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Fortuna resumes mining in Mexico

Fortuna Silver Mines (NYSE: FSM) says it’s resumed production at its San Jose mine in Mexico.
Fortuna resumes mining in Mexico Fortuna resumes mining in Mexico Fortuna resumes mining in Mexico Fortuna resumes mining in Mexico Fortuna resumes mining in Mexico

Fortuna Silver Mines says San Jose in Mexico is back at nameplate capacity

Staff reporter

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The country had suspended mining on March 31 to April 30, as part of measures to prevent the spread of COVID-19.

The period was extended to May 30, with the possibility of restrictions being lifted after May 18 subject to approval.

Fortuna said it had been granted approval to restart San Jose on May 25 and production had resumed at nameplate capacity of 3,000 tonnes per day.

The company's Caylloma mine in Peru had resumed mining with a reduced workforce on May 2, Fortuna said earlier this month.

It said Caylloma had continued to operate, in compliance with Peru's regulatory framework, using essential personnel and drawing from coarse ore stockpiles after the country had introduced COVID-19 restrictions on March 15.

San Jose had produced 1.57 million ounces of silver and 9,630oz of gold in the March quarter.

Caylloma produced 249,111oz of silver, 7.7 million pounds of lead and 11.8Mlb of zinc for the quarter.

Fortuna is also aiming to finalise construction at its over-budget Lindero gold project in Argentina.

It raised US$69 million this month in a placement at $3 per share, with the over-allotment option exercised in full, to fund preproduction capex and for general working capital.

Fortuna shares were within 15c of a one-year high of $4.60 a week ago, three times higher than a March low of $1.48.

They closed down 5.5% yesterday to $3.97, to capitalise it about $730 million.