Fortuna discovers new Kingfisher prospect at Séguéla Mine and provides exploration update at the Diamba Sud Gold Project

VANCOUVER, British Columbia, March 11, 2024 (GLOBE NEWSWIRE) — Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) is pleased to provide an update on its exploration programs at the Séguéla Mine in Côte d’Ivoire and the recently acquired Diamba Sud Gold Project in Senegal.

Paul Weedon, Senior Vice President of Exploration at Fortuna, commented, “Emphasizing the exploration potential at Séguéla, the team has continued their impressive run-rate of discoveries with the new Kingfisher prospect. This follows the Barana, Badior and Kestrel discoveries made during 2022 and 2023.” Mr. Weedon continued, “In addition to the exploration success at Kingfisher, drilling for Koula underground mining potential has resulted in several high-grade intersections. This includes 68.0 g/t Au over an estimated true width of 2.1 meters in SGRD1783, as part of a larger interval of 22.5 g/t Au over an estimated true width of 9.8 meters, highlighting the opportunity for underground mining.”

Commenting on the successful drilling at the Diamba Sud Gold Project, Mr. Weedon noted, “With the initial campaign of confirmatory drilling wrapping up at Area A and Area D, exploration focus is progressing towards testing the satellite opportunities. Early success at the Moungoundi, Western Splay, and Kassasoko satellite prospects highlight the potential of Diamba Sud.” Mr. Weedon continued, “In addition to improving the confidence at Area A, Area D, and Karakara, drilling intersected several mineralized zones extending beyond the historic pit optimization shells. These extensions will be incorporated into a resource model to be prepared later in 2024.”

Exploration program highlights

Séguéla Mine, Côte d’Ivoire
Kingfisher prospect

Koula deposit

Diamba Sud Gold Project, Senegal

Area A

Séguéla Mine, Côte d’Ivoire 
Kingfisher prospect

A 2,040-meter, 20-hole program was completed at the newly discovered Kingfisher prospect identifying three lodes along a 1.9-kilometer strike, all of which remain open along strike and at depth (refer to Figures 1 and 2). Results include drill hole SGRC1762 intersecting 2.9 g/t Au over an estimated true width of 19.6 meters from 106 meters downhole, and drill hole SGRC1763 intersecting 2.9 g/t Au over an estimated true width of 16.1 meters from 136 meters downhole.

The Kingfisher prospect is hosted in a set of quartz veins along a moderately sheared contact between a series of basalt-dolerite units which also hosts the Boulder and Agouti deposits, one and three kilometers, respectively, to the north, with a steep easterly dip consistent with the majority of other deposits at Séguéla.

Additional drilling at Kingfisher is scheduled in the second quarter of 2024 to further test its strike and depth potential.

Figure 1: Kingfisher prospect location; approximately one kilometer east of the Sunbird deposit

Figure 2: Kingfisher prospect long section (looking west)

Koula deposit

A 3,106-meter, 12-hole program was completed at the Koula deposit in December 2023 (refer to Figure 3). As part of the support for potential underground mining, the program was designed to infill and further improve the understanding of the structural controls on the central and hanging wall high-grade lodes. Results such as 22.5 g/t Au over an estimated true width of 9.8 meters from 208 meters downhole, including 68.0 g/t Au over an estimated true width of 2.1 meters from 215 meters downhole in drillhole SGRD1783, highlight the potential of Koula. Drilling continues to expand Koula’s underground potential and the further delineation of the hanging wall lodes.

Figure 3: Koula deposit long-section showing select recent results (looking west)

Refer to Appendix 1 for full details of the Séguéla drill holes and assay results.

Diamba Sud Gold Project, Senegal

The Diamba Sud Gold Project’s initial 10,945-meter, three-drill rig drilling program, started on October 8, 2023 (refer to Fortuna news release dated December 12, 2023) and was extended into the 2024 budget of $9.2 million which consists of a 42,700 meter RC and diamond drilling campaign. The current program has seen the completion of 181 drill holes totaling 23,170 meters since December 2023.

The objectives of the 2024 drilling program are to:

• Conduct selected confirmatory drilling to improve resource confidence at Area A, Area D, and Karakara (refer to Figure 4)
• Drill to test for extensions to the existing historic resource in support of project development and advancing further economic studies
• Advance prospective areas such as Moungoundi, Kassasoko, Western Splay, Area A North, and others (refer to Figure 4)
• Improve understanding of key geological controls including controlling structures, favorable lithologies, alteration, and secondary enrichment zones

Figure 4: Location plan of the Diamba Sud Gold Project

Drilling continues at Diamba Sud focusing on growing the project’s historic resource base through testing satellite areas and other anomalies with limited previous drilling. In addition, drilling is continuing to delineate extensions to high-grade lodes extending beyond the historic pit optimization shells at Area A, Area D, and Karakara.

