Fortuna Silver (FVI.TO, FSM) has completed 23 more step-out drill holes at the Trinidad North zone which is a part of the company’s San Jose mine which will be expanded to 3,000 tonnes per day and this expansion should be commissioned in the summer of 2016. By continuing to encounter mineralization (at an excellent average grade) there’s no doubt Fortuna Silver will be able to process ore at a rate of 3,000 tonnes per day or higher.
The average grade is also excellent with for instance 426 g/t silver and 2.62 g/t gold over 18 meters and in excess of 300 g/t over several shorter (1-4 meter) intercepts. That compares very favorable with the 2015 mine plan which calls for an average grade of 214 g/t silver and 1.66 g/t gold.
Fortuna will now continue to drill-test the strike extension at Trinidad this year and this could lead to a major resource update with more ounces at a higher average grade. At this point in time, Fortuna Silver remains one of the best silver producers in the world and the company should remain profitable even at the current low silver price. Fortuna will report its financial for 2014 in March and we will have a closer look at those financial statements.
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