Fortuna drills 16.5 g/t gold over 6.3 meters at Séguéla and provides exploration update

Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) is pleased to provide an overview of its exploration programs in Latin America and West Africa.

Paul Weedon, Senior Vice President of Exploration, commented, "With 12 drill rigs turning across the portfolio, the steady pace of exploration across all our major properties continues to deliver very encouraging results." Mr. Weedon continued, "These include highlights such as 16.5 g/t gold over 6.3 meters from drill hole SGRC1366 from the growing Sunbird Prospect at Séguéla, and the 0.6 g/t gold and 0.18% copper over an estimated true width of 68 meters from surface intersected in drill hole ARD046 adjacent to the Arizaro Project, through to one of the deepest holes drilled at Caylloma, drill hole ANIM087921, returning 93 g/t silver, 4.83% lead and 7.81% zinc over an estimated true width of 20.48 meters from nearly 900 meters below surface and where it remains open."

Séguéla gold Project, Côte d'Ivoire

Sunbird Prospect assay highlights include:

  • SGRD1365: 9.4 g/t gold over an estimated true width of 7 meters from 197 meters
  • SGRD1366: 17.5 g/t gold over an estimated true width of 6.3 meters from 205 meters
  • SGRD1367: 14.8 g/t gold over an estimated true width of 1.4 meters from 214 meters and 52.2 g/t gold over an estimated true width of 1.4 meters from 242 meters
  • SGRD1368 : 3.4 g/t gold over an estimated true width of 3.5 meters from 269 meters
  • SGRD1370: 8.0 g/t gold over an estimated true width of 8.4 meters from 241 meters
  • SGRD1376: 6.5 g/t gold over an estimated true width of 10.5 meters from 143 meters

Exploration drilling at the Séguéla gold Project continues to advance the Sunbird Prospect with a recently completed 13-hole, 3,059-meter program testing the continuity and tenor of mineralization at depth and along strike to the south. Drilling at depth was designed to test projections of previous high-grade results a further 100 to 150 meters down plunge in the central zone and help refine the understanding of the structural controls (refer to Fortuna news release dated September 7, 2021 ).

Drilling to the south extended drill defined mineralization a further 50 meters, helping refine the structural controls, with this area remaining open along strike and down-plunge. The geometry and style of mineralization is consistent with that seen at the Koula and Ancien deposits, located 1.5 kilometers and 5 kilometers to the north and south respectively, both of which are hosted in similar structural settings within the same lithology package.

Geological logging of the drill core identified numerous intervals containing 5 to greater than 20 visible gold specks of up to 2-millimeter diameter, with the characteristics of the mineralization consistent with previous drilling at Sunbird. Three of the six holes for which assays are pending, refer to Appendix 1, also recorded between 5 and 10 visible gold specks in the mineralized intervals; refer to Figure 1 .

Figure 1: Sunbird Prospect long-section looking west showing recent drilling results

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The mineralization remains open at depth and further drilling is planned in 2022 to further define the extent of the mineralization. Results received to date for this program are listed in Appendix 1 .

Arizaro gold Project, Lindero Mine, Argentina

Central Zone assay highlights include:

  • ARD45: 0.47 g/t Au and 0.16% Cu over an estimated true width of 73 meters from 44 meter downhole
  • ARD46: 0.61 g/t Au and 0.18% Cu over an estimated true width of 68 meters from surface; ended in mineralization at 200-meter downhole

The Arizaro Project is located within the Lindero mining concession, 3.2 kilometers southeast of the Lindero Mine. Previous exploration and drilling identified near surface porphyry-style gold-copper mineralization hosted in magnetite and biotite-rich breccia zones and in associated stockwork veins with two dominant structural trends (refer to Fortuna release dated February 14, 2019 ) .

A 1,178-meter, 6-hole drilling program testing a reinterpretation of key mineralizing features across the Central and SW Targets, located approximately 200 meters and 350 meters, respectively, to the west south-west of the main Arizaro mineralization was completed in August. Two holes testing the Central Target successfully intersected extensive zones of biotite-rich brecciation and north-east trending sheeted quartz veining with associated pyrite and visible copper mineralization. Subsequent logging of drill hole ARD46 showed it was drilled oblique to the interpreted dominant quartz vein orientation with the hole ending in mineralization at 200 meters downhole for a true width of 68 meters; refer to Figure 2 .

Figure 2: Arizaro Project plan view with selected highlights

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Additional drilling and surface trenching is planned during December to further define the extent of the mineralization. Results received to date for this program are listed in Appendix 2 .

San Jose Mine, Mexico

Assay highlights include:

  • SJOM1053 (VMZ) : 290 g/t Ag and 2.00 g/t Au over an estimated true width of 1.5 meters
  • SJOM1088 (Magdalena) : 245 g/t Ag and 1.41 g/t Au over an estimated true width of 4.6 meters
  • SJOM1091 (Magdalena) : 506 g/t Ag and 2.61 g/t Au over an estimated true width of 1.7 meters
  • SJOM1103 (San Ignacio) : 209 g/t Ag and 1.47 g/t Au over an estimated true width of 1.1 meters
  • SJOM1105 (Magdalena) : 302 g/t Ag and 0.77 g/t Au over an estimated true width of 1.8 meters including 1,010 g/t Ag over 0.5 meters

Step-out exploration drilling from underground platforms ahead of production at San Jose has continued to define continuity of key mineralized structures, with 25,064 meters drilled in 59 holes since March 2021, targeting the Bonanza Hanging wall (Bhw), Trinidad Norte and Victoria mineralized zone (VMZ) structures; refer to Figure 3 , Figure 4 and Figure 5 . In addition to the underground drilling, testing of two target zones to the north and south of the mine was successful in identifying additional mineralized structures with drilling continuing.

Development of underground drill platforms and associated infrastructure also continued with the establishment of the first drill stations which will enable testing of the projected northern strike extensions of the Trinidad system, including the untested down-dip projection of a surface silicified outcrop.

Refer to Appendix 3 for details of the additional San Jose drill holes completed since March 2021.

Figure 3: Bonanza Hanging wall long-section looking west showing recent drilling results

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Figure 4: Trinidad Norte long-section looking west showing recent drilling results

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Figure 5: Victoria mineralized zone (VMZ) long-section looking west showing recent drilling results

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Yaramoko Mine, Burkina Faso

Assay Highlights include:

  • YRM-20-RC-109-036: 3.0 g/t Au over an estimated true width of 7.7 meters (Min Zone 2)
  • YRM-20-RC-109-038: 11.2 g/t Au over an estimated true width of 2.8 meters (Min Zone 2)
  • YRM-21-RC-109-053: 3.4 g/t Au over an estimated true width of 6.3 meters (Min Zone 1)
  • YRM-21-RC-109-056: 4.2 g/t Au over an estimated true width of 4.9 meters (Min Zone 1)
  • YRM-21-RC-109-058: 14.7 g/t Au over an estimated true width of 4.9 meters (Min Zone 1)
  • YRM-21-RC-109-062: 3.8 g/t Au over an estimated true width of 4.9 meters (Min Zone 1)

Exploration drilling at Yaramoko has continued to advance the 109 Zone near surface prospect, located approximately 1.5 kilometers north-west of the Yaramoko mill, with 108 RC holes completed during the period April to October for a total of 8,201 meters. Drilling has targeted a 1-kilometer-long zone of sheared mafic volcanics and associated quartz veining situated within the Yaramoko Shear Zone, which hosts the 55 Zone and Bagassi South Mines, with three discrete zones of mineralization identified (refer to Figure 6 : Min Zone 1, 2 and 3).

Figure 6 : 109 Zone plan view with selected highlights

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Results received to date for this program are listed in Appendix 4 .

Caylloma Mine, Peru

Animas NE vein assay highlights include:

  • ANIM086321: 60 g/t Ag, 5.51% Pb and 6.22% Zn over an estimated true width of 7.2 meters
  • ANIM084321: 51 g/t Ag, 2.94% Pb and 5.23% Zn over an estimated true width of 5.8 meters
  • ANIM084721: 106 g/t Ag, 2.34% Pb and 3.13% Zn over an estimated true width of 11.8 meters
  • ANIM085521: 159 g/t Ag, 2.92% Pb and 1.44% Zn over an estimated true width of 6.1 meters
  • ANIM087321: 76 g/t Ag, 4.35% Pb and 7.45% Zn over an estimated true width of 11.3 meters
  • ANIM087921: 93 g/t Ag, 4.83% Pb and 7.81% Zn over an estimated true width of 20.5 meters

Exploration drilling at Caylloma continued throughout 2021 totaling 10,121 meters in 26 diamond drill holes, testing the depth continuity of the greater than 3-kilometer-long Animas NE silver-polymetallic vein system, and the strike potential further to the north-east beyond the intersection of the Nancy vein.

Further to previously reported successful step-out drilling results at the Animas NE vein (refer to Fortuna news release dated February 14, 2019 ), drilling continues to intersect mineralized shoots up to 200 meters beyond the current Resource boundary, extending known mineralization more than 900 meters below surface along the 3 kilometer long Animas NE vein, where it remains open at depth and along strike ( Figures 7 and 8 ). Drilling has primarily focussed on extending Ore Shoots 3 and 4 at depth, as well as testing for strike extension beyond the Nancy vein intersection and further north-east into the sediments of the basement Yura Group. Full results for the 2021 drilling program are listed in Appendix 5 .

