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Saturday, May 18, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Gold

Lundin Gold finds high-grade intercepts at its Fruta del Norte mine in Ecuador

Positive results from both the near-mine and conversion drilling programs support the ongoing organic growth potential

Lundin Gold finds high-grade intercepts at its Fruta del Norte mine in Ecuador
The Fruta del Norte mine in Ecuador. Image via Lundin Gold.

Lundin Gold Inc. (TSX: LUG) (NASDAQ: LUG) (OTCQX: LUGDF) pulled in high grade results from its ongoing near-mine exploration and conversion programs at its Fruta del Norte (FDN) gold mine in southeast Ecuador.

The company announced on Friday that it achieved positive near-mine drilling intercepts at Bonza Sur and also in extensions at depth of the FDN deposit. Furthermore, the conversion drilling program progressed in the north sector of the FDN deposit and returned wide, high-grade intercepts for Lundin in areas adjacent to current operations.

These positive results from both the near-mine and conversion drilling programs support the ongoing organic growth potential at FDN.

Lundin Gold’s 2024 near-mine drilling program will aim to achieve three main objectives, which include extending the FDN deposit at depth and to the south, the advancement of the delineation of Bonza Sur, and the exploration for new near-mine discoveries, including at FDN East.

Near mine highlights include:

  • Drill hole BLP-2024-101 intersected 32.31 grams per tonne (g/t) of gold (Au) over 14.50m from 74.0 m, including:
    • 442.16 g/t Au over 1.0 m
  • Drill hole UGE-DD-24-089 intersected 8.62 g/t Au over 19.9 m from 97.7 m and 12.04 g/t Au over 11.8 m from 264.90 m including:
    • 21.4 g/t Au over 5.9 m
  • Drill hole UGE-E-24-094 intersected 76.95 g/t Au over 5.0 m from 156.1 m, including:
    • 349 g/t Au over 1.1 m
  • Drill hole FDNE-2023-064 intersected 12.35 g/t Au over 6.4 m from 823.0 m, including:
    • 29.37 g/t Au over 2.6. m

Read more: Calibre Mining pulls high value gold and silver in Nicaragua

Read more: Calibre secures commissioning contract for Valentine plant; signs gold supply deal with Asahi

Lundin Gold’s drill results confirm potential for possible future resource upside

The initial drill results continue to confirm the potential for a possible future resource upside. Workers have completed a total of 12,313 metres across twenty-six holes, from both surface and underground, in 2024.

“The intercepts continue to enhance our confidence in the exploration potential of the district with a growing pipeline of discoveries around FDN supporting our ability for future resource growth,” Ron Hochstein, President and CEO, said.

“Our conversion program has also successfully defined zones of high-grade mineralization within the FDN deposit that we expect will lead to continued conversion of Mineral Resources to Reserves.”

This includes ten rigs with three underground and seven on the surface. Hochstein said that Lundin is presently turning on its conversion and exploration programs and intends on drilling a minimum of 65,000 meters in 2024. This represents the largest drilling program ever conducted on the land package.

It makes sense given the present results that Lundin would want to extend its drilling campaigns to include more depth.

More highlights from the present drilling campaign include:

  • Drill hole FDN-C24-084 intersected 14.61 g/t Au over 63.6 m from 103.4 m, including:
    • 28.48 g/t Au over 29.9 m
  • Drill hole FDN-C24-083 intersected 10.04 g/t Au over 61.8 m from 14.9 m, including:
    • 16.72 g/t Au over 24.8 m
  • Drill hole FDN-C24-086 intersected 14.84 g/t Au over 28.6 m from 160.6 m, including:
    • 30.97 g/t Au over 6.0 m

Read more: Calibre Mining remains on track to deliver on its 2024 guidance of between 275-300K ounces

Read more: Calibre’s 2024 Valentine exploration program shows vast expansion potential, promising targets

Latin America has inspired a gold rush

Latin America has proven to be a gold rush magnet over the past few years.

The region boasts some of the world’s richest gold reserves, particularly in countries like Chile, Ecuador, Nicaragua and Brazil. This abundance makes it a prime target for miners looking for profitable ventures.

Additionally, many Latin American countries have become increasingly mining-friendly in recent decades. This means clearer regulations, streamlined permitting processes, and a welcoming environment for foreign investment.

The biggest companies are there, of course.

Barrick Gold Corporation (TSX: ABX) (NYSE: GOLD) and Newmont Corporation (TSX: NGT) (NYSE: NEM) has significant operations in Argentina and the Dominican Republic, among other locations.

Their Pueblo Viejo mine in the Dominican Republic, a joint venture with Newmont, is one of the largest gold mines in the Americas. Newmont Corporation, another global leader in gold production, operates several projects across the region, including the Yanacocha mine in Peru, which is one of the largest gold mines in South America.

Furthermore, Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF) is a significant player in the gold mining sector in Nicaragua.

The company has focused on responsible and sustainable mining practices while actively exploring and developing its gold projects within the country. Calibre Mining operates several key assets in Nicaragua, including the Limon and Libertad mines, which have shown substantial gold production. The company’s strategy involves not only the extraction of gold but also the exploration of new resources to extend the life of its mines.

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 Calibre Mining is a sponsor of Mugglehead news coverage

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