Fortuna announces positive construction decision for its Lindero gold Project in Salta, Argentina
Argentina.- Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) is pleased to announce today that the Board of Directors of the Company has made a positive construction decision for the 100% owned Lindero gold Project located in the Province of Salta, Argentina. In July 2016, Fortuna completed the acquisition of Goldrock Mines Corp. whose principal asset was the Lindero Project. Lindero has an approved environmental impact study and has been granted all major permits for the construction of an 18,750 tpd open pit, heap leach gold mine.
Jorge Ganoza, President, CEO and Director, commented, “With a base case IRR 1 of 18% and a 3.6 year payback, we have delivered a strong project greatly derisked technically and financially that will contribute low cost gold production over its 15 years of operation. Initial capital of $239 million is going to be comfortably funded from our approximately $190 million cash position, available lines of credit and projected cash flows. We do not envision accessing equity capital markets or having to take hedge positions for this project.” Mr. Ganoza continued, “The optimization work conducted over the past year has captured opportunities for improved metallurgical recovery and reduced leach time. At the same time, technical risks have been mitigated on the process side by bringing in a SART 2 plant, ore agglomeration and a conveyor stacking system to year one.” Mr. Ganoza added, “Under our construction plan, detailed engineering and site activities are expected to commence next month with commissioning expected in the second quarter of 2019.” Mr. Ganoza concluded, “In the first year of full production, Lindero will take Fortuna’s annual production to approximately 9 million ounces of silver and 190,000 ounces of gold or 340,000 gold equivalent2 ounces.”
Figures reported in this news release supersede those stated in the Goldrock 2016 Feasibility Study. An updated feasibility study technical report will be filed on SEDAR at www.sedar.com and posted on our website at https://www.fortunasilver.com/mines-and-projects/technical-reports/ within forty-five days from the date of this news release.