Fortuna Silver Mines Inc. (fka FVITF)

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Fortuna Reports Production Results for Third Quarter
October 14, 2010: Fortuna Silver Mines Inc. (TSX: FVI / Lima Stock Exchange: FVI) is pleased to announce production figures for third quarter of 2010 from the Caylloma Mine located in Arequipa, Peru. Year to date, Caylloma has produced 1.42 million ounces of silver and is on track to exceed the annual silver production forecast of 1.7 million ounces. The 1,500 tpd underground San Jose Mine located in Oaxaca, Mexico is scheduled to commence production on the third quarter of 2011 and an update on on- going construction activities will be issued in the upcoming days.
Third Quarter Highlights
• • • •
Silver production of 474,489 ounces; 8% increase over Q3 2009 Zinc production of 6,790,230 pounds; 8% decrease over Q3 2009 Lead production of 5,147,788 pounds; 19% decrease over Q3 2009 Copper production of 249,122 pounds; 6% decrease over Q2 2010
Operating Highlights
(1) Ag recovery in Pb and Cu concentrate (2) Ag production in Pb and Cu concentrate
Q3 - 2010
Q2 – 2010
Q3 - 2009
Processed ore (t)
112,886
108,010
105,241
Head grade
Ag (g/t)
154.56
156.35
146.5
Zn (%)
3.10
3.02
3.6
Pb (%)
2.27
2.30
3.0
Cu (%)
0.20
0.21
--
Recovery (%)
Ag (1)
85
87
84.2
Zn
88
88
88.6
Pb
91
91
93.2
Cu
51
54
--
Metal produced
Ag (oz) (2)
474,489
470,310
438,186
Zn (lb)
6,790,230
6,320,248
7,365,644
Pb (lb)
5,147,788
4,966,619
6,391,201
Cu (lb)
249,122
266,331
--
-2-
Silver production for the third quarter was 474,489 ounces, 13 percent higher when compared against the budget for the period and 8 percent higher than silver production for the third quarter of 2009. Lead and zinc metal production increased 4 percent and 7 percent respectively when compared against second quarter of 2010 but are 14 percent and 3 percent below budget for the period respectively. Base metal production is being affected by the Company’s focus on silver production.
A NI 43–101 Technical Report dated August 11, 2009 on Reserves and Resources for the Caylloma Mine is available on the Company’s website at www.fortunasilver.com.