Fortuna Silver Mines Inc.
TSX VENTURE : FVI

Fortuna Silver Mines Inc.

November 27, 2008 15:27 ET

Fortuna's In-Fill Drilling Continues to Confirm High-Grade Mineralization at San Jose Project, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 27, 2008) - Fortuna Silver Mines Inc. (TSX VENTURE:FVI)(BVL:FVI) is pleased to announce additional results from the in-fill drill program on the Trinidad Zone of the San Jose silver-gold deposit located in Oaxaca, Mexico. Highlights from the 21 new holes include:



SJO-169 11.15 meters averaging 3.10 g/t Au and 419 g/t Ag
and 5.10 meters averaging 4.99 g/t Au and 863 g/t Ag

SJO-177 10.25 meters averaging 5.96 g/t Au and 256 g/t Ag
and 8.85 meters averaging 1.74 g/t Au and 414 g/t Ag

SJO-183 1.00 meter assaying 28.40 g/t Au and 5,350 g/t Ag

SJO-185 13.05 meters averaging 3.17 g/t Au and 175 g/t Ag

SJO-186 15.20 meters averaging 1.99 g/t Au and 360 g/t Ag


The 33,000 meter in-fill drill program was initiated in June of 2008 and is designed to convert a significant portion of the resources in the upper 250 meters of the deposit to the Indicated category. Initial drill results from the program have been previously announced in September and October (see Fortuna news releases dated September 25, 2008 and October 28, 2008). Five drill rigs are currently drilling in the Trinidad Zone. The in-fill drill program has been designed following recommendations by AMEC E&C Services Inc. indicating that a drill spacing of 31 meters will be required for classification of the resources to the Indicated category.

The San Jose Project is being explored and developed under a joint venture between Fortuna (76%) and Continuum Resources Ltd (24%). In August 2008, Fortuna and Continuum announced an agreement whereby Fortuna proposes to acquire all of the issued and outstanding securities of Continuum (see Fortuna's news release dated August 14, 2008). As a result of the acquisition, Fortuna will own a 100% interest in the San Jose Project.

Assay results from the 21 drill holes in the Trinidad Zone are summarized below. Length-weighted assay averages have been calculated for the mineralized intervals using a lower cut-off of 100 g/t Ag-equivalent. Updated longitudinal sections showing the location of the drill hole intercepts for each of the major veins and an updated drill hole location map are available on Fortuna's website at the following links: Bonanza Vein Longitudinal Section, Trinidad Vein Longitudinal Section, Trinidad Drill Hole Location Map.



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From To Interval Est. True Au Ag Ag eq
Hole_Id (m) (m) (m) Thickness (g/t) (g/t) (g/t)(i)
----------------------------------------------------------------------
SJO-163 247.00 259.85 12.85 11.0 1.70 215 302
SJO-164 173.00 174.50 1.50 1.2 0.67 80 114
SJO-165 89.00 95.55 6.55 4.0 2.24 103 217
And 138.00 140.00 2.00 1.2 1.31 233 300
SJO-167 129.00 130.00 1.00 0.8 1.16 174 233
SJO-168 194.05 202.30 8.25 4.9 1.46 151 226
SJO-169 256.40 267.55 11.15 6.0 3.10 419 576
And 275.20 280.30 5.10 2.7 4.99 863 1117
SJO-170 116.00 123.95 7.95 7.7 0.76 88 126
SJO-171 137.90 141.30 3.40 2.0 1.39 191 262
SJO-173 43.85 47.70 3.85 2.6 1.47 194 270
SJO-174 No significant mineralized intervals
SJO-176 158.90 160.90 2.00 1.5 1.45 149 223
And 192.85 195.65 2.80 1.7 1.09 277 333
SJO-177 212.00 222.25 10.25 7.4 5.96 256 560
And 292.00 300.85 8.85 7.0 1.74 414 502
SJO-178 292.65 295.90 3.25 2.2 1.98 190 291
SJO-179 177.50 179.05 1.55 1.2 1.88 592 688
SJO-180 175.20 178.90 3.70 2.0 3.16 442 603
SJO-181 259.60 260.80 1.20 0.9 3.63 362 547
And 302.00 308.00 6.00 4.5 0.90 84 130
SJO-182 157.60 164.40 6.80 5.1 2.83 178 323
SJO-183 186.60 187.60 1.00 0.8 28.40 5350 6798
And 206.60 215.65 9.05 7.6 1.06 98 152
SJO-184 328.60 332.20 3.60 2.6 2.41 261 384
And 426.60 433.20 6.60 4.7 0.66 85 119
SJO-185 126.10 139.15 13.05 8.3 3.17 175 336
SJO-186 205.00 212.00 7.00 4.2 1.51 151 228
And 215.30 230.50 15.20 9.7 1.99 360 462
----------------------------------------------------------------------
(i) Silver equivalency estimates were derived using a silver-to-gold
ratio of 51:1. Metallurgical recoveries and net smelter returns are
assumed to be 100% for purposes of estimating silver equivalency.