Figure 7 : Animas NE vein long-section showing recent results from Oreshoot 3 (view is looking northwest)

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Figure 8 : Animas NE vein long-section showing recent results from Oreshoot 4 (view is looking northwest)

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Quality Assurance & Quality Control (QA-QC)

Latin America

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 Global Laboratory in Lima, Peru, for samples from the Caylloma Mine, the ALS Global Laboratory in Guadalajara, Mexico, for samples from the San Jose Mine and the ALS Global Laboratory in Mendoza, Argentina, for samples from the Arizaro Project. 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 Inductively Coupled Plasma and atomic absorption methods utilizing aqua regia digestion at the ALS Global Laboratory in Lima, Peru, for samples from the Caylloma Mine and the Arizaro Project, and at the ALS Global Laboratory in Vancouver, BC, Canada, for samples from the San Jose Mine. The QA-QC program includes the blind insertion of certified reference standards and assay blanks at a frequency of approximately 1 per 20 normal samples as well as the inclusion of duplicate samples for verification of sampling and assay precision levels.

West Africa

All drilling data completed by the Company utilized the following procedures and methodologies. All drilling was carried out under the supervision of the Company's personnel.

All RC drilling at Séguéla used a 5.25-inch face sampling pneumatic hammer with samples collected into 60-liter plastic bags. Samples were kept dry by maintaining enough air pressure to exclude groundwater inflow. If water ingress exceeded the air pressure, RC drilling was stopped, and drilling converted to diamond core tails. Once collected, RC samples were riffle split through a three-tier splitter to yield a 12.5% representative sample for submission to the analytical laboratory. The residual 87.5% sample were stored at the drill site until assay results were received and validated. Coarse reject samples for all mineralized samples corresponding to significant intervals are retained and stored on-site at the company-controlled core yard.

All DD drill holes at Séguéla were drilled with HQ sized diamond drill bits. The core was logged, marked up for sampling using standard lengths of one meter or to a geological boundary. Samples were then cut into equal halves using a diamond saw. One half of the core was left in the original core box and stored in a secure location at the company core yard at the relevant project site (Séguéla or Yaramoko). The other half was sampled, catalogued and placed into sealed bags and securely stored at the site until shipment.

All Séguéla RC and DD core samples were shipped to ALS Laboratories preparation laboratory in Yamoussoukro for preparation while all Yaramoko samples were direct shipped to ALS Laboratories in Ouagadougou for preparation. Séguéla samples were shipped via commercial courier to ALS's facility in Ouagadougou, Burkina Faso. Routine gold analysis using a 50-gram charge and fire assay with an atomic absorption finish was completed for all Yaramoko and Séguéla samples. Quality control procedures included the systematic insertion of blanks, duplicates and sample standards into the sample stream. In addition, the ALS laboratory inserted its own quality control samples.

Qualified Person

Paul Weedon, Senior Vice President of Exploration for Fortuna Silver Mines Inc., is a Qualified Person as defined by National Instrument 43-101 being a member of the Australian Institute of Geoscientists (Membership #6001). Mr. Weedon has reviewed and approved the scientific and technical information contained in this news release. Mr. Weedon has verified the data disclosed, and the sampling, analytical and test data underlying the information or opinions contained herein by reviewing geochemical and geological databases and reviewing diamond drill core.  There were no limitations to the verification process.

About Fortuna Silver Mines Inc.

Fortuna Silver Mines Inc. is a Canadian precious metals mining company with four operating mines in Argentina, Burkina Faso, Mexico and Peru, and a fifth mine under construction in Côte d'Ivoire. Sustainability is integral to all our operations and relationships. We produce gold and silver and generate shared value over the long-term for our stakeholders through efficient production, environmental protection, and social responsibility. For more information, please visit our website .

ON BEHALF OF THE BOARD

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

Investor Relations: Carlos Baca | info@fortunasilver.com

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 (collectively, "Forward looking Statements"). All statements included herein, other than statements of historical fact, are Forward looking Statements and are subject to a variety of known and unknown risks and uncertainties which could cause actual events or results to differ materially from those reflected in the Forward looking Statements. The Forward looking Statements in this news release may include, without limitation, statements about the Company's plans for its mines and mineral properties; the anticipated exploration and other development programs at its properties, together with the investment, nature, implementation and timing thereof; the timing for, and anticipated results of any exploration programs to expand mineralization at the properties; the Company's business strategy, plans and outlook; the merit of the Company's mines and mineral properties; mineral resource and reserve estimates; timelines; the future financial or operating performance of the Company; expenditures; approvals and other matters. Often, but not always, these Forward looking Statements can be identified by the use of words such as "estimated", "potential", "open", "future", "assumed", "projected", "used", "detailed", "has been", "gain", "planned", "reflecting", "will", "containing", "remaining", "to be", or statements that events, "could" or "should" occur or be achieved and similar expressions, including negative variations.

Forward looking Statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by the Forward looking Statements. Such uncertainties and factors include, among others, changes in general economic conditions and financial markets; the duration and effects of the COVID-19 pandemic on our operations and workforce and the effects on the global economy and society; changes in prices for silver, gold and other metals; technological and operational hazards in Fortuna's mining and mine development activities; risks inherent in mineral exploration; fluctuations in prices for energy, labour, materials, supplies and services; fluctuations in currencies; uncertainties inherent in the estimation of mineral reserves, mineral resources, and metal recoveries; our ability to obtain all necessary permits, licences and regulatory approvals in a timely manner, including an extension to the environmental impact authorization for the San Jose Mine; governmental and other approvals; political unrest or instability in countries where Fortuna is active; labor relations issues; as well as those factors discussed under "Risk Factors" in the Company's Annual Information Form. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in Forward looking Statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.

Forward looking Statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to expectations regarding mine production costs; expected trends in mineral prices and currency exchange rates; the accuracy of the Company's current mineral resource and reserve estimates; that the Company's activities will be in accordance with the Company's public statements and stated goals; that there will be no material adverse change affecting the Company or its properties; that all required approvals will be obtained, including an extension to the environmental impact authorization for the San Jose Mine; that there will be no significant disruptions affecting operations and such other assumptions as set out herein. Forward looking Statements are made as of the date hereof and the Company disclaims any obligation to update any Forward looking Statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that Forward looking Statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on Forward looking Statements.

APPENDIX 1. Séguéla gold Project, Côte d'Ivoire: Sunbird Prospect drill results

HoleID Easting (WGS84_29N) Northing (WGS84_29N) Elevation EOH 1 Depth (m) UTM Azimuth Dip Depth From (m) Depth To (m) Interval (m) Estimated True Width (m) Au (ppm) Hole Type 2
SGRD1365 742735 893385 478 249.5 85 -60 197 207 10 7 9.4 RCD
including 198 200 2 1.4 19.6 RCD
and 202 203 1 0.7 25.5 RCD
SGRD1366 742720 893285 475 250.5 85 -60 205 214 9 6.3 17.5 RCD
including 205 206 1 0.7 14.1 RCD
and 212 214 2 1.4 61.0 RCD
SGRD1367 742705 893185 483 255.5 85 -60 214 216 2 1.4 14.8 RCD
228 232 4 2.8 1.8 RCD
242 244 2 1.4 52.2 RCD
SGRD1368 742680 893085 498 285.5 85 -60 269 274 5 3.5 3.4 RCD
SGRC1369 742560 892660 558 375.5 85 -60 349 350 1 0.7 26.9 RCD
SGRD1370 742620 892660 564 259.5 85 -60 241 253 12 8.4 8.0 RCD
incl. 241 243 2 1.4 24.1 RCD
and 244 245 1 0.7 10.8 RCD
and 252 253 1 0.7 10.3 RCD
SGRD1371 742895 893136 526 237.5 270 -60 Pending RCD
SGRD1372 742914 893190 528 273.5 270 -60 Pending RCD
SGRD1373 742899 893236 521 204.5 270 -60 Pending RCD
SGRD1374 742908 893289 515 231.5 270 -60 Pending RCD
SGRD1375 742928 893289 515 252.4 270 -60 Pending RCD
SGRD1376 742781 893439 489 183.5 90 -60 143 158 15 10.5 6.5 RCD
including 153 154 1 0.7 19.1 RCD
and 156 157 1 0.7 11.8 RCD
SGRD1377 742754 893344 479 90 -60 Re-Entry 3 RCD

Notes:

  1. EOH: End of hole
  2. RCD: RC pre-collar, diamond core tail
  3. Re-entry: drill hole re-entered and deepened

APPENDIX 2. Lindero Mine, Argentina: Arizaro gold Project drill results

Drill Hole Easting Northing Azimuth (°) Dip (°) From (m) To (m) Interval 1 (m) Estimated True Width
(m)
Au (g/t) Cu (%)
ARD-42 2625252 7223658 0.0 -60.0 8 10 2 - 0.71 0.35
132 142 10 - 0.30 0.10
160 164 4 - 0.53 0.04
ARD-43 2625391 7223717 0.0 -60.5 26 30 4 - 0.57 0.15
106 136 30 - 0.27 0.14
ARD-44 2625164 7223613 0.0 -62.0 no significant results
ARD-45 2625490 7223893 90.0 -60.0 0 14 14 - 0.48 0.19
44 190 146 73 0.47 0.16
includes 48 114 66 33 0.60 0.19
ARD-46 2625480 7223936 100.0 -69.5 0 200 200 68 0.61 0.18
includes 68 92 24 8 0.83 0.2
and 138 200 62 21 0.85 0.24
ARD-47 2625192 7223761 90.0 -60.0 176 194 18 - 0.54 0.23
includes 190 194 4 - 1.62 0.54

Note:

