Home / Mining Properties and Project Reviews / Mining Company News Reviews / Fortuna’s San Jose Mine Drilling Nets Some Mixed (But Mostly Good) Results

Fortuna’s San Jose Mine Drilling Nets Some Mixed (But Mostly Good) Results

Some exploration companies would get excited with just the gold results alone, especially if the vein was much closer to the surface.

Disclaimer: This is an editorial review of a public press release and may include opinions or points of view that may not be shared by the owners of geologyforinvestors.com or the companies mentioned in the release. The editorial comments are highlighted so as to be easily separated from the release text.  Please view the full release here.

VANCOUVER, Aug. 15, 2013 /PRNewswire/ – Fortuna Silver Mines Inc. (NYSE: FSM | TSX: FVI | BVL: FVI | Frankfurt: F4S.F) is pleased to report results for twelve additional surface drill holes at the Trinidad North high-grade silver-gold discovery at the San Jose Mine in Mexico.  With the exception of drill hole SJO-304, the reported drill holes are generally positioned to define the approximate limits of the Trinidad North ore shoot.  The ore shoot remains open to depth and to the north with drilling from underground stations projected to start in early September.

Read more about the San Jose Mine here

Trinidad North Drilling Highlights:

Hole_Id From(m) To(m) Interval(m) Est. True Width(m) Ag(g/t) Au(g/t) Ag Eq(g/t)
SJO-299 526.00 534.00 8.00 4.7 178 1.26 245
SJO-303A 462.95 470.20 7.25 5.5 258 1.45 335
SJO-304 543.40 560.95 17.55 10.4 326 2.06 436
580.00 593.80 13.80 8.2 487 4.00 700
SJO-308 503.55 511.10 7.55 4.3 226 1.28 294
SJO-315 445.85 451.00 5.15 3.3 399 2.10 511
SJO-321 533.75 537.75 4.00 1.5 850 4.48 1,089

It is good to see that Fortuna has provided an estimate of the true width (or thickness) of the mineralized zone where intersected by the drill-holes rather than just the drill-hole intervals. This provides any potential investors with a higher degree of confidence in the reported results. Browse to our article on Drill results: apparent versus true thickness for a complete run down on this concept.

Dr. Thomas I. Vehrs, Vice President of Exploration, commented, “The latest drill results continue to confirm the importance of the Trinidad North discovery.  The Trinidad North ore shoot is located proximal to the area of operations at San Jose allowing for development of the zone in 2014 and initiation of production in early 2015.  Silver equivalent grades range from 200 g/t to over 2,300 g/t over estimated true vein widths ranging from 2 meters to over 19 meters.”  Dr. Vehrs continued, “Underground access is currently in development at the 1300 meter level to allow for continued exploration of the ore shoot to the north and to depths below 1,000 m amsl.  The first underground drill station is projected to be ready by the end of August with underground drilling scheduled to begin in early September.”

A summary of the assay results for the principal mineralized intervals in the twelve drill holes is appended to this news release.  The reader is referred to the Fortuna Silver news releases of February 4, 2013, April 22, 2013 and May 22, 2013 for the results of previously released drill holes from the Trinidad North zone. Please see the following link to the longitudinal sections for the location of the Trinidad North drill results relative to the existing Mineral Reserves and Mineral Resources of the San Jose Mine: http://www.fortunasilver.com/i/maps/sanjose/Trinidad-deposit-longitudinal-sections_8AUG2013_14AUG13.pdf.

Two of the longitudinal sections are shown below. The Bonanza Vein results look particularly good, especially the thickest parts of the shoot. Some exploration companies would get excited with just the gold results alone, especially if the vein was much closer to the surface. The fairly consistent high silver grades over reasonably thick intervals and nearby underground development makes this area quite attractive. The other longitudinal section is the Trinidad Vein, the results of which are pretty average.

