Producing

Fruta del Norte

Ag
Au
Lundin Gold Inc.
Morona-Santiago

,

Ecuador

Acquisition:

2019 / 01 / 18

Agreement:

Royalty

Terms:

0.9% NSR

The Fruta del Norte gold project is located in southeast Ecuador about 139 kilometres east-northeast of the City of Loja. 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. Over the next five years, Lundin Gold advanced the project to mine construction, reaching first gold production in November 2019. Commercial production was achieved in February 2020.

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.

In 2023, Lundin Gold announced updated Mineral Reserves for the Fruta del Norte mine, which in effect have replaced all mined Reserves since the beginning of operations at the mine. As of December 31, 2022, current Proven and Probable Mineral Reserves contain 5.0 Moz of gold in 18.0 Mt at a grade of 8.7 g/t (4.2 and 5.0 g/t cut-off grade based on mining method).

Recent Activity

    December 2023

    Lundin Gold anticipates that production at Fruta del Norte will increase to 5,000 tpd by the end of 2024. A planned 56,000 m program will focus on exploring the highly prospective land at and near the mine.

    November 2023

    A total of 11,233 m of underground drilling from 79 drill holes was completed as part of the 2023 conversion program at Fruta del Norte. The results are being incorporated into the geologic model and will be included in an updated resource estimate, expected to be completed in Q1 2024.

    May 2023

    Results from the near-mine exploration program demonstrate potential near the Fruta del Norte deposit. Drilling has intercepted wide and consistent hydrothermal alteration zones related to epithermal systems, and new targets of interest—Fruta del Norte South, Bonza Sur, and Castillo.

Use the link below to browse a list of available technical reports for the projects within Sandstorm’s portfolio. For the most up-to-date information on each project, please refer to the project operator or developer.

Investor Presentation

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Asset Handbook

With 250 royalties acquired since 2009, we offer an exciting investment opportunity in a diverse portfolio of royalty assets. Discover all of Sandstorm’s royalties around the globe.

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Annual Report

Our 2023 Annual Report includes our annual Financial Statements and Management Discussion & Analysis and a letter from Sandstorm’s President & CEO.

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Sustainability Report

Learn more about Sandstorm’s approach to sustainability including our due diligence process, mining partnerships, and employee engagement.

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