LUNDIN GOLD REPORTS FURTHER HIGH
News provided by
03 Aug, 2023, 17:00 ET
Share this article
VANCOUVER, BC, Aug. 3, 2023 /CNW/ - Lundin Gold Inc. (TSX: LUG) (Nasdaq Stockholm: LUG) (OTCQX: LUGDF) ("Lundin Gold" or the "Company") is pleased to announce additional results from its conversion and near-mine exploration programs at its 100% owned Fruta del Norte ("FDN") gold mine in southeast Ecuador. From the conversion program, drilling in the second quarter returned high grade results, while the near-mine program advanced the Bonza Sur and FDN South ("FDNS") targets with encouraging drilling intercepts confirming their significant prospectivity. Highlights from the conversion and near-mine programs are outlined below and detailed results are provided at the end of the release (see Appendix 1). View PDF version
Highlights from underground conversion holes drilled (not true widths):
Highlights from near-mine surface exploration holes drilled (not true widths):
Ron Hochstein, President and CEO, commented, "I am pleased to announce additional results from Lundin Gold's 2023 exploration programs. The conversion program has successfully defined zones of high-grade mineralization within the FDN deposit that we expect will continue converting resources to reserves. Results from the near-mine program confirm the continuity and expansion potential of recent discoveries, Bonza Sur and FDNS, and improve our understanding of their mineralization geometry. Nine rigs are currently turning on our conversion and exploration programs and a minimum of 43,000 metres of drilling are planned in 2023. This represents the largest drill program in the district since 2007."
CONVERSION PROGRAM
Lundin Gold has been advancing its conversion program at FDN, with the objective of converting Mineral Resources to Mineral Reserves. In the past months, conversion drilling has focused on the southern extension of FDN, where high-grade intercepts are associated mainly to vein and/or veinlet zones hosted in volcanic or porphyritic intrusive rocks. Drilling results from the program have significantly increased confidence in the geologic model of the southern extension of the deposit and have revealed a vein type higher grade mineralization within the mineral inferred envelope (Figure 1). The 2023 program is planned to comprise of approximately 7,600 metres of drilling and since January, a total of 4,612 metres across 30 drill holes have been completed. Assay results received to date are presented in Tables 1 and 3 at the end of this release.
Figure 1: FDN long section showing selected conversion drilling results
NEAR-MINE EXPLORATION PROGRAM
The near-mine program focuses on exploring sectors located along trend of the FDN deposit and within extensions of its major controlling structures. Initial drill results published in January and May (see news releases published on January 26th and May 4th, 2023) discovered two new mineralized zones to the south of the FDN deposit, FDNS and Bonza Sur. In recent months, results from the near-mine program have confirmed continuity of mineralization at both targets, and have improved our understanding of the geometry of these vein systems (see Figures 1 and 3). In 2023, a total of 12,363 metres across twenty-four holes, from surface and underground, have been completed. The most recent assay results are presented in Tables 1 and 3 at the end of this release. Results are still pending for some of the reported drill holes.
FDN South (FDNS)
At FDNS, progress was made in delineating this buried epithermal mineralization located immediately south of the current resource envelope of FDN and to the west of the East Fault. Six new drill holes were completed during the quarter and reveal the occurrence of a series of subparallel mineralized veins disposed in the northeastern to southwestern direction, showing similar hydrothermal alteration to that found at FDN. This vein system remains open along strike to the southwest, as well as along the downdip continuity, below the Suarez Basin cover. Importantly, improvements in understanding the veins' geometry has allowed for a redefinition of the drilling program. Drilling at FDNS is ongoing with one rig turning.
Bonza Sur
At Bonza Sur, drilling is enabling expansion of this target located one kilometre south of FDN. Five new drill holes have been completed and results included multiple exciting intersections associated with veins/veinlets of quartz and sulfides (mainly sphalerite and galena), minor chalcedony and manganoan-carbonate. Mineralization has been intercepted for 500 metres along strike from north to south and 300 metres along the downdip and remains open in all directions. Drilling at Bonza Sur is planned to continue to focus on the 1.2 kilometre long soil geochemical anomaly to the south and a systematic follow up will be initiated focused on the higher-grade intercepts returned from this target. Two rigs are currently turning at Bonza Sur (see Figures 2 and 3).
Exploring for new targets
The near-mine exploration program has also discovered new targets of interest through a detailed geological interpretation of exploration data and additional surface work. A drill program was initiated in the second quarter and aims to test the high potential targets near the FDN deposit. Five drill holes, four from underground and one from surface, were completed in the second quarter and intercepted zones of hydrothermal alteration hosted along the downdip extension and to the east of FDN. The program is ongoing with two rigs turning and is currently testing the FDN North and FDN East targets.
Figure 2: Near-mine program showing FDN, targets, conversion and selected results
Figure 3: FDN-Bonza Sur long section (looking East) showing targets and selected results
REGIONAL EXPLORATION PROGRAM
The 2023 regional exploration program continues to advance in the southern region of the Suarez Basin with a total of 2,796 metres completed to date. Targets of interest, such as Quebrada La Negra and Crisbel, located along the Basin's western border have been the primary focus. The 2023 regional drilling program comprises 12,500 metres of drilling and a second rig was recently added to the program to advance exploration at additional targets.
