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Fortuna Silver Mines Inc.: Fortuna Reports Commercial Concentrate Grades of 135 g/t Gold and 17,130 g/t Silver, and 88% Recover

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  Published in Business and Finance on Thursday, January 15th 2009 at 8:55 GMT, Last Modified on 2009-01-15 08:56:09 by Market Wire
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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 15, 2009) - Fortuna Silver Mines Inc. (TSX VENTURE:FVI)(BVLAC:FVI) is pleased to report positive metallurgical test results for the San Jose silver-gold project located in Oaxaca, Mexico. A program of comprehensive metallurgical testing conducted by Metcon Research, of Tucson Arizona, has been in progress since October 2008. Main open flotation circuit or batch flotation tests have been concluded on multiple samples for two types of sulfides mineralization in the Trinidad area, which hosts the San Jose resource. Highlights of the open circuit test results include:

- Open circuit flotation tests using water from a potential water source for the project returned recoveries of 88% for both silver and gold.

- Open circuit flotation tests produced high grade commercial concentrates with 99 g/t gold and 12,306 g/t silver.

- Regrind of rougher concentrate increases concentrate grades to 135 g/t gold and 17,130 g/t silver.

- The above mentioned results were obtained with a standard grind size of 80% passing 74 microns. Additional tests are being carried out at coarser grind sizes of 105 and 149 microns.

- It is estimated that closed circuit flotation tests will improve metal recovery. Final results are scheduled for mid February.

Mr. Jorge Ganoza, CEO of the Company, commented, "We are extremely pleased with metallurgical results to date. It is clear that we can produce a high grade silver-gold concentrate for sale using standard grind and flotation processes and technology. We plan to have a final flow sheet design along with equipment selection by the end of first quarter."

Metallurgical tests have been conducted by Metcon Research, of Tucson Arizona, on sulfide mineralization samples, taken from drill core and core sample rejects, for various lithologies of the deposit including; hydrothermal breccia, bonanza vein, Trinidad vein, Paloma vein. Open circuit tests consisted of simple grinding to P 80% - 74 microns, rougher flotation, followed by regrind of rougher concentrate and two staged flotation cleaning. The only mineral depressant applied is neutral sodium silicate with standard flotation collectors. The process is free from the use of lime or cyanide.

The San Jose Project is being explored and developed under a joint venture between Fortuna (76%) and Continuum Resources Ltd. (24%). In August 2008, Fortuna and Continuum announced an agreement whereby Fortuna will acquire all of the issued and outstanding securities of Continuum (see Fortuna's news release dated August 14, 2008). As a result of the acquisition, Fortuna will own a 100% interest in the San Jose Project.

Qualified Person

Mr. Miroslav Kalinaj, P. Geo., is the Company's Qualified Person as defined by National Instrument 43-101 and is responsible for the accuracy of the technical information in this news release.

Fortuna Silver Mines Inc.

Fortuna is a growth oriented, silver and base metal producer focused on mining opportunities in Latin America. Our primary assets are the Caylloma Silver Mine in southern Peru and the San Jose Silver-Gold Project in Mexico. The Company is selectively pursuing additional acquisition opportunities. For more information, please visit our website at [ www.fortunasilver.com ].

ON BEHALF OF THE BOARD

Jorge Ganoza, President, CEO and Director

Fortuna Silver Mines Inc.

Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.