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):

    100 g/t Ageq cutoff
    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