VANCOUVER, British Columbia, July 09, 2024 (GLOBE NEWSWIRE) -- Fortuna Mining
Corp. (NYSE: FSM | TSX: FVI) reports production results for the second quarter
of 2024 from its five operating mines in West Africa and Latin America.
Q2 2024 Production highlights
* Gold equivalent production of 116,570 ounces(1); a 25 percent increase
compared to Q2 2023 (93,454 oz Au Eq)(2) and a 4 percent increase compared
to Q1 2024 (112,543 oz Au Eq)(3)
* Gold production of 92,716 ounces; a 44 percent increase over Q2 2023 (64,348
oz Au)(2) and a 3 percent increase compared to Q1 2024 (89,678 oz Au)(3)
* Silver production of 990,574 ounces; a 22 percent decrease over Q2 2023
(1,262,561 oz Ag)(2)
* Zinc and lead production of 13.0 million and 10.5 million pounds; 7 percent
decrease and
3 percent increase over Q2 2023, respectively
Consolidated gold and silver production for the first six months of 2024 totaled
182,394 ounces and 2.1 million ounces, respectively, or 229,113 ounces of gold
equivalent, including lead and zinc by-products. Fortuna reiterates its 2024
annual production guidance range of 343 to 385 thousand ounces of gold and 4.0
to 4.7 million ounces of silver or between 457 and 497 thousand ounces of gold
equivalent ounces(4), including lead and zinc by-products (refer to Fortuna news
release dated January 18, 2024 (https://www.fortunamining.com/news/fortuna-
reports-record-2023-production-of-452-koz-au-eq-and-2024-annual-guidance-of-457-
to-497-koz-au-eq/)).
Q2 2024 Consolidated Gold and Silver Production
+-------------------+---------------------+
| Gold Production | Silver Production |
| (oz) | (oz) |
+---------+---------+---------+-----------+
| Q2 2024 | Q2 2023 | Q2 2024 | Q2 2023 |
----------------+---------+---------+---------+-----------+
Lindero Mine 22,874 25,456 | - -
|
Yaramoko Mine 31,447 29,002 | - -
|
Séguéla Mine 32,983 4,023 | - -
|
San Jose Mine 5,269 5,778 | 684,176 957,265
|
Caylloma Mine 143 89 | 306,398 305,296
------------------------------------+----------------------
Total 92,716 64,348 | 990,574 1,262,561
------------------------------------+----------------------
Notes:
1. Au Eq includes gold, silver, lead and zinc and is calculated using the
following metal prices: $2,334/oz Au, $29.1/oz Ag, $2,157/t Pb and $2,835/t
Zn or Au:Ag = 1:80.19, Au:Pb = 1:1.08, Au:Zn = 1:0.82
1. Refer to Fortuna news release: July 12, 2023, "Fortuna reports production of
93,454 gold equivalent ounces for the second quarter of 2023"
(https://www.fortunamining.com/news/fortuna-reports-production-of-93454-
gold-equivalent-ounces-for-the-second-quarter-of-2023/)
2. Refer to Fortuna news release: April 8, 2024, "Fortuna reports strong gold
equivalent production of 112,543 ounces in the first quarter of 2024
(https://www.fortunamining.com/news/fortuna-reports-strong-gold-equivalent-
production-of-112543-ounces-in-the-first-quarter-of-2024/)"
3. Au Eq includes gold, silver, lead and zinc and is calculated using the
following metal prices: $1,800/oz Au, $22/oz Ag, $2,000/t Pb and $2,500/t Zn
or Au:Ag = 1:81.82, Au:Pb = 1:0.90, Au:Zn = 1:0.72
West Africa Region
Séguéla Mine, Côte d'Ivoire: Continued strong production
+---------+---------+
| Q2 2024 | Q1 2024 |
--------------------------+---------+---------+
Tonnes milled 318,457 | 394,837
|
Average tpd milled 3,461 | 4,339
------------------------------------+----------
Gold grade (g/t) 3.47 | 2.79
|
Gold recovery (%) 93.8 | 94.4
|
Gold production (oz)(1) 32,983 | 34,556
------------------------------------+----------
Note:
1. Au Production includes doré only
Mining
Mine production totaled 420,222 tonnes of ore, averaging 3.03 g/t Au, and
containing an estimated 40,912 ounces of gold from the Antenna, Ancien, and
Koula pits. Movement of waste during the quarter totaled 2,495,838 tonnes, for a
strip ratio of 6:1.