Highlights of recent drilling at Area A and Area D include several areas where mineralization has extended beyond the historic pit optimization shells. Further drilling is planned to determine the full extent of the mineralization and the relationship with key structures and lithologies. In addition, infill drilling to support resource confidence has intersected several broad zones of mineralization in areas of previous low confidence, as demonstrated by drill hole DSDD176 at Area D intersecting the following estimated true width intervals (refer to Figure 5):

• 1.0 g/t Au over 15.2 meters from 10 meters, and
• 4.4 g/t Au over 15.6 meters from 36 meters, and
• 1.0 g/t Au over 10.2 meters from 81 meters, and
• 1.6 g/t Au over 8.6 meters from 111 meters

Figure 5: Area D cross-section showing select recent results (looking north)

Early-stage drilling returned encouraging results from Moungoundi, located approximately two to four kilometers south of Karakara (refer to Figure 4). Hosted in a shear zone traversing a sediment/granite contact, Moungoundi remains open at depth where additional follow up drilling is planned in the second quarter of 2024. Results include 2.1 g/t Au over an estimated true width of 20.3 meters from 31 meters in drill hole DSR551, and 5.4 g/t Au over an estimated true width of 6.8 meters from 88 meters in drill hole DSR558 (refer to Figure 6).

Figure 6: Moungoundi cross-section showing select recent results (looking north)

Encouraging results were also received from first pass drilling at Kassasoko, with highlights including 1.0 g/t Au over an estimated true width of 18.75 meters from 29 meters in drill hole DSR613 and 1.5 g/t Au over an estimated true width of 11.25 meters in drill hole DSR604. Similar results were also returned from first pass drilling at Western Splay, including 2.1 g/t Au over an estimated true width of 13.5 meters from drill hole DSR584, and 7.4 g/t Au over an estimated true width of 7.5 meters from drill hole DSR598.

Refer to Appendix 2 for full details of the Diamba Sud Gold Project drill holes and assay results.

Quality Assurance & Quality Control (QA – QC)

Séguéla Mine, Côte d’Ivoire and Diamba Sud Gold Project, Senegal

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 reverse circulation (RC) drilling 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 percent representative sample for submission to the analytical laboratory. The residual 87.5 percent samples 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 diamond drilling (DD) drill holes at Séguéla were drilled with HQ sized diamond drill bits, whereas DD holes at Diamba Sud started with HQ sized diameter before reducing to NQ diameter diamond drill bits on intersecting fresh rock. 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 project site. 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 and then, via commercial courier, to ALS’s facility in Ouagadougou, Burkina Faso for finishing. All Diamba Sud RC and DD samples were transported to ALS’s preparation laboratory in Kedougou, Senegal before also being transported via commercial courier, to ALS’s facility in Ouagadougou. Routine gold analysis using a 50-gram charge and fire assay with an atomic absorption finish was completed for all 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 Standards of Disclosure for Mineral Projects 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, including 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 five operating mines in Argentina, Burkina Faso, Côte d’Ivoire, Mexico, and Peru. 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 | www.fortunasilver.com | X | LinkedIn | YouTube

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 include, without limitation, statements regarding the exploration potential at Séguéla and the potential for underground mining operations at Koula; planned additional drilling during the second quarter of 2024 to further test the strike and depth potential at Kingfisher; statements relating to the potential of the Diamba Sud Gold Project based on the early success at Moungoundi, Western Splay and Kassasoko; the exploration budget at the Diamba Sud Gold Project and the objectives of the program; statements relating to growing the resource base at the Diamba Sud Gold Project and that encouraging results having been returned from Moungoundi and Kassasoko; the Company’s objectives for the current drilling program at the Diamba Sud Gold Project and expectations regarding additional drilling programs budgeted for 2024; 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; changes in prices for silver, gold and other metals; the timing and success of the Company’s proposed exploration programs; technological and operational hazards in Fortuna’s mining and mine development activities; risks inherent in mineral exploration; fluctuations in prices for energy, labor, materials, supplies and services; fluctuations in currencies; uncertainties inherent in the estimation of mineral reserves, mineral resources, and metal recoveries; the possibility that the appeal in respect of the ruling in favor of Compañia Minera Cuzcatlan S.A. de C.V. reinstating the environmental impact authorization (the “EIA”) at the San Jose Mine will be successful; the Company’s ability to obtain all necessary permits, licenses and regulatory approvals in a timely manner; 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 for the financial year ended December 31, 2022. 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 the results from the exploration programs conducted at the Séguéla Mine, and the Diamba Sud Gold Project; expected trends in mineral prices and currency exchange rates; the accuracy of the Company’s information derived from its exploration programs at the Company’s mineral properties; current mineral resource and reserve estimates; the presence and continuity of mineralization at the Company’s properties; that the Company’s activities will be in accordance with the Company’s public statements and stated goals; that the appeal filed in the Mexican Collegiate Court challenging the reinstatement of the EIA will be unsuccessful; that there will be no material adverse change affecting the Company or its properties; that all required approvals will be obtained; 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.

