The Fruta del Norte gold project, located in southeast Ecuador about 139 km east-northeast of the City of Loja, is one of the highest-grade gold projects currently under construction in the world today. The majority of the project area lies in the highlands south of the Zamora River and east of the Nangaritza River in the Condor mountain region. The Fruta del Norte (“FDN”) deposit is an intermediate-sulphidation epithermal gold-silver deposit measuring approximately 1,670 metres along strike, 700 metres down dip and between 150 metres and 300 metres wide. The structure that hosts the FDN deposit is a Jurassic aged structural zone termed the Suárez pull-apart basin.
Historical work carried out by prior owners including Aurelian Resources Inc., and Kinross Gold Corporation, enabled Lundin Gold to move quickly towards a feasibility study and ultimately a production decision after acquiring FDN in late 2014.
Current Probable Mineral Reserves of 5.4 million ounces of gold in 20.8 Mt at a grade of 8.1 g/t (3.8 – 4.4 g/t cut-off grade) support a 14-year life of mine (2021-2034). The process plant will use gravity, flotation and carbon-in-leach circuits to recover gold to concentrate and as doré.
Lundin Gold has completed several drill programs since 2015. Mapping, geochemical sampling and permitting required for future drilling continues at multiple epithermal gold-silver targets to be explored inside and outside of the Suárez basin structure.
Lundin Gold remains on schedule with its planned 10,000 metre drill program targeting conversion and expansion of the Fruta del Norte mineral resource, and completion of the second raise of the Fruta del Norte tailings dam.
A drill program focused on the high priority Barbasco and Puente-Princesa targets has commenced as part of the Company’s 9,000 metre regional exploration drilling campaign.
Effective July 31, 2020 Probable Mineral Reserves at Fruta del Norte have increased 8%, to 20.8 Mt at a grade of 8.1 g/t Au (based on a cut-off grade of 3.8 g/t for transverse stopes and 4.4 g/t Au for drift and fill stopes).
An initial internal throughput expansion study completed by Lundin Gold on the technical feasibility of increasing throughput in the plant from 3,500 to 4,200 tpd. Engineering, costing, procurement of additional equipment and scheduling are underway with the objective of completing this project before the end of 2021.