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Fortuna's In-Fill Drilling Confirms High-Grade Mineralization at San Jose Project, Mexico

Posted on: Tuesday, 28 October 2008, 09:00 CDT

Fortuna Silver Mines Inc. (TSX VENTURE: FVI)(BVL: FVI) is pleased to announce high gold and silver grades in results from recent in-fill drilling on the Trinidad Zone of the San Jose silver-gold deposit located in Oaxaca, Mexico. Highlights from the 22 new holes include:

SJO-137 20.90 meters averaging 7.84 g/t Au and 472 g/t Ag

SJO-144 21.25 meters averaging 2.81 g/t Au and 322 g/t Ag

SJO-145 15.95 meters averaging 4.09 g/t Au and 485 g/t Ag

SJO-147 7.00 meters averaging 8.29 g/t Au and 693 g/t Ag

SJO-139 9.85 meters averaging 2.67 g/t Au and 290 g/t Ag

SJO-143 7.15 meters averaging 8.06 g/t Au and 546 g/t Ag

The 33,000 meter in-fill drill program was initiated in June of 2008 and is designed to convert a significant portion of the resources in the upper 250 meters of the deposit to the Indicated category prior to proceeding with a pre-feasibility study. Initial drill results from the program were announced in September (see Fortuna's news release dated September 25, 2008). Two surface core drill rigs and two multi-purpose reverse circulation/core drill rigs are currently drilling in the Trinidad Zone. The in-fill drill program has been designed following recommendations by AMEC E&C Services Inc. indicating that a drill spacing of 31 meters will be required for classification of the resources to the Indicated category.

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.

Assay results from the 22 drill holes in the Trinidad Zone are summarized below. Length-weighted assay averages have been calculated for the mineralized intervals using a lower cut-off of 100 g/t Ag-equivalent. Updated longitudinal sections showing the location of the drill hole intercepts for each of the major veins are available on Fortuna's website.

Background

The San Jose deposit is a low sulfidation epithermal system located within the Taviche Mining District in southern Oaxaca and is characterized by mineralized multiphase quartz-carbonate-sulfide veins, hydrothermal breccias and stockwork veining within a sequence of Tertiary andesitic volcanic and volcaniclastic rocks.

 ----------------------------------------------------------------------- ---                                     Est. True                           Interval  Thickness                        Ag Eq. Hole_Id  From (m)   To (m)      (m)        (m)  Au g/t  Ag g/t      g/t (1) -------------------------------------------------------------------------- SJO-137   187.30   208.20    20.90       13.5     7.84     472         872 SJO-139   226.75   236.60     9.85        5.4     2.67     290         426 SJO-143   270.10   277.25     7.15        3.7     8.06     546         957 SJO-144   190.75   212.00    21.25       15.5     2.81     322         466 SJO-145   220.50   236.45    15.95       13.9     4.09     485         694 SJO-146   100.90   102.60     1.70        1.2     2.97     438         589  And      133.80   145.20    11.40        7.1     1.76     197         287  And      152.25   162.50    10.25                1.30     129         196  And      184.65   193.70     9.05        5.4     1.55     290         369 SJO-147   262.00   269.00     7.00        3.7     8.29     693       1,115  And      295.30   302.50     7.20        4.5     0.92     184         231 SJO-148   205.20   213.00     7.80        5.2     1.02     141         193  And      222.35   226.40     4.05                1.45     165         239 SJO-149   266.20   269.60     3.40        2.6     0.64     114         147 SJO-150   208.00   218.50    10.50        6.1     2.08     258         365 SJO-151   235.05   239.20     4.15        3.0     0.75      62         100 SJO-152   101.60   106.40     4.80        4.1     3.55     509         690 SJO-152   119.70   122.80     3.10                4.94     452         704 SJO-153    91.75    97.25     5.50        4.4     1.64     130         214 SJO-154                       No significant mineralized intervals SJO-155    90.20    91.90     1.70        1.3     1.47     197         272 SJO-156   123.90   125.35     1.45        1.1     1.73     401         489 SJO-157   430.40   433.40     3.00                0.96     200         249  And      472.05   486.85    14.80       11.1     1.89     194         291 SJO-158   395.10   397.10     2.00        1.0     2.57     612         743 SJO-159                       No significant mineralized intervals SJO-160   178.20   184.90     6.70        3.9     1.27     139         204  And      193.75   201.70     7.95        3.7     1.49     351         427 SJO-161   175.05   181.25     6.20        4.9     1.68     257         342 SJO-162   157.15   163.40     6.25        3.8     1.66     148         233 -------------------------------------------------------------------------- (1) Silver equivalency estimates were derived using a silver-to-gold ratio     of 51:1. Metallurgical recoveries and net smelter returns are assumed     to be 100% for purposes of estimating silver equivalency. 

The Fortuna-Continuum joint venture controls mining concessions covering approximately 56,000 hectares in the Taviche Mining District. Exploration is being carried out on a number of target areas within the concession area to define new drill targets. Underground development of the access ramp to the Trinidad Zone was initiated in the 4th quarter of 2007. The Company is also advancing with engineering studies for the development of the deposit including preliminary mine design work, metallurgical testing, tailings dam design work and hydrological investigations. An Environmental Impact Study has been initiated and the Community Relations Department is engaging local communities through project presentations, site visits and sustainable development and education programs.

Quality Assurance & Quality Control

Following detailed geological and geotechnical logging, drill core samples are split on-site by diamond saw. One half of the core is submitted to the ALS Chemex sample preparation facility in Guadalajara, Mexico. The remaining half core is retained on-site for verification and reference purposes. Following preparation, sample pulps are sent to ALS Chemex in Vancouver where they are assayed for gold and silver by standard fire assay methods using a gravimetric finish. Multi-element analyses are also completed for each sample by ICP methods. The QA-QC program at San Jose includes the blind insertion of certified reference standards for silver and gold at a frequency of approximately 1 per 15 normal samples and the insertion of assay blanks at a frequency of approximately 1 per 15 normal samples. All sample results reported in this news release correspond to HQ- or NQ-diameter core.

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 aggressively pursuing additional acquisition opportunities. For more information, please visit our website at www.fortunasilver.com.

ON BEHALF OF THE BOARD

Jorge Alberto Ganoza Durant, President, CEO and Director

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. Carlos Baca Investor Relations - Lima Office 51.1.616.6060  Fortuna Silver Mines Inc. Erin Ostrom Investor Relations - Vancouver Office (604) 484-4085 (604) 484-4029 (FAX) Email: info@fortunasilver.com Website: www.fortunasilver.com

SOURCE: Fortuna Silver Mines Inc.

Source: MARKET WIRE

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