Fortuna Silver unveils updated mineral resource at West Africa mine
Fortuna Silver Mines Inc. [FVI-TSX, Lima; FSM-NYSE] has announced updated mineral reserves and resources for its Seguela mine in Cote d’Ivoire, West Africa.
Measured and indicated resources, exclusive of mineral reserves, are reported to stand at 790,000 ounces of gold, marking a 100% increase from December 31, 2024. Inferred resources stand at 712,000 ounces, reflecting a 15% increase from the end of 2024.
The change in indicated resource was driven by the growth in the Sunbird Underground Project, which stands at 3.6 million tonnes averaging 4.34 g/t gold containing 502,000 gold ounces. Changes were also the result of updating gold metal prices and pit optimizations to incorporate an additional 110,000 ounces of gold across all deposits.
The primary driver of the increase in inferred resources was growth at the Kingfisher deposit, where most of the resources upgraded to mineral reserves were replaced by new inferred resources totaling 267,000 ounces. Further contributions came from the Sunbird Underground project.
The company said growth in mineral reserves offset production-related depletion, with an estimated 1.2 million ounces of gold, representing an 11% increase compared to the end of December, 2024.
“Continued exploration success over the past two years has created a clear pathway to not only extend the life of mine at Seguela, but also to evaluate a further plant expansion and a potential increase in the annual gold production,’’ said Fortuna President and CEO Jorge Ganoza. “Seguela now boasts a 7.5-year life of mine and the largest mineral resource inventory on record. In response, we have launched aggressive infill drilling program, advanced underground mining studies, and initiated plant expansion evaluations to fully capture the opportunities created by our exploration success,’’ he said.
On Wednesday, Fortuna shares advanced on the news, rising 4.6% or 54 cents to $12.15. The shares trade in a 52-week range of $13.77 and $5.98.
Fortuna is a Canadian precious metals mining company with three operating mines and a portfolio of exploration projects in Argentina, Cote d’Ivoire, Mexico and Peru as well as the Diamba Sud Gold Project in Senegal.
When the company announced its financial and operating results for the third quarter of 2025, Ganoza said the all-in-sustaining cost (AISC) at the Lindero mine in Argentina is trending lower and the company expects to see similar improvements at the Seguela mine as it completes key investments to support 2026 production of 160,000 to 180,000 ounces.
Fortuna recently announced the results of a preliminary economic assessment (PEA) or its Diamba Sud gold project. It said the PEA supports robust project economics for the development of an open-pit mine and carbon-in-leach processing plant.
Diamba Sud is projected to deliver an average of 147,000 ounces of gold annually at an all-in-sustaining cost of US$904 per ounce. Construction capital is pegged at approximately US$283 million.
The company is advancing Diamba Sud towards a definitive feasibility study and construction decision in the first half of 2025.