TSX: FVI $

NYSE: FSM $

  • San Jose Mine, Mexico

San Jose Mine Video

Share
Commodity
Silver, gold
Ownership
100%
Operation
3,000
tonnes per day
Claim block area
48,000
hectares
Deposit type
Low sulphidation
epithermal vein
deposit
Mining method
Underground
cut-and-fill

OPERATING HIGHLIGHTS

 

20211

2022E1,2

Tonnes milled (000)

1,041

1,059

Average milled (tpd)

2,964

3,000

Silver production (Moz)

6.43

5.2 - 5.8

Gold production (koz)

39.41

32 - 36

AISC2,3,4,5 (US$/oz Ag Eq)

--

$13.7 - $16.1

Notes:

  • Refer to Fortuna news releases dated January 18, 2022, "Fortuna reports 2021 full year 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)
 Ag
(Moz)
Au
(koz)
San Jose Mine, MexicoProven752051.40 0.53
 Probable2,9141801.17 16.8109
 Proven + Probable2,9891801.17 17.3113

 

Mineral Reserves - Measured and IndicatedContained Metal
PropertyClassificationTonnes
(000)
Ag
(g/t)
Au
(g/t)
 Ag
(Moz)
Au
(koz)
San Jose Mine, MexicoMeasured381210.82 0.21
 Indicated901980.65 2.819
 Measured + Indicated940990.66 3.020

 

Mineral Reserves - InferredContained Metal
PropertyClassificationTonnes
(000)
Ag
(g/t)
Au
(g/t)
 Ag
(Moz)
Au
(koz)
San Jose Mine, MexicoInferred3,0111250.93 12.190
  • 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
    • San Jose 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 San Jose Mine are based on underground mining within optimized stope designs using an estimated NSR break-even cut-off grade of US$62.0/t to US$67.8/t equivalent to 109 to 120 g/t Ag Eq based on assumed metal prices of US$21/oz Ag and US$1,600/oz Au; estimated metallurgical recovery rates of 91% for Ag and 90% for Au and mining costs of US$33.89/t (C&F) - US$28.00/t (SLS); processing costs of US$16.23/t; and other costs including distribution, management, community support and general service costs of US$17.73/t based on actual operating costs. Mining recovery is estimated at 92% (C&F) and 93% (SLS) and mining dilution 14% (C&F) and 24% (SLS). Mineral Resources are reported at a 100 g/t Ag Eq cut-off grade based on the same parameters used for Mineral Reserves and a 15% upside in metal prices. Proven + Probable Reserves include 1.94 Mt containing 11.3 Moz of silver and 63.5 koz of gold reported at a 111 to 122 g/t Ag Eq cut-off grade and Inferred Resources totaling 2.2 Mt containing 8.8 Moz of silver and 65.4 koz of gold reported at a 100 g/t Ag Eq cut-off grade located in the Taviche Oeste concession and subject to a 2.5% royalty
    • 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

Corporate Video - A global intermediate gold and silver producer

Share
Fortuna Silver Mines Inc.

Register to receive news via email from Fortuna Silver Mines Inc.

* Required Fields