Fortuna Silver Mines Inc.

Fortuna Increases Silver Resource by Fifty Percent at Caylloma
Monday August 21, 9:01 am ET


VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 21, 2006) - Fortuna Silver Mines Inc. (TSX VENTURE:FVI - News), Mr. Jorge Ganoza Durant, President of the Company, is pleased to report a significant increase in resources at the 100% owned Caylloma silver mine in southern Peru. Measured and indicated pure silver resources, inclusive of reserves, have increased by 50 per cent to 10.5 million ounces.
The increment in the size of the resource is from the new block model for the Animas Vein, constructed using DataMine modeling software, and has been independently verified by consulting firm Chlumsky, Armbrust and Meyer (CAM). An updated technical report entitled "Mineral Reserves and Resource Estimate, Caylloma Mine, Peru" authored by Robert Sandefur of CAM is being prepared in compliance with NI 43-101 and will be finalized and filed on SEDAR on or before September 30th, 2006.

The new technical report does not encompass economic analysis as only the size of measured and indicated resources has increased from the technical report of April 2005. Reserves and resources for other veins have not increased materially but have been updated to reflect metal price changes and minimum mining width parameters. The April 2005 technical report is available on SEDAR and on the Company's web site at www.fortunasilver.com.


Table 1. Silver Veins Proven & Probable Reserves--------------------------------------------------
Contained
Vein Tonnes Ag gpt Au gpt Pb % Zn % Ag oz
--------------------------------------------------
PROVEN
San Cristobal 145,851 422 0.3 0.0 0.0 1,980,562
San Pedro 52,102 407 1.0 0.0 0.0 682,646
San Carlos 5,392 622 0.2 0.3 0.7 107,751
La Plata 8,537 478 2.1 0.2 0.1 131,184
Cimoide (La Plata) 30,269 575 3.4 0.0 0.1 560,075
Paralela 11,200 592 0.1 0.0 0.0 213,294
Proven Reserves 253,351 451 0.9 0.0 0.0 3,675,513 PROBABLE
San Cristobal 35,989 507 0.4 0.2 0.3 586,410
San Pedro 33,650 340 0.9 0.0 0.1 368,157
San Carlos 7,921 656 0.1 0.3 0.7 167,020
La Plata 1,954 720 4.1 0.1 0.1 45,213
Cimoide (La Plata) 5,691 414 3.0 0.0 0.1 75,814
Paralela 4,491 688 0.0 0.1 0.2 99,339
Probable Reserves 89,695 465 0.8 0.1 0.2 1,341,953
--------------------------------------------------
Proven + Probable 343,046 454 0.8 0.1 0.1 5,017,466
--------------------------------------------------Table 2. Animas Vein Measured and Indicated Resources--------------------------------------------------
Contained
Vein Tonnes Ag gpt Au gpt Pb % Zn % Ag oz
--------------------------------------------------
Measured 484,540 152 0.8 2.3 4.2 2,388,782
Indicated 688,786 137 0.5 2.3 4.2 3,037,544
--------------------------------------------------
Measured+Ind. 1,173,326 143 0.7 2.3 4.2 5,426,326
--------------------------------------------------Table 3. Inferred Resources--------------------------------------------------
Contained
Vein Tonnes Ag gpt Au gpt Pb % Zn % Ag oz
--------------------------------------------------
San Cristobal 135,513 407 0.2 0.3 0.4 1,771,635
San Pedro 92,896 369 0.2 0.7 1.4 1,100,831
San Carlos 16,626 766 0.2 0.5 1.2 409,654
La Plata 40,540 663 2.5 0.2 0.7 863,893
Cimoide (La Plata) 7,326 231 2.0 0.0 0.1 54,330
Paralela 52,473 563 0.0 0.2 0.3 950,452
Ramal paralela 90,094 362 0.1 0.3 0.7 1,049,011Animas 980,032 243 0.5 2.7 4.2 7,626,114
--------------------------------------------------
Inferred 1,415,499 305 0.4 2.0 3.1 13,825,919
--------------------------------------------------Tables 1 through 3 may not check exactly due to rounding.
The block model resource estimate for measured, indicated and inferred in the Animas vein is based on a cut-off of US$36.5 per tonne, which accounts for all on-site mine cash costs. Proven and probable reserves and inferred resources for the silver veins have been diluted at zero grade by 10 percent with a minimum mining width of 1 meter. A break even cut-off of US$48 per tonne has been applied and carries a 16 percent increment from the stated in the April 2005 technical report. The following metal prices were used in the resource and reserve estimation: US$8/oz Ag, US$500/oz Au, US$800/tonne Pb, US$1803/tonne Zn.

Exploration drilling continues on the property with two rigs on the north east extension of the Animas vein as the current measured and indicated resources are located along just 1.6 km of a 3.8 km vein.

Mr. Jorge Ganoza Durant, President of the Company, commented, "We are pleased to see the results of this new resource estimate. Measured and indicated resources viewed in tonnage terms, inclusive of reserves, have increased by 100 percent to about 1.5 million tonnes. This is excellent news as we get closer to production at the end of this quarter."

reagiert bereits.  

