Project Snapshot
| Commodities |
Silver & Gold |
| Location |
Taviche Mining District, southern portion of state of Oaxaca,
México (Latitude: 16°41"N; Longitude: 96°42"W) |
| Deposit Type |
High-grade low-sulfidation epithermal deposit |
| Status |
Resource definition, engineering design, environmental
permitting |
Overview
The San Jose Project is a high-grade silver- and gold-bearing epithermal vein system located in the state of Oaxaca in southern Mexico. The project is being explored and developed under a joint venture between Fortuna Silver Mines Inc. (76%) and Continuum Resources Ltd. (24%) with both parties contributing to the costs incurred in proportion to their respective ownership percentage.
In August 2008, Fortuna and Continuum announced an agreement whereby Fortuna will acquire all of the issued and outstanding securities of Continuum. As a result of the acquisition, Fortuna will own a 100% interest in the San Jose Project.
Location
The San Jose Project is located in the southern portion of the state of Oaxaca, approximately 47 road kilometers or 1 hour driving time to the south of the city of Oaxaca. Access to the property is excellent and local infrastructure is good.
Mineral Resources
(
see Resource Tables)
INDICATED
| Vein |
K tonnes |
Eq Ag
(g/t) |
Silver
(g/t) |
Gold
(g/t) |
Silver
(koz) |
Gold
(koz) |
| Trinidad Vein |
824 |
322.8 |
232.2 |
1.78 |
6,151.6 |
47.2 |
| Bonanza Vein |
599 |
453.3 |
310.5 |
2.8 |
5,979.8 |
53.9 |
| Paloma Vein |
48 |
263.8 |
185.2 |
1.54 |
285.8 |
2.4 |
| Total Indicated Resources |
1,471 |
374.0 |
262.6 |
2.19 |
12,417.2 |
103.5 |
INFERRED
| Vein |
K tonnes |
Eq Ag
(g/t) |
Silver
(g/t) |
Gold
(g/t) |
Silver
(koz) |
Gold
(koz) |
| Trinidad Vein |
1,687 |
376.7 |
268.0 |
2.13 |
14,536.1 |
115.5 |
| Bonanza Vein |
1,609 |
443.6 |
272.6 |
3.35 |
14,102.0 |
173.3 |
| Bonanza Splay Vein |
15 |
922.5 |
694.2 |
4.48 |
334.8 |
2.2 |
| Paloma Vein |
373 |
275.5 |
194.3 |
1.59 |
2,330.1 |
19.1 |
| Stockwork Zone |
214 |
281.6 |
196.6 |
1.67 |
1,352.7 |
11.5 |
| Total Inferred Resources |
3,898 |
391.5 |
260.6 |
2.57 |
32,655.7 |
321.5 |
* Cutoff Grade of 150 g/t Silver Equivalent
The Indicated Resources are estimated to contain 17.7 million silver equivalent ounces and the Inferred Resources are estimated to contain 49.1 million silver equivalent ounces.
Silver equivalency estimates were derived using US$ 10.30 / oz for silver and US$ 525 / oz for gold yielding a Ag:Au ratio of 51:1. Metallurgical recoveries and net smelter returns are assumed to be 100 % only for the purposes of estimating silver equivalency.
Michael G. Hester of Independent Mining Consultants, Inc. is the Qualified Person for the purposes of reporting of the Mineral Resources as defined by the Canadian Securities Administrators' National Instrument 43-101.
A full copy of the NI 43-101 compliant technical report is available at the following link.
Technical Report for San Jose Silver-Gold Property: March 31, 2007
Geology and Minerlization
The San Jose deposit is a low sulfidation epithermal vein system characterized by mineralized multiphase quartz-carbonate-sulfide veins, hydrothermal breccias and stockwork veining. The mineralized system is hosted within a sequence of Tertiary andesitic volcanic and volcaniclastic rocks.
Exploration & Resource Definition Drilling
Exploration to-date has focused on the Trinidad zone and to a lesser extent on the San Ignacio zone, located approximately 800 meters to the south on the same vein system. In the Trinidad zone, high-grade silver / gold bearing ore shoots have been identified and defined in association with the Trinidad and Bonanza vein systems. Mineralization is present in high-grade shoots with estimated true widths ranging from less than 2 meters to greater than 20 meters. Locally, mineralized stockwork veining is present between the Trinidad and Bonanza veins, including continuously mineralized widths estimated at over 80 meters locally.
