UNDERGROUND

Fortuna gold mine construction 32% complete

The SAG mill will be delivered to Seguela in the June quarter.

Fortuna Silver can house 156 people in this accommodation camp.

Fortuna Silver can house 156 people in this accommodation camp.

The construction of Fortuna Silver Mines' Ivory Coast Seguela gold project is 32% complete, with the workers' camp finished.

The 156-person camp is located approximately two kilometres from the processing plant area, and has been built with kitchen and mess, recreational facilities, water and sewage treatment plants, laundry services, and high-speed internet.

Initially, the camp will house owners' and contractors' construction workers while the mine is being built, with additional staff housed in nearby Seguela town.

The processing plant area has begun to be excavated, with the mill-carbon-in-leach circuit, thickener, and crusher areas completed. The engineering, procurement, and construction contractor will be mobilised in March.

Lycopodium has been awarded the EPC contract for the plant, and as of the end of 2021, engineering work was 55% completed. Procurement activities are 44% complete, while construction activities will begin in the March quarter.

The SAG mill will be delivered to Seguela in the June quarter, while the manufacturing of shell, heads and trunnions, gear and pinion has begun.

Fortuna has signed site bulk earthworks contracts for the construction of the tailings storage facility, the water storage dam, and sediment control structure.

Clearing for the water storage dam will be completed by the middle of the March quarter, ahead of the wet season. The dam will be able to store water for the commissioning and operation of the processing plant.

Materials for the tailings dam, such as the polyethylene liner, will be delivered to Seguela in the January quarter.

The mine will be connected to a 90kV grid connection transmission line, with installation of the lines to begin in February. Fortuna will also begin the civil works for the substation in February.

Power will be available on-site by the end of the December quarter, and ahead of the commissioning of the power plant.

Fortuna expects the first gold pour to be in mid-2023.

The company decided to move forward with mine construction in September 2021. It acquired Roxgold, which was developing the project, in July.

A feasibility study estimates that the Seguela mine has a mine life of 8.6 years with LOM production of 1.02 million ounces.

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