Lundin Gold‘s (TSE: LUG) (OTCQX: LUGDF) latest batch of drilling has tripled its strike length at the Bonza Sur deposit near its Fruta del Norte mine in southeastern Ecuador.
The company confirmed on Wednesday that recent drilling at Bonza Sur has brought back high-grade and extensive gold mineralization. Notable intercepts include a drill hole that intersected 2.01 grams per tonne (g/t) of gold (Au) over 113.30 meters, highlighting the deposit’s potential for substantial growth.
Lundin’s near-mine exploration program, the largest ever conducted on the concessions hosting the FDN mine, targets at least 65,000 metres of drilling in 2024, with a primary focus on the Bonza Sur deposit. Drilling has already reached approximately 56,110 metres.
The latest results confirm Bonza Sur’s significant size, extending the deposit’s length by 800 metres to approximately 2.6 kilometres and widening it to 150 metres. The deposit remains open for further exploration in all directions and at depth.
“The significant and rapid advance of Bonza Sur from an early-stage exploration target to a mineral deposit is an exciting time for Lundin Gold. Our drilling program continues to highlight the meaningful potential of this new discovery,” said Ron Hochstein, CEO of Lundin Gold.
Lundin’s near-mine exploration program is the largest ever conducted on the concessions hosting the FDN mine. It has targeted at least 65,000 metres of drilling in 2024, with a primary focus on the Bonza Sur deposit. Drilling has already reached approximately 56,110 metres.
The latest results confirm Bonza Sur’s significant size, extending the deposit’s length by 800 metres to approximately 2.6 kilometres and widening it to 150 metres.
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Lundin plans to release an initial mineral resource estimate for 2025
Lundin discovered the Bonza Sur deposit in 2023 by drilling a geochemical soil anomaly located 1 km south of the FDN mine. Since then, the company has completed over 90 drill holes. The results consistently highlight further growth potential, with the new 2.35 g/t intercept serving as a prime example.
After confirming the deposit’s size and anticipating more drilling results, Lundin plans to release an initial mineral resource estimate for Bonza Sur by mid-2025.
South America attracts gold companies due to its rich geology, hosting some of the world’s largest and most productive gold deposits. The continent’s mineral wealth stems from its location along the Andes Mountains, a region with extensive tectonic activity that has created abundant gold-bearing structures.
Countries like Peru, Chile, Brazil, and Argentina offer significant exploration and mining opportunities, supported by established infrastructure and mining-friendly regulations in many areas. Additionally, South America’s relatively lower operational costs compared to other regions enhance profitability for gold producers. The continent’s untapped exploration potential, coupled with growing global demand for gold, makes it a key destination for mining investments.
South America’s rich gold deposits have attracted companies like AngloGold Ashanti (NYSE: AU) and Pan American Silver (TSE: PAAS) (NYSE: PAAS), both actively engaged in exploration and resource development across the continent.
AngloGold Ashanti operates several projects, including the Gramalote project in Colombia and significant assets in Brazil, focusing on resource expansion and innovative mining practices to optimize production.
Pan American Silver, following its 2023 acquisition of Yamana Gold, inherited key South American assets such as the Jacobina Mine in Brazil and the Cerro Moro Mine in Argentina.
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joseph@mugglehead.com
