VANCOUVER, BC, Feb. 16, 2022 /CNW/ - Lundin Gold Inc.
(TSX: LUG) (Nasdaq Stockholm: LUG) ("Lundin Gold" or the
"Company) is pleased to provide an update on the completed 2021
regional exploration drilling program of the Suarez pull-apart
basin ("the Basin") and a preview of the 2022 program, which is now
underway. The Basin is interpreted to be a 16 kilometre-long
geological structure trending south from Fruta del Norte, the
Company's high grade operating gold mine in south-eastern
Ecuador. PDF version.
Ron Hochstein, President and CEO
commented, "The 2021 program continued to support and further
strengthen our position that buried Fruta del Norte style deposits
occur within the southern Basin. Exploration of the southern Basin
has been challenging due to the topography and the thickness of the
cover rocks, with this part of the Basin being roughly 20
km2 in area and mostly covered by post-mineral
lithologies. With the results of the 2021 program, the 2022 program
is underway and will continue to evaluate further south along both
margins of the Basin."
2021 Program
Two target areas were drilled for a total of 11,136 m in 2021: the Barbasco anomaly along the
eastern margin of the Basin, and Puente-Princesa along the western
Basin margin (see Figure 1). While drilling in 2021 only
intersected relatively narrow, low grade vein mineralization, the
drilling has been very encouraging as it has confirmed that
gold-bearing hydrothermal fluids circulated in the southern Basin
at the same time as Fruta del Norte was forming further north. The
program has advanced the Company's understanding of the southern
Basin and provided direction for the 2022 program, which will move
into completely covered areas with the aim of locating areas where
mineralizing fluid flow was more focused.
At Barbasco, 5,387 m were
completed in six drill holes (see Tables 1 and 2 for Barbasco
drilling information). Drilling at the target intersected zones of
epithermal related alteration and multiple narrow (<
2 m wide), widely spaced epithermal
quartz-carbonate-sulphide veins in the Santiago Formation (the host
rock of Fruta del Norte), andesites and sediments. Most of the
veins are anomalous in gold and silver and the epithermal
pathfinder elements arsenic and antimony. In the overlying Suarez
(basin fill) sediments, broad intervals of marcasite alteration
with epithermal pathfinder geochemistry were intersected. The
veining and alteration increase to the south, with the
interpretation that there is a component of lateral flow from this
direction.
At Puente-Princesa, a total of 5,749
m was drilled in six holes (see Tables 1 and 3 for
Puente Princesa drilling
information). Initial interpretations of the results are as
follows:
- Drilling intersected a thick sequence of cover rocks, followed
by Santiago Formation that was often hydrothermally altered and
brecciated. Broad zones of the Santiago Formation are anomalous in
the key epithermal pathfinder elements arsenic and antimony, but
only narrow and low-grade gold intervals were intersected, with a
best intercept of 10 m at 0.46 g/t
Au.
- Mineralized (epithermal) clasts associated with some assay
grades in the Suarez conglomerate were found but contain less
epithermal marcasite than Barbasco, with the interpretation that
the mineralization in this part of the Basin is part of an earlier
(early or pre-basin) epithermal system.
2022 Program
The aim of the 2022 program is to find buried "Fruta del Norte"
type epithermal gold-silver systems in the southern Basin. Using
the alteration and epithermal pathfinder geochemistry of the Suarez
sediment as a vector, exploration drilling is now focussed
on areas completely covered by post-mineral rocks.
The Barbasco south area has been prioritized as a target area
with access track and drill platform construction underway. This
untested part of the Basin margin is approximately 3 km long, is
completely covered and is upslope from the Puma surface epithermal
clasts (of unknown origin) (see Figure 1 for location of Puma
target area).
At the Puente-Princesa target, drilling is underway, with two
drill rigs currently turning, testing for buried mineralization
along the western Basin margin.