Cautionary Note to United States Investors Concerning Estimates of Reserves and Resources

Reserve and resource estimates included in this news release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards on Mineral Resources and Mineral Reserves. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for public disclosure by a Canadian company of scientific and technical information concerning mineral projects. Unless otherwise indicated, all mineral reserve and mineral resource estimates contained in the technical disclosure have been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards on Mineral Resources and Reserves. Canadian standards, including NI 43-101, differ significantly from the requirements of the Securities and Exchange Commission, and mineral reserve and resource information included in this news release may not be comparable to similar information disclosed by U.S. companies.

Appendix 1: Séguéla Mine, Côte d’Ivoire

Notes:

1. EOH: End of hole
2. NSI: No significant intercepts
3. ETW: Estimated true width
4. Depths and widths reported to nearest significant decimal place
5. RC: reverse circulation drilling | RCD: reverse circulation drilling with diamond tail

Appendix 2: Diamba Sud Gold Project, Senegal

Notes:

1. EOH – End of hole
2. NSI: No significant intercepts
3. ETW: Estimated true width
4. Depths and widths reported to nearest significant figure
5. DD: Diamond drilling tail | RC: reverse circulation drilling | RCD: reverse circulation drilling with diamond tail
6. SDD151 – 17 to 21m intercept includes 0.5m core loss from 18.5m taken as zero value                                                
7. DSDD152 – 20 to 44m intercept includes 0.7m core loss from 42.3m taken as zero value                                        
8. DSDD154 – 14 to 39m intercept includes 0.7m core loss from 16m taken as zero value                                         
9. DSDD158 – 4 to 48m intercept includes 1.5m core loss from 7m, 1m core loss from 8m, 1m core loss from 14m, 1m core loss from 18m, 0.4m core loss from 27.6m and 1m core loss from 30m, all taken as zero value                        
10. DSDD160 – 17 to 21m intercept includes 1m core loss from 18m taken as zero value                                        
11. DSDD160 – 26 to 36m intercept includes 1m core loss from 33m taken as zero value                                                
12. DSDD161 – 3 to 27m intercept includes 0.5m core loss from 3.5m, 0.5m core loss from 12.5m, 1m core loss from 15m and 0.5m core loss from 24.5m, all taken as zero value        
13. DSDD161 – 31 to 38m intercept includes 0.5m core loss from 33.5m taken as zero value                                        
14. DSDD163 – 7 to 47m intercept includes 1m core loss from 22m taken as zero value                                                
15. DSDD166 – 16 to 43m intercept includes 1m core loss from 17m taken as zero value                                                
16. DSDD170 – 49 to 93m intercept includes 1.3m core loss from 63m, 1m core loss from 67m, 1.7m core loss from 68m and 1m core loss from 73m, all taken as zero value        
17. DSDD173 – 8 to 64m intercept includes 1.5m core loss from 61m taken as zero value                                                
18. DSDD176 – 36 to 55.5m intercept includes 1m core loss from 48m and 2m core loss from 51m, all taken as zero value                        
19. DSDD176 – 81 to 93.8m intercept includes 2.2m core loss from 82m, 1.5m core loss from 86.5m and 2.8m core loss from 89.6m, all taken as zero value                
20. DSDD177 – 26 to 89m intercept includes 1m core loss from 30m, 1m core loss from 39m, 1m core loss from 41m and 1m core loss from 61m, all taken as zero value        
21. DSDD179 – 31 to 46m intercept includes 1m core loss from 40m taken as zero value
22. DSDD180 – 12 to 44m intercept includes 1m core loss from 39m taken as zero value
23. DSDD183 – 21 to 29m intercept includes 0.7m core loss from 22m taken as zero value                
24. DSDD186 – 54 to 70m intercept includes 1m core loss from 57m and 1m core loss from 61m, all taken as zero value                        
25. DSDD191 – 47 to 54.1m intercept includes 3m core loss from 50m taken as zero value                                                
26. DSDD192 – 47 to 61m intercept includes 1m core loss from 56m taken as zero value                                                                                                

Photos accompanying this announcement are available at: 

https://www.globenewswire.com/NewsRoom/AttachmentNg/68cee30d-7327-4fcd-b096-79d66647a77c

https://www.globenewswire.com/NewsRoom/AttachmentNg/9ebdb0c3-8267-4240-9e02-5ecaf8622821

https://www.globenewswire.com/NewsRoom/AttachmentNg/73fd7cf9-be4d-49a5-9b51-963f42fe280d

https://www.globenewswire.com/NewsRoom/AttachmentNg/055bd923-0364-43ee-9623-6c1dc98845be

https://www.globenewswire.com/NewsRoom/AttachmentNg/153f49f0-e8c2-4224-8820-62047c71e68f

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