Fortuna Silver Mines (FVI.TSX, NYSE: FSM) provided an update of Brownfields exploration results at its San Jose Mine in Oaxaca, Mexico and its Caylloma Mine in Arequipa, Peru. The Canadian-based silver producer noted that two diamond drill rigs are presently operating at the San Jose Mine and four diamond drill rigs are operating in the Caylloma District. Additionally, generative activities have identified significant untested epithermal systems in the Tlacolula area in Oaxaca and in the Cerro Vilafro area at Caylloma.
Fortuna went on to say that surface mapping and sampling has identified a large and untested low sulfidation epithermal vein system in the Tlacolula area of central Oaxaca. Fortuna has an option to acquire a 60% interest in the Tlacolula Property from Radius Gold Inc. by making certain cash payments and issuance of shares in the capital stock of Fortuna, and by completing expenditures totaling US$2 million on the property.
* Hole CH 136366 returned 6.30 meters averaging 19.34 g/t (grams per tonne) of gold (Au) and 986 g/t of silver (Ag)
* CH 135709 returned 9.60 m averaging 0.13 g/t Au and 295 g/t Ag
* CH 138105 returned 3.30 m averaging 0.07 g/t Au and 234 g/t Ag
Dr. Thomas Vehrs, Vice President of Exploration at Fortuna Silver Mines:
“The discovery of high-grade gold and silver mineralization at the Tlacolula Project in Mexico is a significant benchmark in our Brownfields exploration program. We are aggressively advancing the project and look forward to the initiation of drill testing of the Tlacolula vein system in mid-July.”
Graeme Jennings, Cormark Securities:
“We believe that the Company offers investors exposure to an undervalued ‘best in class’ mid-tier silver producer with a rapidly growing production profile supported by high quality in-situ resources and exploration assets.”
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