Lundin Gold Inc. (TSX: LUG) (Nasdaq Stockholm: LUG) (OTCQX: LUGDF) saw remarkable results from its 2023 exploration programs at the Fruta del Norte (FDN) gold mine in southeast Ecuador.
On Friday, the company released a detailed overview of the its conversion, near-mine and regional exploration programs that highlighted progress in the company’s operations.
The conversion program, aimed at converting Mineral Resources to Mineral Reserves, has focused on the southern extension of FDN. The drilling results have revealed high-grade intercepts, including 10.19 grams per tonne (g/t) gold over 23.3 meters and 22.95 g/t gold over 16.4 meters.
The 2023 program is planned to comprise approximately 7,600 meters of drilling, with 4,612 meters already completed across 30 drill holes.
“The conversion program has successfully defined zones of high-grade mineralization within the FDN deposit that we expect will continue converting resources to reserves,” Lundin CEO Ron Hochstein said in a statement.
“Results from the near-mine program confirm the continuity and expansion potential of recent discoveries, Bonza Sur and FDNS, and improve our understanding of their mineralization geometry,” Hochstein added.
“Nine rigs are currently turning on our conversion and exploration programs and a minimum of 43,000 metres of drilling are planned in 2023. This represents the largest drill program in the district since 2007.”
The Fruta del Norte gold mine, located in southeast Ecuador, is fully owned by Lundin Gold and stands as one of the world’s highest-grade and most cost-efficient gold mines.
Situated in the La Zarza concession within the 38 kilometer squared Suarez Pull-Apart Basin, the deposit is renowned for its quality. Fruta del Norte operates as an underground mine, yielding gold concentrate and doré.
Lundin Gold’s acquisition of the asset took place in late 2014, followed by the commencement of construction in July 2017.
The mine achieved its first gold pour in November 2019 and officially declared commercial production in February 2020.
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Near-mine program showing targets, conversion and selected results. Photo via Lundin Gold Inc.
The near-mine exploration program has confirmed the continuity and expansion potential of recent discoveries, Bonza Sur and FDNS.
Highlights include drill hole FDNS-2023-024 intersecting 11.54 g/t gold over 7.1 meters and drill hole BLP-2023-025 at Bonza Sur intersecting 7.59 g/t gold over 5.1 meters. The program has completed a total of 12,363 meters across twenty-four holes, with results still pending for some of the reported drill holes.
The regional exploration program continues to advance in the southern region of the Suarez Basin, with a total of 2,796 meters completed to date. The 2023 regional drilling program comprises 12,500 meters of drilling, focusing on targets such as Quebrada, La Negra and Crisbel.
Company stock went up slightly on Friday by 1.91 per cent to $17.05 on the Toronto Stock Exchange.
Results from underground conversion holes drilled (not true widths):
- Drill hole FDN-C23-016 intersected 10.19 g/t gold (“Au”) over 23.3 m from 9.0 m and 7.58 g/t Au over 21.5 m from 191.5 m
- Drill hole FDN-C23-021 intersected 12.48 g/t Au over 15.6 m from 7.0 m and 20.08 g/t Au over 12.8 m from 31.7 m
- Drill hole FDN-C23-025 intersected 22.95 g/t Au over 16.4 m from 10.2 m, including:
- 77.18 g/t Au over 1.9 m
- Drill hole FDN-C23-028 intersected 11.33 g/t Au over 35.0 m from 69.0 m, including:
- 76.04 g/t Au over 4.0 m
Results from near-mine surface exploration holes drilled (not true widths):
- Drill hole FDNS-2023-024 (at FDNS) intersected 11.54 g/t Au over 7.1m from 412.4 m, including:
- 76.5 g/t Au over 1.0 m
- Drillhole BLP-2023-025 (at Bonza Sur) intersected 7.59 g/t Au over 5.1 m from 212.9 m, including:
- 12.43 g/t Au over 2.1 m
- Drillhole BLP-2023-026 (at Bonza Sur) intersected 4.53 g/t Au over 8.8 m from 264.7 m, including:
- 7.36 g/t Au over 2.0 m from 264.7 m
- 7.13 g/t Au over 2.0 m from 271.5 m
Lundin Mining Corporation is a diversified Canadian base metals mining company with operations in Brazil, Chile, Portugal, Sweden, and the USA, primarily producing copper, nickel, and zinc.
In addition, Lundin Mining holds an indirect 24 per cent equity stake in the Freeport Cobalt Oy business, which includes a cobalt refinery located in Kokkola, Finland.