  1. Down-the-hole intervals; orientation of the mineralization has not been established and therefore accurate true widths in all intervals cannot be estimated at this time. ARD-45 and ARD-46 are estimates only. ARD-46 ended in mineralization

APPENDIX 3. San Jose Mine, Mexico: Drill holes completed since March 2021

Drill Hole

Easting

Northing

Azimuth (°)

Dip (°)

Hole Depth From To Interval ETW ¹ Ag Au Project

Ag Eq 3
(m) (m) (m) (m) (m) (g/t) (g/t) (g/t)
SJO-1015 747950 1844603 56 -49 694.1 NSI 2 LOS DIAZ
SJO-1018 745889 1847614 295 -67 842.0 NSI 2 VMZ_HW
SJOM-1019 745250 1847553 280 13 45.3 Aborted

TVFW
SJOM-1019A 745250 1847553 280 15 45.9 TVFW
SJOM-1024 745249 1847552 280 17 451.8 NSI 2 TVFW
SJO-1027 745889 1847614 270 -70 806.6 652.70 655.55 2.85 2.2 51 0.83 VMZ_HW 113
SJO-1031 747951 1844603 81 -45 840.1 NSI 2 LOS DIAZ
SJOM-1032 745299 1847601 75 13 200.3 80.50 81.05 0.55 0.5 40 0.33 VMZ_S 65
SJOM-1036 745299 1847599 110 5 200.9 163.00 164.60 1.60 1.0 47 0.58 VMZ_S 91
and 194.30 195.50 1.20 0.8 104 0.89 171
SJO-1037 745900 1847820 244 -57 802.8 NSI 2 VMZ_HW
SJOM-1038 745023 1848006 59 10 353.0 NSI 2 VMZ_N
SJOM-1039 745269 1847786 273 11 500.7 NSI 2 TVFW
SJOM-1042 745023 1848005 71 28 350.4 NSI 2 VMZ_N
SJOM-1046 744979 1848369 303 -41 39.0 Aborted MAGDALENA
SJOM-1046A 744979 1848369 303 -41 499.5 417.55 419.85 2.30 1.8 121 0.33 MAGDALENA 146
and 423.25 425.4 2.10 1.6 77 0.21 92
and 425.95 426.45 0.50 0.4 57 0.17 70
and 427.00 427.35 0.35 0.3 69 0.21 84
and 471.40 473.40 2.00 1.6 77 0.42 109
SJOM-1047 745022 1848004 97 27 390.2 217.00 217.50 0.50 0.4 228 1.08 VMZ_N 309
and 230.40 232.10 1.70 1.5 163 1.77 296
SJOM-1049 745268 1847787 287 8 567.5 NSI 2 TVFW
SJOM-1052 745023 1848003 115 26 434.4 NSI 2 VMZ_N
SJO-1053 745902 1847352 268 -45 654.9 630.20 634.30 4.10 1.5 290 2.00 VMZ_HW 441
Including 631.50 633.20 1.70 0.6 691 4.78 1051
SJO-1061 748194 1844973 108 -45 608.5 NSI 2 LOS DIAZ
SJOM-1062 745019 1848005 302 -60 439.3 NSI 2 MAGDALENA
SJOM-1065 745018 1848004 281 -62 351.0 112.70 113.30 0.60 0.3 50 0.50 MAGDALENA 88
and 118.40 120.40 2.00 1.0 136 1.38 240
and 237.45 237.75 0.30 0.2 39 0.41 70
and 271.30 276.75 5.45 2.8 98 0.49 135
Including 272.35 275.00 2.65 1.4 146 0.72 201
SJO-1066 745912 1847355 69 -44 627.8 NSI 2 VMZ_HW
SJOM-1068 745268 1847786 270 -11 476.9 NSI 2 TVFW
SJOM-1069 744980 1848369 292 -48 544.4 380.80 381.60 0.80 0.6 84 0.31 MAGDALENA 107
SJOM-1070 745015 1848008 295 -27 204.1 150.20 150.55 0.35 0.2 193 1.56 MAGDALENA 311
and 153.20 156.25 3.05 1.9 129 0.59 173
Including 154.85 156.25 1.40 0.9 199 0.87 265
and 161.35 161.75 0.40 0.3 147 0.68 198
SJOM-1070A 745016 1848008 296 -27 406.2 153.60 160.55 6.95 4.0 77 0.38 MAGDALENA 106
Including 153.60 154.80 1.20 0.7 248 1.06 328
and 228.40 230.50 2.10 1.2 243 0.82 305
SJO-1073 745902 1847352 266 -51 781.5 NSI 2 VMZ_HW
SJOM-1074 745268 1847786 280 -25 459.9 413.40 413.85 0.45 0.4 65 0.45 TVFW 99
SJOM-1075 744979 1848368 276 -51 505.5 NSI 2 MAGDALENA
SJO-1077 745227 1846388 57 -50 451.7 207.20 207.80 0.60 0.4 372 7.79 SAN IGNACIO 959
SJOM-1078 745016 1848007 286 -56 373.9 261.05 261.80 0.75 0.4 99 0.55 MAGDALENA 140
and 271.95 273.00 1.05 0.5 73 0.46 108
SJO-1080 745902 1847352 261 -47 588.0 421.70 422.25 0.55 0.4 72 0.71 VMZ_HW 125
SJOM-1081 744979 1848367 276 -41 450.4 NSI 2 MAGDALENA
SJOM-1082 745093 1847080 84 0 218.4 141.20 141.55 0.35 0.3 111 0.58 BONANZA_HW 155
and 165.75 167.05 1.30 1.2 59 0.26 79
SJO-1084 745227 1846390 36 -47 318.9 50.90 51.90 1.00 0.4 56 0.82 SAN IGNACIO 118
SJO-1087 745229 1846388 83 -58 402.0 194.05 195.10 1.05 0.4 152 1.91 SAN IGNACIO 296
and 395.60 396.15 0.55 0.2 163 0.72 217
SJOM-1088 745017 1848007 287 -39 350.8 148.00 148.75 0.75 0.6 72 0.02 MAGDALENA 73
and 155.70 156.35 0.65 0.5 58 0.45 92
and 159.90 161.05 1.15 0.9 43 0.39 72
and 162.50 168.40 5.90 4.6 245 1.41 351
and 251.10 252.40 1.30 1.0 127 0.80 187
SJOM-1089 744979 1848368 260 -50 415.4 NSI 2 MAGDALENA
SJOM-1090 745093 1847078 100 0 215.3 NSI 2 BONANZA_HW
SJOM-1091 744978 1848186 276 -32 334.6 168.20 171.30 3.10 1.7 506 2.61 MAGDALENA 703
and 172.90 173.40 0.50 0.3 146 0.96 218
and 174.65 175.10 0.45 0.2 275 1.30 373
and 225.95 226.90 0.95 0.5 44 0.35 70
SJO-1092 745478 1845518 243 -46 429.8 139.50 139.85 0.35 0.2 99 0.14 SAN IGNACIO 110
SJO-1093 745225 1846390 273 -64 272.0 19.15 21.75 2.60 1.0 101 1.30 SAN IGNACIO 199
SJOM-1094 745093 1847079 66 4 235.3 130.75 131.70 0.95 0.6 75 0.57 BONANZA_HW 118
and 147.80 148.25 0.45 0.3 88 0.25 107
and 171.70 172.80 1.10 1.0 73 0.32 97
SJOM-1095 744979 1848367 268 3 438.5 NSI 2 MAGDALENA
SJO-1096 745383 1845880 269 -61 421.7 224.05 226.65 2.60 1.8 178 1.21 SAN IGNACIO 269
and 277.25 277.85 0.60 0.4 304 2.07 460
SJOM-1097 745092 1847080 70 -9 223.5 168.35 169.00 0.65 0.6 247 3.33 BONANZA_HW 498
SJOM-1098 744980 1848370 313 -44 620.9 NSI 2 MAGDALENA
SJOM-1099A 744979 1848186 275 -63 392.0 135.10 139.45 4.35 1.9 67 0.35 MAGDALENA 93
and 143.00 143.70 0.70 0.3 499 1.95 646
and 224.30 226.70 2.40 1.1 164 1.32 263
SJO-1100A 745475 1845522 279 -46 420.6 Pending SAN IGNACIO
SJOM-1101 745093 1847080 80 -24 282.9 NSI 2 BONANZA_HW
SJOM-1102 744979 1848187 273 -78 458.2 190.20 193.05 2.85 1.4 54 0.21 MAGDALENA 70
and 248.10 248.40 0.30 0.2 77 0.65 126
and 391.10 392.40 1.30 0.7 55 0.26 75
and 447.50 447.95 0.45 0.2 54 0.32 78
SJOM-1102A 744979 1848187 273 -78 314.7 243.35 243.75 0.40 0.2 171 1.73 MAGDALENA 301
and 250.40 250.95 0.55 0.3 155 1.23 247
and 418.95 420.20 1.25 0.6 52 0.30 75
and 425.35 425.65 0.30 0.2 102 0.52 141
and 429.45 431.30 1.85 0.9 69 0.34 94
SJO-1103 745384 1845879 288 -66 418.8 82.50 86.10 3.60 0.8 118 0.81 SAN IGNACIO 179
and 92.10 93.50 1.40 0.3 48 0.40 78
and 243.40 248.10 4.70 1.1 209 1.47 320
SJOM-1105 744980 1848371 316 -49 652.2 206.00 208.00 2.00 1.1 74 0.02 MAGDALENA 75
and 454.25 457.35 3.10 1.8 302 0.77 360
Including 455.75 456.65 0.90 0.5 1,010 2.58 1204
and 502.00 502.30 0.30 0.2 118 0.54 158
SJO-1106 745542 1846098 232 -65 640.2 Pending SAN IGNACIO
SJOM-1107 744980 1848370 304 -59 600.6 491.20 492.00 0.80 0.5 82 0.54 MAGDALENA 123
and 495.40 496.60 1.20 0.7 67 0.58 110
and 508.50 508.95 0.45 0.3 319 1.24 412
SJOM-1108 744978 1848186 249 -54 Pending SAN IGNACIO
SJOM-1109 745108 1848993 299 -42 Pending VMZ_N

Notes:

  1. ETW: Estimated true width
  2. NSI: No significant intervals
  3. Silver equivalent (Ag Eq) is calculated using a gold to silver ratio of 1:75, and assumed metal prices of US$1840 per ounce for Au, US$24.15 per ounce for Ag, US$2,300 per ton for Pb and US$2,875 per ton for Zn.