Fortuna's Silver Increase at Caylloma Disregarded by Market By Jon A. Nones22 Aug 2006 at 09:07 PM EDTSt. LOUIS (ResourceInvestor.com) -- Fortuna Silver Mines [TSXv:FVI] reported an increase of 50% in resources at its 100%-owned Caylloma silver mine in southern Peru, scheduled to start production in Q3, and still the market seems hesitant. The company’s stock closed out unchanged on Monday after the news. What gives?“If I had to point to one reason, it is probably the large stock overhang from the financings done last year combined with a lack of investor enthusiasm,” said Tom Szabo, Editor of SilverAxis.com.On Monday, Fortuna announced that it had increased Measured and Indicated pure silver resources, inclusive of reserves, by 50% to 10.5 million ounces at Caylloma.According to the table below, Caylloma now hosts an estimate of about 5 million ounces silver in Proven and Probable reserves, roughly 5.5 million ounces in M&I resources and 14 million ounces silver in Inferred resources.The metal prices were used in the resource and reserve estimation: $8/oz silver, $500/oz gold, $800/tonne lead and $1,803/tonne zinc.According to Szabo, some of the original publicity on Caylloma touted the deposit as an elephant. These results, while good, may be a let down based on some of the early expectations, he said.“Like most miners, Fortuna management may not understand the phrase ‘underpromise and overdeliver,’” said Szabo, adding that many shareholders could have been uncertain of just how much silver (and base metals) Caylloma really had. According to the company’s website, Caylloma has 7 million ounces in the P&P category as opposed to the 5 million ounces of reserves noted above.On March 31, 2006, Durant reported that Fortuna was still on track to produce the first silver at Caylloma, with milling of ore expected to start by the third quarter of 2006. Peak production is forecasted at 2 million ounces a year. The mine has a reserve life of 4 years, 10 years including inferred resources.Regardless, the company’s share price has been on a downward trend since late May. Szabo noted that Fortuna issued a lot of shares and warrants in last few years and “this has probably been flowing into the market.”Share DilutionMost recently, Fortuna granted incentive stock options to company directors and officers to purchase up to 995,000 shares exercisable for 10 years at a price of $1.66 per share. However, this is peanuts compared to the private placement completed five months ago.On March 24, Fortuna announced that it had completed a private placement of 12.7 million units at a price of $1.50 per unit to raise $19.05 million. Each unit consisted of one common share and one-half of a common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share of the company for two years at a price of $1.85.Before that, in October of 2005, the company completed a $10.2 million financing with brokered and non-brokered placements, totalling 16 million units at a price of $0.75 each. Each unit amounted to one common share and one transferable warrant exercisable two years at a price of $1.00 in the first year and $1.25 in the second year. And a month before that, Fortuna completed another private placement of 9.6 million units at a price of $0.75 each to raise $7.2 million. Each unit consisted of one common share and one common share purchase warrant, exercisable for two years at $1.00 in the first year and $1.25 in the second year.“Some investors may be worried about the pace of share dilution,” said Szabo. “This may continue for a while as we are talking a lot of shares were issued.”Szabo said the newly issued shares have to find “strong hands” who believe in the company and not simply early investors looking to make fast profits off a private placement. New ManagementSzabo said the recent management change could be a contributing factor to investors’ hesitation in the company. Jorge Ganoza Durant, a geological engineer with 12+ years of experience, became president earlier this year, replacing Peter Thiersch, a geologist with 20+ years of experience.Jorge Durant graduated from the New Mexico Institute of Mining in 1994. His most recent position before joining Fortuna was conducting business development for Radius Gold [TSXv:RDU], where he spearheaded the company expansion into Nicaragua. Just last month, the company appointed Luis Ganoza Durant to the position of Chief Financial Officer. His credentials show a BSc in Mining Engineering from the Universidad Nacional de Ingenieria in Peru, an MBA from ESAN (a Tier 1 Latin American Business School) and an MSc in Accounting and Finance from The London School of Economics. “The general impression in the mining analyst community seems to be wariness and ‘let's wait to see what these guys can deliver,’” said Szabo.Geopolitical TensionMining companies in Peru have experienced recent geopolitical tension as Venezuela and Bolivia have once again made expropriation a real concern when doing business in Latin America, according to Szabo. “While any concern over the future of mining in Peru is probably unwarranted at this time given the country's long history of stable mining policy, investors are likely to be worried anyway,” said Szabo.In speaking with Resource Investor, Jason Hommel, Editor of Silver Stock Report, agreed that investors are nervous about South America due to Bolivia and Venezuela, but “Peru also has political problems of its own.”At present, mining companies in Peru are trying to finalize a windfall profits tax to pay for local Peruvian social programs. Various miners met on Monday in an attempt to finalize the proposal; the results have yet to be announced.Many investors were undoubtedly watching the presidential elections in Peru last month as well. Venezuelan President Hugo Chavez had strongly endorsed Peru's leftist presidential candidate Ollanta Humala. However, Alan Garcia, a centre-left leader was declared the victor on July 28.“Although the election of Alan Garcia is widely seen as a forestalling of the spread of aggressive socialism in Peru, he is left-leaning and isn't exactly a Vicente Fox,” said Szabo.Share Price ActivityFortuna Silver closed on Tuesday up one cent at C$1.56 on the TSX Venture Exchange. On Monday, the stock was unchanged at $1.55, still down considerably from the 52-week high of C$2.53 hit in March. “If you look at the price performance of many mining companies, you will note that after the initial enthusiasm (newness) wears off, there is often a long period of price retracement and consolidation,” said Szabo. “Depending on internal and external factors, this could last months or even years,” he concluded.  

