Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Fortuna Silver (NYSE: FSM, TSX: FVI) has resumed production activities at the Caylloma mine located in the province of Arequipa, Peru.
The company closed the mine on July 6 after an on site contractor suddenly died; the cause of death had not been determined. The mine site was also sanitized and disinfected, as part of the company’s protocol to control the spread of covid-19.
In April, six workers at Caylloma operation tested positive for covid-19.
Fortuna said that it resumed operations July 27 with a production capacity of 1,430 tonnes per day
According to Fortuna, the mine produced 249,111 ounces of silver in the first quarter of 2020, 17% above budget. Average head grade for silver was 70 g/t.
Lead and zinc production, on the other hand, was 7,722,793 pounds and 11,821,186 pounds, 17% and 3% above budget respectively. Average head grades for lead and zinc were 2.96% and 4.58%.
Caylloma is a gold, lead, silver, and zinc mine located approximately 225 kilometres northwest of the city of Arequipa. Its mill operates at a rate of 1,430 tpd with production sourced primarily from the silver-polymetallic Animas Vein.
The deposits in the Caylloma Mining District have been mined intermittently for over 500 years since the times of the Inca Empire.
