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  • Caylloma Mine, Peru

Caylloma Mine Video

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Commodities
Silver, zinc, lead
Ownership
100%
Operation
1,430
tonnes per day
Claim block area
36,000
hectares
Deposit type
Intermediate sulphidation
epithermal deposit
Mining method
Underground
cut-and-fill

OPERATING HIGHLIGHTS

 

20211

2022E2

Tonnes milled (000)

540

532

Average milled (tpd)

1,525

1,499

Silver production (Moz)

1.07

1.0 - 1.1

Gold production (koz)

6.09

1.8 - 2.0

Lead production (Mlbs)

33.0

29 - 32

Zinc production (Mlbs)

47.5

41 - 45

AISC2,3,4,5 (US$/oz Ag Eq)

--

$17.8 - $21.1

Notes:

  • Refer to Fortuna news releases dated January 18, 2022, "Fortuna reports 2021 full year record production of 305,859 gold equivalent ounces and issues 2022 annual guidance
  • Cash Cost and all-in sustaining cost (AISC) are non-GAAP financial measures which are not standardized financial measures under the financial reporting framework used to prepare the financial statements of the Company and might not be comparable to similar financial measures disclosed by other issuers.  Refer to "Non-IFRS Financial Measures" in the Company’s 2021 management discussion and analysis (“MD&A”) for the three and nine months ended September 30, 2021 dated November 10, 2021 (“Q3 MD&A 2021”), which is available under Fortuna's SEDAR profile, and the note regarding “Non-IFRS Financial Measures” on this Website.
  • The following table provides the cash costs and AISC for the four operating mines for the nine months ended September 30, 2021 as follows:
    • MineCash Cost(a)AISC(a),(b),(c)
      SILVER(US$/t)(US$/oz Ag Eq)
      San Jose, Mexico74.2214.13
      Caylloma, Peru85.1718.17
      GOLD(US$/oz Au)(US$/oz Au)
      Lindero, Argentina6351,182
      Yaramoko, Burkina Faso7201,188
    • (a)   Cash Cost and AISC are non-GAAP financial measures. Refer to the note regarding "Non-IFRS Financial Measures" on this Website
    • (b)   Presented on a cash basis
    • (c)    Silver equivalent was calculated using the realized prices for gold (US$1,783 per ounce), silver (US$25.80 per ounce), lead US$0.98 per pound) and zinc (US$1.31 per pound) for the nine months ended September 30, 2021
    • (d)   Further details on the cash costs and AISC for the nine months ended September 30, 2021 are disclosed on pages 21, 23 and 24 (with respect to cash costs) and pages 22, 24 and 25 (with respect to AISC) of the Q3 MD&A 2021 which is available under Fortuna's SEDAR profile at www.sedar.com and is incorporated by reference into this news release, and the note regarding “Non-IFRS Financial Measures” on this Website
    • (e)   The estimated increase in all in sustaining costs at Yaramoko for 2022 are due to decreased estimated gold ounce production coupled with increased operating and capital costs as mining moves to the deeper regions of the underground mine
  • The most comparable financial measure to cash costs is cost of sales. Please see the condensed interim consolidated financial statements of the Company for the three and nine months ended September 30, 2021 and pages 21, 23 and 24 of the Q3 MD&A 2021 for a reconciliation
  • AISC includes production cash cost, commercial and government royalties, mining tax, export duties (as applicable), worker’s participation (as applicable), subsidiary G&A, sustaining capital expenditures, and Brownfields exploration and is estimated at metal prices of US$1,700/oz Au, US$22/oz Ag, US$2,100/t Pb, and US$2,700/t Zn. AISC excludes government mining royalty recognized as income tax within the scope of IAS-12.
  • The most comparable financial measure to AISC is cost of sales. Please see the condensed interim consolidated financial statements of the Company for the three and nine months ended September 30, 2021 and pages 22, 24 and 25 of the Q3 MD&A 2021 for a reconciliation.
  • Totals may not add due to rounding.

Mineral Reserves and Resources

Mineral Reserves - Proven and ProbableContained Metal
PropertyClassificationTonnes
(000)
Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
 Ag
(Moz)
Au
(koz)
Caylloma Mine, Peru
Silver VeinsProven273380.860.830.71 0.30.7
 Probable1113861.190.740.66 1.44.3
 Proven + Probable1383761.130.760.67 1.75.0
Polymetallic VeinsProven207700.222.583.25 0.51.5
 Probable2,821710.152.623.88 6.513.7
 Proven + Probable3,029710.162.623.84 6.915.2
Combined-All VeinsProven2341010.302.382.96 0.82.2
 Probable2,933830.192.553.76 7.818.0
 Proven + Probable3,167840.202.533.70 8.620.2

 

Mineral Resources - Measured and IndicatedContained Metal
PropertyClassificationTonnes
(000)
Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
 Ag
(Moz)
Au
(koz)
Caylloma Mine, PeruMeasured724970.341.793.24 2.37.9
 Indicated1,994820.241.613.09 5.315.3
 Measured + Indicated2,718860.261.653.13 7.523.1

 

Mineral Resources - InferredContained Metal
PropertyClassificationTonnes
(000)
Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
 Ag
(Moz)
Au
(koz)
Caylloma Mine, PeruInferred3,8091160.592.033.50 14.272.7
  • Notes:
    • Mineral Reserves and Mineral Resources are as defined by the 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves
    • Mineral Resources are exclusive of Mineral Reserves
    • Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
    • Factors that could materially affect the reported Mineral Resources or Mineral Reserves include; changes in metal price and exchange rate assumptions; changes in local interpretations of mineralization; changes to assumed metallurgical recoveries, mining dilution and recovery; and assumptions as to the continued ability to access the site, retain mineral and surface rights titles, maintain environmental and other regulatory permits, and maintain the social license to operate
    • Caylloma Mineral Resources and Reserves are estimated as of June 30, 2021 and reported as of December 31, 2021 taking into account production-related depletion for the period through December 31, 2021
    • Mineral Reserves for the Caylloma Mine are reported above NSR breakeven cut-off values based on underground mining methods including; mechanized (breasting) at US$82.79/t; mechanized (uppers) at US$77.33/t; semi-mechanized at US$90.19/t; and a conventional method at US$155.1/t; using assumed metal prices of US$21/oz Ag, US$1,600/oz Au, US$2,000/t Pb and US$2,500/t Zn; metallurgical recovery rates of 82.5% for Ag, 45% for Au, 90% for Pb and 89% for Zn. Mining, processing and administrative costs used to determine NSR cut-off values were estimated based on actual operating costs incurred from July 2020 through June 2021. Mining recovery is estimated to average 95% with average mining dilution ranging from 21% to 37% depending on the mining methodology. Mineral Resources are reported at an NSR cut-off grade of US$65/t for veins classified as wide (Animas, Animas NE, Nancy, San Cristobal) and US$135/t for veins classified as narrow (all other veins) based on the same parameters used for Mineral Reserves, and a 15% upside in metal prices
    • Eric Chapman, P. Geo. (EGBC #36328) is the Qualified Person for resources and Amri Sinuhaji, P. Eng. (EGBC #48305) is the Qualified Person for reserves, both being employees of Fortuna Silver Mines Inc.
    • Totals may not add due to rounding procedures

       

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