APPENDIX 4. Yaramoko Mine, Burkina Faso: 109 Zone drill results

HoleID Easting (ADINDAN_30N) Northing (ADINDAN_30N) RL EOH 1 Depth (m) UTM Azimuth Dip Depth From (m) Depth To (m) Interval (m) Est. True Width (m) Au (ppm) Hole Type Area
YRM-20-RC-109-001 468585 1300781 351 27 240 -55 16 22 6 4.2 1.6 RC 109Z Min1
including 20 22 2 1.4 4.2
YRM-20-RC-109-002 468609 1300792 354 50 240 -55 39 41 2 1.4 1.8 RC 109Z Min1
YRM-20-RC-109-003 468620 1300776 352 46 240 -55 41 42 1 0.7 0.9 RC 109Z Min1
YRM-20-RC-109-005 468654 1300777 357 75 240 -55 65 74 9 6.3 1.5 RC 109Z Min1
YRM-20-RC-109-006 468587 1300803 362 42 240 -55 21 31 10 7 1.5 RC 109Z Min1
including 24 26 2 1.4 5.9
YRM-20-RC-109-007 468618 1300826 347 75 240 -55 61 64 3 2.1 4.8 RC 109Z Min1
YRM-20-RC-109-008 468652 1300749 342 66 240 -55 49 59 10 7 1.6 RC 109Z Min1
YRM-20-RC-109-009 468645 1300716 340 39 240 -55 24 27 3 2.1 4.7 RC 109Z Min1
including 26 27 1 0.7 12.8
YRM-20-RC-109-010 468669 1300715 325 53 240 -55 39 48 9 6.3 1.1 RC 109Z Min1
YRM-20-RC-109-011 468657 1300688 324 30 240 -55 22 30 8 5.6 2.3 RC 109Z Min1
including 22 23 1 0.7 13.8
YRM-20-RC-109-012 468684 1300683 324 53 240 -55 42 50 8 5.6 2.5 RC 109Z Min1
YRM-20-RC-109-013 468694 1300709 335 78 240 -55 68 71 3 2.1 1.8 RC 109Z Min1
YRM-20-RC-109-014 468683 1300653 335 33 240 -55 24 31 7 4.9 1.1 RC 109Z Min1
YRM-20-RC-109-015 468701 1300641 335 51 240 -55 33 40 7 4.9 1.4 RC 109Z Min1
YRM-20-RC-109-016 468776 1300435 327 40 230 -55 26 27 1 0.7 0.4 RC 109Z Min3
YRM-20-RC-109-017 468768 1300412 326 22 230 -55 7 14 7 4.9 0.8 RC 109Z Min3
YRM-20-RC-109-018 468805 1300433 327 59 230 -55 35 41 6 4.2 3.1 RC 109Z Min3
YRM-20-RC-109-019 468791 1300396 306 37 230 -55 5 7 2 1.4 2.1 RC 109Z Min3
and 27 29 2 1.4 2.8
YRM-20-RC-109-020 468860 1300414 308 96 230 -55 66 67 1 0.7 2.2 RC 109Z Min3
and 82 85 3 2.1 1.1
YRM-20-RC-109-021 468820 1300364 305 57 230 -55 26 34 8 5.6 1.4 RC 109Z Min3
YRM-20-RC-109-022 468813 1300329 304 36 230 -55 4 7 3 2.1 0.3 RC 109Z Min3
YRM-20-RC-109-023 468884 1300382 321 96 230 -55 46 53 7 4.9 0.4 RC 109Z Min3
and 86 89 3 2.1 2.4
YRM-20-RC-109-024 468894 1300345 318 81 230 -55 76 77 1 0.7 2.6 RC 109Z Min3
YRM-20-RC-109-025 468699 1300580 310 37 240 -55 6 13 7 4.9 2.2 RC 109Z Min1
including 10 11 1 0.7 8.4
YRM-20-RC-109-026 468731 1300593 312 51 240 -55 40 42 2 1.4 1.0 RC 109Z Min1
YRM-20-RC-109-027 468971 1300536 332 66 205 -55 46 52 6 4.2 2.7 RC 109Z Min2
including 48 50 2 1.4 6.3
YRM-20-RC-109-028 468983 1300502 341 42 205 -55 27 37 10 7 3.8 RC 109Z Min2
including 29 30 1 0.7 8.0
including 31 32 1 0.7 8.9
YRM-20-RC-109-029 469226 1300369 338 51 205 -55 18 20 2 1.4 1.2 RC 109Z Min2
and 37 40 3 2.1 0.5
and 43 48 5 3.5 0.4
YRM-20-RC-109-030 469199 1300363 337 35 205 -55 16 18 2 1.4 1.0 RC 109Z Min2
YRM-20-RC-109-031 469185 1300398 333 60 205 -55 0 2 2 1.4 5.3 RC 109Z Min2
including 1 2 1 0.7 9.8
YRM-20-RC-109-032 469126 1300414 333 51 205 -55 28 29 1 0.7 2.4 RC 109Z Min2
YRM-20-RC-109-036 469044 1300481 321 81 200 -55 12 17 5 3.5 0.6 RC 109Z Min2
and 40 51 11 7.7 3.0
including 41 44 3 2.1 6.3
including 48 50 2 1.4 4.1
YRM-20-RC-109-037 469021 1300473 322 50 205 -55 27 35 8 5.6 3.4 RC 109Z Min2
Inc 27 28 1 0.7 11.0
YRM-20-RC-109-038 469002 1300513 330 69 205 -55 51 55 4 2.8 11.2 RC 109Z Min2
including 52 54 2 1.4 20.6
and 60 62 2 1.4 1.5
YRM-21-RC-109-039 468569 1300788 342 24 240 -55 5 7 2 1.4 0.7 RC 109Z Min1
YRM-21-RC-109-040 468630 1300763 338 51 240 -55 41 48 7 4.9 0.6 RC 109Z Min1
YRM-21-RC-109-041 468680 1300793 331 114 240 -55 87 99 12 8.4 2.5 RC 109Z Min1
YRM-21-RC-109-042 468710 1300796 334 138 240 -55 111 112 1 0.7 2.3 RC 109Z Min1
and 118 123 5 3.5 1.2
YRM-21-RC-109-044 468665 1300848 340 129 240 -55 112 118 6 4.2 0.8 RC 109Z Min1
YRM-21-RC-109-045 468705 1300825 336 147 240 -55 132 135 3 2.1 5.2 RC 109Z Min1
including 133 134 1 0.7 12.4
YRM-21-RC-109-046 468658 1300798 332 94 240 -55 78 82 4 2.8 4.3 RC 109Z Min1
including 79 80 1 0.7 11.5
YRM-21-RC-109-047 468658 1300882 351 147 240 -55 130 136 6 4.2 2.4 RC 109Z Min1
including 134 135 1 0.7 12.3
YRM-21-RC-109-049 468595 1300741 328 24 240 -55 6 10 4 2.8 1.2 RC 109Z Min1
YRM-21-RC-109-051 468618 1300712 329 30 240 -55 11 17 6 4.2 1.8 RC 109Z Min1
YRM-21-RC-109-052 468667 1300665 321 42 240 -55 17 25 8 5.6 1.6 RC 109Z Min1
YRM-21-RC-109-053 468703 1300680 326 84 240 -55 57 66 9 6.3 3.4 RC 109Z Min1
including 58 59 1 0.7 11.9
YRM-21-RC-109-054 468680 1300631 322 36 240 -55 16 22 6 4.2 3.2 RC 109Z Min1
including 19 21 2 1.4 7.0
YRM-21-RC-109-055 468726 1300633 321 75 240 -55 38 39 1 0.7 3.2 RC 109Z Min1
and 50 57 7 4.9 4.0
including 52 54 2 1.4 12.4
YRM-21-RC-109-056 468733 1300673 305 97 240 -55 80 87 7 4.9 4.2 RC 109Z Min1
including 81 83 2 1.4 11.3
YRM-21-RC-109-057 468712 1300698 320 105 240 -55 74 82 8 5.6 1.8 RC 109Z Min1
YRM-21-RC-109-058 468740 1300757 328 147 240 -55 124 131 7 4.9 14.7 RC 109Z Min1
including 125 130 5 3.5 22.2
YRM-21-RC-109-060 468772 1300682 334 138 240 -55 114 123 9 6.3 0.5 RC 109Z Min1
