Fortuna Silver Mines Inc.
TSX VENTURE : FVI

Fortuna Silver Mines Inc.

November 08, 2005 14:42 ET

Fortuna Identifies New Mineralization at Caylloma Silver Mine

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 8, 2005) - Fortuna Silver Mines Inc. (TSX VENTURE:FVI) is pleased to provide an update on developments at the Company's 100%-owned Caylloma Silver Mine in southern Peru. Highlights of recent work include:

- 2 new ore shoots identified from historic drill data, including 2.55m @ 597 g/t Ag;

- Chip sampling of Animas returns 3.6m @ 118 g/t Ag + 9.9% Zn + 4.2% Pb;

- Underground drilling & mapping of the Animas vein on schedule;

- Underground development of San Pedro vein to start in December;

- A new resource calculation to start in December 2005.

New Ore Shoots

Two new mineralized zones have been identified, based on historical drill data. One zone is dominantly silver rich, and the other contains high zinc and lead grades in addition to the silver. Drill results from the two zones were not included in the original NI 43-101 compliant resource estimate, and they have potential to add to the existing 7 million ounce silver reserve and 14 million ounce silver inferred resource reported in that estimate.

The two zones are the San Cristobal Parallel Ag ore shoot and the Animas Vein Ag-Zn-Pb zone. The results, tabulated below, demonstrate the excellent potential to add to the resource at Caylloma. (True thickness approximately 80% of reported intervals.)



San Cristobal - Parallel Ag ore shoot

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Hole Number From (m) To (m) Core Length (m)(i) Ag g/t Au g/t
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SC-01-02 16.90 20.05 3.15 324 0.2
22.97 26.47 3.50 381 0.1
SC-02-02 5.20 6.65 1.45 626 Nil
12.55 15.10 2.55 597 Nil
SC-M-04-02 32.45 36.65 4.20 263 Nil
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Animas Vein - Ag-Zn-Pb Zone

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Core
Hole Length
Number From (m) To (m) (m)(i) Ag g/t Au g/t Zn % Pb %
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AS-S-25-03 324.25 328.45 4.20 100 Nil 7.20 2.93
AS-S-15-03 324.60 237.00 2.40 84 Nil 7.35 3.61
240.20 243.65 3.45 215 0.25 10.87 8.06
AS-S-32-03 161.05 168.60 7.55 78 0.83 10.78 3.25
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Drill hole AS-25-03 represents the deepest intercept on the central portion of the Animas Vein, at 350m depth. This hole intersected a broader zone silver-lead-zinc mineralization than anticipated, which the Company believes will be amenable to low cost mechanized underground mining.

Both of the mineralized shoots above are open along strike and to depth, and their limits have yet to be defined. The shoots are located well within the short term mine plan area at Caylloma, and are easily accessible. A map showing the location of the historic holes and the chip sampling results reported below will be available shortly on the Fortuna web site at www.fortunasilver.com.

New chip sampling results have also been returned from a number of underground cross cuts that cut the Animas vein over about a 200m strike length. The chip samples test part of a larger 600m long mineralized zone that is about to be drilled from underground.

With silver and zinc prices currently testing their 5 year highs, these new results further illustrate the excellent upside potential on the Animas vein and reinforce management's belief that substantial additional silver and base metal resources will be added to the Caylloma resource base. The new results are:



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Sample Interval (m)(i) Ag g/t Zn % Pb %
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2.2 90 16.4 4.3
3.9 93 4.8 4.0
3.6 118 9.9 4.2
4.9 131 3.3 3.0
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(i)All sample intervals are true widths


Underground Exploration Drilling & Development

The underground drilling program on the Animas vein is proceeding on schedule. Underground mapping has been completed on 2 levels and definition drilling is ongoing with two electric drills. Approximately 1430m of BQ drilling has been completed to date, and initial results are expected to be released later in the month. Once full results are received, a new resource model will be constructed for the Animas vein.

At San Pedro, 130 meters of underground development will be started in December to intersect a high grade silver ore shoot identified by previous drilling. An NI43-101 compliant inferred resource of 67,500 tonnes at 493 g/t Ag is located on this portion of the vein and the company believes there is significant potential to increase the size of this resource block. The development should intersect the vein in roughly seven weeks.

Future Work

In preparation for development and mining, the Company expects to upgrade the existing NI43-101 resource with a new resource calculation set to begin in December. This will incorporate a new deposit model and forthcoming results from drilling and underground sampling. Other planned work includes:

- Additional underground mapping, drilling and sampling on the Animas vein;

- Surface drilling to define high grade targets on the main historically mined veins;

- Reinterpretation of existing data - several known intercepts and mineralized zones were excluded from previous resource model and have potential to add to the resource;

- Underground mapping and sampling of the San Cristobal, San Pedro, and La Plata veins.

Peter Thiersch, the President of Fortuna commented: "We're extremely pleased with the progress made to date at Caylloma. We're well on the way to confirming the tremendous exploration potential at the mine and anticipate being able to expand the existing resource early in the New Year. At the same time, our underground access development is proceeding on schedule and our engineering team has made excellent progress towards getting Caylloma back into production."

Qualified Person

Mr. Peter Thiersch, M.Sc. P.Geo., President of Fortuna, is the Qualified Person for the Company, as defined by National Instrument 43-101, and is responsible for the accuracy of this press release. The historical data mentioned above has not been verified by a qualified person and is therefore not NI 43-101 compliant.

Fortuna is a growth oriented, near term silver producer focused on Latin America. Our primary asset is the Caylloma Silver Mine in southern Peru, and we are aggressively pursuing additional acquisitions.

ON BEHALF OF THE BOARD

Peter Thiersch, President

Fortuna Silver Mines Inc.


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

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