Fortuna Silver Mining Inc - President and CEO, Jorge A. Ganoza
President and CEO, Jorge A. Ganoza
Source: Satori Traders
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • This week, Fortuna Silver (TSX:FVI) had to halt operations at the San José Mine in Mexico, due to local protesters
  • The protest was led by San José del Progreso’s former mayor, and started when an electoral commission revoked his position
  • On Tuesday, the protesters formed a blockade across a highway and barred access to the mine site
  • Since then, the protests have been removed by local authorities and Fortuna expects to resume operations later tonight
  • Fortuna Silver Mines (FVI) is down 4.34 per cent, with shares trading for C$3.75 and a $601.1 million market cap

This week, Fortuna Silver (TSX:FVI) ceased operations at the San José Mine in Mexico, when local protesters disrupted access.

The protest was led by the former mayor of San José del Progreso, Amador Vazquez Gomez. The former mayor ignited the protests after an electoral commission revoked his position.

Protesters created a blockade on Federal Highway 175, cutting off access to many institutions, including Fortuna’s San José silver mine.

As a result, the company was unable to begin mining and processing operations on Tuesday. A small taskforce was placed at San José to keep up with necessary activities, while the site remained halted.

As of today, local officials have removed the blockade. Fortuna plans to restart operations at the mine, beginning tonight.

It remains unclear if the protesters were targeting the mine site or Fortuna Silver, or if mine closure was even their intention.

Fortuna Silver owns and operates two other properties in Latin America; Caylloma silver Mine in southern Peru and the Lindero gold Project, which is currently under construction in Argentina.

Alongside this news, Fortuna released an updated mineral reserve for the site.

A recent study estimates San José’s probable reserves to be around 3.9 million tonnes, containing 30.8 million ounces of silver and 204,000 ounces of gold.

Fortuna’s President and CEO, Jorge A. Ganoza, did not comment on the protest. Jorge instead stated the challenges faced in developing San José’s new mineral reserves.

“At San José, upgrading through infill drilling proved challenging.

“As the mineralization style changes, the operation is implementing various initiatives, such as pillar recovery and narrow vein mining methods, to optimize mineral extraction,” he said.

Fortuna Silver Mines (FVI) is down 4.34 per cent, with shares trading for C$3.75 at 3:18pm EST. 

More From The Market Herald

" Grizzly (TSXV:GZD) to advance 2022 drilling for BC precious & battery metals projects

Grizzly Discoveries (GZD) is reviewing proposals for core drilling during the 2022 exploration season.

" ArcPacific (TSXV:ACP) locates lost gold-copper mine on LMSL Project

ArcPacific Resources Corp. (ACP) has discovered an early 1900s era gold-copper mine at its LMSL Project in British Columbia.

" CanAlaska Uranium (TSXV:CVV) begins airborne survey at Geikie Project

CanAlaska Uranium (CVV) has begun a high-resolution helicopter-borne aeromagnetics and radiometrics survey on its Geikie project.

" Osisko Development (TSXV:ODV) releases San Antonio Property mineral resource estimate

Osisko Development Corp. (ODV) has released an initial open pit resource estimate at its San Antonio Project in Sonora State, Mexico.