Announced that construction activities at San Jose are proceeding on schedule and within budget for completion and commissioning of the mine in the third quarter of 2011.

Silver production at Caylloma in Peru came in at 470,310 - a 5% rise over the second quarter of 2009. An update on San Jose is expected in the coming days.

BMO Capital Markets initiated coverage of Fortuna with an "Outperform" rating and a 12-month target price of C$3.20 - a 56.9% premium to today's closing price of C$2.04 per share.

Announced the appointment of Robert R. Gilmore, the current Chairman of the Board of Eldorado Gold (EGO) and a Director of Layne Christensen Company (LAYN), to Fortuna's Board of Directors. Also announced the resignation of Richard Clark, the current President and CEO of Red Back Mining (RBI.TSX), as a Director of Fortuna.

CIBC downgraded shares of Silvercorp Metals (SVM) from "Sector Performer" to "Sector Underperformer" and recommended switching to shares of Fortuna and Pan American Silver (PAAS) for better silver price exposure "at these levels."

Announced drill results from the upper portion of the Animas Vein at its Caylloma Mine in the south of Peru, which included the intersection of 2,222 grams per tonne (g/t) of silver, 9.64 g/t of gold, 1.17% lead, and 3.02% zinc over 9.2 meters.

Reported silver production of 479,821 ounces - a quarterly record and 30% above first quarter 2009 production - from its Caylloma mine in southern Peru. The production increase was attributed to an improvement in silver head grade, higher throughput, and an increase in silver recoveries. The silver miner also reported record net income of $5.3 million and record sales of $17.5 million.

Fortuna announced a pre-feasibility study for the company's 100%-owned San Jose Silver-Gold Project in Oaxaca, Mexico. This development marked the next step in the company's evolution as a multi-mine operator.

Reported that it has begun pre-construction activities at its Silver-Gold San Jose project in southern Mexico and anticipates that full construction will begin in late March. Commission of the property is expected by the third quarter of 2011. San Jose is expected to make a material contribution to Fortuna's silver production totals and diversify the company's revenue base.