Fortuna Silver bumps reserve estimates by 22%
Fortuna Silver (NYSE:FSM), a Latin American-focused miner, has upped reserve and resource estimates by 22% at its San Jose mine in Oaxaca, Mexico.
"Proven and Probable Reserves total 3.9 Mt containing an estimated 24.8 Moz silver and 215.1 koz gold, reflecting increases of 22 percent in contained silver ounces and 27 percent in contained gold ounces relative to the Dec. 31, 2012 reserve estimate," the company wrote in a news release on Thursday.
With the expansion of the processing plant capacity last month, San Jose is on track to meet its annual production target of 2.4 million ounces of silver and 20,900 ounces of gold for this year.
The mine life is estimated at just over six years.
In the company's third-quarter results released earlier this week, Fortuna reported an 8% increase in silver production over Q3 2012.
Gold production was down by 16% in the same period.
Fortuna also operates the Caylloma zinc, lead and silver mine in southern Peru.
The company jumped nearly 12% on the New York exchange on Thursday, trading at $3.60 per share.