Silver Production Down 25% at Fortuna’s San Jose Mine in 3Q24

Fortuna Mining reported the production of 110,820oz AuEq during 3Q24, down from the 128,671oz in 3Q23 and 116,570oz in 2Q24. The company’s San Jose mine also reported a 25% decrease in silver production and a 28% decrease in gold production.

Fortuna Mining reported gold production of 91,251oz during 3Q24, slightly lower than the 94,821oz produced in the same period last year and 92,716oz in 2Q24.

Silver production in 3Q24 amounted to 816,187oz, down from 1,680,751oz in 3Q23 and 990,574oz in 2Q24. Zinc and lead production reached 12.8Mlb and 10Mlb, respectively, compared to 14Mlb of zinc and 10.3Mlb of lead in 3Q23.

Fortuna Mining also provided an update on its largest capital project for 2024, the Lindero leach pad expansion in Argentina. As of the end of September, 76% of the US$41.7 million project had been completed, and first ore is expected to be placed on the new leach pad in late October.

The company’s consolidated gold production for the nine months ending in 3Q24 totaled 273,645oz, while silver production reached 2.9Moz. The total AuEq production for this period was 339,933oz, which includes lead and zinc by-products. Fortuna reaffirmed its annual production guidance for 2024, expecting between 457,000oz and 497,000oz AuEq.

Mexican Operations

The San Jose Mine in Oaxaca, one of the company's key operations, produced 510,741oz of silver and 3,771oz of gold during 3Q24, with average head grades of 99g/t of silver and 0.74g/t gold. This marked a decrease of 25% in silver and 28% in gold production compared to 2Q24. The processing plant milled 188,212t during 3Q24, averaging 2,163t/d. According to Fortuna Mining, metallurgical recoveries were impacted by the higher iron oxide content from the upper levels of the mine.

The company reported the San Jose Mine operates near the end of its reserves, and geologic uncertainty has affected production. During 3Q24, production from areas near old workings, which accounted for 46% of the quarter’s planned production, resulted in 36% lower head grades and 28% lower tonnage than anticipated.

Exploration of the Yessi vein was completed during the quarter, and the company is evaluating its economic potential alongside resources from the Victoria vein. With the mine’s reserves expected to be depleted by the end of 2024, Fortuna Mining’s management is assessing options for continued operations, care and maintenance, or a progressive closure plan. The San Jose Mine has produced 1.95Moz of silver and 13,573oz of gold as of 3Q24.