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Jun 16, 2008 05:08AM
Headline: Fortuna Consolidates Concession Ownership at San Jose Project, Mexico
VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 16, 2008) - 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.