The San Jose Mine is operated by Fortuna’s
100% owned subsidiary,
Compañia Minera Cuzcatlan S.A. De C.V.


Visit Minera Cuzcatlan's website.

LOCATION

Taviche Mining District, Oaxaca, Mexico
Latitude: 16° 41' 40" N, Longitude: 96° 42' 00" W

Commodities

Commodities

Silver, gold

Ownership

Ownership

100%

Land Package

Land Package

64,422 hectares

Operation

Operation

3,000 tpd underground operation

Deposit Type

Deposit Type

High-grade, low sulphidation epithermal vein deposit

Mining Method

Mining Method

Overhand cut-and-fill

Highlights

2019 production: 7.9 million ounces of silver and 48,880 ounces of gold

The San Jose mine was commissioned in July 2011 and began commercial production in September 2011 at a rate of 1,000 tpd. In September of 2013, the mill was expanded from 1,150 tpd to 1,800 tpd and in April 2014, the mill was further expanded to 2,000 tpd without incurring in additional capital investments. Expansion of the mill from 2,000 tpd to 3,000 tpd was initiated in the first quarter of 2015 and successfully commissioned on time and under budget in July 2016.

Location

San Jose is located in the Taviche Mining District (Latitude 16° 41' 40" N, Longitude: 96° 42' 00" W) in the southern portion of the state of Oaxaca, approximately 47 road kilometers (one hour drive) south of the city of Oaxaca. Access to the property is excellent and local infrastructure is good.

Geology and Mineralization

The San Jose deposit is a low sulfidation epithermal vein system characterized by mineralized multiphase quartz-carbonate-sulfide veins, hydrothermal breccias and stockwork veining. The mineralized system is hosted within a sequence of Tertiary andesitic volcanic and volcaniclastic rocks.

Exploration

The Brownfields exploration program budget for 2020 at the San Jose Mine is US$4.9 million, which includes 17,600 meters of diamond drilling and 500 meters of underground development for drilling access, platforms and services. Underground exploration drilling will focus on the shallow, north extension of the Trinidad vein and the sub-parallel Victoria mineralized zone, while surface drilling will test two new targets to the south of the mine.

Technical Report

Technical Report

Effective Date: February 22, 2019

Maps and Sections

Maps and Sections

Photo Gallery

Photo Gallery

Mineral Reserves - Proven and Probable

PropertyClassificationTonnes
(000)
Ag
(g/t)
Au
(g/t)
Contained Metal
Ag
(Moz)
Au
(koz)

San Jose, Mexico

Proven

232

311

2.12

2.3

16

 

Probable

3,704

239

1.58

28.5

188

 

Proven + Probable

3,936

243

1.61

30.8

204

Mineral Resources - Measured and Indicated

PropertyClassificationTonnes
(000)
Ag
(g/t)
Au
(g/t)
Contained Metal
Ag
(Moz)
Au
(koz)

San Jose, Mexico

Measured

17

104

0.80

0.1

0

 

Indicated

538

105

0.70

1.8

12

 

Measured + Indicated

555

105

0.70

1.9

13

Mineral Resources - Inferred

PropertyClassificationTonnes
(000)
Ag
(g/t)
Au
(g/t)
Contained Metal
Ag
(Moz)
Au
(koz)

San Jose, Mexico

Inferred

3,889

131

0.96

16.3

120

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 as of September 25, 2019 and reported as of December 31, 2019 taking into account production-related depletion for the period through December 31, 2019
  6. Mineral Reserves for the San Jose Mine are based on underground mining within optimized stope designs using an estimated NSR break-even cut-off grade of US$64.54/t, equivalent to 138 g/t Ag Eq based on assumed metal prices of US$17/oz Ag and US$1,380/oz Au; estimated metallurgical recovery rates of 91 % for Ag and 90 % for Au and mining costs of US$33.24/t; processing costs of US$17.12/t; and other costs including distribution, management, community support and general service costs of US$15.18/t based on actual operating costs. Mining recovery is estimated to average 91% and mining dilution 11%. Mineral Resources are reported at a 110 g/t Ag Eq cut-off grade based on the same parameters used for Mineral Reserves and a 15% upside in metal prices. Proven and Probable Mineral Reserves include 2.36 Mt containing 20.4 Moz of silver and 124 koz of gold reported at a 142 g/t Ag Eq cut-off grade, in addition to Inferred Resources totaling 2.71 Mt containing 10.9 Moz of silver and 78 koz of gold reported at a 110 g/t Ag Eq cut-off grade, located in the Taviche Oeste concession and subject to a 2.5 % royalty
  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
© 2020 Fortuna Silver Mines Inc.
All rights reserved.
Disclaimer