Selected highlights of 2006/2007/2008 drill programs in Trinidad Zone at San Jose Project (reported at lower cutoff grade of 100 g/t silver equivalent):
|
|
Hole Id |
From (m) |
To (m) |
Interval (m) |
Au g/t |
Ag g/t |
Ag Eq g/t |
| SJO-001 |
195.65 |
220.25 |
24.60 |
0.86 |
216 |
260 |
| SJO-002 |
222.86 |
240.00 |
17.14 |
2.94 |
365 |
515 |
| SJO-003 |
279.55 |
308.95 |
29.40 |
5.27 |
508 |
776 |
| SJO-015 |
236.25 |
247.00 |
10.75 |
2.02 |
217 |
320 |
| SJO-018 |
240.92 |
257.62 |
16.70 |
6.17 |
525 |
840 |
| SJO-020 |
367.89 |
375.43 |
7.54 |
5.94 |
997 |
1300 |
| SJO-021 |
246.50 |
255.90 |
9.40 |
2.70 |
479 |
617 |
| SJO-039 |
42.75 |
47.65 |
4.90 |
5.90 |
843 |
1144 |
| SJO-046 |
413.55 |
424.82 |
11.27 |
4.95 |
328 |
581 |
and |
480.31 |
488.02 |
7.71 |
3.72 |
373 |
563 |
| SJO-051 |
328.50 |
352.41 |
23.91 |
2.00 |
245 |
347 |
and |
424.20 |
448.45 |
24.25 |
10.09 |
892 |
1407 |
| SJO-054 |
360.70 |
367.00 |
6.30 |
7.00 |
510 |
867 |
and |
406.20 |
417.60 |
11.40 |
2.94 |
434 |
584 |
and |
425.30 |
465.55 |
40.25 |
3.79 |
438 |
631 |
| SJO-055 |
173.60 |
176.10 |
2.50 |
11.86 |
1151 |
1756 |
| SJO-057 |
149.90 |
161.45 |
11.55 |
6.06 |
588 |
897 |
| SJO-059 |
131.70 |
144.90 |
13.20 |
1.62 |
222 |
305 |
| SJO-060 |
129.70 |
154.80 |
25.10 |
10.85 |
588 |
1141 |
| SJO-065 |
423.50 |
444.40 |
20.90 |
1.43 |
183 |
256 |
| SJO-068A |
299.55 |
307.18 |
7.63 |
3.66 |
395 |
581 |
and |
364.83 |
371.61 |
6.78 |
3.91 |
563 |
763 |
| SJO-075 |
397.97 |
419.83 |
21.86 |
1.60 |
183 |
265 |
| SJO-079 |
441.50 |
475.75 |
34.25 |
1.41 |
143 |
215 |
| SJO-084 |
503.35 |
511.30 |
7.95 |
9.37 |
487 |
965 |
| SJO-108 |
428.80 |
435.65 |
6.85 |
6.28 |
391 |
711 |
and |
459.90 |
478.10 |
18.20 |
4.89 |
503 |
752 |
| SJO-111 |
439.50 |
445.25 |
5.75 |
2.77 |
323 |
464 |
| SJO-121 |
298.60 |
315.40 |
16.80 |
2.23 |
304 |
418 |
and |
428.25 |
448.80 |
20.55 |
8.89 |
752 |
1206 |
| SJO-123 |
186.40 |
191.30 |
4.90 |
8.98 |
1182 |
1640 |
| SJO-126 |
194.60 |
206.80 |
12.20 |
4.09 |
427 |
636 |
| SJO-127 |
394.50 |
423.55 |
29.05 |
6.75 |
933 |
1278 |
| SJO-128 |
296.50 |
311.60 |
15.10 |
5.71 |
1022 |
1313 |
| SJO-136 |
155.75 |
166.00 |
10.25 |
3.71 |
240 |
429 |
| SJO-137 |
187.30 |
208.20 |
20.90 |
7.84 |
472 |
872 |
| SJO-139 |
226.75 |
236.60 |
9.85 |
2.67 |
290 |
426 |
| SJO-143 |
270.10 |
277.25 |
7.15 |
8.06 |
546 |
957 |
| SJO-144 |
190.75 |
212.00 |
21.25 |
2.81 |
322 |
466 |
| SJO-145 |
220.50 |
236.45 |
15.95 |
4.09 |
485 |
694 |
| SJO-147 |
262.00 |
269.00 |
7.00 |
8.29 |
693 |
1115 |
| SJO-157 |
472.05 |
486.85 |
14.80 |
1.89 |
194 |
291 |
Click here for DH Assay Results
Maps and Sections
Click here for the maps in PDF format (4.7mb)
 |
Trinidad Vein Longitudinal Section |
|
 |
Bonanza Vein Longitudinal Section |
|
 |
Trinidad Drill Hole Location Map |
|
 |
Soil Sampling Results- Au ppb |
|
 |
Soil Sampling Results- Ag ppb |
|
 |
Soil Sampling Results- As ppb |
|
 |
Soil Sampling Results- Pb ppb |
|
 |
Soil Sampling Results- Zn ppb |
|
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