YRM-21-RC-109-062 468765 1300610 331 90 240 -55 70 77 7 4.9 3.8 RC 109Z Min1
YRM-21-RC-109-063 468774 1300580 329 90 240 -55 66 78 12 8.4 1.6 RC 109Z Min1
YRM-21-RC-109-064 468728 1300555 328 33 240 -55 21 27 6 4.2 0.4 RC 109Z Min1
YRM-21-RC-109-065 468704 1300737 330 110 240 -55 8 11 3 2.1 0.5 RC 109Z Min1
YRM-21-RC-109-066 468554 1300829 344 33 240 -55 21 29 8 5.6 0.6 RC 109Z Min1
YRM-21-RC-109-067 468573 1300840 350 57 240 -55 41 42 1 0.7 0.7 RC 109Z Min1
YRM-21-RC-109-070 468594 1300899 357 114 240 -55 86 89 3 2.1 0.3 RC 109Z Min1
and 94 95 1 0.7 2.3
YRM-21-RC-109-071 468779 1300389 325 42 230 -55 0 3 3 2.1 3.1 RC 109Z Min3
YRM-21-RC-109-074 468783 1300412 324 39 230 -55 14 24 10 7 0.5 RC 109Z Min3
YRM-21-RC-109-075 468841 1300458 328 91 230 -55 75 85 10 7 1.9 RC 109Z Min3
YRM-21-RC-109-076 468874 1300448 332 126 230 -55 93 103 10 7 4.4 RC 109Z Min3
including 95 98 3 2.1 11.4
YRM-21-RC-109-077 468805 1300467 323 72 230 -55 54 55 1 0.7 1.8 RC 109Z Min3
and 64 66 2 1.4 0.6
YRM-21-RC-109-078 468808 1300513 330 94 230 -55 84 86 2 1.4 1.2 RC 109Z Min3
YRM-21-RC-109-079 468794 1300542 338 99 230 -55 81 84 3 2.1 0.9 RC 109Z Min3
YRM-21-RC-109-080 468839 1300381 327 66 230 -55 26 30 4 2.8 0.7 RC 109Z Min3
and 48 55 7 4.9 0.9
YRM-21-RC-109-081 468849 1300367 321 66 230 -55 23 27 4 2.8 1.5 RC 109Z Min3
and 38 51 13 9.1 0.4
and 57 59 2 1.4 1.3
YRM-21-RC-109-082 468837 1300427 320 83 230 -55 0 2 2 1.4 0.7 RC 109Z Min3
and 55 61 6 4.2 0.6
YRM-21-RC-109-083 468830 1300348 329 46 230 -55 23 32 9 6.3 0.8 RC 109Z Min3
YRM-21-RC-109-085 468591 1300768 337 39 240 -55 15 18 3 2.1 0.5 RC 109Z Min1
YRM-21-RC-109-086 468958 1300580 312 96 205 -55 35 40 5 3.5 1.0 RC 109Z Min2
YRM-21-RC-109-087 468962 1300619 341 129 205 -55 96 104 8 5.6 4.7 RC 109Z Min2
including 97 98 1 0.7 15.1
YRM-21-RC-109-088 468944 1300576 335 78 205 -55 50 53 3 2.1 0.5 RC 109Z Min2
YRM-21-RC-109-089 468934 1300636 339 123 205 -55 89 94 5 3.5 1.1 RC 109Z Min2
and 115 116 1 0.7 2.4
YRM-21-RC-109-090 468757 1300508 329 51 230 -55 46 48 2 1.4 1.1 RC 109Z Min3
YRM-21-RC-109-091 469035 1300571 332 129 205 -55 84 85 1 0.7 9.4 RC 109Z Min2
and 88 90 2 1.4 1.2
and 96 100 4 2.8 1.2
and 104 109 5 3.5 1.9
YRM-21-RC-109-093 468910 1300594 321 81 205 -55 38 40 2 1.4 2.7 RC 109Z Min2
YRM-21-RC-109-095 469003 1300590 329 130 205 -55 87 88 1 0.7 8.0 RC 109Z Min2
and 90 92 2 1.4 1.8
and 112 119 7 4.9 1.0
YRM-21-RC-109-096 469063 1300548 339 129 205 -55 62 63 1 0.7 2.2 RC 109Z Min2
and 110 111 1 0.7 0.9
YRM-21-RC-109-097 469063 1300513 336 99 205 -55 60 61 1 0.7 1.0 RC 109Z Min2
and 79 84 5 3.5 0.8
YRM-21-RC-109-098 469097 1300530 338 126 205 -55 107 111 4 2.8 15.3 RC 109Z Min2
including 108 109 1 0.7 46.1
YRM-21-RC-109-099 469083 1300504 324 100 205 -55 44 45 1 0.7 1.8 RC 109Z Min2
and 78 84 6 4.2 1.9
YRM-21-RC-109-100 469108 1300491 323 102 205 -55 75 82 7 4.9 4.4 RC 109Z Min2
including 77 78 1 0.7 24.9
YRM-21-RC-109-102 469022 1300550 334 108 205 -55 71 72 1 0.7 1.5 RC 109Z Min2
and 89 99 10 7 1.6
including 96 97 1 0.7 9.9
YRM-21-RC-109-103 469101 1300429 317 51 205 -55 20 24 4 2.8 4.6 RC 109Z Min2
including 21 22 1 0.7 12.1
YRM-21-RC-109-105 469173 1300370 329 45 205 -55 21 25 4 2.8 0.5 RC 109Z Min2
YRM-21-RC-109-106 469060 1300462 332 65 205 -55 36 41 5 3.5 0.3 RC 109Z Min2
YRM-21-RC-109-108 468982 1300469 340 21 205 -55 1 9 8 5.6 0.9 RC 109Z Min2
YRM-21-RC-109-109 468929 1300525 340 40 205 -55 3 5 2 1.4 1.4 RC 109Z Min2
YRM-21-RC-109-112 468826 1300644 331 81 205 -55 29 30 1 0.7 0.8 RC 109Z Min2
YRM-21-RC-109-114 468783 1300678 328 73 205 -55 12 14 2 1.4 0.7 RC 109Z Min2
YRM-21-RC-109-115 468848 1300688 344 117 205 -55 69 70 1 0.7 3.1 RC 109Z Min2
YRM-21-RC-109-118 469010 1300493 343 66 205 -55 55 57 2 1.4 1.7 RC 109Z Min2
YRM-21-RC-109-126 468756 1300725 327 144 242 -55 45 48 3 2.1 0.5 RC 109Z Min1
and 117 123 6 4.2 0.6
YRM-21-RC-109-127 468719 1300807 331 150 239 -56 130 136 6 4.2 1.8 RC 109Z Min1
including 131 132 1 0.7 5.8
YRM-21-RC-109-128 468774 1300828 334 201 239 -55 116 118 2 1.4 0.4 RC 109Z Min1
and 181 183 2 1.4 1.8
YRM-21-RC-109-129 468784 1300776 330 201 242 -55 168 170 2 1.4 4.9 RC 109Z Min1
including 169 170 1 0.7 7.6
YRM-21-RC-109-130 468816 1300741 330 198 239 -57 171 178 7 4.9 1.7 RC 109Z Min1
YRM-21-RC-109-131 468674 1300623 324 18 241 -55 3 12 9 6.3 2.0 RC 109Z Min1
YRM-21-RC-109-132 468664 1300635 324 15 241 -56 1 7 6 4.2 2.7 RC 109Z Min1
YRM-21-RC-109-133 468695 1300611 324 33 239 -55 18 20 2 1.4 1.4 RC 109Z Min1
YRM-21-RC-109-134 468652 1300658 323 15 239 -55 0 10 10 7 1.2 RC 109Z Min1
YRM-21-RC-109-135 468644 1300673 324 15 241 -55 2 10 8 5.6 1.1 RC 109Z Min1
YRM-21-RC-109-136 468637 1300694 325 18 241 -55 6 14 8 5.6 0.6 RC 109Z Min1
YRM-21-RC-109-137 468683 1300605 323 21 240 -55 3 8 5 3.5 1.1 RC 109Z Min1
YRM-21-RC-109-138 469118 1300510 332 126 202 -58 96 104 8 5.6 0.8 RC 109Z Min2
YRM-21-RC-109-139 469098 1300568 338 159 205 -55 98 101 3 2.1 0.4 RC 109Z Min2
and 143 155 12 8.4 1.9 109Z Min2
including 146 147 1 0.7 16.6 109Z Min2

