Fortuna Silver Mines Inc.
TSX VENTURE : FVI
BVLAC : FVI

Fortuna Silver Mines Inc.

July 07, 2009 12:29 ET

Fortuna Reports Another Record Breaking Quarter; Silver Production Up 22% Over First Quarter 2009

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 7, 2009) - Fortuna Silver Mines Inc. (TSX VENTURE:FVI)(BVLAC:FVI) is pleased to announce its production figures for second quarter 2009.

Second Quarter Highlights

- 160.4 g/t Ag head grade; 8.5% increase over Q1 2009 and 87.6% increase over Q2 2008

- Record silver production of 468,823 ounces; 22.0% increase over Q1 2009 and 151.7% increase over Q2 2008

- 7,527,091 pounds of Zn; 8.3% increase over Q1 2009 and 109.1% increase over Q2 2008

- 6,587,867 pounds of Pb; 13.0% increase over Q1 2009 and 13.7% increase over Q2 2008

Operating Highlights



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Q2 - 2009 Q1 - 2009 Q2 - 2008
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Processed ore (t) 100,881 91,449 80,121
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Head grade
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Ag (g/t) 160.4 147.8 85.5
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Zn (%) 3.8 3.8 3.8
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Pb (%) 3.2 3.1 2.3
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Recovery
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Ag (%) (1) 86.5 84.6 78.1
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Zn (%) 88.6 90.0 87.6
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Pb (%) 92.6 93.0 88.9
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Metal produced
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Ag (oz) 468,823 384,339 186,276
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Zn (lb) 7,527,091 6,948,971 3,600,149
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Pb (lb) 6,587,867 5,831,227 5,795,953
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(1) Ag recovery in Pb and Cu concentrate


A Technical Report on Reserves and Resources for the Caylloma Mine is available on the Company's website at www.fortunasilver.com.

Jorge Ganoza, President, CEO and Director, commented, "Another record breaking quarter at the Caylloma Mine in Peru puts Fortuna on track to exceed the Company's forecast of 1.6 million ounces of pure silver for 2009. Silver accounted for 48% of revenue in the first quarter of the year and we expect our leverage to silver to remain at this level for the second quarter. Management continues to focus on sustaining growth and on the advancement of our San Jose Ag-Au Project in Mexico into construction. Once in production, San Jose will catapult Fortuna to the ranks of mid-tier silver producers."

Incentive Stock Option

The Company also announces that it has granted an incentive stock option to an officer of the Company to purchase up to 200,000 shares exercisable for ten years at a price of $0.83 per share.

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.

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.

Forward-Looking Statements

Certain statements in this press release constitute forward-looking statements and as such are based on an assumed set of economic conditions and courses of action. These include 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 calculation 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.

ON BEHALF OF THE BOARD

Jorge Ganoza, President, CEO and Director

Fortuna Silver Mines Inc.

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)
    info@fortunasilver.com
    www.fortunasilver.com