Lindero Mine, Argentina

Highlights

2020 Production: 13,435 ounces of gold

2021E Production: Between 140 - 160 thousand ounces of gold

In July 2016, Fortuna acquired the open pit, heap leach development stage Lindero gold project in Salta, Argentina; a positive construction decision was made in September 2017. The Lindero Mine has been designed as an 18,750 tonnes per day owner operated open pit operation with a pit life of 13 years based on current Mineral Reserves. Processing involves crushed ore being placed on a leach pad with the resulting pregnant solution pumped to SART¹ and ADR² plants prior to electrowinning and refining, where gold is poured as doré bars. On October 20, 2020, Lindero´s first gold pour was achieved (refer to Fortuna news release dated October 20, 2020), with steady state production expected in the first quarter of 2021.

Notes:

Location

The Lindero Mine 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 mine 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 mine, located 75 kilometers to the northeast.

Exploration

The Brownfields exploration program budget for 2021 at the Lindero Mine is US$320,000, which includes 1,000 meters of drilling on the Arizaro target located 3.5 kilometers to the southeast of the mine. The drilling will test for additional mineralization that could potentially contribute to Lindero's future production.

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.