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Fortuna discovers extention to Animas Vein at Caylloma Mine, Peru
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May 21, 2008: Fortuna Silver Mines Inc. (FVI: TSX-V) is pleased to
announce the discovery of Ag-Pb-Zn mineralization, with local high
grade gold values, in the Nancy area in the east-central portion of the
Caylloma District, Arequipa, Peru. Nancy is an extension of the Animas
Vein and is approximately 2 kilometers on-strike to the northeast from
the Animas Central area where the bulk of mine production is currently
sourced.
Drilling to-date has demonstrated the presence of high grade
mineralization over a strike length of approximately 250m and for 300m
down-dip. Highlights of the current results include:
- Hole NANS000308: 113 g/t Ag, 92 g/t Au, 3.8% Pb and 3.1% Zn over
2.3m from 161.5m (est. true thickness of 2.3m)
- Hole NANS000508: 99 g/t Ag, 0.13 g/t Au, 6.2% Pb and 4.1% Zn over
15.5m from 92.8m (est. true thickness of 15.0m)
- Hole NANS001007: 189 g/t Ag, 0.44 g/t Au, 10.0% Pb and 12.1% Zn over
7.7m from 96.3m (est. true thickness of 7.7m)
- Hole NANS000207: 166 g/t Ag, 3.49 g/t Au, 0.6% Pb and 0.3% Zn over
4.1m from 64.4m (est. true thickness of 3.2m)
Fortuna operates the 100% owned Caylloma Ag-Pb-Zn Mine at a nominal
rate of 900 tpd. Production in 2007 totaled 250,900 tonnes of ore
resulting in the sale of Pb and Zn concentrates containing 486,465
ounces of silver, 6300 tonnes zinc and 3771 tonnes lead.
Eleven drill holes totaling 2,534.5m have been completed in the Nancy
area. Assay results from the Nancy drill holes are summarized in the
table below. Length-weighted assay averages have been calculated for
the mineralized intervals over a meter using a lower cut-off NSR value
of $45. Estimated true widths of the mineralized intercepts are
indicated in the table in addition to the drill intercept intervals.
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Drill Est.
Inte- True
rval Width Ag Au
HOLE_ID From (m) To (m) (m) (m) g/t g/t Pb % Zn % Cu %
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NANS000106 37.70 41.10 3.40 2.45 181 0.38 0.6 0.8 0.13
NANS000106 55.10 59.60 4.50 3.25 176 1.34 3.5 0.4 0.14
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NANS000207(1) 64.40 68.50 4.10 3.15 166 3.48 0.6 0.3 0.07
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NANS000308(2) 161.50 163.80 2.30 2.30 113 92.00 3.8 3.1 0.07
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NANS000408 161.40 164.20 2.80 2.80 22 0.34 1.0 4.1 0.03
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NANS000508(3) 92.80 108.30 15.50 15.02 99 0.13 6.2 4.1 0.59
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NANS000608 136.15 136.70 0.55 0.55 16 0.56 0.6 3.5 0.03
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NANS001007 96.30 104.00 7.70 7.69 189 0.44 10.0 12.1 0.75
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NANS001207 67.00 69.00 2.00 2.00 136 0.44 0.3 0.1 0.20
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NANS001507A 95.20 96.40 1.20 1.10 310 0.17 9.9 16.9 0.71
NANS001507A 105.50 106.60 1.10 1.01 73 0.73 0.9 5.8 0.61
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NANS001807 170.30 172.50 2.20 0.60 74 0.27 3.3 9.8 0.28
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(1) No core recovery 61.80-64.40 and 65.20-66.20m;
(2) No core recovery 162.5-163.00m;
(3) No core recovery 103.3-104.3m
Mineralization in the Nancy area is of the intermediate-sulfidation
epithermal type and is characterized by the presence of manganese-rich
silicates, quartz, calcite and metallic sulfides containing lead, zinc
and silver. Gold is locally present in high concentrations as
indicated by the intercept in drill hole NANS000308 (2.30m at 113 g/t
Ag, 92 g/t Au, 3.80% Pb and 3.04% Zn). Drilling to-date has
demonstrated the presence of high grade mineralization over a strike
length of approximately 250m and for 300m in a down-dip direction.
Induced polarization geophysics indicates that the zone may extend a
further 500m to the northeast. Drilling is ongoing to test the
extensions of the mineralized zone along strike to the northeast and
southwest as well as down-dip to the southeast.
Mr. Jorge Ganoza, President and CEO commented "The discovery of Nancy,
a new zone of mineralization on the Animas vein, located two kilometers
along strike from our current production area, helps put into
perspective the economic potential of this major structure, which has
been traced and mapped on surface for four kilometers. We are
encouraged by this discovery and look forward to continued exploration
success in this historic mining camp."
Background
The silver and base metal-rich Caylloma District is located in the
highly productive Tertiary volcanic belt of southern Peru. Classic
epithermal-style mineralization is hosted by mid-Tertiary andesitic
volcanic and volcaniclastic rocks overlying a Jurassic-age sedimentary
basement. The Caylloma Mine was purchased by Fortuna Silver in 2005
and returned to production in October of 2006. Exploration activities
are focused on the discovery of high-grade silver and polymetallic
mineralization within the district. Fortuna holds exploration and
mining rights to concessions covering approximately 13,800 hectares in
the Caylloma District.
Quality Assurance and Quality Control
Following detailed geological and geotechnical logging, drill core
samples are split length-wise by diamond sawing. One-half of the core
is submitted to the ALS Chemex sample preparation and analytical
facility in Lima, Peru. 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 base metals by atomic absorption methods utilizing an aqua
regia digestion. Multi-element analyses are also completed for each
sample by ICP methods. The QA-QC program at Caylloma includes the
blind insertion of certified reference standards at a frequency of
approximately 1 per 15 normal samples and the insertion of blank
materials at a frequency of approximately 1 per 20 normal samples. All
sample results reported in this news release correspond to HQ- or
NQ-diameter core.
Qualified Person
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
Fortuna is a growth oriented, silver and base metal producer focused on
mining opportunities in Latin America. Principal assets include 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 & CEO
Fortuna Silver Mines Inc.
Symbol: TSX-V:FVI
Investor Relations:
Vancouver office
Ralph Rushton
Tel: 604-484-4085
Lima office
Carlos Baca
Tel: 511-616-6060
Associated File:
http://www.fortunasilver.com/i/pdf/May21.pdf
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Copyright (c) 2008 FORTUNA SILVER MINES INC. (FVI) All rights
reserved. For more information visit our website at
http://www.fortunasilver.com/ or send mailto:news@goldgroup.com
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