Lundin finds new copper-gold systems in Ecuador

Canada’s Lundin Gold (TSX: LUG) said drilling near its Fruta del Norte mine in Ecuador showed a large intrusive complex hosting several shallow copper-gold porphyry systems within a short distance of each other. The stock jumped.

Hole SND-2025-383 in the Sandia zone cut 603 metres grading 0.68% copper, 0.1 gram gold per tonne, 2.85 grams silver and 16.32 parts per million (ppm) molybdenum from 27 metres downhole, Lundin said late Thursday in a statement. In the Castillo zone, hole CAS-2025-376 cut 48 metres of 1% copper, 0.33 gram gold, 3.2 grams silver and 3.81 ppm molybdenum from 258 metres depth.

Lundin is advancing toward a first-half decision on whether to build a mine in Fruta del Norte’s south zone to expand output. Eight of the 16 highest grade and width holes ever drilled on the property have come from that zone in the last two years.

“Near-mine exploration continues to prove up the Fruta del Norte land package as an emerging gold-copper district,” Scotia Capital mining analyst Ovais Habib said Friday in a note.

Record drilling

Lundin shares rose 6.6% to C$108.09 Friday morning in Toronto, boosting the company’s market value to about C$26 billion ($19 billion).

Vancouver-based Lundin is planning to drill 133,000 metres at Fruta del Norte this year – an $85 million outlay that will represent the largest ever exploration program on the property. This includes 100,000 metres of near-mine exploration targeting the porphyry corridor and high-grade epithermal gold deposits.

“With multiple rigs turning, we are advancing what is increasingly looking to be a large porphyry district adjacent to Fruta del Norte,” CEO Jamie Beck said.

New system

Other highlights released Thursday include the discovery of a fifth porphyry system, named Chontas, about 7 km south of the main deposit. This doubles the porphyry corridor to at least 10 km and opens a broader area to explore, Lundin said.

The discovery of the fifth porphyry system “underscores [the] district-scale potential as the largest drill program to date in 2026 is underway,” National Bank Financial mining analyst Don DeMarco said Friday in a note. While it’s still early to quantify the economics, “it continues to build out a potentially sizable organic net asset value opportunity.”

In the Trancaloma zone, hole TRL-2025-340 cut 945 metres grading 0.33% copper, 0.1 gram gold, 1.8 grams silver and 12.58 ppm molybdenum from 152 metres depth. This included 202 metres of 0.52% copper, 0.13 grams gold, 2.31 grams silver and 19.14 ppm molybdenum from 895 metres downhole.

Fruta del Norte is expected to produce between 475,000 and 525,000 oz. annually in 2026, 2027 and 2028. This compares with the company’s 490,000–525,000 oz. output range for 2025. Head grade is estimated to average 8.3 grams gold per tonne, with fluctuations expected during 2026 as different sections of the ore body are mined.