Production was mainly focused on the Antenna pit which produced 364,491 tonnes
of ore to provide higher grade feed to the processing plant during the power
supply issues detailed below. Mining at the Ancien and Koula pits provided the
balance of ore production with 1,645,716 tonnes of the waste stripping occurring
there.
Processing
In the second quarter of 2024, Séguéla produced 32,983 ounces of gold at an
average head grade of 3.47 g/t Au, a 5 percent decrease and 24 percent increase,
respectively, compared to the first quarter in 2024. Plant throughput for the
quarter averaged 208 tonnes per hour, versus name plate design capacity of 154.
Processed tonnes were constrained throughout the quarter due to power shedding
from the national grid supplier due to failures at two power plants in Côte
d'Ivoire. These outages are expected to be rectified, and normal power is
expected to resume by the end of July. In the interim, the Company is sourcing
backup diesel power generation capabilities. This will provide power should the
current outages extend beyond the expected resumption of normal energy supply,
or in the event of future outages. Séguéla's 2024 production guidance of
126,000 to 138,000 oz Au remains unaffected.
Gold production for the first six months of 2024 totaled 67,539 ounces.
Yaramoko Mine, Burkina Faso: 16 percent higher production over Q1 2024
+---------+---------+
| Q2 2024 | Q1 2024 |
--------------------------+---------+---------+
Tonnes milled 121,391 | 107,719
|
Average tpd milled 1,319 | 1,456
------------------------------------+----------
Gold grade (g/t) 8.40 | 8.79
|
Gold recovery (%) 98.25 | 98.2
|
Gold production(1) (oz) 31,447 | 27,177
------------------------------------+----------
Note:
1. Production includes doré only
In the second quarter of 2024, 121,391 tonnes of ore were treated at an average
head grade of 8.40 g/t Au, producing 31,447 ounces of gold. This represents a 4
percent decrease in grade, and a 16 percent increase in production, compared to
the first quarter in 2024. Processing operations at Yaramoko were also affected
by grid power supply issues, however, our backup diesel generation supply
mitigated the bulk of these constraints.
During the quarter, 89,991 tonnes of ore were mined averaging 7.81 g/t Au from
55 Zone, and 21,361 tonnes of ore averaging 8.89 g/t Au from QV Prime, totaling
111,352 tonnes averaging 8.02 g/t Au. In May, a rock burst occurred in the 55
Zone mine, which interrupted production for a period of 10 days. During this
period, mine production in QV Prime continued, while the plant processed ore
from existing surface stockpiles and QV Prime.
Drilling and development operations continued to extend the mining boundaries to
the east and west of 55 Zone and demonstrate wider mineable widths than
expected. In the third quarter, drilling will also focus on testing the
potential for further strike extensions of 55 Zone, as well as testing the
strike extensions that we currently see in QV Prime.
Gold production for the first six months of 2024 totaled 58,624 ounces.
Latin America Region
Lindero Mine, Argentina: In line to meet annual guidance; leach pad expansion on
track
+-----------+-----------+
| Q2 2024 | Q1 2024 |
--------------------------+-----------+-----------+
Ore placed on pad (t) 1,408,791 | 1,547,323
--------------------------------------+------------
Gold grade (g/t) 0.61 | 0.60
|
Gold production(1) (oz) 22,874 | 23,262
--------------------------------------+------------
Note:
1. Lindero production includes doré, gold-in-carbon and gold in copper
concentrate
During the second quarter of 2024, ore mined was 1.8 million tonnes, with a
stripping ratio of 0.7:1. A total of 1.4 million tonnes of ore were placed on
the leach pad at an average gold grade of 0.61 g/t, containing an estimated
27,663 ounces.
Lindero's gold production for the quarter was 22,874 ounces, comprised of
19,786 ounces in doré bars, 979 ounces of gold contained in rich fine carbon,
27 ounces contained in copper precipitate, and 2,082 ounces contained in cement
precipitate. The 2 percent decrease in production, when compared to the previous
quarter, is mainly explained by a planned eight-day maintenance shutdown of the
high-pressure grinding rolls (HPGR) and the agglomeration plant, coupled with a
period of lower mechanical availability of the front-end loaders. In line with
the planned mining sequence, higher head grades and ore tonnage will be placed
on the leach pad in the third quarter.