Background

The San Jose deposit is a low sulfidation epithermal system located within the Taviche Mining District in southern Oaxaca and is characterized by mineralized multiphase quartz-carbonate-sulfide veins, hydrothermal breccias and stockwork veining within a sequence of Tertiary andesitic volcanic and volcaniclastic rocks.

The Fortuna-Continuum joint venture controls mining concessions covering approximately 56,000 hectares in the Taviche Mining District. Exploration is being carried out on a number of target areas within the concession area to define new drill targets. Underground development of the access ramp to the Trinidad Zone was initiated in the 4th quarter of 2007. The Company is also advancing with engineering studies for the development of the deposit including preliminary mine design work, metallurgical testing, tailings dam design work and hydrological investigations. An Environmental Impact Study has been initiated and the Community Relations Department is engaging local communities through project presentations, site visits and sustainable development and education programs.

Quality Assurance & Quality Control

Following detailed geological and geotechnical logging, drill core samples are split on-site by diamond saw. One-half of the core is submitted to the ALS Chemex sample preparation facility in Guadalajara, Mexico. The remaining half core is retained on-site for verification and reference purposes. Following preparation, sample pulps are sent to ALS Chemex in Vancouver where they are assayed for gold and silver by standard fire assay methods using a gravimetric finish. Multi-element analyses are also completed for each sample by ICP methods. The QA-QC program at San Jose includes the blind insertion of certified reference standards for silver and gold at a frequency of approximately 1 per 15 normal samples and the insertion of assay blanks at a frequency of approximately 1 per 15 normal samples. All sample results reported in this news release correspond to HQ- or NQ-diameter core.

Qualified Person

Mr. Miroslav Kalinaj, P. Geo., is the Company's Qualified Person as defined by National Instrument 43-101 and is responsible for the accuracy of the technical information in this news release.

Fortuna Silver Mines Inc.

Fortuna is a growth oriented, silver and base metal producer focused on mining opportunities in Latin America. Our primary assets are the Caylloma Silver Mine in southern Peru and the San Jose Silver-Gold Project in Mexico. The Company is selectively pursuing additional acquisition opportunities. For more information, please visit our website at www.fortunasilver.com.

ON BEHALF OF THE BOARD

Jorge Ganoza, President, CEO and Director

Fortuna Silver Mines Inc.

The TSX Venture Exchange has not reviewed and does not take responsibility for the adequacy or accuracy of this release.

Contact Information

  • Fortuna Silver Mines Inc.
    Carlos Baca
    Investor Relations - Lima Office
    51.1.616.6060
    or
    Fortuna Silver Mines Inc.
    Erin Ostrom
    Investor Relations - Vancouver Office
    (604) 484-4085
    (604) 484-4029 (FAX)
    Email: info@fortunasilver.com
    Website: www.fortunasilver.com