Fortuna Silver Mines (FVI.TSX, NYSE: FSM) announced first quarter 2012 production results from its two operations mines in Latin America – San Jose in Mexico and Caylloma in Peru. The Canadian-based precious metals company reported that both mines are performing above planned production levels and that the company is on pace to produce 3.7 million ounces of silver and 17,400 ounces of gold – or 4.6 million ounces of silver equivalent – plus significant base metal by-product this year.
* Silver production of 953,091 ounces; 4.3% increase over Q4 2011
* Gold production of 5,137 ounces; 23.7% increase over Q4 2011
* Lead production of 4,443,367 pounds; 1.1% increase over Q4 2011
Mr. Jorge Ganoza , President & CEO of Fortuna Silver Mines:
“We are extremely pleased that our mines continue to operate well within plans, resulting in these record production figures. Not only are we on target to meet our annual guidance, we are also seeing opportunities for higher silver and gold resource and reserve grades in the lower levels of the San Jose mine. We are working to incorporate reconciliation of these higher grades into our resource models by mid-year.”
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.”