Fortuna Silver Mines (FVI.TSX, NYSE: FSM) announced updated Mineral Reserve and Mineral Resource estimates for the Caylloma Mine in southern Peru and the San Jose Mine in southern Mexico. The Canadian-based silver producer reported that Proven and Probable Reserves of the silver-rich veins at Caylloma increased by 51.7% to 781,000 tonnes, while contained silver increased by 40.3% to 9.4 million ounces.
Highlights:
* Combined Proven and Probable Reserves for the silver-rich and polymetallic veins at Caylloma increased by 12.2% to 4.6 million tonnes after replacement of 674,010 tonnes consumed through production
* Measured and Indicated Resources at Caylloma increased by 19.7% to 2.3 million tonnes and contained silver increased by 20.3% to 8.9 million ounces
* Combined Proven and Probable Reserves for the Caylloma and San Jose mines increased by 4.2% to 8.2 million tonnes containing 43.8 million ounces of silver and 233,200 ounces of gold
* Combined Measured and Indicated Resources for the Caylloma and San Jose mines increased by 16.4% to 2.6 million tonnes containing 11.9 million ounces of silver and 47,400 ounces of gold
Dr. Thomas Vehrs , Vice President of Exploration for Fortuna Silver Mines:
“Exploration at the Caylloma Mine in Peru has been successful in replacing reserves consumed through production, and more importantly, has been successful in increasing the reserves of the high-grade silver-rich veins in the central portion of the Caylloma District…At the San Jose Mine in Mexico , the mine development is advancing on-schedule and planning has been initiated for in-fill drilling in the lower portion of the deposit where wide-spaced exploration drilling encountered strong silver and gold mineralization in the Bonanza Vein and associated vein splays.”
Graeme Jennings, Cormark Securities:
“We believe that the Company offers investors exposure to an undervalued ‘best in class’ mid-tier silver producer with a rapidly growing production profile supported by high quality in-situ resources and exploration assets.”
