Name: San Jose mine.

Location: The mine is located in the Taviche mining district, in Oaxaca, Mexico

Mine Owner/s: The mine is operated by Compania Minera Cuzcatlan, a Mexican subsidiary 100 %-owned by Fortuna.

Brief Description: The San Jose property comprises mining concessions, surface rights, a permitted 3 000 t/d flotation plant and connection to the national electric power grid, as well as permits for the infrastructure necessary to sustain mining operations.

Brief History: The earliest recorded activity in the San Jose del Progreso area dates to the 1850s, when the mines were exploited on a small scale by the local hacienda. By the early 1900s, a large number of silver- and gold-bearing deposits were being exploited in the San Jeronimo Taviche and San Pedro Taviche areas. Mining activity in the district diminished drastically with the onset of the Mexican revolution in 1910, resuming sporadically in the 1920s.

Mining in the San Jose area was reactivated on a small scale in the 1960s and again in 1980, when the mine was acquired by Minerales de Oaxaca SA (MIOXSA). The mine operated intermittingly under MIOXSA until the end of 2006, when the property was acquired by Cuzcatlan – a Mexican-registered company then jointly owned by Fortuna and Continuum Resources, with sole ownership transferring to Fortuna in March 2009.

The San Jose mine was commissioned in July 2011 and began commercial production in September 2011. Since then, underground mining has focused on the Bonanza, Trinidad and Stockwork veins.

Primary Metals/Minerals: Silver.

Secondary Metals/Minerals: Gold.

Geology/Mineralisation: The San Jose deposit is a low sulphidation epithermal vein system characterised by mineralised multiphase quartz-carbonate-sulphide veins, hydrothermal breccias and stockwork veining. The mineralised system is hosted within a sequence of Tertiary andesitic volcanic and volcaniclastic rocks.

Reserves: Total proven and probable reserves as at December 31, 2019, were estimated at 3.94-million grading 243 g/t silver and 1.61 g/t silver.

Resources: Total measured and indicated resources as at December 31, 2019, were estimated at 555-million …..(?) grading 105 g/t silver and 0.7 g/t gold. Inferred mineral resources were estimated at 3.89-million tonnes grading 131 g/t silver and 0.96 g/t gold.

Mining Method: Underground – overhand cut-and-fill.

Major Infrastructure and Equipment: The mine has a relatively small surface infrastructure comprising primarily of the concentration plant, electrical power station, water storage facilities, a filtered dry-stack tailings facility, stockpiles and workshop facilities, all connected by unsealed roads.

Additional structures located at the property include offices, a dining hall, laboratory, core logging and storage warehouses. The tailings facility is located about 1 500 m to the south-west of the concentration plant.

Prospects: None stated.

Contact Details:
Fortuna Silver
Tel +1 604 484 4085
Email info@fortunasilver.com
Website https://www.fortunasilver.com