Fortuna Silver Anticipates Closure of San Jose Mine

Canada-based Fortuna Silver Mines announced the early closure of its San Jose mine in Oaxaca, ceasing operations this year, six months ahead of schedule. This decision comes as a result of rising costs and depleted reserves at the mine.

Fortuna Silver reported a loss of US$92.3 million in 4Q23, which included a US$90.6 million impairment charge related to the anticipated closure of the San Jose operation, as well as a US$6.4 million severance provision associated with the scheduled closure of the San Jose mine. 

The company said the updated mine plan is scheduled to exhaust its mineral reserves by the end of the year compared to mid-2025, as previously planned. “At San Jose, our exploration continues pursuing the discovery of new resources with the aim of extending production beyond 2024,” said Jorge Ganoza, CEO, Fortuna Silver Mines, referring to the ongoing campaign at the Yessi vein. 

Ganoza said the company will focus its exploration efforts this year on the Diamba Sud gold project in Senegal and the Seguela gold mine in Côte d’Ivoire. “All our mines met or improved site AISC guidance for the year with the only exception being the San Jose mine, which is operating on the tail end of reserves and had to contend with an illegal blockade at the beginning of the year,” he added.