Fortuna's Silver Increase at Caylloma Disregarded by Market

#737573; FONT-FAMILY: arial">By Jon A. Nones
22 Aug 2006 at 09:07 PM EDT

St. LOUIS (ResourceInvestor.com) -- Fortuna Silver Mines [TSXv:FVI] reported an increase of 50% in resources at its 100%-owned Caylloma silver mine in southern Peru, scheduled to start production in Q3, and still the market seems hesitant. The company’s stock closed out unchanged on Monday after the news. What gives?

“If I had to point to one reason, it is probably the large stock overhang from the financings done last year combined with a lack of investor enthusiasm,” said Tom Szabo, Editor of SilverAxis.com.

On Monday, Fortuna announced that it had increased Measured and Indicated pure silver resources, inclusive of reserves, by 50% to 10.5 million ounces at Caylloma.

According to the table below, Caylloma now hosts an estimate of about 5 million ounces silver in Proven and Probable reserves, roughly 5.5 million ounces in M&I resources and 14 million ounces silver in Inferred resources.

The metal prices were used in the resource and reserve estimation: $8/oz silver, $500/oz gold, $800/tonne lead and $1,803/tonne zinc.

According to Szabo, some of the original publicity on Caylloma touted the deposit as an elephant. These results, while good, may be a let down based on some of the early expectations, he said.

“Like most miners, Fortuna management may not understand the phrase ‘underpromise and overdeliver,’” said Szabo, adding that many shareholders could have been uncertain of just how much silver (and base metals) Caylloma really had.

According to the company’s website, Caylloma has 7 million ounces in the P&P category as opposed to the 5 million ounces of reserves noted above.

On March 31, 2006, Durant reported that Fortuna was still on track to produce the first silver at Caylloma, with milling of ore expected to start by the third quarter of 2006. Peak production is forecasted at 2 million ounces a year. The mine has a reserve life of 4 years, 10 years including inferred resources.

Regardless, the company’s share price has been on a downward trend since late May. Szabo noted that Fortuna issued a lot of shares and warrants in last few years and “this has probably been flowing into the market.”

Share Dilution

Most recently, Fortuna granted incentive stock options to company directors and officers to purchase up to 995,000 shares exercisable for 10 years at a price of $1.66 per share. However, this is peanuts compared to the private placement completed five months ago.

On March 24, Fortuna announced that it had completed a private placement of 12.7 million units at a price of $1.50 per unit to raise $19.05 million. Each unit consisted of one common share and one-half of a common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share of the company for two years at a price of $1.85.

Before that, in October of 2005, the company completed a $10.2 million financing with brokered and non-brokered placements, totalling 16 million units at a price of $0.75 each. Each unit amounted to one common share and one transferable warrant exercisable two years at a price of $1.00 in the first year and $1.25 in the second year.

And a month before that, Fortuna completed another private placement of 9.6 million units at a price of $0.75 each to raise $7.2 million. Each unit consisted of one common share and one common share purchase warrant, exercisable for two years at $1.00 in the first year and $1.25 in the second year.

“Some investors may be worried about the pace of share dilution,” said Szabo. “This may continue for a while as we are talking a lot of shares were issued.”

Szabo said the newly issued shares have to find “strong hands” who believe in the company and not simply early investors looking to make fast profits off a private placement.

New Management

Szabo said the recent management change could be a contributing factor to investors’ hesitation in the company.

Jorge Ganoza Durant, a geological engineer with 12+ years of experience, became president earlier this year, replacing Peter Thiersch, a geologist with 20+ years of experience.

Jorge Durant graduated from the New Mexico Institute of Mining in 1994. His most recent position before joining Fortuna was conducting business development for Radius Gold [TSXv:RDU], where he spearheaded the company expansion into Nicaragua.

Just last month, the company appointed Luis Ganoza Durant to the position of Chief Financial Officer. His credentials show a BSc in Mining Engineering from the Universidad Nacional de Ingenieria in Peru, an MBA from ESAN (a Tier 1 Latin American Business School) and an MSc in Accounting and Finance from The London School of Economics.

“The general impression in the mining analyst community seems to be wariness and ‘let's wait to see what these guys can deliver,’” said Szabo.

Geopolitical Tension

Mining companies in Peru have experienced recent geopolitical tension as Venezuela and Bolivia have once again made expropriation a real concern when doing business in Latin America, according to Szabo.

“While any concern over the future of mining in Peru is probably unwarranted at this time given the country's long history of stable mining policy, investors are likely to be worried anyway,” said Szabo.

In speaking with Resource Investor, Jason Hommel, Editor of Silver Stock Report, agreed that investors are nervous about South America due to Bolivia and Venezuela, but “Peru also has political problems of its own.”

At present, mining companies in Peru are trying to finalize a windfall profits tax to pay for local Peruvian social programs. Various miners met on Monday in an attempt to finalize the proposal; the results have yet to be announced.

Many investors were undoubtedly watching the presidential elections in Peru last month as well.

Venezuelan President Hugo Chavez had strongly endorsed Peru's leftist presidential candidate Ollanta Humala. However, Alan Garcia, a centre-left leader was declared the victor on July 28.

“Although the election of Alan Garcia is widely seen as a forestalling of the spread of aggressive socialism in Peru, he is left-leaning and isn't exactly a Vicente Fox,” said Szabo.

Share Price Activity

Fortuna Silver closed on Tuesday up one cent at C$1.56 on the TSX Venture Exchange. On Monday, the stock was unchanged at $1.55, still down considerably from the 52-week high of C$2.53 hit in March.