As of the end of June, the $51.8 million leach pad expansion project ($41.7
million capital investment in 2024) is approximately 58 percent complete. The
construction package of the project commenced in January 2024, with contractors
on site undertaking earthworks, construction of the impulsion line, and liner
deployment. Procurement is 96 percent complete, with critical path items onsite.
Pump manufacturing for the new impulsion line is on schedule and expected to
arrive on site in July. Liner installation has commenced and contracts for the
major mechanical works have been executed. The Company expects to start placing
ore on the leach pad expansion in the fourth quarter of 2024.
Gold production for the first six months of 2024 totaled 46,136 ounces.
San Jose Mine, Mexico: Production in line to meet annual guidance
+---------+---------+
| Q2 2024 | Q1 2024 |
-------------------------+---------+---------+
Tonnes milled 176,214 | 181,103
|
Average tpd milled 1,980 | 2,182
-----------------------------------+----------
Silver grade (g/t) 140 | 147
|
Silver recovery (%) 86.56 | 88.73
|
Silver production (oz) 684,176 | 759,111
-----------------------------------+----------
Gold grade (g/t) 1.09 | 0.90
|
Gold recovery (%) 85.46 | 86.76
|
Gold production (oz) 5,269 | 4,533
-----------------------------------+----------
In the second quarter of 2024, the San Jose Mine produced 684,176 ounces of
silver, and 5,269 ounces of gold at average head grades of 140 g/t Ag and 1.09
g/t Au, respectively; reflecting a 10 percent decrease, and a 16 percent
increase when compared to the first quarter of 2024. The processing plant milled
176,214 tonnes averaging 1,980 tonnes per day, and the grade profile for the
period was consistent with the geological model.
During the first half of 2024, in alignment with the mining sequence and
production plan, the operation conducted an intensive preparation campaign to
position the mine for higher silver and gold production in the second half of
the year. Management is currently evaluating its options of maintaining
operations at the mine or putting the mine on care and maintenance, as Mineral
Reserves are scheduled to be exhausted by year end.
Exploration drilling continues at the Yessi vein to provide better understanding
of the economic potential of the mineralized zone.
Silver and gold production for the first six months of 2024 totaled 1,443,287
ounces and 9,802 ounces, respectively, on track to meet annual guidance.
Caylloma Mine, Peru: Steady-state operation
+------------+------------+
| Q2 2024 | Q1 2024 |
-------------------------+------------+------------+
Tonnes milled 136,543 | 137,096
|
Average tpd milled 1,552 | 1,540
--------------------------------------+-------------
Silver grade (g/t) 83 | 87
|
Silver recovery(1) (%) 83.75 | 82.08
|
Silver production (oz) 306,398 | 315,460
--------------------------------------+-------------
Lead grade (%) 3.83 | 3.48
|
Lead recovery (%) 91.28 | 90.55
|
Lead production (lbs) 10,524,868 | 9,530,584
--------------------------------------+-------------
Zinc grade (%) 4.80 | 4.46
|
Zinc recovery (%) 90.16 | 90.32
|
Zinc production (lbs) 13,040,343 | 12,182,745
--------------------------------------+-------------
Note:
1. Metallurgical recovery for silver is calculated based on silver content in
lead concentrate
The Caylloma Mine produced 306,398 ounces of silver at an average head grade of
83 g/t Ag in the second quarter of 2024, 3 percent and 5 percent lower,
respectively, when compared to the previous quarter. Silver production for the
first six months of 2024 totaled 621,858 ounces, in line to meet annual
guidance.
Zinc and lead production was 13.0 and 10.5 million pounds, at average head
grades of 4.80 % and 3.83 %, respectively, a 7 and 10 percent increase when
compared to the first quarter. Increased production is the result of higher head
grades sourced from lower levels at the Animas vein. Zinc and lead production
for the first six months of 2024 totaled 25.2 million pounds and 20.1 million
pounds, respectively, well on track to meet the upper end of guidance for the
year.
