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

Highlights

2020 Production: 13,435 ounces of gold

2021E Production: Between 140 - 160 thousand ounces of gold

In July 2016, Fortuna acquired the open pit, heap leach development stage Lindero gold project in Salta, Argentina; a positive construction decision was made in September 2017. The Lindero Mine has been designed as an 18,750 tonnes per day owner operated open pit operation with a pit life of 13 years based on current Mineral Reserves. Processing involves crushed ore being placed on a leach pad with the resulting pregnant solution pumped to SART1 and ADR2 plants prior to electrowinning and refining, where gold is poured as doré bars. On October 20, 2020, Lindero´s first gold pour was achieved (refer to Fortuna news release dated October 20, 2020), with steady state production expected in the first quarter of 2021.

Notes:

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

Location

The Lindero Mine 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 mine 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 mine, located 75 kilometers to the northeast.

Exploration

The Brownfields exploration program budget for 2021 at the Lindero Mine is US$320,000, which includes 1,000 meters of drilling on the Arizaro target located 3.5 kilometers to the southeast of the mine. The drilling will test for additional mineralization that could potentially contribute to Lindero's future production.

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.

Reserves and Resources

Mineral Reserves - Proven and Probable

PropertyClassificationTonnes
(000)
Au
(g/t)
Cu
(%)
Contained Metal
Au
(koz)
Lindero Project, ArgentinaProven26,7180.720.11622
 Probable55,9400.570.111,027
 Proven +
Probable
82,6600.620.111,649

Mineral Resources - Measured and Indicated

PropertyClassificationTonnes
(000)
Au
(g/t)
Cu
(%)
Contained Metal
Au
(koz)
Lindero Project, ArgentinaMeasured2,5200.550.1345
 Indicated33,0700.460.10487
 Measured +
Indicated
35,5900.460.11532

Mineral Resources - Inferred

PropertyClassificationTonnes
(000)
Au
(g/t)
Cu
(%)
Contained Metal
Au
(koz)
Lindero Project, ArgentinaInferred30,3680.420.11412


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. Lindero Mineral Resources and Reserves are estimated as of June 30, 2020 and reported as of December 31, 2020 taking into account production-related depletion for the period through December 31, 2020
  6. Mineral Reserves for Lindero are reported based on open pit mining within designed pit shells based on 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 0.27 g/t Au, recovery 68.5%. The cut-off grades and pit designs are considered appropriate for long term gold prices of US$1,600/oz. Assumptions used in the pit design are the same as those for resources. Mineral Reserves are restricted to a maximum heap leach capacity of 84.2 Mt and Proven Reserves include 2.6 Mt of stockpiled material averaging 0.55 g/t Au
  7. Mineral Reserves for Lindero 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 0.27 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 0.27 g/t Au, recovery 68.5%. Mining recovery is estimated to average 100% and mining dilution 0%. 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$1.11 per tonne of material, total processing and process G&A costs of US$6.21 per tonne of ore, and refinery costs net of pay factor of US$6.50 per ounce gold. Lindero Mineral Reserves are restricted to a maximum heap leach capacity of 84.2 Mt. Reported Proven Reserves include 2.6 Mt averaging 0.55 g/t Au of stockpiled material. 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
  8. Eric Chapman, P. Geo. (APEGBC #36328) is the Qualified Person for resources and Amri Sinuhaji (APEGBC #48305) is the Qualified Person for reserves, both being employees of Fortuna Silver Mines Inc.
  9. 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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