TORONTO (miningweekly.com) – Vancouver-based Fortuna Silver produced 384 339 oz of silver in the first three months of this year, a record for the company and an increase of 174% from the same period a year earlier.

Fortuna also produced 6,9-million pounds of zinc and 5,8-million pounds of lead during the first quarter, from its Caylloma mine, in Peru.

Zinc and lead output increased 52% and 123% respectively year-on-year, while the silver head grade, of 147,8 g/t, was 98% higher than in the first quarter of 2008.

Fortuna processed 91 449 t of ore during the three months, compared with 70 408 t a year earlier, and 91 025 t in the fourth quarter of 2008.

"Fortuna is moving steadily towards delivering 1,6-million ounces of pure silver for 2009, which should account for approximately 50% of revenue, along with significant by-product lead, zinc and copper,” said CEO Jorge Ganoza.

Management at Caylloma is focusing on the development of the high-grade silver structures while maintaining an optimal production blend, he said.

The firm expects revenue to improve this year with the start-up of the copper circuit, as well as an expansion of the plan at Callyoma, Ganoza added.

Fortuna will also make a construction decision later this year on its San Jose silver-gold project, in Mexico.

Shares in Fortuna, which trades on the TSX Venture Exchange and the Lima Stock Exchange, slid 2,06% on Monday morning, to C$0,95 apiece by 9:49 in Toronto.

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