“If you look at the price performance of many mining companies, you will note that after the initial enthusiasm (newness) wears off, there is often a long period of price retracement and consolidation,” said Szabo.

“Depending on internal and external factors, this could last months or even years,” he concluded. 

SILBER: 12,96 $ pro Feinunze 

Aktueller Wochenchart (log) seit 07.03.2004 (1 Kerze = 1 Woche)

Rückblick: SILBER startete im September 2005 nach mehrmonatiger Seitwärtsbewegung eine dynamische Kursrallye bis in den Widerstandsbereich bei 15,00 $. Bei 15,17 $ startete dann im Mai 2006 dann eine kurze und heftige Abwärtskorrektur, welche das Edelmetall fast bis an die Unterstützung bei 9,23 $ fallen ließ. Seit mitte Juni erholt sich SILBER  nun wieder, wobei das mittelfristige Chartbild mit der Rückkehr über 11,80 $ Anfang August wieder auf bullisch gewechselt ist. Vergangene Woche gelang dann schließlich auch der Ausbruch aus der jüngsten Seitwärtskorrektur (Oberkante bei 12,64 $), womit ein kurzfristiges Kaufsignal generiert wurde.

Charttechnischer Ausblick: Das nächste Aufwärtsziel liegt jetzt bei 13,40 $. Steigt SILBER auf Tages- und Wochenschlussbasis über 13,40 $ an, ist das Jahreshoch bei 15,17 $ das nächste Ziel. Ein Anstieg über 15,17 $ würde die langfristige Kursrallye reaktivieren und mittelfristig weiter steigende Notierungen bis ans Kursziel im Bereich bei 23,00 $ einleiten. Kurzfristig sind Rücksetzer bis 12,64 $ oder evtl. sogar 11,60 - 11,80 $ möglich, ohne das kurzfristig bullische Szenario zu gefährden. Darunter neutralisiert sich das kurzfristig bullische Bild, eine moderate Zwischenkorrektur bis 10,40 - 11,00 $ wird dann wahrscheinlich. Unter 10,40 $ würde ein Verkaufsignal mit Zielen bei 9,23 und 8,00 - 8,43 $ generiert werden.

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Chart erstellt mit Tradesignal

==================================================
     Fortuna outlines bonanza Ag-Au shoot at the San Jose project,
     Mexico.
==================================================

September 5, 2006: Fortuna Silver Mines Inc. (FVI:TSX-V). Mr. Jorge
Ganoza, President of Fortuna, is pleased to present results from the
Company's recently completed phase one drill program on the San Jose
silver-gold project in Oaxaca, Mexico. Multiple high grade intercepts
over considerable widths have outlined a bonanza style high grade
mineralized shoot that remains open at depth. Upon receipt of all
pending assays the Company will design a second phase program that will
include further drilling, expected to begin in October.

Fortuna completed a total of 11,904m of core drilling in 37 holes using
2 rigs, between January and June of 2006. The program was designed to
test the San Jose vein system over 2km strike distance, on 100m
sections, to depths of 300 to 400 meters below surface. A schematic
long section will be made available shortly on Fortuna's website at
www.fortunasilver.com.

Complete results for the 24 holes in the Trinidad area are tabulated
below (including data for 9 holes previously released May 15, 2006).
Results for the remaining 13 holes along strike to the south in the San
Ignacio area are pending.


                SAN JOSE PROJECT
               2006 DRILL PROGRAM
          TRINIDAD ZONE ASSAY SUMMARY
Hole     Target   From     To       Au      Ag   Interval
                   (m)    (m)     (g/t)  (g/t)    (m)
SJO-16 *  D1      161.35  166.08   1.48    239     4.73
SJO-17    E1      No Significant Interval
SJO-18 *  C1      240.92  251.48   7.28    616    13.86
            incl 245.85  246.91  27.00   2020     1.06
SJO-19 *  D2      252.21  257.70   1.21    164     5.49
                 406.27  410.59   2.18    167     4.32
                 422.00  426.80   1.39    121     4.80
SJO-20 *  C2      339.70  341.34   2.94    714     1.64
                 368.90  373.01  10.52   1772     4.11
           incl  371.21  371.98  31.50   6140     0.77
SJO-21 *  B1      222.25  222.89   1.06    220     0.64
                 246.50  255.90   2.70    479     9.40
                 262.47  268.48   0.53    128     6.53
SJO-22 *  B2      373.50  374.35   1.93    201     0.85
                 387.63  390.00   2.55    568     2.37
                 414.17  415.97   3.61    394     1.80

