Update On The Lindero Gold Project In Argentina

VANCOUVER - Fortuna Silver Mines Inc. reported an update on construction, pre-commissioning and commissioning activities at its 100 percent owned Lindero gold Project located in the Province of Salta, Argentina. Jorge A. Ganoza, President, CEO and Director, said, “Minor delays and unavailability of vendors due to holidays thwarted our best efforts to place ore on the leach pad prior to year end. Notwithstanding, primary and secondary crushing circuits are mechanically and electrically complete and are in the final stages of pre-commissioning.  This will be followed by commissioning of the primary and secondary crushers by placing ore in the crushing circuit. Tertiary crushing and agglomeration still require minor terminations in the areas of electromechanical and piping. Pre-commissioning of these facilities is now scheduled for mid-January, once vendor technicians return to site. Main construction contractors will work through Christmas and break from December 28th to January 3rd. Mine operations and pre-production work continue non-stop. We are currently in the final phase of a two year construction project in Argentina. Our engineers and management team continue to provide the outstanding leadership required to ensure completion of the project.”

Construction, pre-commissioning and commissioning highlights: As of the end of November 2019, the overall project is 85% complete; Primary and secondary crushing circuits: Pre-commissioning activities are being carried out and are in their final stages; placing of first ore to crushing is scheduled for the end of December; HPGR circuit: Final mechanical completion activities and vendor representative unavailability through the holidays have pushed back pre-commissioning activities to mid-January 2020; Agglomeration plant: Mechanical installation is complete and minor piping and electrical installation work is in the final stages; pre-commissioning is expected to commence in mid-January 2020; Power generation: 8 MW power plant and medium voltage power distribution system have been commissioned; & Substations and electrical rooms: Crushing circuit, agglomeration plant substations and electrical rooms have been commissioned; Industrial water supply: Water wells and pumping system have been successfully tested, and the 13 kilometer water pipeline to the project site is being pre-commissioned.

Primary and secondary crushing circuits are mechanically and electrically complete. Equipment is in the final stages of pre-commissioning and will be ready to receive ore at the end of December 2019. At the tertiary crushing circuit, acid wash off the HPGR's hydraulic and lubrication systems has concluded and oil flushing of the systems is being carried out. Final mechanical adjustments and pre-commissioning of the tertiary crushing circuit will commence once vendor representatives return from the holiday roster rotation in the second week of January 2020; commissioning is expected by mid-February.

At the agglomeration plant mechanical installation has been completed and electrical installation is in its final stages. Substation and electrical rooms have been energized. Piping installation at both, cyanide preparation and agglomeration plants, is being finalized; pre-commissioning is expected in January 2020.