Background
The Basin has similar lithologies, alteration, geochemistry and
structure to that around the Fruta del Norte deposit at its
northern end. Significantly, there are very large areas of
epithermal related marcasite alteration, highly anomalous in the
epithermal pathfinder elements arsenic and antimony within the
Basin sediments. This is interpreted to have originated from
epithermal systems that discharged fluid into the Basin and is a
distinct feature around the Fruta del Norte deposit. Although
surface exposures of this alteration in the southern Basin are
limited by the cover rocks, drilling at Puma (in 2017/18) and
Barbasco (2021) has delineated very extensive areas of epithermal
marcasite. Formed in unconsolidated sediment during the Jurassic
period, this alteration has a component of lateral flow from the
source epithermal system.
Qualified Persons
The technical information contained in this News Release has
been reviewed and approved by Stephen Leary, MAusIMM CP(Geo),
a consultant to the Company, who is a Qualified Person under
National Instrument 43-101.
Samples consist of half HQ and NQ-size diamond core that are
split by diamond saw on site, prepared at the ALS laboratory in
Quito, and analysed by 50g fire
assay and multi-element (ICP-AES/ICP-MS) at the ALS Laboratory in
Lima, Peru. The quality
assurance-quality control (QA-QC) program of Lundin Gold includes the insertion of certified
standards of known gold content, blank and duplicate samples.
The remaining half core is retained for verification and
reference purposes. For further information on the assay,
QAQC and data verification procedures, please see Lundin Gold's Annual Information Form dated
March 2, 2021, filed under the Company's profile on SEDAR
(www.sedar.com).
About Lundin Gold
Lundin Gold, headquartered
in Vancouver, Canada, owns
the Fruta del Norte gold mine in southeast Ecuador and a large
exploration land package that hosts the Fruta del Norte deposit at
its northern edge. Fruta del Norte is among the highest-grade
operating gold mines in the world.
The Company's board and management team have extensive expertise
in mine operations and are dedicated to operating Fruta del Norte
responsibly. The Company operates with transparency and in
accordance with international best practices. Lundin Gold is committed to delivering value to
its shareholders, while simultaneously providing economic and
social benefits to impacted communities, fostering a healthy and
safe workplace and minimizing the environmental impact. The Company
believes that the value created through the development of Fruta
del Norte will benefit its shareholders, the Government and the
citizens of Ecuador.
Additional Information
The information in this release is subject to the disclosure
requirements of Lundin Gold under
the EU Market Abuse Regulation. This information was publicly
communicated on February 16, 2022 at 2:00 p.m. Pacific Time through
the contact persons set out below.
Caution Regarding Forward-Looking Information and
Statements
Certain of the information and statements in this press release
are considered "forward-looking information" or "forward-looking
statements" as those terms are defined under Canadian securities
laws (collectively referred to as "forward-looking statements").
Any statements that express or involve discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or performance (often, but not always,
identified by words or phrases such as "believes", "anticipates",
"expects", "is expected", "scheduled", "estimates", "pending",
"intends", "plans", "forecasts", "targets", or "hopes", or
variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "will",
"should" "might", "will be taken", or "occur" and similar
expressions) are not statements of historical fact and may be
forward-looking statements. By their nature, forward-looking
statements and information involve assumptions, inherent risks and
uncertainties, many of which are difficult to predict, and are
usually beyond the control of management, that could cause actual
results to be materially different from those expressed by these
forward-looking statements and information. Lundin
Gold believes that the expectations reflected in this
forward-looking information are reasonable, but no assurance can be
given that these expectations will prove to be correct.
Forward-looking information should not be unduly relied upon. This
information speaks only as of the date of this press release, and
the Company will not necessarily update this information, unless
required to do so by securities laws.
