Fortuna Silver Mines Inc. [FVI-TSX, Lima; FSM-NYSE; F4S-FSE] said Wednesday October 21 that it has poured the first gold at its Lindero Mine in the province of Salta in northern Argentina. The pour took place on Tuesday, October 20, 2020, and produced 728 ounces of gold.
“The first gold pour at Lindero, our third mine in the Americas, is a significant achievement for the company as we advance the mine’s main ramp-up phase towards commercial production in the first quarter of 2021,” said Fortuna President and CEO Jorge Ganoza.
“Lindero is a mine with reserves for a projected 13-years and is a pillar of Fortuna’s asset portfolio,” he said. Proven and probable reserves stand at 84.2 million tonnes of grade 0.63 g/t gold and 0.11% copper or 1.7 million ounces.
Fortuna shares advanced on the news, rising 6.2% or $0.57 to $9.76 on volume of 781,184 The shares are currently trading in a 52-week range of $10.47 and $2.05.
Lindero has been designed as an 18,750 tonnes per-day owner-operated open pit mine with a pit life of 13 years based on existing mineral reserves. Under the plan, crushed ore will be placed on a leach pad with pregnant solution pumped to Sulphidization-Acidifcation-Recycling-Thickening (SART) and Absorption, Desorption and Recovery (ADR) plants prior to electrowinning and refining. Gold will be poured as doré bars. The initial capital budget was estimated at US$298 million. But management still expects total construction capital spending of between US$314 million and US$320 million.
From July 2020, to December 2020, an estimated 1.7 million to 1.9 million tonnes of ore are scheduled to be placed on the leach pad with an average grade of 1.00 g/t to 1.10 g/t.