Fortuna Silver’s gold reserves climb post Roxgold acquisition 

Fortuna Silver Mines (TSX: FVI; NYSE: FSM) has said that its proven and probable gold reserves have increased by 81% on a year-on-year basis, while its silver reserves decreased by 10%.  

The company announced updated reserve and resource estimates for its four operating mines and development projects in the Americas and West Africa. More than half of the new reserve ounces are from assets acquired through Fortuna’s takeover of Roxgold Resources last June. 

Proven and probable reserves at the Caylloma mine in Peru total 3.2 million tonnes grading 84 grams silver per tonne, 0.2 gram gold per tonne, 2.53% lead, and 3.7% zinc. Reserves at the San Jose mine in Mexico total 3 million tonnes grading 180 grams silver per tonne, and1.17 grams gold. 

The Lindero gold mine in Argentina has reserves of 88.6 million tonnes grading 0.57 gram gold, while the Yaramoko mine in Burkina Faso adds 2.1 million tonnes grading 6.78 grams gold. The Seguela project at Cote d’Ivoire hosts reserves of 12.1 million tonnes grading 2.8 grams gold per tonne.  

In all, the reserves contain 3.2 million oz. gold and 25.9 million oz. silver.  

“Integration of Yaramoko and Séguéla into Fortuna´s portfolio has significantly boosted the company’s reserves and resources,” the company’s senior vice-president of technical services, Eric N. Chapman, said in a press release. “Exploration programs at San Jose, Lindero and Yaramoko will continue in 2022 with 53,000 metres of drilling planned.”  

The all-share deal valued at about $1 billion closed last June, adding the Yaramoko and Seguela operations to Fortuna’s portfolio. While Yaramoko is already producing, the company expects Seguela to start commercial production in 2023 and produce 133,000 oz. gold annually during the first six years of its expected nine-year mine life. 

At the Lindero mine, mineral reserve tonnes increased by 7%, while gold grade decreased by 8% to 0.57 gram per tonne since December 31, 2020, the company said. In addition, measured and indicated resource tonnes, decreased by 2.3 million tonnes or 6% to 33.3 million tonnes due to “minor adjustments in operating costs and the reserve cut-off grade.” 

Mineral reserve tonnes at the Yaramoko mine deceased by 32% since June 30, 2020, while gold grade decreased 3% to 6.78 g/t, the company said. Measured and indicated resource tonnes decreased from 0.6 million tonnes to 0.5 million tonnes.  

At the San Jose mine, year-on-year mineral reserves decreased 17% in terms of tonnes, while silver grade decreased 10% to 180 grams per tonne and gold grade decreased 13% to 1.17 grams per tonne.  

“Exploration remains a priority at San Jose with a 2022 program budget of US$7.4 million, which includes 26,200 meters of diamond drilling, aimed at expanding the mineralization at the mine,” the company said.  

The year-on-year mineral reserve tonnes at the Caylloma mine increased by 91 percent, while silver grade decreased 22 percent. Measured and indicated resource tonnes increased by 27 percent year-over-year to 2.7 million tonnes with silver, lead and zinc grades decreasing by 13%, 7% and 7% respectively.  

The company’s total inferred resources contain 1 million oz. gold and 26.3 million oz. silver, which is an increase of 82% and decrease of 8% respectively. 

At presstime in Toronto, Fortuna Silver was trading at $5.31 per share within a 52-week trading range of $3.77 and $9.97. The company has 291.6 billion common shares outstanding for a market cap of $1.5 billion.