Fortuna Silver Mines Inc. TICKER: TSX:FVI; Lima Exchange:FVI DESCRIPTION: Fortuna is a growth-oriented, silver and base metal producer focused on mining opportunities in Latin America. The company owns a producing mine, a project in the advanced-development stage and has a strong cash position. Fortuna's primary assets are the 100%-owned Caylloma silver/lead/zinc mine in Peru and the 100%-owned San Jose silver/gold project in southern Mexico. The company is selectively pursuing additional acquisition opportunities.
"FVI provided an update on construction activities at its 100%-owned San Jose project located in Oaxaca, Mexico. . .Development remains on schedule and on budget, and fully funded with $74M cash on hand. Recent developments include the upgrading of the water treatment plant (77% complete), installation of a 15 km water pipeline (30% complete), construction of an electric power substation (16% complete) and detailed engineering for the tailings dam (95% complete) with groundbreaking slated for this week. . .These developments support BMO Research's expectation that FVI will accelerate production ramp-up at the mine, reaching 1.5k tpd by mid-2014, 18 months earlier than the timeline outlined in the PFS. At these rates, BMO Research forecasts FVI's silver eq. production to increase to 8.2 Moz. by 2013E (+77%)."
GoldAlert (07/20/10)
"While most large-cap silver stocks have underperformed. . .Fortuna Silver shares have surged 104.9% since July 20, 2009. This afternoon, the Canadian-based silver miner released an update on construction activities at its 100%-owned San Jose silver/gold project in Oaxaca, Mexico. . .is proceeding on schedule and within budget for completion and commissioning of the mine in Q311. . .San Jose is expected to operate at a rate of 1,500 tpd, and will produce 5M silver eq. oz. on an annual basis at a cash cost of $6.20/oz."
Canaccord Capital, Morning Coffee
(07/22/10)
"Unlike the Sharks in the playoffs, Tuna's San Jose is looking good. Fortuna Silver provided a development update on its 100%-owned San Jose silver-gold project in Mexico. Canaccord Genuity Mining Analyst Nicholas Campbell highlights that the San Jose project remains on track and on budget to begin production in H211. Fortuna has completed 77% of the upgrade to the water treatment plant, 30% of the water pipeline installation and 95% of the engineering for the tailings dam. These projects are expected to be completed in H210. The electric power substation is 16% advanced and is expected to be completed by February 2011. Campbell also noted that the company has restarted development of the face of the decline with mine development in preparation for a 1,500 tpd mining rate."
Haytham Hodaly, Salman Partners Inc.
(07/21/10)
"Yesterday, Fortuna provided an update on the construction progress at its San Jose silver/gold project in Mexico. Construction activities at the project remain on schedule and in line with the budget for completion and commissioning in Q311. With roughly US$74M available in funds, as well as future cash flows from Caylloma, the company has sufficient cash available to develop the San Jose project and continue with further exploration activity at both San Jose and Caylloma. We conservatively forecast that the San Jose operation will reach commercial production in 2012 (producing ~1.4 Moz. silver and ~13,000 oz. gold that year), at which time our total silver production estimate for the company is expected to jump to over 3 Moz. . .We reiterate our BUY recommendation with a 12-month target price of CAD$3.10/share."
Wayne Hewgill, PI Financial Corp.
(07/21/10)
"The San Jose mine is planned for completion and commissioning at a rate of 1,000 tons per day (tpd) in the Q311. At full production, the mine is planned to operate at a rate of 1,500 tpd and produce 5 Moz. silver eq., boosting the company's annual silver eq. to 7 Moz. Fortuna is well on its way to developing water and power resources for the mill facility. With US$74M in the bank and the US$20M credit facility, the company is fully funded to construct the San Jose mine. We are upgrading our recommendation to BUY from NEUTRAL while maintaining our 12-month target price of $2.45, with a SPECULATIVE risk rating."
Fortuna Silver Mines Inc. 
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