Fortuna assessing Yessi vein at Mexico precious metals mine

Canada’s Fortuna Mining, formerly Fortuna Silver Mines, said the company is assessing the Yessi vein’s economic potential along with the resources at the Victoria vein at its San José mine in Mexico after completing an exploration program at the former during the third quarter.

The mine in Oaxaca state is expected to exhaust its mineral reserves by year-end, Fortuna said in a statement, adding that management is evaluating the options to continue operations, place it on care and maintenance or trigger a progressive closure plan. 

In May, Vancouver-based Fortuna announced it would decide whether to continue operations at San José in Q3, when the miner expected to have a better idea of how significant and profitable the Yessi vein will prove.

However, the future of the mine, operated by subsidiary Minera Cuzcatlán, is still uncertain.

Fortuna’s CEO Jorge Ganoza told BNamericas earlier this year that the company would also want to see a change in the government's attitude toward the industry to remain in Mexico.

However, in August an announcement by Vancouver-based Plata Latina Minerals suggested Fortuna may decide to remain in the country regardless of San José’s future and the government’s approach.

Plata Latina said its subsidiary Plaminco has agreed with Fortuna Mining’s subsidiary to assign it the mining concession for the La Joya silver-gold project in Hidalgo state in return for the right to receive a net smelter return royalty of 2% from the start of commercial production.

Fortuna has yet to confirm this information.

Production declines

In Q3, San Jose produced 510,741oz of silver and 3,771oz of gold, down 25% and 28%, respectively, compared to Q2. The processing plant milled 188,212t, averaging 2,163t/d. 

Higher iron oxide material from the upper levels mined during the period impacted metallurgical recoveries, according to the company.

The mine plan in the second half of the year includes areas with more significant geological uncertainty, the company said in its Q3 results report last week. “In the third quarter, production near old workings in the upper levels of the mine, which accounted for 46% of planned quarterly production, yielded 36% lower head grades and 28% lower tonnage than expected,” the company added.

The fourth quarter mine plan continues to encompass areas of high geological uncertainty, it said.

Fortuna Mining has five operating mines in Argentina, Burkina Faso, Ivory Coast, Mexico and Peru, and the Diamba Sud gold project in Senegal.

Consolidated gold and silver production for the first nine months of 2024 totaled 273,645oz and 2.9Moz, respectively, or 339,933oz of gold equivalent, including lead and zinc byproducts. 

Fortuna reiterated its 2024 annual production guidance range of 457,000-497,000oz of gold equivalent.