Commodity

Commodity

Gold

Ownership

Ownership

100%

Land Package

Land Package

3,500 hectares

Operation

Operation

18,750 tpd

Deposit Type

Deposit Type

Gold-rich porphyry system

Mining Method

Mining Method

Open pit, heap leach

Overview

In September 2017, the commencement of construction at Lindero was officially launched (see Fortuna news releases dated September 21, 2017 and December 21, 2017). Lindero has been designed as an 18,750 tonnes per day owner operated open pit mine with a pit life of 13 years based on existing mineral reserves. Crushed ore will be placed on a leach pad with the pregnant solution pumped to SART1 and ADR2 plants prior to electrowining and refining where gold will be poured to doré bars.

The initial capital cost budget estimate for the construction of Lindero as set out in the technical report entitled “Fortuna Silver Mines Inc.: Lindero Property, Salta Province, Argentina” dated effective October 31, 2017 is forecast to increase to US$298 million, an increase of 25 percent over what was budgeted in the technical report; this amount does not include VAT which is expected to be recovered in the first 24 months from the start of mining operations. The technical report of the Lindero Project is available on SEDAR at www.sedar.com and on the Company's website at https://fortunasilver.com/site/assets/files/4098/lindero-project-technical-report-effective-date-31-oct-2017.pdf.

Notes:

  1. Sulphidization-Acidification-Recycle-Thickening
  2. Adsorption, Desorption and Recovery

Location

The Lindero Project is located in the Argentinian puna at an elevation of approximately 3,500 to 4,000 meters, 260 kilometers due west of Salta City at latitude 25° 04' 56" S and longitude 67° 46' 47" W. Drive time from Salta City to Lindero is approximately 7 to 7.5 hours over a road distance of 420 kilometers. Access to the project is via National Route 51, which passes through the towns of San Antonio de Los Cobres and Olacapato, and by Provincial Route 27, which passes through the towns of Pocitos and Tolar Grande. Tolar Grande is the nearest town to the project, located 75 kilometers to the northeast.

Geology and Mineralization

The Lindero deposit is a gold-rich porphyry system hosted within a series of diorite to monzonite porphyritic stocks that intrude coarse-grained Ordovician granites and Early Tertiary red bed sandstones. Mineralization forms an inward plunging semi-circular shape approximately 600 meters in diameter and extends to a drill tested depth of 600 meters. Gold-copper mineralization shows a strong relationship to lithology, K-feldspar alteration, and stockwork veining.

Construction Milestones

Notes:

  1. HPGR = High Pressure Grinding Roll
  2. Illustrative representation of Management’s target schedule for production

Reserves and Resources

Mineral Reserves - Proven and Probable

PropertyClassificationTonnes
(000)
Au
(g/t)
Cu
(%)
Contained Metal
Au
(koz)
Lindero Project, ArgentinaProven25,3520.760.11618
 Probable58,8750.580.111,096
 Proven +
Probable
84,2260.630.111,714

Mineral Resources - Measured and Indicated

PropertyClassificationTonnes
(000)
Au
(g/t)
Cu
(%)
Contained Metal
Au
(koz)
Lindero Project, ArgentinaMeasured2,0920.550.1237
 Indicated16,7740.490.10265
 Measured +
Indicated
18,8660.500.11302

Mineral Resources - Inferred

PropertyClassificationTonnes
(000)
Au
(g/t)
Cu
(%)
Contained Metal
Au
(koz)
Lindero Project, ArgentinaInferred8,6000.380.10106

Notes:

  1. Mineral Reserves and Mineral Resources are as defined by the 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves
  2. Mineral Resources are exclusive of Mineral Reserves
  3. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
  4. 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
  5. Mineral Resources and Mineral Reserves are estimated and reported as of March 31, 2019
  6. Mineral Reserves for Lindero are reported based on open pit mining within a designed pit shell for variable gold cut-off grades and gold recoveries by metallurgical type. Met type 1 cut-off 0.27 g/t Au, recovery 75.4 %; Met type 2 cut-off 0.26 g/t Au, recovery 78.2 %; Met type 3 cut-off 0.26 g/t Au, recovery 78.5 %; and Met type 4 cut-off 0.30 g/t Au, recovery 68.5 %. Mining recovery is estimated to average 100% and mining dilution 0%. The cut-off grades and pit design are considered appropriate based on long term gold prices of US$1,320/oz, estimated mining costs of US$1.28 per tonne of material, total processing and process G&A costs of US$8.29 per tonne of ore, and refinery costs net of pay factor of US$6.90 per ounce gold. Lindero Mineral Resources are reported within the same conceptual pit shell above a 0.2 g/t Au cut-off grade based on the same parameters used for Mineral Reserves and a 15% upside in metal prices
  7. Eric Chapman, P. Geo. (APEGBC #36328) is the Qualified Person for Mineral Resources and Amri Sinuhaji (APEGBC #48305) is the Qualified Person for Mineral Reserves, both being employees of Fortuna Silver Mines Inc.
  8. Totals may not add due to rounding procedures

Technical Report and Other Links

Technical Report

Technical Report

Effective Date: October 31, 2017

Maps and Sections

Maps and Sections

Construction Videos

Construction Videos

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