VANCOUVER, BC, July 18,
2022 /CNW/ - Lundin Gold Inc. (TSX: LUG)
(Nasdaq Stockholm: LUG) ("Lundin Gold" or the
"Company") is pleased to announce that the near mine
exploration program at Fruta del Norte ("FDN") has begun. The
Company's near mine program will focus on targets within and around
the existing operation and explore sectors in the continuities of
the FDN deposit and along the extension of major structures. The
2022 program, which is expected to cost US$4
million, is planned to include over 6,000 metres of drilling
from both underground and surface, new geophysical surveys,
geological mapping, and geochemical sampling. One underground rig
is currently turning, with a second surface rig to be added
shortly, focused on expanding the FDN mineral envelope and sectors
adjacent to the mine site (see Figure 1). PDF version.
The inception of this new near mine exploration program, which
will run in parallel to the ongoing regional exploration program,
is in line with Lundin Gold's
commitment to expand and replace Mineral Resources and Mineral
Reserves at FDN, to extend FDN's life of mine, and in turn,
sustainably grow production.
Ron Hochstein, President and CEO
commented, "I am excited to announce the start of our near mine
exploration program at Fruta del Norte. The program represents an
important step to creating a sustainable pathway to replace Mineral
Reserves and grow Mineral Resources. With the significant cash flow
from FDN, exploration is a core focus for Lundin Gold, and I believe that there is
significant scope from these drilling activities to expand FDN and
discover satellite deposits close to our infrastructure. Our
objective is to increase the current life of mine and generate
significant additional value. I look forward to keeping our
shareholders updated on the drill program."
Near Mine Exploration Program to Drill Largely Untested
Sectors
The FDN deposit is one of the premier high grade gold
discoveries of the last 50 years. It is an impressive epithermal
system with a significant mineral resource inventory comprised of
approximately 7.35 million ounces as Indicated Mineral Resources
and approximately 2.13 million ounces as Inferred Mineral
Resources, all occurring in less than 1.5 kilometres of extension.
Historically, exploration activities have concentrated on the
delineation and conversion of FDN in the area where most of the
underground development and drilling has occurred to date. A recent
exploration data review demonstrated a much wider mineralization
footprint nearby the deposit itself. Several targets of interest
are essentially untested, with similar geological conditions to
those at FDN, and present significant new exploration
opportunities.
The FDN deposit is limited by two major faults, to the west and
to the east, which are key geological structures controlling its
mineralization. Limited drilling has been carried out beyond the
confines of the deposit or adjacent to these major structures,
where the same hosting sequences from FDN remain unexplored.
Starting in 2022, the near-mine drilling program will test both
structures along the continuity of the deposit and explore for new
epithermal systems in the East, West and Downdip sectors (see
Figures 2 and 3).
The Bonza West and Castillo sectors, located in the south
extension of the FDN structural corridor, represent a large area
that extends continuously for more than two kilometres, with rock
and soil samples showing geochemical anomalous values for gold and
pathfinder elements (arsenic, antimony) and the same favourable
lithological hosting sequence as at FDN (see Figure 4). Only
limited shallow drilling was undertaken in these areas in the past,
and therefore these sectors remain largely untested, and a surface
drilling program will be initiated imminently.
In parallel to the near-mine program, regional exploration
drilling continues, with two drill rigs currently turning at
Barbasco and Puente-Princesa. The aim of the 2022 program is to
find buried "Fruta del Norte" type epithermal gold-silver systems
in the southern Basin.
Qualified Persons
The technical information contained in this News Release has
been reviewed and approved by Andre
Oliveira, P. Geo, Vice President, Exploration of the
Company, who is a Qualified Person in accordance with the
requirements of NI 43-101.
The technical information contained in this News Release
relating to the estimates of Mineral Resources is based on a
Technical Report prepared for the Company entitled "Fruta del Norte
Project, Ecuador, NI 43-101
Technical Report on Feasibility Study" dated June 15, 2016 with an effective date of
April 30, 2016 (the "Technical
Report"). For information with respect to the key assumptions,
parameters and risks associated with the results of the Technical
Report for Fruta del Norte, the Mineral Resource estimates included
therein and other technical information, please refer to the
Company's current annual information form and the Technical Report
filed on SEDAR.
About Lundin Gold
Lundin Gold, headquartered in
Vancouver, Canada, owns the Fruta
del Norte gold mine in southeast Ecuador. 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 July 18, 2022 at
3:30 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 Company's
estimates of Mineral Resources and its exploration prospects, plans
and 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 21,
2022, 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 associated with
the Company's community relationships; risks related to
political and economic instability in Ecuador; risks related
to estimates of production, cash flows and costs; the impacts of a
pandemic virus outbreak; risks inherent to mining operations;
failure of the Company to maintain its obligations under its debt
facilities; shortages of critical supplies; control of the
Company's largest shareholders; risks related
to Lundin Gold's compliance with environmental laws and liability
for environmental contamination; the lack of availability
of infrastructure; the Company's reliance on one mine;
exploration and development risks; risks related to the
Company's ability to obtain, maintain or renew regulatory
approvals, permits and licenses; uncertainty with the tax regime
in Ecuador; risks related to the Company's workforce and its
labour relations; volatility in the price of gold; the
reliance of the Company on its information systems and the risk of
cyber-attacks on those systems; deficient or vulnerable title
to concessions, easements and surface rights; inherent safety
hazards and risk to the health and safety of the Company's
employees and contractors; the imprecision of Mineral Reserve
and Resource estimates; key talent recruitment and retention of
key personnel; volatility in the market price of the Company's
shares; measures to protect endangered species and
critical habitats; social media and reputation; the cost
of non-compliance and compliance costs; risks related to
illegal mining; the adequacy of the Company's insurance; risks
relating to the declaration of dividends; 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; limits of disclosure
and internal controls; security risks to the Company, its
assets and its personnel; the potential for litigation;
and risks due to conflicts of interest.
Cautionary Note to U.S. Investors concerning estimates of
Measured, Indicated, and Inferred Resources:
The mineral resource estimates included in this press release
have been prepared in accordance with Canadian National Instrument
43-101 – Standards of Disclosure for Mineral Projects. The
United States Securities and Exchange Commission (the "SEC") has
adopted amendments to its disclosure rules to modernize the mineral
property disclosure requirements. U.S. investors are cautioned that
the disclosure the Company provides on its mineral properties in
this news release may be different from the disclosure that an
issuer subject to SEC reporting requirements would otherwise be
required to provide. Therefore, the information contained in
this news release containing descriptions of the Company's mineral
properties may not be comparable to similar information made public
by U.S. companies subject to reporting and disclosure requirements
under the U.S. federal securities laws and the rules and
regulations thereunder.
Figure 1: Near Mine Exploration Program
Figure 2: Cross Section and Location of Fruta
del Norte East, West and Downdip
sectors
Figure 3: Fruta del Norte Longitudinal Sector
and Location of Downdip Sector
Figure 4: Historical Near Mine
Exploration
SOURCE Lundin Gold Inc.