Note:

  1. EOH: End of hole

APPENDIX 5. Caylloma Mine, Peru: Animas NE vein drill results

Drill Hole

Easting

Northing

Azimuth

Dip

From To Interval ETW¹ Ag Au Pb Zn
(m) (m) (m) (m) (g/t) (g/t) (%) (%)
ANIS082021 195933 8318903 270 -46 401.6 401.9 0.3 0.3 50.8 0.06 2.87 7.15
and 171.5 177.0 5.5 2.3 58.5 0.13 3.36 9.79
and 192.3 208.7 16.4 7.0 101.0 0.08 5.51 7.04
ANIS082821A 196005 8319013 295 -58 424.3 424.7 0.4 0.3 2.6 0.01 0.25 0.4
and 530.7 532.8 2.1 1.6 37.4 0.02 1.00 6.30
and 540.0 546.9 6.9 5.1 45.8 0.02 0.93 11.43
PISS000121 193814 8313976 359 -59 NSI 2
ANIM084221 195401 8318155 298 -49 231.1 235.1 4 3.6 45.8 0.02 1.21 3.64
ANIM084321 195474 8318240 319 -70 290.9 299.0 8.1 5.8 50.9 0.06 2.94 5.23
ANIS084521 196006 8319013 304 -53 412.8 413.2 0.40 0.4 25.3 0.01 2.72 5.33
and 603.8 605.1 1.25 1.2 36.5 0.01 6.07 10.26
and 634.5 636.6 2.10 2.0 16.1 0.00 2.97 4.99
and 660.6 661.6 1.05 1.0 53.3 0.00 11.35 6.00
ANIM084721 195400 8318154 293 -36 222.7 235.4 12.8 11.8 106.0 0.03 2.34 3.13
PISS000321 192609 8313948 27 -45 NSI 2
ANIM084921 195399 8318152 275 -25 258 259.1 1.1 0.7 107.9 0.07 0.42 1.3
ANIS085121 196006 8319013 294 -52 444.7 445 0.3 0.3 1.2 0.00 0.12 0.22
PIS000421 192007 8313075 1 -51 NSI 2
ANIM085321 195473 8318237 284 -61 285.3 285.65 0.35 0.3 61.0 0.04 4.89 0.24
ANIM085521 195399 8318152 275 -43 233.25 240.8 7.55 6.1 159.4 0.02 2.92 1.44
LPLM004021 195406 8318150 129 -4 555 557.95 2.95 2.4 46.1 0.10 1.53 3.32
ANIM085821 195473 8318237 283 -44 246.05 250.9 4.85 4.4 69.9 0.02 1.64 1.16
ANIS086021 195934 8318903 257 -54 474.85 482.65 7.8 7.0 0.8 0.00 0.03 0.06
ANIS086321 195477 8318240 353 -69 334.75 345.05 10.3 7.2 60.4 0.02 5.51 6.22
and 372.65 376.7 4.1 3.0 78.8 0.02 3.47 3.58
ANIM086821 194984 8317708 282 -57 178.1 185.25 7.15 5.0 38.8 0.07 2.62 3.11
ANIS086921A 195413 8319045 24 -50 83.85 88.15 4.3 3.6 7.3 0.06 0.07 0.29
ANIS087221 195415 8319042 260 -45 68.25 69.05 0.8 0.60 35.2 0.46 0.37 1.04
ANIM087321 194983 8317708 270 -36 186.15 200.6 14.5 11.3 75.8 0.12 4.35 7.45
ANIS087421 195382 8318926 319 -47 74.25 81.9 7.7 6.5 4.6 0.12 0.04 0.49
ANIS087821 195378 8318927 280 -19 62.1 62.8 0.7 0.7 53.0 0.84 0.82 0.15
ANIM087921 194983 8317706 254 -53 269.7 270.3 0.7 0.4 14.9 0.14 0.97 3.20
ANIS088121 195410 8318871 294 -37 74.25 81.90 7.65 6.53 4.6 0.12 0.04 0.49
ANIS087921 194983 8317706 254 -53 210.1 242.0 31.9 20.5 93.0 0.07 4.83 7.81

Notes:
1. ETW: Estimated true width
2. NSI: No significant intervals


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MAG Silver Corp. (TSX NYSE American: MAG) ("MAG", or the "Company") announces the Company's consolidated financial results for the year ended December 31, 2023. For details of the audited consolidated financial statements of the Company for the year ended December 31, 2023 ("2023 Financial Statements") and management's discussion and analysis for the year ended December 31, 2023 ("2023 MD&A"), please see the Company's filings on the System for Electronic Document Analysis and Retrieval Plus ("SEDAR+") at ( www.sedarplus.ca ) or on the Electronic Data Gathering, Analysis, and Retrieval ("EDGAR") at ( www.sec.gov ).

All amounts herein are reported in $000s of United States dollars ("US$") unless otherwise specified (C$ refers to Canadian dollars).

KEY HIGHLIGHTS (on a 100% basis unless otherwise noted)

  • MAG reported net income of $48,659 ($0.47 per share) driven by income from Juanicipio (equity accounted) of $65,099 and Adjusted EBITDA 1 of $97,480 for the year ended December 31, 2023.

  • MAG reported net income of $15,694 ($0.15 per share) driven by income from Juanicipio (equity accounted) of $21,069 and Adjusted EBITDA 1 of $29,787 for the three months ended December 31, 2023.

  • A total of 346,766 tonnes of mineralized material at a silver head grade of 467 grams per tonne ("g/t") was processed at Juanicipio during the fourth quarter. Milling performance for 2023 totalled 1,268,757 tonnes at a head grade of 472 g/t.

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  • Juanicipio continued to capitalize on available milling capacity at the Saucito plant (100% Fresnillo owned) to maintain processing rates during periods of maintenance. Approximately 5% of the material processed during the fourth quarter was processed through the Saucito plant.

  • Juanicipio delivered robust cost performance with cash cost 2 of $3.76 per silver ounce sold and all-in sustaining cost 2 of $9.17 per silver ounce sold in the fourth quarter.
  • Juanicipio generated strong operating cash flow of $84,038 and free cash flow 2 of $61,993 in the fourth quarter. Operating cash flow and free cash flow 2 for 2023 totalled $145,064 and $60,814, respectively.

  • At the end of the year, Juanicipio held cash balances of $42,913, representing an increase of $41,811 over 2022, driven by strong operating cash flows.

  • Juanicipio returned a total of $18,765 in interest and loan principal repayments to MAG during the fourth quarter. Interest and loan principal repayments returned to MAG during 2023 totalled $33,354.

  • MAG concluded a $40,000 senior secured revolving credit facility (the "Credit Facility") with the Bank of Montreal on October 4, 2023.

  • Effective June 20, 2023, MAG was included in the NYSE Arca Gold Miners Index which is tracked by the VanEck Vectors Gold Miners ETF.

CORPORATE

  • In September the Company published its second annual sustainability report underscoring its commitment to transparency with its stakeholders while providing a comprehensive overview of the Company's environmental, social and governance ("ESG") commitments, practices and performance for the 2022 year. The 2022 sustainability report is supported by the MAG Silver 2022 ESG Data Table which discloses MAG's historical ESG performance data.

  • During early 2024, as part of the Company's longer term succession planning, Dr. Lex Lambeck was promoted to the position of Vice President, Exploration. Lex has been the project manager for the Deer Trail Project in Utah since it was acquired by MAG in 2019, led by Dr. Peter Megaw. Lex's leadership was instrumental in the application of the "Hub and Spoke" thesis at Deer Trail as well as the Carissa discovery demonstrating his strong skills in generative exploration in district scale settings which will be invaluable in overseeing the Company's portfolio of exploration properties, including exploration at Juanicipio.

  • Marc Turcotte, with his almost 10 years experience at MAG as Vice President, Corporate Development, was promoted to the position of Chief Development Officer. In this broader executive role, Marc will leverage his proven track record in identifying unique situations to zero-in-on and assess inorganic growth opportunities aligned with the Company's commitment to continued Tier-1 growth and expansion. Marc was the architect of the consolidation of the Deer Trail project in Utah as well as the catalyst behind the acquisition of Gatling Exploration which brought the Larder project into MAG's portfolio of high quality, high impact exploration properties.

  • Tom Peregoodoff was appointed to the Board of Directors of MAG effective January 1, 2024. Mr. Peregoodoff will fill the vacancy to be created by the planned retirement in June 2024 of Dan MacInnis, who does not plan to seek re-election at the Company's 2024 annual general meeting of shareholders. Tom brings with him over 30 years of industry knowledge and leadership and has extensive experience in all aspects and stages of the global mining business, specializing in mineral exploration.

EXPLORATION

  • Juanicipio:
    • Infill drilling at Juanicipio continued in 2023, with one rig on surface and one underground with the goal of upgrading and expanding the Valdecañas Vein System at depth and further defining areas to be mined in the near to mid-term.
    • During 2023, 13,273 metres (three months ended December 31, 2023: nil metres) and 22,015 metres (three months ended December 31, 2023: 6,686 metres), were drilled from surface and underground respectively. Drilling for the year, both surface and underground, was infill in nature and continues to confirm defined mineralization.

  • Deer Trail Project, Utah:
    • Results from the 12,157 metres in surface-based Phase 2 drilling on the Deer Trail Carbonate Replacement Deposit project were reported on January 17, 2023 and August 3, 2023 (see news releases dated January 17, 2023 and August 3, 2023 available under the Company's SEDAR+ profile at www.sedarplus.ca ).
    • On May 29, 2023 MAG started a Phase 3 drilling program focused on up to three porphyry "hub" targets thought to be the source of the manto, skarn and epithermal mineralization and extensive alteration throughout the project area including that at the Deer Trail and Carissa zones. An early onset of winter snowfall impacted the commencement of the third porphyry "hub" target which is expected to be drilled next season and drilling has shifted to offset the Carissa discovery and test other high-potential targets.
    • During 2023, 5,525 metres (three months ended December 31, 2023: 1,609 metres) were drilled at high elevation with final results and interpretation pending.

  • Larder Project, Ontario:
    • On July 12, 2023 drilling resumed at the Larder Project to test additional targets by the end of the year on the Cheminis and Bear areas. During 2023 17,504 metres were drilled at Swansea, Cheminis and Bear.
    • Cheminis Success: The magnetotellurics survey carried out in the summer of 2023 enabled modelling of the south volcanic gold zone at Cheminis and is proving to be applicable elsewhere across the property. Drilling in three successive Cheminis drillholes (GAT-23-019, 020A, and 021B, see Table 1 below) intersected grades of 1.1 to 20.3 g/t gold over core lengths of 0.6 - 11.1 metres demonstrating continuity. This also extended the gold-hosting mine sequence down to 700 metres below surface, more than 370 metres below the deepest workings in this portion of the Cadillac-Larder Break. Incorporating these results into the model should enhance predictability in follow-up drilling.
    • Bear Success: Increased predictability has led to continued success and further definition of the North Bear zone, especially in hole GAT-23-022NA (see Table 1 below) which cut 5.1 metres grading 4.6 g/t gold (including a high-grade zone of 1.4 metre grading 16.2 g/t gold). These intercepts extend gold mineralization to 650 metres below surface, and it remains open in all directions.

