Fortuna Silver Mines Inc.
TSX : FVI
NYSE : FSM
FRANKFURT : F4S
LMA : FVI

Fortuna Silver Mines Inc.

April 29, 2014 07:00 ET

Fortuna Intercepts 2.6 kg/t Ag and 10.8 g/t Au Over 3 m at Trinidad North Discovery, San Jose Mine, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 29, 2014) - Fortuna Silver Mines Inc. (NYSE:FSM) (TSX:FVI)(BVLAC:FVI)(FRANKFURT:F4S) is pleased to announce additional results for step-out drilling of the Trinidad North discovery located contiguous with the San Jose Mine in Oaxaca, Mexico. Assay results are included for eight drill holes completed in March and April of 2014. The results continue to confirm the extension of the Trinidad North zone with high-grade silver-gold mineralization present over wide vein widths. The results reported herein lie within a 230 meter strike extension of the Trinidad system and generally outside of the limits of the existing Inferred Resources.

Highlights of Step-out Drilling

SJOM-349A

  • 929 g/t Ag and 4.87 g/t Au (1,221 g/t Ag Eq) over ETW* of 4.5 m and
  • 1,808 g/t Ag and 13.21 g/t Au (2,601 g/t Ag Eq) over ETW of 4.1 m

SJOM-359

  • 887 g/t Ag and 4.04 g/t Au (1,129 g/t Ag Eq) over ETW of 3.4 m

SJOM-364

  • 2,573 g/t Ag and 10.77 g/t Au (3,219 g/t Ag Eq) over ETW of 3.0 m

* ETW = Estimated True Width

Dr. Thomas I. Vehrs, Vice President of Exploration, commented: "The results of the step-out drilling at Trinidad North continue to confirm the presence of a robust mineralized system with excellent potential for further expansion. Particularly impressive are the results of drill hole SJOM-364 which encountered high-grade silver and gold mineralization at the extreme northern limit of the current drilling. This drill intercept is located 50 meters to the north of the previously reported high-grade intercept in drill hole SJOM-335 (3,511 g/t Ag and 15.04 g/t Au (4,413 g/t Ag Eq) over ETW of 3.7 m) (see Fortuna news release of January 21, 2014) and validates that the mineralized system remains open along strike to the north and to depth. The vertical extension of the mineralized zone currently exceeds 600 meters."

The Trinidad North discovery was announced in February of 2013 (see Fortuna news release of February 4, 2013) and a maiden resource for the Trinidad North zone was announced in October of 2013. At a 70 g/t Ag Eq cutoff, Inferred Resources at Trinidad North as of the July 4, 2013 data cutoff date were estimated at 1.9 Mt averaging 269 g/t Ag and 1.67 g/t Au, containing 16.3 Moz Ag and 100.8 koz Au. Resource estimates at higher cutoff grades were also presented and the reader is referred to the October 17, 2013 news release for additional information. Step-out drilling of the Trinidad North discovery was initiated in late September of 2013 with initial results being reported in Fortuna news releases dated November 25, 2013, January 21, 2014 and March 10, 2014. Drilling is currently being carried out from two underground drill stations located at the 1300 meter level with work underway to advance the underground access a further 300 meters to the north to allow for further testing of the strike extension of the mineralized system.

Assay Results for Principal Mineralized Intervals - Trinidad North Step-out Drilling
Hole_Id From
(m)
To
(m)
Int
(m)
ETW*
(m)
Ag
(g/t)
Au
(g/t)
Pb
(ppm)
Zn
(ppm)
Cu
(ppm)
Ag Eq**
(g/t)
SJOM-348 No significant mineralized intervals
SJOM-349A 314.00 317.90 3.90 1.7 238 1.20 539 820 25 310
320.00 330.20 10.20 4.5 929 4.87 4402 7300 103 1221
346.55 348.50 1.95 0.9 375 2.51 984 1808 65 526
367.00 375.45 8.45 4.1 1808 13.21 5984 11838 905 2601
SJOM-353 415.45 415.85 0.40 0.2 857 7.58 4690 22900 109 1312
SJOM-356 344.10 346.50 2.40 1.1 127 0.79 506 906 44 175
397.95 412.00 14.05 7.0 202 1.70 6182 12287 419 304
SJOM-359 386.40 387.05 0.65 0.4 1330 6.95 1165 2588 126 1747
389.25 395.30 6.05 3.4 887 4.04 3759 9764 1110 1129
SJOM-360 336.00 339.00 3.00 1.5 352 2.33 505 775 163 491
364.60 383.00 18.40 9.2 181 1.46 6643 9908 718 269
SJOM-364 437.90 439.00 1.10 0.5 195 1.37 789 1095 22 277
462.05 467.30 5.25 3.0 2573 10.77 2616 4529 223 3219
SJOM-365 280.20 298.20 18.00 9.5 248 1.17 922 1690 31 318
335.70 340.55 4.85 2.6 415 4.86 1917 3642 536 706
* ETW = Estimated True Width
** Ag Eq values estimated at Au:Ag ratio of 60 based on metal prices of US$1200/oz Au and US$20.00/oz Ag and metallurgical recoveries of 89% for both Au and Ag; Averages calculated at cutoff of 70 g/t Ag Eq

