SILVER PRICE NEWS - The silver price has seen a few volatile days in April, but overall the metal has traded in a dollar-wide band for the past month. This trading trend likewise has been exhibited in the shares of silver producers who carry exposure to the silver price. But, precious metals stocks have outperformed the market this week as quarterly earnings have come in for a number of miners, most of them reporting significant profit growth over the prior year period. Fortuna Silver Mines (FVI.TSX) added to the positive sector news when the company announced first quarter results that included record silver production of 479,821 ounces - a 30% increase over the first quarter of 2009.

The increase in silver production was attributed to an increase in silver head grade, higher throughput, and an increase in silver recoveries. It was a record quarter for the Canadian-based silver miner in other respects, as well. Fortuna Silver Mines posted record net income of $5.3 million on highest-ever sales of $17.5 million. Cash flow from operations for the period was $4.9 million and the company’s cash position totaled $69.3 million on March 31.

First quarter income was attributed to a higher silver price, increased silver output, and the addition of copper production to operations. Fortuna’s President and CEO Jorge Ganoza credited the financial performance of the Caylloma mine for adding to the company’s strong cash position. “With construction activities commencing at San Jose, Fortuna is on a clear path to materially increase its silver production and become a low cost leading silver miner,” said Ganoza.

A conference call has been scheduled for Tuesday, May 4, 2010 at 12:00p.m. EDT to discuss the financial results of the first quarter of 2010 as well as the San Jose pre-feasibility study, released earlier this week.

Fortuna Silver Mines (FVI.TSX) shares were up C$0.11 for the day to C$2.26. The silver price also gained, increasing $0.41 to $18.50.