Commodity

Commodity

Gold

Ownership

Ownership

100%

Land Package

Land Package

3,500 hectares

Operation

Operation

18,750 tpd

Deposit Type

Deposit Type

Gold-rich porphyry system

Mining Method

Mining Method

Open pit, heap leach

Overview

Lindero is an open pit, heap leach gold project with a completed 2016 feasibility study that has been granted all environmental and other major permits necessary for development.

Location

The Lindero Project is located in the Argentinian puna at an elevation of approximately 3,500 to 4,000 meters, 260 kilometers due west of Salta City at latitude 25° 04' 56" S and longitude 67° 46' 47" W. Drive time from Salta City to Lindero is approximately 7 to 7.5 hours over a road distance of 420 kilometers. Access to the project is via National Route 51, which passes through the towns of San Antonio de Los Cobres and Olacapato, and by Provincial Route 27, which passes through the towns of Pocitos and Tolar Grande. Tolar Grande is the nearest town to the project, located 75 kilometers to the northeast.

Geology and Mineralization

The Lindero deposit is a gold-rich porphyry system hosted within a series of diorite to monzonite porphyritic stocks that intrude coarse-grained Ordovician granites and Early Tertiary red bed sandstones. Mineralization forms an inward plunging semi-circular shape approximately 600 meters in diameter and extends to a drill tested depth of 600 meters. Gold-copper mineralization shows a strong relationship to lithology, K-feldspar alteration, and stockwork veining.

13 Year Reserve Life

Feasibility Study - Life of Mine Highlights

Production
Mine life1 (years)15
Annual ore placed in leach pad (Mt)6.75
Strip ratio (waste to ore)1.2
Head grade (g/t)0.62
Recovery (%)75
Gold recovered to doré (Moz)1.3
Average annual gold recovered to doré2 (koz)96
Peak annual gold recovered to doré (koz)138
AISC3 ($/oz Au)802
Initial capital ($ M)239
Sustaining capital ($ M)105
Base Case Economics
Gold price ($)1,250
Exchange rate (ARS4:USD)17.80
After-tax NPV5 @ 5% ($ M)130
After-tax IRR6 (%)18
Payback period7 (years)3.6

Notes:

  1. Includes 20 months of heap rinsing of gold inventory
  2. Average over years 1 – 13. Does not include gold from heap rinsing.
  3. All-In Sustaining Cash Cost
  4. Argentine Peso
  5. Net Present Value; considers initial capital in one single annual period; excludes High-Pressure-Grinding-Roller (HPGR) acquired upon the acquisition of Goldrock Mines Corp.
  6. Considers initial capital in one single annual period; excludes High-Pressure-Grinding-Roller (HPGR) acquired upon the acquisition of Goldrock Mines Corp.
  7. Payback based on undiscounted cash flow

For more detail, please see news release dated September 21, 2017: https://www.fortunasilver.com/investors/news/2017/fortuna-announces-positive-construction-decision-for-its-lindero-gold-project-in-salta-argentina/

Reserves and Resources

Mineral Reserves - Proven and Probable

PropertyClassificationTonnes
(000)
Au
(g/t)
Cu
(%)
Contained Metal
Au
(koz)
Lindero Project, ArgentinaProven26,0090.740.11618
 Probable62,2630.570.111,131
 Proven +
Probable
88,2720.620.111,749

Mineral Resources - Measured and Indicated

PropertyClassificationTonnes
(000)
Au
(g/t)
Cu
(%)
Contained Metal
Au
(koz)
Lindero Project, ArgentinaMeasured6100.240.065
 Indicated11,8970.240.0792
 Measured +
Indicated
12,5070.240.0797

Mineral Resources - Inferred

PropertyClassificationTonnes
(000)
Au
(g/t)
Cu
(%)
Contained Metal
Au
(koz)
Lindero Project, ArgentinaInferred5,7000.360.1065

Notes:

  1. Mineral Reserves and Resources are as defined by CIM Definition Standards on Mineral Resources and Mineral Reserves
  2. Mineral Resources are exclusive of Mineral Reserves
  3. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
  4. There are no known legal, political, environmental, or other risks that could materially affect potential development of the Mineral Resources or Mineral Reserves at Lindero
  5. Mineral Resources and Mineral Reserves for Lindero are reported as of September 9, 2017
  6. Mineral Reserves for Lindero are reported based on open pit mining within designed pit shells based on variable gold cut-off grades and gold recoveries by metallurgical type. Met type 1 cut-off 0.27 g/t Au, recovery 75.4%; Met type 2 cut-off 0.26 g/t Au, recovery 78.2%; Met type 3 cut-off 0.26 g/t Au, recovery 78.5%; and Met type 4 cut-off 0.30 g/t Au, recovery 68.5%. The cut-off grades and pit designs are considered appropriate for long term gold prices of $1,250/oz
  7. Lindero Mineral Resources are reported within a conceptual pit shell above a 0.2 g/t Au cut-off grade using a long-term gold price of $1,250/oz, mining costs at $1.67 per tonne of material, with total processing and process G&A costs of $7.84 per tonne of ore and an average process recovery of 75%. The refinery costs net of pay factor were estimated to be $6.90 per ounce of gold. Slope angles are based on 3 sectors (39°, 42°, and 47°) consistent with geotechnical consultant recommendations
  8. Eric Chapman, P.Geo. (APEGBC #36328) is the Qualified Person for resources and Edwin Gutierrez (SME Registered Member #4119110RM) is the Qualified Person for reserves, both being employees of Fortuna Silver Mines Inc.
  9. Totals may not add due to rounding procedures

Technical Report and Other Links

Technical Report

Technical Report

Effective Date: October 31, 2017

Maps and Sections

Maps and Sections

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