Lundin Gold Inc (TSE: LUG) (OTCMKTS: LUGDF) (FRA: F1YN) recently hit an exceptionally rich interval of gold mineralization at its Fruta del Norte mine in Ecuador.
Reported on Thursday, the site’s bonanza-grade core sample contained a staggering 491.6 grams per tonne gold (Au) over 5.2 metres. It is the richest intercept of all time at the project, according to CEO Jamie Beck.
Lundin also hit attractive mineralization in others holes, including 41.5 g/t Au throughout 6.3 metres in FDN-C25-260.
The positive news comes as the major Canadian operator is working toward producing an inaugural mineral resource estimate for the operation’s Fruta del Norte South deposit, discovered in late 2023. This milestone is expected to occur early next year.
“Exploration drilling also confirms that Fruta del Norte South is a larger mineralized system and now, FDN East emerges as a new epithermal vein deposit near existing infrastructure,” Beck also explained, “offering meaningful upside.”
These latest assays show that at FDN East, Lundin pulled a core sample with 14.1 g/t Au over 10.8 metres. It included a 2.4-metre section with over 56 g/t gold. Also, 9.27 g/t Au throughout 15 metres from a different hole.
Fruta del Norte has been producing considerable quantities of the precious metal since 2019 and still has approximately 11 years of life remaining. It churned out a record 502,000 ounces in 2024.
Lundin acquired the project from Kinross Gold Corp (TSE: K) (NYSE: KGC) (ETR: KIN2) in 2014, started construction in 2017 and poured the first gold bar in 2019. Commercial production was then declared in February of 2020. It has produced over 2.6 million ounces since.
Recent drill campaigns have been focused on delineating new mineralization in the surrounding area of the property’s primary operations. Seventeen drills rigs will have completed approximately 120,000 metres by the end of 2025. It is the largest program to date.
Lundin Gold was the top gold mining company on this year’s TSX 30 List. The mining major recorded 775 per cent appreciation of its stock over the past three years.
The company maintains a robust, debt-free financial position and currently stands out as one of the most appealing precious metals stocks on the market. Strong liquidity, solid revenue generation and a healthy cash position have minimized risks for shareholders.
Lundin’s Board of Directors declared a quarterly dividend of US$0.80 on Nov. 6. This marks a considerable increase from the US$0.20 per share being paid out during the first quarter of 2025.
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