Fortuna provides update and sets construction milestones for its Lindero gold Project in Argentina

VANCOUVER, British Columbia, Dec. 21, 2017 (GLOBE NEWSWIRE) -- Fortuna Silver Mines Inc. (NYSE:FSM) (TSX:FVI) is pleased to provide an update on construction activities at its 100 % owned Lindero gold Project located in Salta, Argentina.

Jorge A. Ganoza, President, CEO and Director, commented, "The start of construction activities for a new mine is always an energizing event for an organization." Mr. Ganoza continued, "We are fully funded, key positions in the project team are in place and the Company feels very welcome in the Province of Salta." Mr. Ganoza concluded, "We are looking forward to building and commissioning on time and within budget the first modern large scale precious metals mine in Salta."

In September 2017, the Company announced a positive construction decision for Lindero with commissioning expected in the second quarter of 2019 (see Fortuna news release dated September 21, 2017).  Lindero has been designed as an 18,750 tpd¹ owner operated open pit mine with a pit life of 13 years based on existing reserves. Crushed ore will be placed on a leach pad with the pregnant solution pumped to SART² and ADR³ plants prior to electrowining and refining where gold will be poured to doré bars. The technical report of the Lindero Project is available on the Company's website at https://fortunasilver.com/site/assets/files/4098/lindero-project-techn ...

With Lindero in its first year of full production, Fortuna's consolidated precious metals annual production is expected to increase to 190,000 ounces of gold and 9 million ounces of silver or 340,000 gold equivalent⁴ounces.

Note:

1. Tonnes per day
2. Sulphidization-Acidification-Recycle-Thickening
3. Adsorption, Desorption and Recovery
4. Gold equivalent is calculated using a gold to silver ratio of 1 to 60 and does not include lead nor zinc

Project Update 

In September 2017, the commencement of construction at Lindero was officially launched. As of the end of November, initial contracts have been awarded for approximately US$14 million or 6 percent of the project's capital expenditure.

Detailed Engineering

Engineering, procurement, and construction management (EPCM) was awarded in October 2017 to SAXUM Ingeniería, an Argentinian company with international experience in infrastructure and mining. Detailed engineering work has been launched, procurement packages are being prepared and the bidding process initiated.