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  • Lindero Mine, Argentina

    First gold pour in October 2020

Lindero Mine Video

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Commodity
Gold
Ownership
100%
Operation
18,750
tonnes per day
Claim block area
3,500
hectares
Deposit type
Gold porphyry
system
Mining method
Open pit

OPERATING HIGHLIGHTS

 

20211

2022E1

Ore placed on pad (Mt)

6.5

6.2

Gold production (koz)

104

115 - 127

AISC2,3,4,5 (US$/oz Au)

-

$1,300 - $1,650

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 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 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 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)
Au
(g/t)
Cu
(%)
 
Au
(koz)
Lindero Mine, ArgentinaProven25,7860.660.09 
546
 Probable62,8210.530.10 
1,068
 Proven + Probable88,6070.570.10 
1,614

 

Mineral Resources - Measured and IndicatedContained Metal
PropertyClassificationTonnes
(000)
Au
(g/t)
Cu
(%)
 
Au
(koz)
Lindero Mine, ArgentinaMeasured1,7230.500.12 
28
 Indicated31,5520.380.09 
387
 Measured + Indicated33,2750.390.09 
415

 

Mineral Resources - InferredContained Metal
PropertyClassificationTonnes
(000)
Au
(g/t)
Cu
(%)
 
Au
(koz)
Lindero Mine, ArgentinaInferred27,0520.430.11 
373
  • 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
    • Lindero Mineral Resources and Reserves are estimated as of July 31, 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 Lindero Mine are reported based on open pit mining within a designed pit shell based on variable gold cut-off grades and gold recoveries by metallurgical type. Met type 1 cut-off 0.26 g/t Au, recovery 75.4%; Met type 2 cut-off 0.25 g/t Au, recovery 78.2%; Met type 3 cut-off 0.25 g/t Au, recovery 78.5%; and Met type 4 cut-off 0.28 g/t Au, recovery 68.5%. Mining recovery is estimated to average 100% and mining dilution 0% having been accounted for during block regularization to 10m x 10m x 8m size. The cut-off grades and pit designs are considered appropriate for long term gold prices of US$1,600/oz, estimated mining costs of US$1.51 per tonne of material, total processing and process G&A costs of US$6.97/t of ore, and refinery costs net of pay factor of US$7.10/oz Au and a heap leach capacity of 115 Mt. Reported Proven Reserves include 4.7 Mt averaging 0.49 g/t Au of stockpiled material. 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
    • 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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