Re: News Release - Monday, June 16, 2008
Fortuna consolidates concession ownership at San Jose Project,
June 16, 2008: Fortuna Silver Mines Inc. (FVI: TSX-V) is pleased to
announce the acquisition of a 100% interest in the Monte Alban II
mining concession located in the San Jose Project area in Oaxaca,
Mexico. The San Jose Project is being explored and developed under a
joint venture between Fortuna (76%) and Continuum Resources Ltd (24%).
The Monte Alban II concession covers approximately 29,828 hectares and
is located in the central portion of the San Jose Project area. Upon
signing of the purchase agreement, title to the Monte Alban II
concession was transferred to the joint venture operating company,
Compania Minera Cuzcatlan S.A. de C.V., in exchange for payments by
Cuzcatlan of US$1.9 million, of which US$1.1 million was paid upon
signing of the agreement and US$800,000 is to be paid within four years
from the date of signing of the agreement.
Exploration to date in the Monte Alban II concession and adjoining
areas held by the joint venture has identified a number of stream
sediment and soil geochemical anomalies warranting detailed
investigation. Follow-up mapping and sampling in the San Jacinto, San
Dionisio and Praxedis areas has identified outcropping low sulfidation
vein systems occurring in association with silicified and altered
dacitic dome complexes. The veins are geochemically anomalous in gold
and silver with channel sample values ranging to 1.5 g/t gold and 529
g/t silver over 0.4m at Praxedis. In the El Rancho area, aerially
extensive limestone-replacement jasperoids are present with strongly
anomalous gold-in-soil values ranging to 1165 ppb, silver-in-soil
values ranging to 29.9 ppm and arsenic-in-soil values ranging to
greater than 10000 ppm. Detailed mapping and sampling is on-going in
these areas to define specific drill targets.
Maps on the Monte Alban II concession will be posted on our website at
Quality Assurance & Quality Control
Stream sediment, soil and rock samples are submitted to the ALS Chemex
facility in Guadalajara, Mexico for preparation and subsequently to ALS
Chemex in Vancouver for analysis by standard analytical methods. The
QA-QC program at San Jose includes the blind insertion of certified
reference standards and assay blanks to monitor the integrity of the
Mr. Gregory Smith, P.Geo., is the Company's Qualified Person as defined
by National Instrument 43-101 and is responsible for the accuracy of
the technical information in this news release.
Fortuna Silver 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 Project in Mexico. The Company is aggressively pursuing
additional acquisition opportunities. For more information, please
visit our website at www.fortunasilver.com.
The TSX Venture Exchange has not reviewed and does not take
responsibility for the adequacy or accuracy of this release.
ON BEHALF OF THE BOARD
Jorge Ganoza, President
Fortuna Silver Mines Inc.
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