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1.6 Million Ounces of Silver And 9,264 Ounces of Gold At Mexico and Peru Mines

VANCOUVER, BC - Fortuna Silver Mines Inc. reported production results from its two operating mines in Latin America, the San Jose Mine in Mexico and the Caylloma Mine in Peru. The company produced 1.6 million ounces of silver, 9,264 ounces of gold plus base metal by-products. Fortuna is on schedule to produce 7.0 million ounces of silver and 42.8 thousand ounces of gold or 9.6 million Ag Eq* ounces in 2016. Jorge A. Ganoza, President and CEO, said, “Silver and gold production exceeded guidance for the quarter. San Jose's outperformance was driven by higher head grades, increase in milled tonnes, and better metallurgical recoveries. Caylloma reached the new mill throughput rate of 1,430 tpd at the end of March." Mr. Ganoza continued, "Mill expansion from 2,000 tpd to 3,000 tpd is progressing as planned with commissioning scheduled for July 2016. At that point, the San Jose Mine will rank among the top thirteen primary silver producing mines in the world, increasing Fortuna's consolidated silver and gold annual production to approximately 9 -10 million ounces of silver and 52 - 53 thousand ounces of gold."
At the San Jose Mine silver and gold productions for the quarter were 14 % and 13 % above budget respectively. Average head grades for silver and gold were 240 g/t and 1.73 g/t or 7% and 6% above budget respectively. Increase in silver and gold production over budget resulted from higher head grades; increase in milled tonnes, 4 % above budget; and better metallurgical recoveries, 2 % above budget for both gold and silver. Mill expansion from 2,000 tpd to 3,000 tpd is progressing as planned with commissioning expected in July 2016.
The Caylloma Mine silver production for the quarter was in-line with budget. Benefits from higher metallurgical recovery of 6 % above budget were offset by lower mill throughput in March due to plant optimization commissioning. Plant optimization work was successfully concluded on-time and under budget. Mill throughput expansion from 1,300 tpd to 1,430 tpd was achieved.