Table 1: 2023 Larder Drillholes Highlights

Hole ID From (m) To (m) Length (m) 1 Gold (g/t) Lithology Target/Zone
GAT-23-019 767.00 776.50 9.50 2.1 Mafic Volcanics South Cheminis Mine Sequence Zone
Including 767.40 768.80 1.40 5.1 South Volcanics South Cheminis Mine Sequence Zone
Including 767.80 768.00 0.30 11.0 South Volcanics South Cheminis Mine Sequence Zone
and 945.00 955.00 10.00 1.1 Green Komatiites North Cheminis Zone
Including 946.00 949.50 3.50 2.1 Green Komatiites North Cheminis Zone
GAT-23-020A 605.30 605.90 0.60 9.4 Quartz Vein & South Volcanics South Cheminis Zone
and 672.90 678.80 5.90 3.5 Komatiite-Syenite Contact North Cheminis Zone
Including 676.30 678.80 2.50 6.3 Komatiite-Syenite Contact North Cheminis Zone
Including 678.30 678.80 0.50 20.3 Green Komatiite-Syenite Contact North Cheminis Zone
GAT-23-021B 757.40 768.50 11.10 3.2 Brecciated South Volcanics with Graphite South Cheminis Mine Sequence Zone
Including 766.00 768.00 2.00 10.2 South Volcanics South Cheminis Mine Sequence Zone
GAT-23-022NA 784.60 785.50 0.90 6.0 Green Komatiites North Bear Zone
and 789.50 794.60 5.10 4.6 Green Komatiite with Graphite North Bear Zone
Including 790.30 791.70 1.40 16.2 Quartz Vein with Graphite North Bear Zone
Including 791.20 793.70 0.50 33.8 Quartz Vein with Graphite North Bear Zone
and 939.50 940.20 0.70 5.7 South Volcanics South Bear Zone


JUANICIPIO RESULTS

All results of Juanicipio in this section are on a 100% basis, unless otherwise noted.

Operating Performance

The following table and subsequent discussion provide a summary of the operating performance of Juanicipio for the years ended December 31, 2023 and 2022, unless otherwise noted.

Key mine performance data of Juanicipio (100% basis) Year ended
December 31, December 31,
2023 2022
Metres developed (m) 14,864 12,999
Material mined (t) 1,097,289 792,693
Material processed (t) 1,268,757 646,148
Silver head grade (g/t) 472 520
Gold head grade (g/t) 1.27 1.39
Lead head grade (%) 1.14 % 0.90 %
Zinc head grade (%) 2.05 % 1.72 %
Silver payable ounces (koz) 15,318 8,697
Gold payable ounces (koz) 31.73 20.27
Lead payable pounds (klb) 25,862 9,892
Zinc payable pounds (klb) 36,881 14,898

During the year ended December 31, 2023 a total of 1,097,289 tonnes of mineralized material were mined. This represents an increase of 38% over 2022. Increases in mined tonnages at Juanicipio have been driven by the operational ramp up of the milling facility.

During the year ended December 31, 2023 a total of 1,268,757 tonnes of mineralized material were processed through the Juanicipio, Saucito and Fresnillo plants. This represents an increase of 96% over 2022. The increase in milled tonnage has been driven by the Juanicipio mill commissioning and operational ramp up. As reported by the operator, Fresnillo, the Juanicipio processing facility achieved nameplate capacity of 4,000 tpd during September 2023 with silver recovery consistently above 88%. Juanicipio continued to capitalize on available milling capacity at the Saucito plant (100% Fresnillo owned) to maintain processing rates during periods of maintenance. Approximately 5% of the material processed during the fourth quarter of 2023 was processed through the Saucito plant.

The average silver head grade for the mineralized material processed in the year ended December 31, 2023 was 472 g/t (year ended December 31, 2022: 520 g/t).

The following table provides a summary of the total cash costs (1) and all-in-sustaining costs ("AISC") (1) of Juanicipio for the years ended December 31, 2023, and 2022.

Key mine performance data of Juanicipio (100% basis) Year ended
December 31, December 31,
2023 2022
Total operating cash costs (1) 88,080 40,522
Operating cash cost per silver ounce sold ($/oz) (1) 5.75 4.66
Total cash costs (1) 93,025 40,871
Cash cost per silver ounce sold ($/oz) (1) 6.07 4.70
All-in sustaining costs (1) 158,151 83,463
All-in sustaining cost per silver ounce sold ($/oz) (1) 10.32 9.60

(1) Total operating cash costs, operating cash cost per ounce, total cash costs, cash cost per ounce, all-in sustaining costs, and all-in sustaining cost per ounce are non-IFRS measures, please see below ‘ Non-IFRS Measures ' section and section 12 of the 2023 MD&A dated March 18, 2024, available on SEDAR+ at www.sedarplus.ca for a detailed reconciliation of these measures to the 2023 Financial Statements.


Financial Results

The following table presents excerpts of the financial results of Juanicipio for the years ended December 31, 2023 and 2022 (MAG's share of income from its equity accounted investment in Juanicipio).

Year ended
December 31, December 31,
2023 2022
$ $
Sales 442,288 215,736
Cost of sales:
Production cost (171,830 ) (61,985 )
Depreciation and amortization (68,475 ) (20,913 )
Gross profit 201,983 132,838
Consulting and administrative expenses (18,768 ) (8,436 )
Extraordinary mining and other duties (4,945 ) (349 )
Interest expense (18,524 ) (2,298 )
Exchange losses and other (2,937 ) (5,160 )
Net income before tax 156,809 116,595
Income tax expense (27,381 ) (26,348 )
Net income (100% basis) 129,428 90,247
MAG's 44% portion of net income 56,948 39,709
Interest on Juanicipio loans - MAG's 44% 8,150 1,058
MAG's 44% equity income 65,099 40,767

Sales increased by $226,552 during the year ended December 31, 2023, mainly due to 84% higher metal volumes and 5% higher realized metal prices.

Offsetting higher sales was higher depreciation ($47,561) as the Juanicipio mill achieved commercial production and commenced depreciating the processing facility and associated equipment, and higher production cost ($109,845) which was driven by higher sales and operational ramp-up in mining and processing, including $44,027 in inventory movements as commissioning stockpiles were drawn down.

Other expenses increased by $28,932 mainly as a result of higher extraordinary mining and other duties ($4,596) related to higher precious metal revenues from the sale of concentrates, higher consulting and administrative expenses ($10,332) as an operator services agreement became effective upon initiation of commercial production whereby Fresnillo and its affiliates continue to operate the mine, and higher interest incurred on shareholder loans ($16,227) which were completely expensed during 2023, whereas being only partly expensed with the rest capitalized to construction in progress during 2022.

Taxes increased by $1,033 impacted by deferred tax charges associated with fixed assets as well as higher taxable profits generated during the period.

Mineralized Material Processed at Juanicipio, Saucito and Fresnillo Plants (100% basis)

Year Ended December 31, 2023 (1,268,757 tonnes processed) Year Ended
December 31, 2022
Amount

$
Payable Metals Quantity Average Price
$
Amount
$
Silver 15,317,765 ounces 23.66 per oz 362,457 188,722
Gold 31,735 ounces 1,978.07 per oz 62,774 36,958
Lead 11,731 tonnes 0.96 per lb. 24,746 9,380
Zinc 16,729 tonnes 1.15 per lb. 42,496 23,398
Treatment, refining, and other processing costs ( 2 ) (50,185 ) (42,722 )
Sales 442,288 215,736
Production cost (171,830 ) (61,985 )
Depreciation and amortization (1) (68,475 ) (20,913 )
Gross Profit 201,983 132,838

(1) The underground mine was considered readied for its intended use on January 1, 2022, whereas the Juanicipio processing facility started commissioning and ramp-up activities in January 2023, achieving commercial production status on June 1, 2023.
(2) Includes toll milling costs from processing mineralized material at the Saucito and Fresnillo plants.


Sales and treatment charges are recorded on a provisional basis and are adjusted based on final assay and pricing adjustments in accordance with the offtake contracts.

MAG FINANCIAL RESULTS – YEAR ENDED DECEMBER 31, 2023

As at December 31, 2023, MAG had working capital of $67,262 (December 31, 2022: $29,232) including cash of $68,707 (December 31, 2022: $29,955) and no long-term debt. As well, as at December 31, 2023, Juanicipio had working capital of $86,336 including cash of $42,913 (MAG's attributable share is 44%).

The Company's net income for the year ended December 31, 2023 amounted to $48,659 (December 31, 2022: $17,644) or $0.47/share (December 31, 2022: $0.18/share). MAG recorded its 44% income from equity accounted investment in Juanicipio of $65,099 (December 31, 2022: $40,767) which included MAG's 44% share of net income from operations as well as loan interest earned on loans advanced to Juanicipio (see above for MAG's share of income from its equity accounted investment in Juanicipio).

December 31, December 31,
2023 2022
$ $
Income from equity accounted investment in Juanicipio 65,099 40,767
General and administrative expenses (13,594 ) (12,352 )
General exploration and business development (736 ) (193 )
Exploration and evaluation assets written down - (10,471 )
Operating Income 50,769 17,751
Interest income 2,594 630
Other income 1,017 -
Foreign exchange loss (144 ) (366 )
Income before income tax 54,236 18,015
Deferred income tax expense (5,577 ) (371 )
Net income 48,659 17,644

NON-IFRS MEASURES

The following table provides a reconciliation of operating cash cost and cash cost per silver ounce of Juanicipio to production cost of Juanicipio on a 100% basis (the nearest IFRS measure) as presented in the notes to the 2023 Financial Statements.

