Fortuna Silver Mines Inc.

TSX VENTURE : FVI
BVLAC : FVI


Fortuna Silver Mines Inc.

March 11, 2009 12:47 ET

Fortuna Releases Final Results From 2008 Drill Program, San Jose Project, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 11, 2009) - Fortuna Silver Mines Inc. (TSX VENTURE:FVI)(BVLAC:FVI) is pleased to announce the completion of the 2008/2009 in-fill drill program on the Trinidad Zone of the San Jose silver-gold project located in Oaxaca, Mexico. The program has confirmed the presence and consistency of high-grade silver-gold mineralization in association with hydrothermal breccias, crackle breccias, quartz-carbonate veins and zones of sheeted and stockworked quartz-carbonate veinlets.

A total of 113 drill holes (32,925m) were completed in the in-fill drill program, bringing the total to-date for the zone to 198 drill holes (64,233m). Highlights from the in-fill drill program are summarized in the following table with length-weighted assay averages being calculated for mineralized intervals using a lower cut-off of 100 g/t Ag equivalent (Table 2, at the end of the news release, contains a full summary of the final drill holes). Updated longitudinal sections showing drill hole intercepts for the major veins and a drill hole location map are available on Fortuna's website at the following link: Trinidad DH Map & Longitudinal Sections.


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              From       To   Interval   Est. True      Au     Ag    Ag Eq.
Hole #          (m)      (m)        (m)  Thickness     g/t    g/t      g/t
--------------------------------------------------------------------------
SJO-121     298.60   315.40      16.80        10.3    2.23    304      418
 And        428.25   448.80      20.55        14.0    8.89    752     1206
SJO-123     186.40   191.30       4.90         3.4    8.98   1182     1640
SJO-127     394.50   423.55      29.05        14.2    6.75    933     1278
SJO-128     212.90   216.10       3.20         2.0    9.41    603     1083
 And        234.80   247.60      12.80         6.9    1.54    151      229
 And        296.50   311.60      15.10         8.4    5.71   1022     1313
SJO-137     187.30   208.20      20.90        13.5    7.84    472      872
SJO-147     262.00   269.00       7.00         3.7    8.29    693     1115
SJO-169     256.40   267.55      11.15         6.0    3.10    419      576
 And        275.20   280.30       5.10         3.1    4.99    863     1117
SJO-175     138.70   145.25       6.55         4.9   11.06    534     1098
SJO-187     184.90   190.10       5.20         3.7    6.82    628      976
 And        204.15   225.55      21.40        15.5    5.96    453      758
SJO-193     242.45   273.00      30.55        23.0    1.34    113      181
 And        314.70   327.40      12.70         8.0    5.99    973     1279
SJO-202     295.95   311.35      15.40        11.6    1.91    173      270
 And        344.25   349.35       5.10         3.2    4.54    714      946
SJO-230     228.50   250.85      22.35        17.9    3.06    323      479
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Note: 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.

Detailed interpretation of the geology and mineralization is underway as part of the preparation for an updated mineral resource estimate for the Trinidad Zone, scheduled for completion by the end of Q2 2009.

The in-fill drill program was initiated in June of 2008 and was designed to convert a significant portion of the resources in the upper 250 meters of the deposit to the Indicated and Measured classification. Partial results from the program have been previously released (see Fortuna news releases dated September 25, 2008, October 28, 2008, November 27, 2008 and January 7, 2009) as the program advanced. The design of the in-fill drill program was based on 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 and Measured category.

Fortuna has also concluded metallurgical tests for the project with Metcon Research of Tucson, Arizona and is advancing with the feasibility level studies for the development of the San Jose deposit. Engineering contracts have been awarded in February for mine design, process plant design, tailings dam, water and power. The Company expects to present the "Manifiesto de Impacto Ambiental" to the Mexican environmental authorities by the end of March.

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 Company controls mining concessions covering approximately 54,000 hectares in the Taviche Mining District.

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. Additionally, approximately 5% of all samples are submitted to Inspectorate Assay Labs in Reno, Nevada for check assay purposes. 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 Alberto Ganoza Durant, President, CEO and Director

Fortuna Silver Mines Inc.


Table 2. Final results from Fortuna's in-fill drilling at San Jose, Mexico.

Assay results for the previously unreleased final drill holes in the 
in-fill drill program are summarized below. As above, length-weighted 
assay averages have been calculated for the mineralized intervals using a 
lower cut-off of 100 g/t Ag-equivalent.