This press release contains forward-looking information in a
number of places, such as in statements relating to the
interpretation of results from the 2021 exploration program and
underlying assumptions and the timing and plans for the Company's
2022 exploration activities. There can be no assurance that such
statements will prove to be accurate, as Lundin Gold's actual results and future events
could differ materially from those anticipated in this
forward-looking information as a result of the factors discussed in
the "Risk Factors" section in Lundin
Gold's Annual Information Form dated March 2, 2021, which is
available at www.lundingold.com or on SEDAR. Lundin Gold's actual results could differ
materially from those anticipated. Factors that could cause actual
results to differ materially from any forward-looking statement or
that could have a material impact on the Company or the trading
price of its shares include: risks relating to the impacts of
a pandemic virus outbreak, political and economic instability in
Ecuador, production estimates,
mining operations, the Company's community relationships, ability
to maintain obligations or comply with debt, financing
requirements, volatility in the price of gold, shortages of
critical supplies, compliance with environmental laws and liability
for environmental contamination, lack of availability of
infrastructure, the Company's reliance on one mine, deficient or
vulnerable title to concessions, easements and surface rights,
uncertainty with the tax regime in Ecuador, the Company's workforce and its
labour relations, inherent safety hazards and risks to the health
and safety of the Company's employees and contractors, the
Company's ability to obtain, maintain or renew regulatory
approvals, permits and licenses, the imprecision of mineral reserve
and resource estimates, key talent recruitment and retention of key
personnel, volatility in the market price of the shares, the
potential influence of the Company's largest shareholders, measures
to protect endangered species and critical habitats, the reliance
of the Company on its information systems and the risk of
cyber-attacks on those systems, the cost of non-compliance and
compliance costs, exploration and development risks, risks related
to illegal mining, the adequacy of the Company's insurance,
uncertainty as to reclamation and decommissioning, the ability
of Lundin Gold to ensure compliance with anti-bribery and
anti- corruption laws, the uncertainty regarding risks posed by
climate change, the potential for litigation, limits of disclosure
and internal controls, security risks to the Company, its assets
and its personnel, conflicts of interest, risks that the Company
will not declare dividends and social media and reputation.
Figure 1: Map of Drill hole
locations
Table 1: Collar Locations of Drill