Year ended December 31,
(in thousands of US$, except per ounce amounts) 2023 2022
Production cost as reported 171,830 61,985
Depreciation on inventory movements (3,919 ) 5,551
Adjusted production cost 167,911 67,536
Treatment, refining, and other processing costs 50,185 42,722
By-product revenues (2) (130,016 ) (69,736 )
Total operating cash costs (1) 88,080 40,522
Extraordinary mining and other duties 4,945 349
Total cash costs (1) 93,025 40,871
Silver ounces sold 15,317,765 8,697,372
Operating cash cost per silver ounce sold ($/ounce) 5.75 4.66
Cash cost per silver ounce sold ($/ounce) 6.07 4.70

(1) As Q3 2023 represented the first full quarter of commercial production, information presented for total operating cash costs and total cash costs together with their associated per unit values are not directly comparable.
(2) By-product revenues relates to the sale of other metals contained in the lead and zinc concentrates produced and delivered, namely gold, lead, and zinc.


The following table provides a reconciliation of AISC of Juanicipio to production cost and various operating expenses of Juanicipio on a 100% basis (the nearest IFRS measure), as presented in the notes to the 2023 Financial Statements.

Year ended December 31,
(in thousands of US$, except per ounce amounts) 2023 2022
Total cash costs 93,025 40,871
General and administrative expenses 18,768 8,436
Exploration 7,575 7,824
Sustaining capital expenditures 37,728 25,268
Sustaining lease payments 856 854
Interest on lease liabilities (48 ) (23 )
Accretion on closure and reclamation costs 247 232
All-in sustaining costs (1) 158,151 83,463
Silver ounces sold 15,317,765 8,697,372
All-in sustaining cost per silver ounce sold ($/ounce) 10.32 9.60
Average realized price per silver ounce sold ($/ounce) 23.66 21.70
All-in sustaining margin ($/ounce) 13.34 12.10
All-in sustaining margin 204,306 105,259

(1) As Q3 2023 represented the first full quarter of commercial production, information presented for all-in sustaining costs and all-in sustaining margin together with their associated per unit values are not directly comparable.


For the year ended December 31, 2023 the Company incurred corporate general and administrative expenses of $13,242 (year ended December 31, 2022: $12,216), which exclude depreciation expense.

The Company's attributable silver ounces sold for the year ended December 31, 2023 were 6,739,817 (year ended December 31, 2022: 3,826,844), resulting in additional AISC for the Company of $1.96/oz (year ended December 31, 2022: $3.19/oz), in addition to Juanicipio's AISC presented in the above table.

The following table provides a reconciliation of Earnings before interest, tax, depreciation and amortization ("EBITDA") and Adjusted EBITDA attributable to the Company based on its economic interest in Juanicipio to net income (the nearest IFRS measure) of the Company per the 2023 Financial Statements. All adjustments are shown net of estimated income tax.

Year ended December 31,
(in thousands of US$) 2023 2022
Net income after tax 48,659 17,644
Add back (deduct):
Taxes 5,577 371
Depreciation and depletion 352 136
Finance costs (income and expenses) (3,467 ) (264 )
EBITDA (1) 51,121 17,887
Add back (deduct):
Adjustment for non-cash share-based compensation 2,894 3,250
Exploration property write-down - 10,471
Share of net earnings related to Juanicipio (65,099 ) (40,767 )
MAG attributable interest in Junicipio Adjusted EBITDA 108,564 65,403
Adjusted EBITDA (1) 97,480 56,244

(1) As Q3 2023 represents the first full quarter of commercial production, information presented for EBITDA and Adjusted EBITDA is not directly comparable.


The following table provides a reconciliation of free cash flow of Juanicipio to its cash flow from operating activities on a 100% basis (the nearest IFRS measure), as presented in the notes to the 2023 Financial Statements.

Year ended December 31,
(in thousands of US$) 2023 2022
Cash flow from operating activities 145,064 129,261
Less:
Cash flow used in investing activities (83,393 ) (155,758 )
Sustaining lease payments (856 ) (854 )
Juanicipio free cash flow (1) 60,814 (27,351 )

(1) As Q3 2023 represents the first full quarter of commercial production, comparative information presented for free cash flow of Juanicipio is not directly comparable.


Qualified Persons:
All scientific or technical information in this press release including assay results referred to, and mineral resource estimates, if applicable, is based upon information prepared by or under the supervision of, or has been approved by Dr. Peter Megaw, Ph.D., CPG, MAG's Chief Exploration Officer and Gary Methven, P.Eng., Vice President, Technical Services; both are "Qualified Persons" for purposes of National Instrument 43-101, Standards of Disclosure for Mineral Projects .

About MAG Silver Corp.

MAG Silver Corp. is a growth-oriented Canadian exploration company focused on advancing high-grade, district scale precious metals projects in the Americas. MAG is emerging as a top-tier primary silver mining company through its (44%) joint venture interest in the 4,000 tonnes per day Juanicipio Mine, operated by Fresnillo plc (56%). The mine is located in the Fresnillo Silver Trend in Mexico, the world's premier silver mining camp, where in addition to underground mine production and processing of high-grade mineralised material, an expanded exploration program is in place targeting multiple highly prospective targets. MAG is also executing multi-phase exploration programs at the 100% earn-in Deer Trail Project in Utah and the 100% owned Larder Project, located in the historically prolific Abitibi region of Canada.

Neither the Toronto Stock Exchange nor the NYSE American has reviewed or accepted responsibility for the accuracy or adequacy of this press release, which has been prepared by management.

Certain information contained in this release, including any information relating to MAG's future oriented financial information, are "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and United States securities legislation (collectively herein referred as "forward-looking statements"), including the "safe harbour" provisions of provincial securities legislation, the U.S. Private Securities Litigation Reform Act of 1995, Section 21E of the U.S. Securities Exchange Act of 1934, as amended and Section 27A of the U.S. Securities Act. Such forward-looking statements include, but are not limited to:

  • statements that address achieving the nameplate 4,000 tpd milling rate at Juanicipio;
  • statements that address our expectations regarding exploration and drilling;
  • statements regarding production expectations and nameplate;
  • statements regarding the additional information from future drill programs;
  • estimated future exploration and development operations and corresponding expenditures and other expenses for specific operations;
  • the expected capital, sustaining capital and working capital requirements at Juanicipio, including the potential for additional cash calls;
  • expected upside from additional exploration;
  • expected results from Deer Trail Project Phase 3 drilling;
  • expected results from the Larder Project at the Cheminis zone;
  • expected capital requirements and sources of funding; and
  • other future events or developments.

When used in this release, any statements that express or involve discussions with respect to predictions, beliefs, plans, projections, objectives, assumptions or future events of performance (often but not always using words or phrases such as "anticipate", "believe", "estimate", "expect", "intend", "plan", "strategy", "goals", "objectives", "project", "potential" or variations thereof or stating that certain actions, events, or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions), as they relate to the Company or management, are intended to identify forward-looking statements. Such statements reflect the Company's current views with respect to future events and are subject to certain known and unknown risks, uncertainties and assumptions.

Forward-looking statements are necessarily based upon estimates and assumptions, which are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company's control and many of which, regarding future business decisions, are subject to change. Assumptions underlying the Company's expectations regarding forward-looking statements contained in this release include, among others: MAG's ability to carry on its various exploration and development activities including project development timelines, the timely receipt of required approvals and permits, the price of the minerals produced, the costs of operating, exploration and development expenditures, the impact on operations of the Mexican tax and legal regimes, MAG's ability to obtain adequate financing, outbreaks or threat of an outbreak of a virus or other contagions or epidemic disease will be adequately responded to locally, nationally, regionally and internationally.

Although MAG believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements including amongst others: commodities prices; changes in expected mineral production performance; unexpected increases in capital costs or cost overruns; exploitation and exploration results; continued availability of capital and financing; general economic, market or business conditions; risks relating to the Company's business operations; risks relating to the financing of the Company's business operations; risks related to the Company's ability to comply with restrictive covenants and maintain financial covenants pursuant to the terms of the Credit Facility; the expected use of the Credit Facility; risks relating to the development of Juanicipio and the minority interest investment in the same; risks relating to the Company's property titles; risks related to receipt of required regulatory approvals; pandemic risks; supply chain constraints and general costs escalation in the current inflationary environment heightened by the invasion of Ukraine by Russia and the events relating to the Israel-Hamas war; risks relating to the Company's financial and other instruments; operational risk; environmental risk; political risk; currency risk; market risk; capital cost inflation risk; risk relating to construction delays; the risk that data is incomplete or inaccurate; the risks relating to the limitations and assumptions within drilling, engineering and socio-economic studies relied upon in preparing economic assessments and estimates, including the 2017 PEA; as well as those risks more particularly described under the heading "Risk Factors" in the Company's Annual Information Form dated March 27, 2023 available under the Company's profile on SEDAR+ at www.sedarplus.ca .

Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. The Company's forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made and, other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements if circumstances or management's beliefs, expectations or opinions should change. For the reasons set forth above, investors should not attribute undue certainty to or place undue reliance on forward-looking statements.

Please Note: Investors are urged to consider closely the disclosures in MAG's annual and quarterly reports and other public filings, accessible through the Internet at www.sedarplus.ca and www.sec.gov .

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