Fortuna Silver Mines Inc. is a Canadian precious metals mining company with four operating mines in Argentina, Burkina Faso, Mexico and Peru, and a fifth mine under construction in Côte d'Ivoire
Project construction overview. (Credit: Fortuna Silver Mines Inc.)
Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) is pleased to provide an update on construction activities at its Séguéla gold Project located in Côte d’Ivoire. In September of 2021, the Company made a construction decision to proceed to build a 3,750 tonne per day mill at Séguéla, with first gold pour expected in mid-2023 (refer to Fortuna news release dated September 29, 2021). All references to dollar amounts in this news release are expressed in US dollars.
Paul Criddle, Chief Operating Officer – West Africa of Fortuna, commented, “We are very satisfied with the ongoing progress at Séguéla. The project continues to track on-time and on-budget. This is especially pleasing as we have advanced the critical earthworks and civil works through a heavy wet season and maintained the schedule.” Mr. Criddle continued, “The Project continues to be derisked with good progress being made around procurement and shipping of key equipment for the processing plant.” Mr. Criddle concluded, “The project is now out of the ground with focus changing towards concluding key scopes and advancing commissioning and ramp up activities for 2023.”
Processing Plant
The process plant bulk earthworks are practically complete. All areas have been handed over to Lycopodium, the engineering, procurement and construction (EPC) contractor for construction of the processing plant.
Lycopodium has made excellent progress in advancing the critical path scopes for the plant. In late July, the SMP contractor Enikon began their mobilization and site establishment with first structural steel erected in early August. As of the end of August, the main construction activities include:
Civil and concrete works nearing completion in all areas with handover to the SMP contractor ongoing
Carbon-in-leach (CIL) tank fabrication almost complete and hydrostatic / settlement testing nearing completion
Fabrication of the water tanks well advanced
Erection of the reagents storage building, warehouse and workshop underway
The delivery and installation of the SAG mill remains on the project’s critical path and, despite supply chain challenges and risks, is expected to be delivered to site in the fourth quarter of 2022. Manufacturing of core components such as the shell, heads and trunnions, and gear and pinion are complete and ready for shipment. Despite challenges around logistics due to global port congestion at the start of the year, the majority of deliveries to date have arrived in-country in line with the schedule.
Site Bulk Earthworks
Construction of the tailings storage facility (TSF) and water storage dam (WSD) are well advanced. Construction of the WSD is nearly complete and has already captured approximately 390,000 m3 of raw water as at September 12, 2022 in preparation for commissioning and transition into operations. Likewise, good progress has been made on the TSF embankment which is on track to be completed in the fourth quarter of 2022. High density polyethylene (HDPE) lining of the western TSF basin has commenced and approximately 48 percent of the total surface of the TSF has been lined. The remainder is planned to be lined after the wet season ends in mid-to-late October.
Grid Connection
Work is 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. Despite challenges around logistics from port congestion at the start of the year, critical path items such as the control and protection panels have arrived in-country in line with the schedule. The diversion of the 33kV transmission line was completed and energized in early August. Similarly, the first 90kV transmission line shutdown for tie-in to the electrical grid was successfully completed in early August. At the end of August, the construction of the substation was approximately 92 percent complete.
Mining
Mota-Engil has been awarded the contract for mining services at Séguéla. Mota-Engil’s recruitment activities for the project are ongoing and mobilization of their team and establishment of site infrastructure commenced in late-August. All long-lead equipment has been procured and expected to arrive on site in the fourth quarter of 2022.
Operational Readiness
Fortuna is advancing its organizational infrastructure in Côte d’Ivoire to prepare for the start of operations at Séguéla, as well as establishing a regional office in Abidjan to service both Séguéla and the Yaramoko Mine. The operational management team have begun to be assembled with the General Manager commencing in August and key department heads coming on board in the third quarter of 2022.
Cost
As of August 31, 2022, $164.3 million of the total approved budget of $173.5 million, including $8.9 million contingency, has been committed. The total commitments to date include contracts for a guaranteed maximum price of $87 million, fixed price contracts for $15.4 million and earthworks bill of quantity and schedule of rates for $13.7 million. The remaining commitments are largely comprised of employee salaries, equipment and material purchase orders, land compensation and livelihood restoration programs.
Source: Company Press Release