Holes
Hole ID
|
Prospect
|
Easting
|
Northing
|
Elevation
|
Azimuth
|
Dip
|
EOH (m)
|
BAR-2021-001
|
Barbasco
|
777420
|
9574023
|
1670
|
90
|
-45
|
1031.7
|
BAR-2021-002
|
Barbasco
|
777742
|
9574002
|
1699
|
90
|
-45
|
1007
|
BAR-2021-003
|
Barbasco
|
777899
|
9573603
|
1803
|
90
|
-45
|
983
|
BAR-2021-004
|
Barbasco
|
778131
|
9573497
|
1908
|
90
|
-45
|
854
|
BAR-2021-005
|
Barbasco
|
778140
|
9573298
|
1947
|
90
|
-45
|
743
|
BAR-2021-006
|
Barbasco
|
778243
|
9573100
|
1980
|
90
|
45
|
768
|
PCS-2021-007
|
Puente-Princesa
|
775400
|
9573744
|
1536
|
270
|
-60
|
596.9
|
PCS-2021-008
|
Puente-Princesa
|
775808
|
9573772
|
1540
|
270
|
-60
|
687
|
PCS-2021-009
|
Puente-Princesa
|
776191
|
9573480
|
1570
|
270
|
-70
|
1031
|
PCS-2021-010
|
Puente-Princesa
|
776497
|
9572456
|
1603
|
270
|
-75
|
1291
|
PCS-2021-011
|
Puente-Princesa
|
776497
|
9572456
|
1603
|
270
|
-50
|
1271
|
PCS-2021-012
|
Puente-Princesa
|
775685
|
9574661
|
1540
|
270
|
-45
|
872
|
Table 2: Barbasco Drill Results
(>0.1 g/t Au)
|
|
|
|
Grade
|
Hole
ID
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
(g/t)
|
As
(ppm)
|
Sb
(ppm)
|
BAR-2021-001
|
449.00
|
451.00
|
2.00
|
0.17
|
9
|
0.6
|
|
716.00
|
718.00
|
2.00
|
0.19
|
26
|
1.1
|
BAR-2021-002
|
772.20
|
774.00
|
1.80
|
0.18
|
63
|
0.8
|
|
867.00
|
872.00
|
5.00
|
0.24
|
34
|
0.9
|
BAR-2021-003
|
110.70
|
112.50
|
1.80
|
0.24
|
27
|
0.5
|
|
140.00
|
142.00
|
2.00
|
0.11
|
187
|
1.2
|
|
166.00
|
168.00
|
2.00
|
0.15
|
90
|
0.6
|
|
261.00
|
263.00
|
2.00
|
0.11
|
150
|
1.5
|
|
279.40
|
280.00
|
0.60
|
1.59
|
127
|
1.4
|
|
532.00
|
534.00
|
2.00
|
0.24
|
27
|
1.5
|
|
743.00
|
744.55
|
1.55
|
0.11
|
74
|
1.2
|
|
886.20
|
887.00
|
0.80
|
0.14
|
69
|
2.2
|
|
940.50
|
941.50
|
1.00
|
0.17
|
78
|
3.3
|
BAR-2021-004
|
147.00
|
149.00
|
2.00
|
0.10
|
759
|
33.8
|
|
191.00
|
193.00
|
2.00
|
0.12
|
27
|
4.3
|
|
195.00
|
197.00
|
2.00
|
0.10
|
45
|
5.4
|
|
203.00
|
205.00
|
2.00
|
0.15
|
101
|
6.8
|
|
324.25
|
327.25
|
3.00
|
0.12
|
187
|
3.1
|
|
329.25
|
331.25
|
2.00
|
0.23
|
350
|
6.5
|
|
477.00
|
478.00
|
1.00
|
0.28
|
81
|
1.5
|
|
522.00
|
523.00
|
1.00
|
0.10
|
139
|
2.2
|
|
580.50
|
581.50
|
1.00
|
0.10
|
125
|
0.8
|
|
589.40
|
591.25
|
1.85
|
0.12
|
95
|
1.1
|
|
636.00
|
637.00
|
1.00
|
0.11
|
86
|
1.7
|
|
664.50
|
665.50
|
1.00
|
0.14
|
28
|
0.7
|
|
676.50
|
678.50
|
2.00
|
0.12
|
122
|
0.5
|
|
684.50
|
685.70
|
1.20
|
0.17
|
88
|
1.3
|
|
698.00
|
702.00
|
4.00
|
0.23
|
46
|
0.5
|
|
713.00
|
714.50
|
1.50
|
0.12
|
90
|
0.7
|
|
733.35
|
735.00
|
1.65
|
0.13
|
54
|
0.5
|
|
741.10
|
742.00
|
0.90
|
0.13
|
88
|
1.8
|
|
758.00
|
760.15
|
2.15
|
0.14
|
61
|
0.7
|
|
802.00
|
804.70
|
2.70
|
0.31
|
14
|
0.6
|
BAR-2021-005
|
98.00
|
100.00
|
2.00
|
0.10
|
54
|
2.1
|
|
136.00
|
138.00
|
2.00
|
0.14
|
181
|
3.3
|
|
404.00
|
406.00
|
2.00
|
0.10
|
78
|
4.5
|
|
443.00
