Fortuna beats guidance, reports record production of 5.2 million silver
equivalent ounces for 2012 and issues production guidance for 2013
VANCOUVER, Jan. 14, 2013
VANCOUVER, Jan. 14, 2013 /PRNewswire/ - Fortuna Silver Mines, Inc. (NYSE: FSM)
(TSX: FVI) (BVL: FVI) (Frankfurt: F4S.F) is pleased to announce 2012 record
silver and gold production figures from its San Jose mine located in Mexico
and Caylloma mine located in Peru.
The company's mining operations performed strongly in 2012 delivering our
sixth consecutive year of silver and gold production growth and sustained low
cash cost per silver ounce. For 2013, Fortuna is scheduled to produce 4.4
million ounces of silver and 23,300 ounces of gold or 5.7 million Ag Eq ounces
plus significant base metal credits.
Jorge A. Ganoza, President and CEO, commented: "2012 has been our sixth year
of continued record silver and gold production growth highlighted by the first
year anniversary of successful commercial operations at our San Jose mine.
For 2013, we continue to project sustained low cost silver and gold production
expansion driven by the San Jose ramp-up to be commissioned in early Q3 2013.
Fortuna´s strategic objective is to target an annual production rate of 14
million silver and gold equivalent ounces by 2016 while maintaining cash costs
at its operations below industry average."
2012 Consolidated Production Highlights
*Silver and gold production was 8% and 19% above 2012 production guidance
*Silver production of 4.0 million ounces; 59% increase over 2011
*Gold production of 20,699 ounces; 195% increase over 2011
*Estimated consolidated cash cost per ounce of silver, net of by-product
credits, is US$ 6.38 (*)
(*) The final calculation of operating costs has not yet been completed
and the amounts are approximations.
2012 Consolidated Operating Highlights
Q4 2012 2012
Caylloma, San Caylloma, San Jose,
Peru Jose, Consolidated Peru Mexico Consolidated
Tonnes 115,522 98,348 213,870 462,222 369,022 831,244
Average tpd 1,256 1,107 1,266 1,055
Grade (g/t) 176 177 177 188
Recovery (%) 79.45 88.01 77.32 87.52
Production 519,549 491,181 1,010,730 2,038,579 1,949,178 3,987,757
Q4 2012 2012
Caylloma, San Caylloma, San
Peru Jose, Consolidated Peru Jose, Consolidated
Grade (g/t) 0.34 1.39 0.40 1.74
Recovery (%) 40.46 87.85 47.02 86.79
Production (oz) 514 3,854 4,368 2,781 17,918 20,699
Grade (%) 2.16 1.99
Recovery (%) 89.51 88.25
Production 4,935,599 17,886,403
Grade (%) 2.78 2.56
Recovery (%) 86.51 85.77
Production 6,135,302 22,395,791
The company is pleased to inform that the new tailings facility at Caylloma is
now fully permitted and operational.
Mine Silver Gold CAPEX Cash Cost (*)
(M oz) (k oz) (US$ millions) (US$/t)
San Jose, Mexico 2.4 20.6 22.0 70.4
Caylloma, Peru 2.0 2.7 30.7 96.0
Total: 4.4 23.3 52.7 --
*2013 forecast silver equivalent production of 5.7 million ounces using Ag
= US$30/oz and Au = US$1,700/oz
*Cash cost/oz Ag consolidated annual forecast, net of by-product credits,
*Caylloma mine 2013 forecast for zinc and lead production of 25.1 million
pounds and 19.4 million pounds respectively
(*) Cash cost per tonne includes all on-site direct and indirect
production costs, community relations expenses, concentrate transportation and
corporate management fees. It excludes government royalties and workers
2013 Cash Cost Per Tonne Quarterly Guidance
Mine Q1 Q2 Q3 Q4
(US$/t) (US$/t) (US$/t) (US$/t)
San Jose 76 78 67 65
Caylloma 96 97 95 95
San Jose Mine
San Jose plans to process 451,000 tonnes of ore at 186 g/t Ag and 1.60 g/t Au.
Capital expenditures for 2013 are estimated to be US$22.0 million. The mill
expansion from 1,000 to 1,500 tpd is on track to be commissioned at the
beginning of third quarter.
Major capital items include:
*Mine development: US$5.7 million
*Plant expansion: US$9.1 million
*Tailings dam expansion: US$4.4 million
Caylloma plans to process 464,100 tonnes of ore at 170 g/t Ag and 0.40 g/t Au.
Capital expenditures for 2013 are estimated to be US$30.7 million.
Major capital items include:
*Mine development: US$7.6 million
*Camp infrastructure: US$8.6 million
*Tailings dam expansion: US$3.6 million
*Power grid: US$4.8 million
The company´s brownfields exploration budget for 2013 is estimated at US$14.2
million; US$7.5 million will be spent at San Jose and US$6.7 million at
Caylloma. A comprehensive update of the 2012 brownfields exploration program
is scheduled to be released in the upcoming weeks.
Edgard Vilela is an independent Qualified Person for Fortuna Silver Mines
Inc., as defined by National Instrument 43-101, 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
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 Arequipa, Peru and the San Jose silver-gold mine in Oaxaca, Mexico.
The company is selectively pursuing additional acquisition opportunities
throughout the Americas. For more information, please visit our website at
ON BEHALF OF THE BOARD
Jorge A. Ganoza
President, CEO and Director
Fortuna Silver Mines Inc.
Trading symbols: NYSE: FSM | TSX: FVI | BVL: FVI | Frankfurt: F4S.F
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.
SOURCE Fortuna Silver Mines Inc.
Management Head Office:Carlos Baca- T (Lima): +51.1.616.6060, ext. 0
Corporate Office:Holly Hendershot- T (Toronto): +1.647.725.0813 / T
Media contact for North America:
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