Monday March 9, 2009, 2:08 pm EDT
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 9, 2009) - Fortuna Silver Mines Inc. (TSX VENTURE:FVI - News; BVLAC:FVI) - Fortuna is pleased to announce that its acquisition of all of the issued and outstanding securities of Continuum Resources Ltd. has now closed. As consideration for the acquisition of Continuum, Fortuna has issued 6,786,706 common shares and now has a total of 92,118,365 common shares outstanding.
Simon Ridgway, the Chairman of Fortuna, said, "I'd like to thank the entire management team of Fortuna for their efforts in closing the acquisition of Continuum Resources. We anticipate that the San Jose project will add substantial silver ounces to our production base and securing 100% ownership of the project is an important step for Fortuna and our shareholders."
As a result of the acquisition of Continuum, Fortuna now owns 100% of the San Jose Project in Oaxaca, Mexico. In March 2007, Fortuna published a NI43-101 compliant resource estimate for San Jose (see Fortuna news release dated March 12, 2007). Using a cut-off grade of 150 g/t Ag equivalent, the inferred and indicated mineral resources for the Trinidad zone at San Jose are estimated at:
- Indicated Mineral Resources: 1.47 million tonnes grading 262.6 g/t Ag + 2.19 g/t Au containing 17.7 million Ag equivalent oz
- Inferred Mineral Resources: 3.9 million tonnes grading 260.6 g/t Ag + 2.57 g/t Au containing 49.1 million Ag equivalent oz
Fortuna recently completed an extensive drill program designed to convert inferred mineral resources to the measured and indicated categories. The revised resource estimate is expected for June 2009.
The Company has also concluded metallurgical tests for the project with Metcon Research of Tucson, Arizona and is advancing with feasibility level engineering studies for the development of the San Jose deposit. Engineering contracts have been awarded in February for mine design, process plant design, tailings dam, water and power. Fortuna expects to present the Environmental Impact Study (EIS) to the Mexican authorities by the end of March. Management will be preparing a comprehensive project update in the up-coming weeks.
Mr. Miroslav Kalinaj, P. Geo., is the Company's Qualified Person as defined by National Instrument 43-101 and is responsible for the accuracy of the technical information in this news release. The resource estimate for the San Jose project was prepared by Independent Mining Consultants, Inc. of Tucson, Arizona. Mike Hester acted as the independent qualified person as defined by Canadian National Instrument 43-101.
The San Jose deposit is a low sulfidation epithermal system located within the Taviche Mining District in southern Oaxaca and is characterized by mineralized multiphase quartz-carbonate-sulfide veins, hydrothermal breccias and stockwork veining within a sequence of Tertiary andesitic volcanic and volcaniclastic rocks. The Company controls mining concessions covering approximately 54,000 hectares in the Taviche Mining District.
Fortuna Silver Mines Inc.
Fortuna is a growth oriented, silver and base metal producer focused on mining opportunities in Latin America. Our primary assets are the Caylloma Silver Mine in southern Peru and the San Jose Silver-Gold Project in Mexico. The Company is selectively pursuing additional acquisition opportunities. For more information, please visit our website at www.fortunasilver.com.
ON BEHALF OF THE BOARD
Jorge Ganoza, President, CEO and Director
Fortuna Silver Mines Inc.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.