|
445.00
|
2.00
|
0.10
|
4
|
0.8
|
|
476.00
|
478.00
|
2.00
|
0.16
|
119
|
1.4
|
|
493.00
|
495.00
|
2.00
|
0.10
|
125
|
1.0
|
|
498.50
|
501.50
|
3.00
|
0.14
|
14
|
0.6
|
|
533.35
|
534.40
|
1.05
|
0.20
|
178
|
1.0
|
|
550.50
|
551.50
|
1.00
|
0.14
|
4
|
0.5
|
|
566.45
|
568.00
|
1.55
|
0.39
|
45
|
2.0
|
|
577.00
|
579.00
|
2.00
|
0.23
|
7
|
0.5
|
|
587.18
|
587.65
|
0.47
|
0.74
|
118
|
2.6
|
|
590.50
|
592.50
|
2.00
|
0.12
|
15
|
0.7
|
|
629.20
|
632.00
|
2.80
|
0.14
|
29
|
1.1
|
|
634.00
|
636.00
|
2.00
|
0.12
|
15
|
0.4
|
|
639.00
|
641.00
|
2.00
|
0.49
|
11
|
0.7
|
|
650.00
|
652.00
|
2.00
|
0.27
|
8
|
0.6
|
|
664.00
|
666.00
|
2.00
|
1.11
|
16
|
0.4
|
|
674.00
|
676.00
|
2.00
|
0.38
|
13
|
0.8
|
|
694.00
|
695.30
|
1.30
|
0.15
|
85
|
0.9
|
|
741.00
|
743.00
|
2.00
|
0.10
|
23
|
0.7
|
BAR-2021-006
|
139.50
|
141.00
|
1.50
|
0.36
|
33
|
1.7
|
|
320.00
|
322.00
|
2.00
|
0.15
|
66
|
4.7
|
|
350.00
|
353.00
|
3.00
|
0.13
|
63
|
3.6
|
|
361.00
|
363.00
|
2.00
|
0.83
|
4
|
1.2
|
|
367.00
|
369.00
|
2.00
|
0.10
|
2
|
0.5
|
|
371.30
|
375.00
|
3.70
|
0.16
|
15
|
0.5
|
|
381.00
|
383.00
|
2.00
|
0.11
|
19
|
1.1
|
|
399.00
|
401.00
|
4.00
|
0.23
|
31
|
0.6
|
|
493.25
|
493.48
|
0.23
|
0.10
|
54
|
0.6
|
|
592.10
|
593.10
|
1.00
|
0.12
|
42
|
0.3
|
|
702.00
|
703.00
|
1.00
|
0.15
|
65
|
2.1
|
|
708.00
|
709.00
|
1.00
|
0.11
|
88
|
3.2
|
Intervals are
calculated using a 0.1 g/t Au lower cut-off.
|
Table 3: Puente Princesa Drill Results
(>0.1 g/t Au)
|
|
|
|
Grade
|
Hole
ID
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
(g/t)
|
As
(ppm)
|
Sb
(ppm)
|
PCS-2021-007
|
28.00
|
30.00
|
2.00
|
0.11
|
4
|
0.3
|
|
56.00
|
62.00
|
6.00
|
0.43
|
7
|
0.8
|
|
254.00
|
260.00
|
6.00
|
0.15
|
29
|
0.8
|
PCS-2021-008
|
280.00
|
281.00
|
1.00
|
0.12
|
16
|
0.4
|
PCS-2021-009
|
631.00
|
643.00
|
12.00
|
0.15
|
78
|
15.2
|
|
665.00
|
667.00
|
2.00
|
0.14
|
23
|
2.6
|
|
671.00
|
681.00
|
10.00
|
0.46
|
51
|
4.4
|
|
882.00
|
884.00
|
2.00
|
0.10
|
97
|
3.7
|
|
888.00
|
890.00
|
2.00
|
0.24
|
9
|
1.5
|
|
973.00
|
977.00
|
4.00
|
0.14
|
154
|
1.3
|
|
1000.00
|
1001.00
|
1.00
|
0.36
|
63
|
1.4
|
PCS-2021-010
|
532.00
|
534.00
|
2.00
|
0.10
|
116
|
2.4
|
|
691.50
|
692.50
|
1.00
|
0.76
|
40
|
2.2
|
|
1047.00
|
1049.00
|
2.00
|
0.22
|
630
|
3.0
|
|
1207.50
|
1209.50
|
2.00
|
0.17
|
960
|
3.3
|
PCS-2021-011
|
1042.00
|
1043.00
|
1.00
|
0.22
|
374
|
6.2
|
|
1045.00
|
1046.00
|
1.00
|
0.23
|
285
|
2.7
|
|
1047.00
|
1048.00
|
1.00
|
0.25
|
740
|
7.6
|
|
1110.00
|
1112.00
|
2.00
|
0.57
|
70
|
1.0
|
|
1249.40
|
1250.80
|
1.40
|
0.10
|
342
|
1.5
|
PCS-2021-012
|
169.00
|
172.00
|
3.00
|
0.20
|
173
|
1.0
|
|
247.50
|
248.50
|
1.00
|
0.13
|
73
|
1.5
|
|
266.44
|
269.50
|
3.06
|
0.17
|
302
|
2.7
|
|
382.00
|
384.00
|
2.00
|
0.10
|
8
|
0.3
|
Intervals are
calculated using a 0.1 g/t Au lower cut-off.
|
SOURCE Lundin Gold Inc.