Lundin Gold Files Updated Technical Report for Fruta del Norte Gold Project
Lundin Gold Inc. (TSX: LUG) (OMX: LUG) (“Lundin Gold” or the “Company”) is pleased to announce that it has filed an updated National Instrument 43-101 (“NI 43-101”) Technical Report (the “Technical Report”) for its Fruta del Norte gold project (“FDN” or the “Project”) in Ecuador.
Background of Lundin Gold
Lundin Gold is a Canadian mining company focused on developing its wholly-owned Fruta del Norte gold project in Ecuador. The Company is led by a highly experienced management team with a successful track record of developing and operating mines in Ecuador. Lundin Gold is committed to delivering value to its shareholders and to building a sustainable future for its stakeholders.
Fruta del Norte Gold Project
The FDN Project is located in the Cordillera del Condor region of southeastern Ecuador, approximately 200 kilometres east of the capital city of Quito. The Project is situated in the western foothills of the Andes Mountains, at an elevation of approximately 1,800 metres above sea level.
The FDN Project is a high-grade gold-silver deposit with a total mineral resource estimate of 6.8 million ounces of gold and 34.7 million ounces of silver, as reported in the Technical Report. The Project is expected to produce an average of 250,000 ounces of gold and 1.2 million ounces of silver annually over a 16-year mine life.
Updated Technical Report
The Technical Report, which was prepared in accordance with NI 43-101, provides an updated mineral resource estimate and an updated mineral reserve estimate for the FDN Project. The mineral resource estimate is based on a total of 6,619 metres of diamond drilling and 1,845 metres of reverse circulation drilling completed by the Company in 2020.
The mineral reserve estimate is based on a total of 8,743 metres of diamond drilling and 2,743 metres of reverse circulation drilling completed by the Company in 2020. The mineral reserve estimate includes a total of 4.2 million ounces of gold and 22.2 million ounces of silver.
The Technical Report also includes an updated mine plan and an updated economic analysis for the FDN Project. The mine plan includes a total of three open pits and two underground mines. The economic analysis includes a total of $1.2 billion in capital expenditures and a total of $2.2 billion in operating costs over the life of the mine.
Environmental and Social Impact Assessment
The Technical Report also includes an updated Environmental and Social Impact Assessment (“ESIA”) for the FDN Project. The ESIA includes a detailed assessment of the potential environmental and social impacts of the Project, as well as a plan for mitigating and managing those impacts.
The ESIA includes a detailed plan for managing water resources, air quality, and waste management. It also includes a plan for managing the potential impacts of the Project on local communities, including a plan for providing employment opportunities and training for local residents.
Project Financing
The Company is currently in the process of securing project financing for the FDN Project. The Company has entered into a binding term sheet with a syndicate of lenders for a senior secured project finance facility of up to $650 million. The Company is also in discussions with potential equity investors for additional project financing.
Construction and Production
The Company is currently in the process of obtaining the necessary permits and approvals for the construction and operation of the FDN Project. The Company expects to begin construction of the Project in the second half of 2023 and to begin production in the first half of 2025.
Conclusion
Lundin Gold is pleased to announce the filing of an updated NI 43-101 Technical Report for its Fruta del Norte gold project in Ecuador. The Technical Report includes an updated mineral resource and mineral reserve estimate, an updated mine plan, and an updated economic analysis. The Company is currently in the process of securing project financing and obtaining the necessary permits and approvals for the construction and operation of the FDN Project. The Company expects to begin construction of the Project in the second half of 2023 and to begin production in the first half of 2025.