SJO-30 *  A1      253.85  255.30   1.12    155     1.45
                 264.80  265.55   0.67    118     0.75
SJO-32 *  A2      347.53  349.03   0.61    131     1.50
                 356.80  358.11   0.62    110     1.31
SJO-35 *  A3      No Significant Interval
SJO-39    E3       42.75   47.65   5.90    843     4.90
           incl   42.75   44.00  12.55   1510     1.25
SJO-40    F2      No Significant Interval
SJO-41    E0a
                 No Significant Interval --
                 lost in old workings
SJO-42    F1      No Significant Interval
SJO-43    E0b
                 No Significant Interval --
                 lost in old workings
SJO-44    F0
                 No Significant Interval --
                 lost in old workings
SJO-45    F3      194.86  195.55   2.72    443     0.69
SJO-46    D4      371.00  373.30   5.64    869     2.30
                 401.66  404.59   1.20    272     2.93
                 414.60  424.82   5.33    347    10.22
                 480.31  487.44   3.99    397     7.13
SJO-47    F4      No Significant Interval
SJO-48    E4      186.78  188.23   3.05    108     1.45
SJO-49    D3      No Significant Interval
                 - lost before target
SJO-50    B3      331.90  335.80   1.96    338     3.90
            incl 331.90  332.40   6.06   1415     0.50
SJO-51    D5      328.50  346.41   2.48    298    17.91
            incl 328.50  330.00   7.15   1315     1.50
                 394.84  399.00   1.76    261     4.16
                 404.06  407.03   1.51    335     2.97
                 424.20  448.45  10.09   1005    24.25
            incl 429.17  440.16  20.93   2106    10.99
            incl 429.17  433.98  41.98   4234     4.81
            incl 431.30  432.15  126.00  13218    0.85
SJO-52    E5      370.20  372.78   1.14    223     2.58


Note that true widths vary between roughly 70-85% of the drill core
intervals tabulated above. * Results previously released May 15, 2006.

All samples were analyzed for 31 elements using ICP techniques, and for
silver and gold using fire assay with a gravimetric finish, by ALS
Chemex of North Vancouver BC. Core samples were logged and cut on site
at San Jose, air freighted to Chemex's sample prep lab in Guadalajara,
Mexico, and then forwarded to Chemex's North Vancouver facility for
assaying. A comprehensive QA-QC program was conducted using blanks and
standards to ensure accuracy in the sampling program.

Mr. Peter Thiersch, Vice President of Exploration for the Company,
commented: "Drilling has consistently returned potentially mineable
silver and gold grades over considerable widths, with many drill holes
cutting multiple veins. It is apparent that drilling has outlined a
bonanza style mineralized shoot at Trinidad roughly 500m along strike
by 200m vertical, below existing workings, with a high grade core at
least 250m long, which remains open to depth."

Fortuna can earn a controlling interest in the San Jose project from
Continuum Resources Ltd., by spending $2 million on drilling by
December 2007, completing a NI 43-101 compliant resource estimate, and
making a cash payment to Continuum based on the ounces of silver or
silver equivalent set out in the resource estimate.

The deposit currently has an inferred resource of 527,283 tonnes
grading 396 g/t Ag and 3.5 g/t Au (based on 4,845m of drilling in 15
holes conducted by Continuum) as outlined in the April 2006 Technical
Report available on SEDAR.

Qualified Person: Mr. Peter Thiersch, M.Sc. P.Geo., Vice-President,
Exploration of Fortuna Silver Mines Inc., is the Qualified Person for
Fortuna, as defined by National Instrument 43-101, and was responsible
for the design and management of the San Jose drill program.

Fortuna is a growth oriented, near term silver producer focused on
Latin America. Our primary assets are the Caylloma Silver Mine in
southern Peru, and the San Jose Silver-Gold Project in Mexico, and we
are aggressively pursuing additional acquisitions. For more
information, please visit our website at www.fortunasilver.com.

The TSX Venture Exchange has not reviewed and does not take
responsibility for the adequacy or accuracy of this release.

ON BEHALF OF THE BOARD
Jorge Ganoza, President
Fortuna Silver Mines Inc.
Tel: 604-484-4085
Symbol: TSX-V:FVI

==================================================
Copyright (c) 2006 FORTUNA SILVER MINES INC. (FVI)  All rights
reserved.  For more information visit our website at
www.fortunasilver.com/ or send mailto:info@fortunasilver.com
==================================================

FVI 1.820 +0.090 +5.20 309,945 VN  

A new mine resource estimate for Caylloma was published on August 21st. A fifty percent increase in measured and indicated resources for the Animas vein was obtained by remodeling the structure to include Ag-Pb-Zn zones. Management anticipates that a significant portion of these resources will be upgraded to reserves before year end. Stope preparation and mining of some of these resource blocks is already taking place.

Mr. Ganoza Durant, commenting on the commencement of production at Caylloma said, "We've reached a significant milestone at Caylloma with the start up of mining. I'd like to thank everyone working at the mine and at our offices in Lima and Vancouver for their tremendous efforts over the last 12 months. We now look forward to achieving our next goal which will be the production of silver metal and base metal concentrates. If all goes well with the final commissioning of the plant we should be producing metal before the end of September of this year."

New Projects

Fortuna intends to pursue an aggressive growth strategy over the next 12-24 months. The Company anticipates that growth will come through development of existing projects and through potential acquisition opportunities for advanced stage, locally owned projects and producing mines in Peru and Mexico. Management is continually receiving and evaluating project submittals and will report on developments as and when it identifies and acts on

Gruß

Permanent

wishes him all the best for the future.      

Manager of Mining Operations

Arturo Salvador, who assumes the role of Manager of Mining Operations,
is a Mining Engineer with an MBA. He brings 23 years of experience in
the mining industry, where he has held senior positions in planning and
unit operations. Up until June 2006 he was General Superintendent for
Cerro de Pasco, one of Peru's largest polymetallic mines.

Fortuna is a growth oriented, near term silver producer focused on
Latin America.  Our primary assets are the Caylloma Silver Mine in
southern Peru, and the San Jose Silver-Gold Project in Mexico, and we
are aggressively pursuing additional acquisitions. For more
information, please visit our website at www.fortunasilver.com.

The TSX Venture Exchange has not reviewed and does not take
responsibility for the adequacy or accuracy of this release.