San Jose Mine Bonanza Vein (Click to view full size image )

San Jose Mine Trinidad Vein (Click to view full size image )

Quality Assurance & Quality Control

Following detailed geological and geotechnical logging, drill core samples are split on-site by diamond sawing.  One-half of the core is submitted to the ALS Chemex Laboratory in Guadalajara, Mexico.  The remaining half core is retained on-site for verification and reference purposes.  Following preparation, the samples are assayed for gold and silver by standard fire assay methods and for silver and base metals by ICP and atomic absorption methods utilizing aqua regia digestion.  The QA-QC program includes the blind insertion of certified reference standards and assay blanks at a frequency of approximately 1 per 15 normal samples as well as the inclusion of duplicate samples for verification of sampling and assay precision levels.

Another “tick” for this company. It looks like Fortuna is on top of its QA/QC, or at least they stated that they do quality control and quality assurance on their laboratory submissions and results. We have an article on QA/QC of geochemical data that is worth a read as it summarises the reasoning behind submitting standards, blanks and duplicates to the laboratory. It also gives the reader an idea of what happens behind the scenes in the exploration office as the results of a QA/QC analysis are not normally put in press releases as they can be quite dull to read and they may even confuse some readers.

Qualified Person

Thomas I. Vehrs, Ph.D., Vice President of Exploration, is a Qualified Person for Fortuna Silver Mines Inc. as defined by National Instrument 43-101. Dr. Vehrs is a Founding Registered Member of the Society for Mining, Metallurgy, and Exploration, Inc. (SME Registered Member Number 3323430RM) and is responsible for ensuring that the information contained in this news release is an accurate summary of the original reports and data provided to or developed by Fortuna Silver Mines.

We've skipped some of the boilerplate. You can read it in here.

We've skipped some of the boilerplate. You can read it in here.

Fortuna Silver Mines Inc.

Fortuna is a growth oriented, silver and base metal producer focused on mining opportunities in Latin America.  Our primary assets are the Caylloma silver mine in southern Peru and the San Jose silver-gold mine in Mexico.  The company is selectively pursuing additional acquisition opportunities.  For more information, please visit our website at www.fortunasilver.com.

ON BEHALF OF THE BOARD

Jorge A. Ganoza
President, CEO and Director
Fortuna Silver Mines Inc.

Trading symbols: NYSE: FSM | TSX: FVI | BVL: FVI | Frankfurt: F4S.F

Forward-Looking Statements

This news release contains forward-looking statements which constitute “forward-looking information” within the meaning of applicable Canadian securities legislation and “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements are statements that are not historical facts and that are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements.  When used in this document, the words such as “anticipates”, “believes”, “plans”, “estimates”, “expects”, “forecasts”, “targets”, “intends”, “advance”, “projects”, “calculates” and similar expressions are forward-looking statements.

The forward-looking statements are based on an assumed set of economic conditions and courses of actions, including estimates of future production levels, expectations regarding mine production costs, expected  trends in mineral prices and statements that describe Fortuna’s future plans, objectives or goals. There is a significant risk that actual results will vary, perhaps materially, from results projected depending on such factors as changes in general economic conditions and financial markets, changes in prices for silver and other metals, technological and operational hazards in  Fortuna’s mining and mine development activities, risks inherent in mineral  exploration, uncertainties inherent in the estimation of mineral reserves, mineral resources, and metal recoveries, the timing and availability of financing, governmental and other approvals, political unrest or instability in countries where Fortuna is active, labor relations and other risk factors.

Although Fortuna has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended. There can be no assurance that any forward-looking statements or information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.

