Minera Cuzcatlán Delivers Solid Production Results

Minera Cuzcatlán's San José mine reported its highest quarter of silver production so far in 2022. The company’s owner, Fortuna Silver Mines, said that considering the results, the mine may easily meet its 2022 annual production guidance. In addition, production in San José might be higher in the coming years as there is much potential to expand resources in several key areas of the project.

In a press release, Fortuna reported that its Latin American assets had a solid quarter of production. Overall, consolidated gold production for 3Q22 was 66,344oz, showing a 6.9 percent increase compared to the same period in 2021. Meanwhile, silver production totaled 1,837,506oz, an increase of 7.3 percent year-over-year. The increase in silver production was mainly due to the higher tonnage achieved at the San José Mine.

In 3Q22, the San José mine produced 1.55Moz of silver and 9,091oz of gold, which are 7.6 percent and 2 percent higher than 3Q21 production, respectively. In addition, the company reported that in the first nine months of the year, production at the San José mine totaled 4.29Moz of gold and 25,625Moz of silver. The company said that since the 2022 production forecast for San José is between 5.2Moz and 5.8Moz of silver and from 32,000oz to 36,000oz of gold, current results highlight this will be easy to achieve.

Previously, Fortuna highlighted that the San José mine has a high potential for discovery and expansion. The company currently seeks to explore the shallow and deep zones of the Trinidad mineralized system and test the potential for additional resources in the Victoria mineralized zone. In addition, the company highlighted that San José East, San Jerónimo Taviche, La Chigalla, Güilá and Far South also have high exploration potential.

“There is still a big number of unexplored opportunities around the mine. This is a virgin area in terms of mining exploration. We are looking to open up a platform of communications with the neighboring communities of those unexplored areas to evaluate our exploration strategies. If these turn out to be successful, it would further increase the lifespan of the mine,” Luiz Camargo, Country Head, Compañía Minera Cuzcatlán, told MBN in 2021.

Fortuna Silver Mines is a Canadian gold and silver producer. It is one of the most important silver producers in Mexico. According to the company, its San Jose Mine is the largest employer in the area where it operates, providing work for over 500 people in San Jose del Progreso, Oaxaca.

Earlier in 2022, Minera Cuzcatlán faced legal challenges when the Mexican Ministry of the Environment and Natural Resources (SEMARNAT) made a typo in the company’s Environmental Impact Assessment (EIA). This reduced the time the company can develop its activities, dropping from a 12 years extension to only two years added. Since the company said it had all its documentation in order, it expects the issue to be resolved. Nevertheless, at the time of writing, the environmental ministry appeared to have not yet addressed the issue.