ON BEHALF OF THE BOARD

Jorge Ganoza Durant, President
Fortuna Silver Mines Inc.
Tel: 604-484-4085
Symbol: TSX-V:FVI

==================================================
Copyright (c) 2006 FORTUNA SILVER MINES INC. (FVI)  All rights
reserved.  For more information visit our website at
www.fortunasilver.com/ or send mailto:info@fortunasilver.com
Message sent on Mon Sep 18, 2006 at 12:30:22 PM Pacific Time
==================================================

widths exceeding 10 meters, defining a bonanza-style high-grade

mineralized shoot that remains open at depth. For complete drill

results please refer to our news release dated September 5, 2006,

available at www.fortunasilver.com.

Highlights of the 2006 drill program include:

 

DDH From (m) To (m) Interval (m)* Ag (g/t) Au (g/t)

SJO-18 240.92 251.48 10.56 638 8.2

SJO-20 368.90 373.01 4.11 1772 10.5

SJO-21 246.50 255.00 8.50 522 2.9

SJO-39 42.75 47.65 4.90 843 5.9

SJO-46 414.60 424.82 10.22 347 5.3

SJO-51 429.17 440.16 10.99 2106 20.9

*True width is estimated at 70 -- 85 per cent of interval.

Fortuna completed a total of 11,904m of core drilling in 37 holes

between January and June of 2006. The program was designed to test the

San Jose vein system over 2km strike distance, on 100m sections, to

depths of 300 to 400 meters below surface. A new resource estimation

for the San Jose project is in preparation.

Mr. Jorge Ganoza, President of Fortuna, commented "Management is

excited to see the project progress to the next stage. Fortuna is

committed to advancing San Jose to a production decision. Continuing

work will focus on expansion and upgrading of the resource base, and

mine and process design."

Background

Fortuna is a growth oriented, near term silver producer focused on

mining opportunities in Latin America. Our primary assets are the

Caylloma Silver Mine in southern Peru and the San Jose Silver-Gold

Project in Mexico. The Company is aggressively pursuing additional

acquisition opportunities. For more information, please visit our

website at www.fortunasilver.com.

The TSX Venture Exchange has not reviewed and does not take

responsibility for the adequacy or accuracy of this release.

 

ON BEHALF OF THE BOARD

Jorge Ganoza Durant, President

Fortuna Silver Mines Inc.

Tel: 604-484-4085

Symbol: TSX-V:FVI

==================================================

Copyright (c) 2006 FORTUNA SILVER MINES INC. (FVI) All rights

reserved. For more information visit our website at

www.fortunasilver.com/ or send mailto:info@fortunasilver.com

Message sent on Thu Oct 5, 2006 at 9:48:52 AM Pacific Time

==================================================

==================================================
     Fortuna starts commercial production at Caylloma Silver Mine,
     Peru
==================================================

October 11, 2006: Fortuna Silver Mines Inc. (TSX-V:FVI), Mr. Jorge
Ganoza, President of the Company, is pleased to announce that
commercial production has begun at the Company's 100% owned Caylloma
Ag-Zn-Pb mine in Peru.
 
Ore is currently being processed at a rate of 500 tonnes per day (tpd).
The first revenue from sales of Ag-Pb and Zn concentrates is expected
for late October of this year. An increase in mill throughput to 700
tpd is expected in May 2007.

Mr. Ganoza commented: "With commercial production achieved at the
Caylloma mine, Fortuna has reached a new milestone in its development
into a leading mid-tier mining company. I would like to thank the whole
Fortuna team for their hard work in bringing the Caylloma mine --our
first producing asset- back into commercial production."

Backgound

Fortuna is a growth oriented, silver producing company focused on
mining opportunities in Latin America.  Our primary assets are the
Caylloma Silver Mine in southern Peru and the San Jose Silver-Gold
Project in Mexico. The Company is aggressively pursuing additional
acquisition opportunities. For more information, please visit our
website at www.fortunasilver.com.

The TSX Venture Exchange has not reviewed and does not take
responsibility for the adequacy or accuracy of this release.


ON BEHALF OF THE BOARD

Jorge Ganoza Durant, President
Fortuna Silver Mines Inc.
Tel: 604-484-4085
Symbol: TSX-V:FVI

==================================================
Copyright (c) 2006 FORTUNA SILVER MINES INC. (FVI)  All rights
reserved.  For more information visit our website at
www.fortunasilver.com/ or send mailto:info@fortunasilver.com
Message sent on Tue Oct 10, 2006 at 3:53:05 PM Pacific Time
==================================================

in der Mine gewonnen. Diese stehen zur Zeit sehr hoch im Kurs. Der Produktionsbeginn läßt den Aktienkurs nach wie vor kalt.
Minenwerte laufen insgesamt recht schleppend. Ich sehe bei Fortuna Silver allerdings nach wie vor hohes Potential.

Gruß

Permanent

A Tale of Two Markets

By Lawrence Roulston         October 18, 2006 www.resourceopportunities.com

There is a growing divergence between the physical metal markets and the paper markets for the metals.

The following is extracted from the September 2006-2 Issue

While tens of billions of dollars flits in and out of the commodity markets at the drop of a rumor, the physical markets continue to operate at a steady pace. The volatility occurs in the paper markets, where traders can drive prices up and down while knowing little about the underlying fundamentals of the markets they trade in.

