Fortuna Silver Mines (FVI.V) announced an update to the progress of it construction efforts at the company’s Seguela gold project located on the Ivory Coast. The company decided to begin construction at the project back in September 2021 in order to build a 3,750 tonne-per-day mill at Seguela with the first gold pour anticipated to happen in mid-2023.
As of June 15, 2022, Fortuna had completed 61% of the mill having spent approximately $91.6 million USD of its $173.5 million capital budget for the project. With the majority of the equipment packages secured and first deliveries arriving in Abidjan, Ivory Coast, all major construction contracts have been executed and contractor mobilizations are under way.
Chief Operating Officer, Paul Criddle commented, “The Seguela project continues to advance in line with our expectations through what is a challenging supply market.” Mr. Criddle continued, “Seguela has transitioned through the design and procurement phases to now having much of the critical earthworks and civil works out of the ground ahead of the upcoming wet season, in line with budget and schedule.”
The accommodation camp currently houses project and company staff.
Fortuna awarded De Simone the process plant bulk earthworks contract and activities are nearing completion. Lycopodium, the process plant EPC contractor, mobilized to the site in March 2022 and as of June 15, 2022, has 95% completed it engineering activities, 78% completed its procurement activities and commenced construction in:
- Civil and concrete works for the crusher, surge bin, milling and carbon-in-leach (CIL) areas
- CIL tank fabrication
- Installation of high-security fencing
Construction of the tailings storage facility (TSF) and water storage dam (WSD) are well advanced. Works are also on-track to provide power to the site by the end of the fourth quarter of 2022 ahead of commissioning activities at the processing plant.
Mining services contractor, Mota-Engil has commenced recruitment at Seguela and will advance mobilization and establishment of site infrastructure in the third quarter of 2022.
As of May 31, 2022, $143.8 million of the total approved budget of $173.5 million, including an $8.9 million contingency, has been committed.
In other news, Fortuna announced an update to its Sunbird exploration program at Seguela at the beginning of June with assay results including 18.3 g/t Au over 11.9 metres from 168 metres and 28.2 g/t Au over 3.5 metres from 351 metres. An additional 5,110 metre program to infill and extend the depth potential has commenced with four holes completed to date.
Fortuna currently has multiple projects in its portfolio with a consolidated proven and probable reserves of 25.9 million ounces Ag and 3,298 koz of Au. The company’s consolidated production guideline for 2022 is 6.2-6.9 million ounces Ag, 244-280 koz Au, 29-32 million pounds Pb and 41-45 million pounds Zn.
The company’s Q1 2022 financials recorded $182,33 million in sales and $26.98 million in net income. Fortuna currently trades at $4.20 CDN for a market cap totalling $1.23 billion.