Assay Results for Principal Mineralized Intervals at the Trinidad North Discovery, Mexico:

Hole_Id From
(m)
To (m) Int
(m)
Est True
Width (m)
Ag
(g/t)
Au
(g/t)
Pb
(ppm)
Zn
(ppm)
Cu
(ppm)
Ag Eq
(g/t)
SJO-299 513.00 514.00 1.00 0.6 620 4.17 542 860 73 843
526.00 534.00 8.00 4.7 178 1.26 738 1246 136 245
536.80 544.00 7.20 4.2 102 0.74 1703 3408 181 141
SJO-303A 415.00 417.00 2.00 1.5 304 3.10 62 125 45 469
455.60 459.20 3.60 2.7 168 1.10 215 466 24 227
462.95 470.20 7.25 5.5 258 1.45 365 680 46 335
SJO-304 535.85 540.70 4.85 2.9 381 1.99 829 1872 127 487
543.40 560.95 17.55 10.4 326 2.06 510 1235 102 436
565.00 566.50 1.50 0.9 294 1.32 295 791 142 364
572.70 575.00 2.30 1.4 249 1.86 1823 4127 512 348
580.00 593.80 13.80 8.2 487 4.00 2121 3811 401 700
SJO-308 475.65 477.25 1.60 0.9 655 3.66 318 680 60 850
499.50 501.70 2.20 1.3 421 2.81 204 377 44 571
503.55 511.10 7.55 4.3 226 1.28 154 376 38 294
550.50 552.10 1.60 0.9 491 4.74 1946 4696 919 744
SJO-310 286.90 288.00 1.10 0.6 152 0.68 157 184 10 189
329.00 332.00 3.00 1.5 66 0.38 166 332 30 86
SJO-311 149.15 150.00 0.85 0.5 183 6.11 7 60 60 509
429.50 431.00 1.50 0.9 825 3.74 504 939 47 1025
SJO-313 351.00 351.50 0.50 0.3 187 0.89 109 342 33 234
353.00 356.75 3.75 2.4 341 1.73 312 635 35 433
SJO-315 445.85 451.00 5.15 3.3 399 2.10 327 567 46 511
SJO-316 347.30 351.00 3.70 1.4 325 1.63 232 262 19 412
357.00 361.00 4.00 1.5 149 0.89 175 466 20 196
415.50 417.55 2.05 0.8 602 3.19 1377 2263 59 772
435.50 437.00 1.50 0.6 204 1.08 397 969 21 262
445.90 452.20 6.30 2.4 88 0.51 213 465 23 115
SJO-320 No significant mineralized intervals
SJO-321 492.20 500.45 8.25 3.1 88 0.43 900 1596 104 111
502.10 508.80 6.70 2.5 130 0.68 792 1931 104 166
533.75 537.75 4.00 1.5 850 4.48 1076 2353 78 1089
SJO-325A 568.10 569.60 1.50 0.7 137 0.74 761 1593 61 176
573.70 575.55 1.85 0.9 181 0.78 884 2368 34 223
606.05 607.00 0.95 0.4 111 1.48 13870 27820 1373 190

*Ag Eq values calculated at Au:Ag ratio of 53.37 based on metal prices as of December 31, 2012  (Au: US$ 1,572.19;  Ag: US$29.46), metallurgical recoveries of 89% for both Au and Ag, and a lower cutoff of 70 g/t Ag Eq.

SOURCE Fortuna Silver Mines Inc.

The gold to silver ratio (Au:Ag) continually changes. In the past year it has fluctuated between 67.24 and 50.36. On the 4 September 2013, when this press release review was written, the ratio was 59.47. Therefore, the silver equivalent (Ag Eq) values will continue to fluctuate over time so care needs to be exercised when using these figures for investment decisions. An additional thing to consider are precious metal prices. Gold prices dipped to US$1,200 per oz at the end of June this year. Although regaining some value since then, there is still much uncertainty in future gold prices, with corresponding uncertainty over all precious metals including silver.
Have a company or release you’d like us to look at? Let us know though our contact page, through Google+Twitter or Facebook.

About Staff @ Geology for Investors

Geology for Investors seeks to demystify mineral exploration and mining projects for mining company investors. All of our writers and contributors are experienced and educated in geology and the geosciences.