VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jul 10, 2014) - Fortuna Silver Mines Inc. (FVI.TO)(FSM)(F4S.F)(FVI) is pleased to announce second quarter production figures from its two 100 percent owned operating mines in Latin America, the San Jose Mine in Mexico and the Caylloma Mine in Peru. The company produced 1.6 million ounces of silver, 8,519 ounces of gold and significant base metal by-products. Silver and gold productions for the first six months of the year totaled 3.2 million and 16,669 ounces respectively; reflecting 53 and 52 percent of the company's annual guidance (see Fortuna news release dated January 13, 2014). Fortuna is on schedule to produce 6 million ounces of silver and 32,300 ounces of gold or 7.9 million ounces of Ag Eq* in 2014.
Jorge A. Ganoza, President and CEO, commented, "With San Jose operating at the new throughput rate of 2,000 tpd successfully behind us, we are now focusing on our next phase of organic growth. We are already working with our consultants conducting engineering and trade-off studies to assess the economic robustness of a potential expansion of San Jose to 3,000 tpd." Mr. Ganoza continued, "Mineralization at both the Trinidad North discovery and the central portion of the main Trinidad deposit remains wide open in multiple directions. Management continues to feel very excited with the prospective resource growth opportunities. With respect to the unit costs at both our mines, we are pleased with the positive results of the cost cutting measures implemented in mid-2013. We are on track to deliver on our all-in sustaining cash cost per ounce of silver guidance for 2014 of US$17.14, a 16 percent reduction compared to 2013."
Second Quarter Production Highlights:
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Silver production of 1,630,422 ounces; 52% increase over Q2 2013
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Gold production of 8,519 ounces; 64% increase over Q2 2013
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Lead production of 3,962,049 pounds; 15% decrease over Q2 2013
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Zinc production of 6,697,341 pounds; 9% increase over Q2 2013
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Cash cost** for the San Jose Mine is US$64.1 /t; in line with annual guidance of US$67.1 /t
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Cash cost** for the Caylloma Mine is US$91.7 /t; in line with annual guidance of US$88.3 /t
* Ag Eq is calculated using metal prices of US$1,200/oz for gold and US$20/oz for silver
** Preliminary estimates of cash operating costs per tonne, subject to modification on final cost consolidation
Consolidated Operating Highlights:
| Second Quarter 2014 | Second Quarter 2013 | |||||
| Caylloma, | San Jose, | Consolidated | Caylloma, | San Jose, | Consolidated | |
| Processed Ore | ||||||
| Tonnes milled | 115,920 | 167,437 | 113,906 | 102,264 | ||
| Average tpd milled | 1,302 | 1,925 | 1,280 | 1,147 | ||
| Silver*** | ||||||
| Grade (g/t) | 170 | 229 | 167 | 199 | ||
| Recovery (%) | 83.50 | 89.50 | 80.91 | 88.66 | ||
| Production (oz) | 529,011 | 1,101,411 | 1,630,422 | 493,438 | 580,570 | 1,074,007 |
| *** Metallurgical recovery for silver at the Caylloma Mine is calculated based on silver contents in lead concentrate |
| Second Quarter 2014 | Second Quarter 2013 | |||||
| Caylloma, | San Jose, |
| Caylloma, | San Jose, |
| |
| Gold | ||||||
| Grade (g/t) | 0.35 | 1.65 | 0.34 | 1.61 | ||
| Recovery (%) | 43.13 | 89.32 | 40.03 | 88.36 | ||
| Production (oz) | 562 | 7,957 | 8,519 | 502 | 4,681 | 5,183 |
| Lead | ||||||
| Grade (%) | 1.68 | 2.05 | ||||
| Recovery (%) | 92.02 | 90.79 | ||||
| Production (lbs) | 3,962,049 | 3,962,049 | 4,666,444 | 4,666,444 | ||
| Zinc | ||||||
| Grade (%) | 2.92 | 2.81 | ||||
| Recovery (%) | 89.76 | 86.88 | ||||
| Production (lbs) | 6,697,341 | 6,697,341 | 6,131,316 | 6,131,316 | ||
San Jose Mine, Mexico
Silver and gold productions for the quarter were 9% and 4% above budget respectively. Average head grade for silver was 229 g/t or 14% above plan and for gold was 1.65 g/t or 9% above budget. The variance in silver head grade with respect to the budget is due to higher grades from mining of the inferred resource extension to the south of the stockwork zone at level 1200. Metallurgical recovery for silver and gold was 89.50% and 89.32% respectively, in line with budget.