--------------------------------------------------------------------------
              From       To   Interval   Est. True      Au     Ag    Ag Eq.
Hole_Id         (m)      (m)        (m)  Thickness     g/t    g/t      g/t
--------------------------------------------------------------------------
SJO-119     227.00   235.40       8.40         4.9    2.03    229      332
SJO-121     298.60   315.40      16.80        10.3    2.23    304      418
 And        428.25   448.80      20.55        14.0    8.89    752     1206
SJO-123     186.40   191.30       4.90         3.4    8.98   1182     1640
SJO-124     261.90   265.50       3.60         3.5    9.53    292      778
SJO-126     194.60   206.80      12.20         8.1    4.09    427      636
 And        247.55   258.20      10.65         7.2    1.25    219      283
SJO-127     394.50   423.55      29.05        14.2    6.75    933     1278
SJO-128     212.90   216.10       3.20         2.0    9.41    603     1083
 And        234.80   247.60      12.80         6.9    1.54    151      229
 And        296.50   311.60      15.10         8.4    5.71   1022     1313
SJO-133     250.00   258.75       8.75         6.9    2.31    214      332
SJO-134     179.40   187.15       7.75         5.8    2.11    254      362
SJO-136     155.75   166.00      10.25         6.2    3.71    240      429
SJO-137     187.30   208.20      20.90        13.5    7.84    472      872
SJO-139     226.75   236.60       9.85         5.4    2.67    290      426
SJO-142     181.80   192.45      10.65         6.8    2.47    208      334
SJO-143     270.10   277.25       7.15         3.7    8.06    546      957
SJO-144     190.75   212.00      21.25        15.5    2.81    322      466
SJO-145     220.50   236.45      15.95        13.9    4.09    485      694
SJO-146     133.80   145.20      11.40         7.1    1.76    197      287
 And        184.65   193.70       9.05         5.4    1.55    290      369
SJO-147     262.00   269.00       7.00         3.7    8.29    693     1115
SJO-150     208.00   218.50      10.50         6.1    2.08    258      365
SJO-152     101.60   106.40       4.80         4.1    3.55    509      690
SJO-157     472.05   486.85      14.80        11.1    1.89    194      291
SJO-160     193.75   201.70       7.95         3.7    1.49    351      427
SJO-163     247.00   259.85      12.85        11.0    1.70    215      302
SJO-166     210.15   213.75       3.60         2.5    8.11    548      961
 And        229.15   246.60      17.45        12.2    2.78    285      427
 And        282.75   297.10      14.35         9.0    1.88    284      380
SJO-169     256.40   267.55      11.15         6.0    3.10    419      576
 And        275.20   280.30       5.10         3.1    4.99    863     1117
SJO-172     264.20   271.65       7.45         6.1    4.35    264      486
 And        297.90   304.50       6.60         4.0    1.92    303      401
 And        307.45   314.75       7.30         5.4    1.93    447      545
SJO-175     138.70   145.25       6.55         4.9   11.06    534     1098
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-183     186.60   187.60       1.00         0.8   28.40   5350     6798
SJO-185     126.10   139.15      13.05         8.3    3.17    175      336
SJO-186     215.30   230.50      15.20         9.7    1.99    360      462
SJO-187     184.90   190.10       5.20         3.7    6.82    628      976
 And        204.15   225.55      21.40        15.5    5.96    453      758
SJO-193     242.45   273.00      30.55        23.0    1.34    113      181
 And        314.70   327.40      12.70         8.0    5.99    973     1279
SJO-194     290.25   306.35      16.10        12.0    2.74    316      456
SJO-201     191.05   196.95       5.90         4.1    4.25    719      935
 And        213.10   237.20      24.10        17.0    0.68    140      174
SJO-202     295.95   311.35      15.40        11.6    1.91    173      270
 And        344.25   349.35       5.10         3.2    4.54    714      946
SJO-203     179.20   194.55      15.35        11.6    0.96    228      277
SJO-205     235.90   252.50      16.60        11.3    2.36    303      424
SJO-207     228.40   238.00       9.60         7.2    2.00    403      505
SJO-210     291.90   299.70       7.80         5.8    2.81    442      585
SJO-214     349.05   354.50       5.45         3.6    2.36    419      539
SJO-217     255.65   256.65       1.00         0.8   10.15   1450     1968
 And        278.85   286.00       7.15         5.5    3.55    373      554
SJO-219     386.45   387.50       1.05         0.6    2.82    203      347
SJO-220      64.55    66.15       1.60         1.3    0.89    134      179
SJO-221     281.75   283.45       1.70         1.0    0.45     88      111
SJO-222     309.55   310.95       1.40         1.0    1.36    232      301
 And        330.50   331.90       1.40         1.0    1.41    192      264
SJO-223     158.95   164.85       5.90         4.8    3.41    319      493
 And        205.00   214.15       9.15         6.4    1.42    111      184
SJO-224     267.75   268.25       0.50         0.3    4.91    629      879
 And        293.15   296.10       2.95         2.0    2.85    528      673
SJO-225      77.25    77.45       0.20         0.2    2.34    385      504
 And        206.40   207.40       1.00         0.8    0.84     91      134
SJO-226     322.60   326.15       3.55         2.0    0.77     83      122
 And        329.95   331.85       1.90         1.1    2.51    312      440
SJO-227     147.25   148.60       1.35         1.0    0.17    183      192
SJO-228     379.90   381.00       1.10         0.8    1.12    257      314
SJO-229     232.25   234.15       1.90         1.6    0.58    122      151
SJO-230     228.50   250.85      22.35        17.9    3.06    323      479
SJO-231     247.40   255.20       7.80         5.4    1.61    172      254
 And        292.25   295.30       3.05         2.3    5.32    930     1201
--------------------------------------------------------------------------
Note: 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.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Contact Information

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