(The paper market refers to the futures contracts and other derivatives that are based on metals. For example, a metal fabricator may enter into a contract to buy copper in the future at a fixed price. This contract gives him the certainty that he needs to set his product selling prices. A copper producer may wish to have price protection on a portion of its future production, for example to satisfy debt obligations, and therefore become a counterparty to a futures contract. The contracts are traded on exchanges, with the prices rising and falling according to expectations with regard to the markets. The price set in the derivatives markets impacts on the spot, or current, price of the metals.)

Rumors of peace suddenly about to break out in the Middle East and the expectation that the U. S. Government will manipulate the dollar ahead of an election are among the latest ideas driving the moods of speculators. The gold price pendulum was already on a downswing after being pushed too high earlier this year by speculators.

The latest news-of-the-moment has resulted in the gold price being pushed too far to the downside: It seems the pendulum swings created by the speculators never come to rest at an equilibrium point that the physical market is comfortable with. There may be a little further downward momentum, and there will undoubtedly be a period of base building before the pendulum begins its return journey.

A few investors in the small metal companies reacted to the latest move in the gold price with panic. Fortunately, most investors are taking a somewhat longer-term perspective. The depressed prices are not so much a function of selling pressure as they are to an absence of buyers. Most investors have simply stepped aside, waiting for a clearer direction. In that situation, the markets can change quickly. If you can find some bargains now, you'll be glad you did when the market starts to perk up.
Regarding the base metal markets: There are still some commentators who believe that metal prices are high for no other reason than the speculators. That is an extraordinarily naive notion. In an upcoming issue, I will discuss this in more detail. For now, consider this basic point: Speculators do not normally take physical delivery of base metals. The role of the official warehouses is to store the metal behind the futures contracts. The warehouses are nearly empty, implying that the speculative market must be pretty much in balance and is therefore not a driving force in setting metal prices.

Plain and simply: Metal is being mined, refined and sold to fabricators. Those physical users are bidding fiercely against one another in order to get their hands on enough metal to keep their factories operating.

Demand for metal is overwhelming the ability of the mining industry to deliver, yet the new metal production coming on stream, or set to come on stream in the future, is barely adequate to offset older mines that are being shut down as they are depleted.
The message cannot be any more clear: Use this down time in the markets to load up on exploration and development companies that have advanced-stage metal projects.

 

***

LME-monitored lead inventory dropped 5 percent in the past three days to 45,325 tons, the lowest since January 9. Falling production at BHP Billiton's Cannington mine in Australia, the world's largest lead mine, has cut supplies of the metal used in car batteries.

Copper dropped for a fourth straight trading session, losing $10 at $7,485 a ton. Copper for delivery in December on the Comex division of the New York Mercantile Exchange dropped $1.05, or 0.3 percent, to $3.409 a pound.

LME copper stockpiles rose to their highest in more than six weeks, showing a supply shortage may be easing. Inventory jumped 2.9 percent to 124,275 tons, the highest since Sept. 8.

``We're becoming more concerned about copper as stocks are rising, not falling,'' Robin Bhar, a London-based metals analyst at UBS Ltd., said in a daily research note. Bhar has tracked metals since 1984.

The premium between copper for immediate delivery over three-month prices narrowed to $8 yesterday, from more than $20 last week. A decline in the premium, known as a backwardation, usually indicates an easing of constraints on supply.

Nickel Slump

Nickel slumped $400 to $31,800 a ton on the LME. Nickel inventory tracked by the LME gained for a third straight day, increasing 510 tons, or 9.7 percent, to 5,748 tons. Stockpiles have gained 12 percent this month. Still, metal bought and due to be shipped from LME-registered warehouses accounted for more than a third of registered inventory.

The U.S. Federal Reserve will probably leave its benchmark interest rate unchanged at 5.25 percent today for a third month, according to all 106 economists surveyed by Bloomberg News. The Fed, which raised borrowing costs for two years through June, will announce its decision at about 2:15 p.m. Washington time.

An easing in borrowing costs usually spurs economic and industrial activity and boosts demand for metals.

Also on the LME, aluminum gained $66 to $2,700 a ton. Tin was unchanged at $10,200.

To contact the reporter on this story: Chanyaporn Chanjaroen in London at cchanjaroen@bloomberg.net .

Last Updated: October 25, 2006 12:44 EDT  

On Monday, Fortuna announced that it had increased Measured and Indicated pure silver resources, inclusive of reserves, by 50% to 10.5 million ounces at Caylloma.According to the table below, Caylloma now hosts an estimate of about 5 million ounces silver in Proven and Probable reserves, roughly 5.5 million ounces in M&I resources and 14 million ounces silver in Inferred resources.The metal prices were used in the resource and reserve estimation: $8/oz silver, $500/oz gold, $800/tonne lead and $1,803/tonne zinc.According to Szabo, some of the original publicity on Caylloma touted the deposit as an elephant.

Schaut euch in diesem Zusammenhang einmal die zur Kalkulation verwendeten Preise an.

Gruß

Permanent

Nickel fell $600, or 1.9 percent, to $31,000 a ton, erasing an earlier gain after LME inventory jumped 19 percent to 6,834 tons, the highest since Sept. 13.

Copper gained for the first day in five, advancing $42, or 0.6 percent, to $7,502 a ton. Chile's Codelco, the world's biggest copper producer, lost a bid to gain additional time to settle a wage agreement with workers at its largest mine.