Qualified Person
Eric Chapman, Senior Vice President of Technical Services of Fortuna, is a
Professional Geoscientist registered with Engineers and Geoscientists British
Columbia (Registration Number 36328) and a Qualified Person as defined by
National Instrument 43-101- Standards of Disclosure for Mineral Projects. Mr.
Chapman has reviewed and approved the scientific and technical information
contained in this news release and has verified the underlying data.
About Fortuna Mining Corp.
Fortuna Mining Corp. is a Canadian precious metals mining company with five
operating mines in Argentina, Burkina Faso, Côte d'Ivoire, Mexico, and Peru, as
well as the advanced exploration pre-development stage Diamba Sud Gold Project
located in Senegal. Sustainability is integral to all our operations and
relationships. We produce gold and silver and generate shared value over the
long-term for our stakeholders through efficient production, environmental
protection, and social responsibility. For more information, please visit our
website (https://fortunasilver.com/).
ON BEHALF OF THE BOARD
Jorge A. Ganoza
President, CEO, and Director
Fortuna Mining Corp.
Investor Relations:
Carlos Baca | info@fmcmail.com (mailto:info@fmcmail.com) | fortunamining.com
(http://www.fortunamining.com/) | X (https://x.com/fortunamining) | LinkedIn
(https://www.linkedin.com/company/fortunamining/) | YouTube
(https://www.youtube.com/@fortunamining)
Forward-looking Statements
This news release contains forward-looking statements which constitute "forward-
looking information" within the meaning of applicable Canadian securities
legislation and "forward-looking statements" within the meaning of the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995
(collectively, "Forward-looking Statements"). All statements included herein,
other than statements of historical fact, are Forward-looking Statements and are
subject to a variety of known and unknown risks and uncertainties which could
cause actual events or results to differ materially from those reflected in the
Forward-looking Statements. The Forward-looking Statements in this news release
may include, without limitation, statements about the Company's plans for its
mines and mineral properties; changes in general economic conditions and
financial markets; the impact of inflationary pressures on the Company's
business and operations; statements reiterating the Company's 2024 annual
production guidance and the likelihood of the Company meeting such annual
production guidance, including that gold production at the Lindero and Séguéla
Mines, silver and gold production at the San Jose Mine and silver production at
the Caylloma Mine are on-track to meet annual guidance; the expected timing for
completion of the leach pad expansion project at the Lindero Mine, including the
delivery of components to site, and the timing for the commencement of placing
ore on the leach pad expansion; the Company's expectations for the higher gold
and silver production at the San Jose Mine in the second half of 2024;
statements regarding the Company's plans for the San Jose Mine; statements
regarding the ongoing exploration at the Yessi vein at the San Jose Mine;
expectations regarding the resumption of normal power to the Séguéla Mine by the
end of July, and the Company's attempts to mitigate any continued or future
power outages; the Company's business strategy, plans and outlook; the merit of
the Company's mines and mineral properties; the future financial or operating
performance of the Company; the Company's ability to comply with contractual and
permitting or other regulatory requirements; approvals and other matters. Often,
but not always, these Forward-looking Statements can be identified by the use of
words such as "estimated", "potential", "open", "future", "assumed",
"projected", "used", "detailed", "has been", "gain", "planned", "reflecting",
"will", "anticipated", "estimated" "containing", "remaining", "to be", or
statements that events, "could" or "should" occur or be achieved and similar
expressions, including negative variations.
