Mining, Metallurgy, and Exploration, Inc. (SME Registered Member Number 3323430RM) 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-, gold- 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 exploration and development opportunities in the Americas. For more information, please visit our website at www.fortunasilver.com.
ON BEHALF OF THE BOARD
President, CEO and Director
Fortuna Silver Mines Inc.
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. Forward-looking statements are statements that are not historical facts and that are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements. When used in this document, the words such as "anticipates", "believes", "plans", "estimates", "expects", "forecasts", "targets", "intends", "advance", "projects", "calculates" and similar expressions are forward-looking statements.
The forward-looking statements are based on an assumed set of economic conditions and courses of actions, including 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 estimation 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.
Although Fortuna has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended. There can be no assurance that any forward-looking statements or information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.