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.
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, QA-QC and data verification procedures, please see Lundin Gold's Annual Information Form dated March 31, 2023, 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. 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 August 3, 2023 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 Company's exploration plans, activities and results. 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 31, 2023, 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 related to political and economic instability in Ecuador; risks associated with the Company's community relationships; risks related to estimates of production, cash flows and costs; risks inherent to mining operations; shortages of critical supplies; the cost of non-compliance and compliance costs; control of the Company's largest shareholders; volatility in the price of gold; failure of the Company to maintain its obligations under its debt facilities; 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; security risks to the Company, its assets and its personnel; risks related to illegal mining; exploration and development risks; the impacts of a pandemic virus outbreak; risks related to the Company's ability to obtain, maintain or renew regulatory approvals, permits and licenses; uncertainty with and changes to the tax regime in Ecuador; the reliance of the Company on its information systems and the risk of cyber-attacks on those systems; the imprecision of Mineral Reserve and Resource estimates; 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; risks related to the Company's workforce and its labour relations; 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 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; the potential for litigation; and risks due to conflicts of interest.
APPENDIX 1
Table 1: Drillhole assay results from the conversion underground drilling program reported for thickness versus grade intervals above 14 (m x g/t Au >14). Drill hole intercepts are reported in drill core lengths
Hole ID
From (m)
To (m)
Interval (m)
Au (g/t)
Ag (g/t)
Target
Zone
FDN-C23-011
No Significant Results
Southern
Underground
FDN-C23-012
161.4
183.3
21.9
4.46
2.62
Southern
Underground
FDN-C23-013
No Significant Results
Southern
Underground
FDN-C23-014
11
15
4
5.53
6.23
Southern
Underground
FDN-C23-015
19
44.9
25.9
4.55
3.99
Southern
Underground
FDN-C23-015
54.9
67.9
13
14.19
21.09
FDN-C23-016
9
32.3
23.3
10.19
5.95
Southern
Underground
FDN-C23-016
191.5
213
21.5
7.58
3.78
FDN-C23-017
44.55
55
10.45
5.02
16.48
Southern
Underground
FDN-C23-018
No Significant Results
Southern
Underground
FDN-C23-019
4.9
11.3
6.4
19.17
9.78
Southern
Underground
Including
6.7
7.6
0.9
130
48.5
FDN-C23-020
4.2
9
4.8
11.64
8.27
Southern
Underground
FDN-C23-020
79.5
92.25
12.75
8.53
14.16
FDN-C23-020
115.75
168.8
53.05
3.85
1.84
Including
145.75
168.8
23.05
7.07
2.09
FDN-C23-021
7
22.6
15.6
12.48
9.31
Southern
Underground
FDN-C23-021
31.7
44.5
12.8
20.08
9.49
FDN-C23-022
0.8
4.5
3.7
13.24
11.32
Southern
Underground
FDN-C23-022
137.3
146.3
9
6.25
4.84
FDN-C23-023
2
5.6
3.6
23.17
18.32
Southern
Underground
FDN-C23-023
106.3
110.3
4
6.06
6
FDN-C23-023
175.1
181.1
6
3.96
2
FDN-C23-024
3.5
7.7
4.2
6
18.44
Southern
Underground
FDN-C23-024
54.1
63
8.9
3.98
2.48
FDN-C23-025
10.2
26.6
16.4
22.95
13.6
Southern
Underground
Including
10.2
12.1
1.9
77.18
26.84
FDN-C23-025
51.1
58.1
7
13.82
11.56
FDN-C23-026
1.9
9.7
7.8
16.53
12
Southern
Underground
FDN-C23-027
1.9
17.2
15.3
10.28
10.47
Southern
Underground
Including
2.9
4.95
2.05
51.93
50.51
FDN-C23-027
105
124
19
4.77
7.64
FDN-C23-027
162.1
172.9
10.8
3.89
2.28
FDN-C23-028
69
104
35
11.33
7.14
Southern
Underground
Including
87
91
4
76.04
22.48
FDN-C23-029
55.3
87.5
32.2
4.12
15.2
Southern
Underground
Including
82.7
87.5
4.8
19.19
15.62
FDN-C23-030
51.6
54.4
2.8
153
52.2
Southern
Underground
