Fortuna Silver Mines (FVI.TSX, NYSE: FSM) announced strong third quarter production results from its two 100% owned operating underground mines in Latin America – the San Jose mine in Mexico and the Caylloma mine in Peru. Silver production increased by 53% over the third quarter of 2011 to 1,027,741 ounces.
Silver and gold productions for the first nine months of the year totaled 2,977,025 ounces and 16,331 ounces, respectively; these levels comprised 80% and 94% of the company’s 2012 annual production guidance. As such, Fortuna Silver Mines noted that it is on pace to exceed its full-year forecast of 3.7 million silver ounces and 17,400 gold ounces.
Highlights:
* Gold production of 5,348 ounces; 230% increase over Q3 2011
* Lead production of 4,451,943 pounds; 10% decrease over Q3 2011
* Zinc production of 5,614,859 pounds; 3% decrease over Q3 2011
Jorge A. Ganoza, Fortuna’s President and CEO:
“The expansion of the San Jose mine’s processing plant is proceeding as scheduled with completion planned by mid-2013; purchasing of the 800 tpd ball mill and other major equipment has taken place. Once the expansion is commissioned, Fortuna will be producing at an annual consolidated rate of 5 million ounces of silver and 26,000 ounces of gold plus significant base metal credits. At Caylloma, the tailings dam project has been de-risked. We are pleased with the prompt response from the Mines and Energy Ministry and look forward to receiving the final operations permit in the upcoming weeks.”
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.”
