Fortuna provides exploration update for the San Jose Mine, Mexico
Vancouver, August 12, 2015 - Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) is pleased to provide a Brownfields exploration update for the San Jose Mine in Oaxaca, Mexico including results for step-out drilling of the Trinidad North zone and for surface sampling of the La Noria and San Antonio vein systems located approximately 2 kilometers to the west of the Trinidad vein system. Assay results are included for fifteen drill holes completed during the first semester of 2015, subsequent to the Mineral Resource and Mineral Reserve estimates reported as of December 31, 2014 (see Fortuna news release dated March 10, 2015). The new drill results confirm the continuation of high-grade gold and silver mineralization along strike of the Trinidad vein system to the north, albeit over narrow vein widths, but nevertheless offering potential for the discovery of a new ore shoot as exploration proceeds to the north.
Highlights of step-out drilling:
- 1,070 g/t Ag and 3.25 g/t Au (1,265 g/t Ag Eq) over 0.4 meters
- 1,740 g/t Ag and 6.72 g/t Au (2,143 g/t Ag Eq) over 0.3 meters
- 1,045 g/t Ag and 23.80 g/t Au (2,473 g/t Ag Eq) over 0.4 meters
Dr. Thomas I. Vehrs, Vice President of Exploration, commented: "Step-out drilling has been carried out on wide-spaced drill holes over an approximate 500 meter interval extending to the north from the limit of the currently estimated Mineral Resources at Trinidad North. While the mineralized intercepts within this zone are generally narrow, the presence of high-grade silver-gold mineralization in a number of drill holes is a positive indication that the Trinidad vein system remains prospective for the discovery of additional ore shoots as exploration proceeds to the north. Of particular significance are the results of drill hole SJOM-469A, our furthest north drill hole completed to-date, which intercepted multiple lower grade intercepts in the drill interval from 509 m to 600 m in addition to the high grade intercept of 2,473 g/t Ag Eq from 526.80 to 527.20 m. Drill holes SJOM-455 and SJOM-469A also intercepted low grade mineralization near their respective collars, potentially indicating the presence of a new untested vein system, the Ocotlan vein system, located approximately 300 m to the east of the Trinidad vein system. The lateral and depth projections of this potential structure are currently being tested by additional Brownfields exploration drilling."
Assay results for principal mineralized intervals - Trinidad North step-out drilling
|Int (m)||Est Width (m)||Ag (g/t)||Au (g/t)||Pb (ppm)||Zn (ppm)||Cu (ppm)||Ag Eq (g/t)*||Vein**|
|SJOM-425||No significant mineralized intervals|
|SJOM-448||No significant mineralized intervals|
|SJOM-463||No significant mineralized intervals|
|*Ag Eq values estimated at Au:Ag ratio of 60 based on metal prices of US$1200/oz Au and US$20.00/oz Ag and metallurgical recoveries of 89 % for both Au and Ag; Averages calculated at cutoff of 70 g/t Ag Eq;|
**Vein nomenclature: Bv = Bonanza vein system; Bhws = Bonanza hanging wall split; Swk = Stockwork Zone; Tv = Trinidad vein system; Ov = Ocotlan vein system
Longitudinal sections showing the location of the step-out drill hole results relative to the Mineral Resources and Mineral Reserves reported as of December 31, 2014 are available at the following link: NR_2015-step-out-drilling-binder_Trinidad-North_11AUG15.pdf.
La Noria and San Antonio Vein Systems
Surface mapping and sampling in an area located approximately two kilometers to the west of the San Jose Mine has identified two vein systems, the La Noria and San Antonio vein systems, which are sub- parallel and potentially similar to the vein systems currently being exploited at the mine. Surface mapping and sample results indicate the presence of north-south trending hydrothermal breccias and epithermal vein systems with locally anomalous to strong gold and silver values (see map at the following link: NR_La-Noria_San-Antonio-vein-systems_11AUG15.pdf).
Sample values range to 5.6 g/t Au and 295 g/t Ag, with a single outlier sample assaying 26.9 g/t Au and 608 g/t Ag. Twenty of 499 samples exceed 1 g/t Au and twelve of 499 samples exceed 100 g/t Ag with the stronger anomalous values being localized in three distinct zones. Mapping and sampling continues with the goal of defining potential drill targets for drill testing in the 4th quarter of 2015, subject to surface access and environmental permitting.
San Jose Mine
The San Jose mine and processing plant currently operate at a capacity of 2,000 tpd with 2015 production projected at 4.6 million ounces of silver and 33.3 thousand ounces of gold (see Fortuna news releases dated January 15, 2015 and July 15, 2015). Expansion of the mill capacity to 3,000 tpd is currently underway with a planned commissioning for mid-2016 (see Fortuna news release dated December 17, 2014).
Quality Assurance & Quality Control
Following detailed geological and geotechnical logging, drill core samples are split on-site by diamond sawing. One half of the core is submitted to the ALS Chemex Laboratory in Guadalajara, Mexico for preparation and analysis. The remaining half core is retained on-site for verification and reference purposes. Following preparation, the samples are assayed for gold and silver by standard fire assay methods and for silver and base metals by ICP and atomic absorption methods utilizing aqua regia digestion. The QA-QC program includes the blind insertion of certified reference standards and assay blanks at a frequency of approximately 1 per 15 normal samples as well as the inclusion of duplicate samples for verification of sampling and assay precision levels.
Thomas I. Vehrs, Ph.D., Vice President of Exploration, is the Qualified Person for Fortuna Silver Mines Inc. as defined by National Instrument 43-101. Dr. Vehrs is a Founding Registered Member of the Society for Mining, Metallurgy, and Exploration, Inc. (SME Registered Member Number 3323430RM) and is responsible for ensuring that the information contained in this news release is an accurate summary of the original reports and data provided to or developed by Fortuna Silver Mines.
Fortuna Silver Mines Inc.
Fortuna is a growth-oriented, silver-, gold- and base metal-producer focused on mining opportunities in Latin America. Our primary assets are the Caylloma silver mine in southern Peru and the San Jose silver- gold mine in Mexico. The company is selectively pursuing acquisition opportunities throughout the Americas. For more information, please visit our website at www.fortunasilver.com.
ON BEHALF OF THE BOARD
Jorge A. Ganoza
President, CEO and Director
Fortuna Silver Mines Inc.
Trading symbols: NYSE: FSM | TSX: FVI
Carlos Baca- T (Peru): +51.1.616.6060, ext. 2
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