Fortuna Silver Mines announced the start of pre-production mining at its 100 percent owned Lindero gold Project located in the Province of Salta, Argentina. Initial blasting on Mineral Reserves commenced in early September and the mine is planned to build stockpiles of reserves ahead of stacking on the leach pad.
Jorge A. Ganoza, President, CEO and Director, commented, “The start of pre-production mining is one of the important milestones of the project as we go into the final stretch of construction.” Mr. Ganoza added, “The Lindero mineralized body presents us with important economic benefits that can be captured right from the start of mining. There is no pre-stripping required and high-grade gold Mineral Reserves will be accessed with a low strip ratio below one in the first year.” Mr. Ganoza concluded, “In its first full year of operation, Lindero is planned to produce between 145 to 160 thousand ounces of gold.”
The Lindero Project construction remains on track with placement of Mineral Reserves on the leach pad scheduled for the fourth quarter of 2019 and first doré pour planned in the first quarter of 2020. With Lindero in its first year of full production, Fortuna’s consolidated precious metals annual production1 is expected to increase in 2020 to between 7.5 and 8.3 million ounces of silver and between 189 to 209 thousand ounces of gold or between 293 to 324 thousand ounces of gold equivalent2.
Construction highlights as at the end of August 2019:
The overall project is 70 percent complete
Total construction spending is US$240.8 million
An eight megawatt power plant is being pre-commissioned; and the medium voltage power distribution system is complete
All major structures and equipment in the crushing circuit and agglomeration plant have been mounted. The electrical, lubrication, and hydraulic systems are being installed.
The Project´s workforce to date is 2,350 people; 98 percent are Argentinian nationals, 65 percent come from the Province of Salta, and 10 percent come from neighboring communities. The Project employs 105 female workers which constitute 5 percent of the project´s workforce.
First pre-production blast on Mineral Reserves occurred in early September 2019.
Notes:
Based on annual production plans for the life of the San Jose, Caylloma and Lindero mines | Assumes commencement of commercial production at Lindero in Q1 2020 | Refer to Fortuna news release dated April 4, 2019, “Fortuna reports updated first year gold doré production plan for the Lindero Project, Argentina” and news release dated February 20, 2019, “Fortuna provides construction update at its Lindero gold project in Argentina” | Refer to the Caylloma Mine Technical Report (Effective date: March 8, 2019) and to the San Jose Mine Technical Report (Effective date: February 22, 2019)
Gold equivalent is calculated using a gold to silver ratio of 1 to 72 and does not include lead nor zinc
Mine and equipment fleet
The operational permits for the explosives magazine and the explosive delivery trucks were received in August 2019. All mine equipment is on site and is fully operational. Key equipment includes six 100 ton trucks, two 17 cubic yard wheel loaders, one 5 cubic yard crawler excavator, two 449 HP dozers, two 250 HP motor graders, and two 800 HP rotary blast hole drill rigs.
8 megawatt power plant
The power plant consisting of twelve power generators and ten 50 cubic meter fuel tanks is being pre-commissioned. The plant will allow for power requirements to be self-generated through an eight
megawatt diesel generator power plant. The medium voltage power distribution system is complete.
18,750 tonnes per day crushing circuit and agglomeration plant
All principal structures and equipment in the primary, secondary, and tertiary crushing circuits have been mounted with electrical, lubrication, and hydraulic systems being installed. Mounting and installation of conveyor belts is the main mechanical activity taking place at the present time.
The large agglomeration surge bin, two cement silos, and the two agglomeration drums have been mounted with mechanical and electrical installation continuing.
Commissioning of the crushing circuit and the agglomeration plant is planned for the fourth quarter of 2019.
Leach pad and solution ponds area
The 31 hectare leach pad start-up area is 88 percent advanced and scheduled to be completed in
October 2019. Construction of the sulphidization-acidification-recycle-thickening (“SART”), pregnant, intermediate, barren, and major events solution ponds and five-layer liner system installation are 92 percent complete.
ADR and SART plants
Concrete foundations for the adsorption, desorption and recovery (“ADR”) and SART plants have been completed.
The steel structure for the building to house the ADR plant is 90 percent complete with electromechanical and piping installation commenced in September 2019. The ADR plant is scheduled to be commissioned in the first quarter of 2020.
Construction camp and ancillary facilities
Fresh water wells, pumping and distribution systems are 40 percent complete; commissioning is planned for the fourth quarter of 2019.
Further updates on the construction of the Lindero gold Project will be provided as the development of the Project proceeds.