Longitudinal sections for the Bonanza and Trinidad veins showing the location of the step-out drill hole results relative to the Trinidad North maiden resource area are available at the following link: http://www.fortunasilver.com/i/pdf/map/NR-Trinidad-North-Longitudinal-Sections-25-APR-14.pdf

San Jose Mine

The San Jose mine and processing plant were successfully expanded to 2,000 tpd in April 2014 (see Fortuna news release of April 14, 2014) and investigations are currently underway to assess the potential for a further expansion to 3,000 tpd. Production for the first quarter of 2014 was 997,035 oz silver and 7,627 oz gold, 12 percent and 13 percent above budget, respectively. Production guidance for 2014 is for the processing of 683,000 tonnes of ore averaging 203 g/t Ag and 1.56 g/t Au, resulting in the estimated production of 4.0 million ounces of silver and 30.4 thousand ounces of gold.

Quality Assurance & Quality Control

Following detailed geological and geotechnical logging, drill core samples are split on-site by diamond sawing. One-half of the core is submitted to the ALS Chemex Laboratory in Guadalajara, Mexico. The remaining half core is retained on-site for verification and reference purposes. Following preparation, the samples are assayed for gold and silver by standard fire assay methods and for silver and base metals by ICP and atomic absorption methods utilizing aqua regia digestion. The QA-QC program includes the blind insertion of certified reference standards and assay blanks at a frequency of approximately 1 per 15 normal samples as well as the inclusion of duplicate samples for verification of sampling and assay precision levels.

Qualified Person

Thomas I. Vehrs, Ph.D., Vice President of Exploration is the Qualified Person for Fortuna Silver Mines Inc. as defined by National Instrument 43-101. Dr. Vehrs is a Founding Registered Member of the Society for Mining, Metallurgy, and Exploration, Inc. (SME Registered Member Number 3323430RM) and is responsible for ensuring that the information contained in this news release is an accurate summary of the original reports and data provided to or developed by Fortuna Silver Mines.

Fortuna Silver Mines Inc.

Fortuna is a growth-oriented, silver-, gold- 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 mine in Mexico. The Company is selectively pursuing additional exploration and development opportunities in the Americas. 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.

Forward looking Statements

This news release contains forward-looking statements which constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts and that are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements. When used in this document, the words such as "anticipates", "believes", "plans", "estimates", "expects", "forecasts", "targets", "intends", "advance", "projects", "calculates" and similar expressions are forward-looking statements.

The forward-looking statements are based on an assumed set of economic conditions and courses of actions, including estimates of future production levels, expectations regarding mine production costs, expected trends in mineral prices and statements that describe Fortuna's future plans, objectives or goals. There is a significant risk that actual results will vary, perhaps materially, from results projected depending on such factors as changes in general economic conditions and financial markets, changes in prices for silver and other metals, technological and operational hazards in Fortuna's mining and mine development activities, risks inherent in mineral exploration, uncertainties inherent in the estimation of mineral reserves, mineral resources, and metal recoveries, the timing and availability of financing, governmental and other approvals, political unrest or instability in countries where Fortuna is active, labor relations and other risk factors.

Although Fortuna has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended. There can be no assurance that any forward-looking statements or information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.

Contact Information

  • Fortuna Silver Mines Inc.
    Carlos Baca
    Investor Relations
    Tel (Peru): +51.1.616.6060, ext. 0
    www.fortunasilver.com