June 16, 2008
Fortuna Consolidates Concession Ownership at San Jose Project, Mexico
Fortuna Silver Mines Inc. (TSX VENTURE: FVI) is pleased to announce the acquisition of a 100% interest in the Monte Alban II mining concession located in the San Jose Project area in Oaxaca, Mexico. The San Jose Project is being explored and developed under a joint venture between Fortuna (76%) and Continuum Resources Ltd. (24%).
The Monte Alban II concession covers approximately 29,828 hectares and is located in the central portion of the San Jose Project area. Upon signing of the purchase agreement, title to the Monte Alban II concession was transferred to the joint venture operating company, Compania Minera Cuzcatlan S.A. de C.V., in exchange for payments by Cuzcatlan of US$1.9 million, of which US$1.1 million was paid upon signing of the agreement and US$800,000 is to be paid within four years from the date of signing of the agreement.
Exploration to date in the Monte Alban II concession and adjoining areas held by the joint venture has identified a number of stream sediment and soil geochemical anomalies warranting detailed investigation. Follow-up mapping and sampling in the San Jacinto, San Dionisio and Praxedis areas has identified outcropping low sulfidation vein systems occurring in association with silicified and altered dacitic dome complexes. The veins are geochemically anomalous in gold and silver with channel sample values ranging to 1.5 g/t gold and 529 g/t silver over 0.4m at Praxedis. In the El Rancho area, aerially extensive limestone-replacement jasperoids are present with strongly anomalous gold-in-soil values ranging to 1165 ppb, silver-in-soil values ranging to 29.9 ppm and arsenic-in-soil values ranging to greater than 10000 ppm. Detailed mapping and sampling is on-going in these areas to define specific drill targets.
Maps on the Monte Alban II concession will be posted on our website at www.fortunasilver.com.
Quality Assurance & Quality Control
Stream sediment, soil and rock samples are submitted to the ALS Chemex facility in Guadalajara, Mexico for preparation and subsequently to ALS Chemex in Vancouver for analysis by standard analytical methods. The QA-QC program at San Jose includes the blind insertion of certified reference standards and assay blanks to monitor the integrity of the assay results.
Mr. Gregory Smith, 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 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 aggressively pursuing additional acquisition opportunities. For more information, please visit our website at www.fortunasilver.com.
ON BEHALF OF THE BOARD
Jorge Ganoza, President
Fortuna Silver Mines Inc.
The TSX Venture Exchange has not reviewed and does not take responsibility for the adequacy or accuracy of this release.
Contacts: Fortuna Silver Mines Inc. Erin Ostrom Investor Relations: Vancouver office (604) 484-4085 (604) 484-4029 (FAX) Fortuna Silver Mines Inc. Carlos Baca Investor Relations: Lima office (511) 616-6060 Email: [email protected] Website: www.fortunasilver.com
SOURCE: Fortuna Silver Mines Inc.