Unions representing most workers at the Chuquicamata mine yesterday rejected a proposal to begin talks ahead of schedule after the company failed to make a wage or bonus offer, said Miguel Lopez, president of the mine's third-largest union. An early settlement would remove a bullish factor for copper, said analysts including UBS AG's Robin Bhar in London.

Chuquicamata's largest unions will begin talks in mid- November to renew labor contracts that expire at the end of December, Lopez said.

U.S. Growth

Prices of metals were also supported after the central bank of the U.S., the world's second-largest consumer of copper and aluminum, said its economy is expanding and inflation is under control. The Federal Reserve kept its benchmark interest rate at 5.25 percent for a third month, and said yesterday that U.S. economic growth would continue at a ``moderate'' pace.

The LME index tracking prices of the six base metals traded on the exchange has dropped 4.9 percent since its May 11 peak on concern that interest-rate rises in the U.S. would slow down the economy and curb demand for industrial metals.

Also on the LME, aluminum gained $16 to $2,780 a ton. Tin rose $50 to $10,250 and lead lost $15 to $1,570.

To contact the reporter on this story: Chanyaporn Chanjaroen in London at cchanjaroen@bloomberg.net .

Last Updated: October 26, 2006 07:11 EDT  

#003399">Zinc

October 27,06:11

Bid/Ask	1.8948	-	1.9084
Change	+0.0295		+1.58%
Low/High	1.8608	-	1.9084

 

London Metal Exchange Warehouse Stocks ( October 27 )

Metal Tonnes in Storage Change from previous day Aluminum 681425 -2200 Copper 126750 +25 Nickel 7140 +306 Lead 45425 +475 Zinc 110800 -3100

Fortuna Silver -mit der Anfrage bzgl. der erwarteten Zinkproduktionsmengen- geschickt. Schaun wir mal wie lange die sich mit der Beantwortung Zeit lassen.

Gruß

Permanent

Hi Dirk,

Thank you for your interest in Fortuna.  To answer you question, the
chart below depicts what we have forecasted (as of 2005) to produce in
the upcoming years from our corporate presentation which is available on
our website.

Caylloma 3 year forecast for production: (All figures in millions)

Metal            Year 1        Year 2        Year 3
Silver (oz)        1.2        1.2        1.6
Zinc (lb)        15.9        15.9        11.6
Lead (lb)        10.1        10.1        7.3

Please do not hesitate to inquire if you have any further questions.
Sincerely,
Karen

......................................................
Karen Davies (Robb)
Investor Relations

Fortuna Silver Mines Inc.
TSX-V: FVI
www.fortunasilver.com

Ph: 604-484-4085 Ext. 232
Fx: 604-484-4029

Tue Jun 13, 2006 Share Structure<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
	Trading Symbol FVI on TSX-V Issued Capital 46,155,929 Total Outstanding Options And Warrants: 24,388,734 Fully diluted 70,544,663

Meine Kalkulation werde ich in Dollar durchführen da die entsprechenden Rohstoffe ebenfalls auf Dollarbasis gehandelt werden.

 

Die Marktkapitalisierung beträgt bei der zur Zeit max. Aktienzahl (Fully diluted):

70.544663 Mio Shares

Aktienkurs 1,55$

Marktkapitalisierung 109.344227 Mio. $

 

Silber steht heute bei 12$/OZ

Blei  und Zink wie folgt:

#003399">Zinc

October 27,13:45

Bid/Ask	1.8956	-	1.9182
Change	+0.0302		+1.62%
Low/High	1.8608	-	1.9182
Charts

#003399">Lead	October 27,13:45

Bid/Ask	0.7242	-	0.7332
Change	+0.0118		+1.66%
Low/High	0.7124	-	0.7441

 

Produktionsbeginn war Oktober 06, nehmen wir also 07 als erstes Produktionsjahr:

Silber   1.200000 * 12                       =14.400000

Zink     15.900000 * 1,8                     =28.620000

Blei      10.100000 * 0,7                     =10.700000

Summe                                    =40.760000

 

Gehen wir also von einem Umsatz von ca. 40 Mio. USD aus. Dies Rechnung erfolgt mit recht aktuellen Preisdaten und bezieht sich nur auf die Caylloma Miene.

 

Wer ist noch in Fortuna investiert? Ich würde gerne Meinungen zu meiner Kalkulation und zu euren Erwartungen hören.

 

Schönes Wochenende

 

Permanent

 

 

 

 

Last Updated: 27 Oct 2006
Rolling 52 Week High	2.530
Rolling 52 Week Low	0.980
Total Number of Shares	46,155,929
Shares in Escrow	247,711
Net Shares Outstanding	45,908,218
Float Quoted Market Value	79,421,217

Daten von der TSX

Total Number of Shares 46.155.929 *1,55$ = 71.541689$ Marktkapitalisierung.

Eigentlich kommt dem Zinkpreisniveau die größte Bedeutung für die nahe Zukunft zu. Zink ist zur Zeit das Hauptprodukt von Fortuna Silver. In diesem Zusammenhang lohnt ein Blick auf die Postings 44&45.

 

Fortuna bietet einen optimalen Hebel auf steigende Rohstoffpreise.

Gruß

Permanent

Hi Karen,

Thank you for answering so quickly.

Next to the production forecast it is necessary for prediction purposes to also know the cost of production.

Can you provide me with the estimated cost of production for each mineral listed or tell me where in your internet this information can be found.

Thank you and kind regards,


Sobald ich eine Antwort habe werde ich diese hier einstellen.

Gruß

Permanent