Lundin Gold strikes Fruta del Norte bonanza

The latest conversion drilling at Lundin Gold’s (TSX: LUG) Fruta del Norte mine in Ecuador has returned results as high as 9 metres grading nearly 140 grams gold per tonne. Shares rose.

That result, from 62.2 metres depth in hole FDN-C25-238 at Fruta del Norte South (FDNS), also cut 11.5 metres at 28.62 grams gold and 9.45 metres grading 9.77 grams gold; while hole FDN-C25-245 returned 9.8 metres at 43.77 grams gold from 102.7 metres depth, Lundin reported Thursday. FDN is about 400 km southeast of the capital, Quito.

“Conversion drilling on FDNS continues to yield some of the highest-grade results to date alongside the discovery of a new mineralized vein that lies outside the existing inferred resource,” Lundin Gold President and CEO Ron Hochstein said in a release.

“Recent drill results at FDN East continue to underscore its excellent exploration potential, located in close proximity to our existing underground development.”

Mine life extension

The results are part of the company’s near-mine exploration strategy aimed at extending Fruta del Norte’s 12-year mine life by expanding resources, detailing new discoveries and converting inferred resources to indicated. Ongoing engineering studies are targeting the integration of FDNS into FDN’s long-term mine plan next year.

Exploration at FDN over the last three years has significantly helped with resource growth and led to the discovery of new mineralized sectors. FDN started production in 2020 and delivered a record-breaking 502,029 oz. last year.

Lundin Gold shares gained 1.9% to C$65.36 apiece on Friday morning in Toronto for a market capitalization of C$15.8 billion. The stock has traded in a 12-month range of C$21.51 to C$75.19.

Another noteworthy intersection at FDNS, hole FDN-C25-205 returned 8.1 metres at 31.63 grams gold from 38.6 metres depth.

The conversion drilling results have confirmed continuity of mineralization at FDNS, with high-grade holes outside the geological model showing potential for resource expansion, Lundin said.

At FDN East, highlight hole UGE-E-25-207 cut 10 metres grading 6.61 grams gold from 497 metres depth.

FDNE’s growth potential

The results at FDNE have expanded mineralization along the north extension and pointed to potential growth areas.

This year’s drill program comprises at least 108,000 metres, of which 83,000 are for exploration and 25,000 metres for conversion. Seventeen rigs are operating in total.

The FDNS deposit, an epithermal vein system, hosts an estimated 12.4 million inferred tonnes grading 5.25 grams gold for 2.09 million ounces.