Forward-looking Statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of
the Company to be materially different from any results, performance or
achievements expressed or implied by the Forward-looking Statements. Such
uncertainties and factors include, among others, operational risks associated
with mining and mineral processing; uncertainty relating to Mineral Resource and
Mineral Reserve estimates; uncertainty relating to capital and operating costs,
production schedules and economic returns; uncertainties related to new mining
operations such as the Séguéla Mine; risks relating to the Company's ability to
replace its Mineral Reserves; risks associated with mineral exploration and
project development; uncertainty relating to the repatriation of funds as a
result of currency controls; environmental matters including obtaining or
renewing environmental permits and potential liability claims; uncertainty
relating to nature and climate conditions; risks associated with political
instability and changes to the regulations governing the Company's business
operations; changes in national and local government legislation, taxation,
controls, regulations and political or economic developments in countries in
which the Company does or may carry on business; risks associated with war,
hostilities or other conflicts, such as the Ukrainian - Russian conflict and the
Israel - Hamas war, and the impacts such conflicts may have on global economic
activity; risks relating to the termination of the Company's mining concessions
in certain circumstances; developing and maintaining relationships with local
communities and stakeholders; risks associated with losing control of public
perception as a result of social media and other web-based applications;
potential opposition to the Company's exploration, development and operational
activities; risks related to the Company's ability to obtain adequate financing
for planned exploration and development activities; property title matters;
risks relating to the integration of businesses and assets acquired by the
Company; impairments; risks associated with climate change legislation; reliance
on key personnel; adequacy of insurance coverage; operational safety and
security risks; legal proceedings and potential legal proceedings; the
possibility that the appeal in respect of the ruling in favour of Compañia
Minera Cuzcatlan S.A. de C.V. reinstating the environmental impact authorization
(the "EIA") at the San Jose Mine will be successful; uncertainties relating to
general economic conditions; risks relating to a global pandemic, which could
impact the Company's business, operations, financial condition and share price;
competition; fluctuations in metal prices; risks associated with entering into
commodity forward and option contracts for base metals production; fluctuations
in currency exchange rates and interest rates; tax audits and reassessments;
risks related to hedging; uncertainty relating to concentrate treatment charges
and transportation costs; sufficiency of monies allotted by the Company for land
reclamation; risks associated with dependence upon information technology
systems, which are subject to disruption, damage, failure and risks with
implementation and integration; risks associated with climate change
legislation; labour relations issues; as well as those factors discussed under
"Risk Factors" in the Company's Annual Information Form. Although the Company
has attempted to identify important factors that could cause actual actions,
events or results to differ materially from those described in Forward-looking
Statements, there may be other factors that cause actions, events or results to
differ from those anticipated, estimated or intended.
Forward-looking Statements contained herein are based on the assumptions,
beliefs, expectations and opinions of management, including but not limited to
the accuracy of the Company's current Mineral Resource and Mineral Reserve
estimates; that the Company's activities will be conducted in accordance with
the Company's public statements and stated goals; that there will be no material
adverse change affecting the Company, its properties or its production estimates
(which assume accuracy of projected head grade, mining rates, recovery timing,
and recovery rate estimates and may be impacted by unscheduled maintenance,
labor and contractor availability and other operating or technical
difficulties); the duration and effect of global and local inflation; geo-
political uncertainties on the Company's production, workforce, business,
operations and financial condition; the expected trends in mineral prices,
inflation and currency exchange rates; that the appeal filed in the Mexican
Collegiate Court challenging the reinstatement of the EIA will be unsuccessful;
that all required approvals and permits will be obtained for the Company's
business and operations on acceptable terms; that there will be no significant
disruptions affecting the Company's operations and such other assumptions as set
out herein. Forward-looking Statements are made as of the date hereof and the
Company disclaims any obligation to update any Forward-looking Statements,
whether as a result of new information, future events or results or otherwise,
except as required by law. There can be no assurance that these Forward-looking
Statements will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. Accordingly,
investors should not place undue reliance on Forward-looking Statements.
Cautionary Note to United States Investors Concerning Estimates of Reserves and
Resources
Reserve and resource estimates included in this news release have been prepared
in accordance with National Instrument 43-101 Standards of Disclosure for
Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy,
and Petroleum Definition Standards on Mineral Resources and Mineral Reserves. NI
43-101 is a rule developed by the Canadian Securities Administrators that
establishes standards for public disclosure by a Canadian company of scientific
and technical information concerning mineral projects. Unless otherwise
indicated, all mineral reserve and mineral resource estimates contained in the
technical disclosure have been prepared in accordance with NI 43-101 and the
Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards on
Mineral Resources and Reserves.
Canadian standards, including NI 43-101, differ significantly from the
requirements of the Securities and Exchange Commission, and mineral reserve and
resource information included in this news release may not be comparable to
similar information disclosed by U.S. companies.
A PDF accompanying this announcement is available at:
http://ml.globenewswire.com/Resource/Download/0c51d16a-
4363-492e-89f0-8965c650bfd2
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