Table 2: Drillhole assay results from the near mine drilling program reported for thickness versus grade intervals above 14 (m x g/t Au >14). Drill hole intercepts are reported in drill core lengths
Hole ID
From (m)
To (m)
Interval (m)
Au (g/t)
Ag (g/t)
Target
Zone
FDNS-2023-023
No Significant Results
FDNS
Surface
FDNS-2023-024
412.4
419.5
7.1
11.54
16.21
FDNS
Surface
Including
413.5
414.5
1
76.5
41.4
BLP-2023-025
91.25
116
24.75
1.46
30.78
BLP
Surface
Including
97.4
99
1.6
5.17
50.68
Including
109.6
111.3
1.7
9.25
81.85
BLP-2023-025
188.9
192.9
4
3.15
134.38
BLP-2023-025
212.9
218
5.1
7.59
25.81
Including
215.9
218
2.1
12.43
29.37
BLP-2023-026
200.7
201.7
1
20.3
16.85
BLP
Surface
BLP-2023-026
264.7
273.5
8.8
4.53
138.38
Including
264.7
266.7
2
7.36
23.28
Including
271.5
273.5
2
7.13
295.5
FDNS-2023-027
No Significant Results
FDNS
Surface
FDNS-2023-028
380.8
456.75
75.95
2.35
14.14
FDNS
Surface
Including
437.7
440.75
3.05
7.4
26.12
FDNS-2023-028
478.55
575.85
97.3
2.92
11.45
Including
478.55
491.4
12.85
6.34
13.8
Including
543.8
548.4
4.6
7.64
23.88
BLP-2023-029
29.9
34.9
5
7.9
9.09
BLP
Surface
Including
31.9
32.9
1
36.8
26.1
FDNS-2023-030
No Significant Results
FDNS
Surface
FDNS-2023-031
No Significant Results
FDNS
Surface
FDNS-2023-032
170.45
197.5
27.05
2.39
13.88
FDNS
Surface
Including
179.45
185.45
6
4.3
31.21
FDNS-2023-032
274.3
276.3
2
6.45
5.91
FDNS-2023-032
307.2
309.2
2
7.94
5.31
BLP-2023-033
No Significant Results
BLP
Surface
UGE-DD-23-034
No Significant Results
FDN-Depth
Underground
BLP-2023-035
No Significant Results
BLP
Surface
UGE-DD-23-036
No Significant Results
FDN-Depth
Underground
UGE-DD-23-037
No Significant Results
FDN-Depth
Underground
BLP-2023-038
Pending Results
BLP
Surface
FDNS-2023-039
Pending Results
FDNS
Surface
UGE-DD-23-040
Pending Results
FDN-Depth
Underground
FDNNW-2023-041
Pending Results
FDN-NW
Surface
Table 3: Collar locations of reported drill holes
Hole ID
Prospect
Easting
Northing
Elevation
Azimuth
Dip
EOH (m)
Zone
Year
FDNS-2023-023
FDNS
778174
9581879
1628
70
-75
721.25
Surface
2023
FDNS-2023-024
FDNS
778548
9582083
1631
250
-58
592.60
Surface
2023
BLP-2023-025
Bonza Sur
778574
9580793
1514
270
-78
300.15
Surface
2023
BLP-2023-026
Bonza Sur
778454
9581060
1458
90
-80
352.30
Surface
2023
FDNS-2023-027
FDNS
778548
9582083
1631
250
-65
597.50
Surface
2023
FDNS-2023-028
FDNS
778520
9582319
1630
260
-60
575.85
Surface
2023
BLP-2023-029
Bonza Sur
778550
9580630
1496
90
-44
269.25
Surface
2023
FDNS-2023-030
FDNS
778548
9582083
1631
270
-69
598.10
Surface
2023
FDNS-2023-031
FDNS
778520
9582319
1630
260
-75
961.70
Surface
2023
FDNS-2023-032
FDNS
778445
9581819
1498
245
-60
560.85
Surface
2023
BLP-2023-033
Bonza Sur
778550
9580630
1496
270
-70
317.80
Surface
2023
UGE-DD-23-034
FDN - Depth
778092
9583173
1049
245
-60
241.25
Underground
2023
BLP-2023-035
Bonza Sur
778682
9580448
1578
270
-45
538.80
Surface
2023
UGE-DD-23-036
FDN - Depth
778178
9582889
1078
315
-74
380.50
Underground
2023
UGE-DD-23-037
FDN - Depth
778177
9582888
1078
260
-69
328.25
Underground
2023
BLP-2023-038
Bonza Sur
778550
9580630
1496
90
-70
369.55
Surface
2023
FDNS-2023-039
FDNS
778445
9581819
1498
245
-70
1161.00
Surface
2023
UGE-DD-23-040
FDN - Depth
777989
9583142
1076
92
-48
467.80
Underground
2023
FDNNW-2023-041
FDN - NW
777954
9583789
1397
310
-55
531.40
Surface
2023
FDN-C23-011
FDN - Conversion
778173
9582797
1081
237
-3
211.90
Underground
2023
FDN-C23-012
FDN - Conversion
778173
9582798
1082
274
20
191.00
Underground
2023
FDN-C23-013
FDN - Conversion
778174
9582526
1180
318
8
110.80
Underground
2023
FDN-C23-014
FDN - Conversion
778174
9582526
1182
315
40
61.90
Underground
2023
FDN-C23-015
FDN - Conversion
778174
9582526
1179
315
-41
100.00
Underground
2023
FDN-C23-016
FDN - Conversion
778174
9582525
1180
300
-36
224.90
Underground
2023
FDN-C23-017
FDN - Conversion
778174
9582525
1179
300
-50
100.20
Underground
2023
FDN-C23-018
FDN - Conversion
778174
9582525
1182
295
40
75.90
Underground
2023
FDN-C23-019
FDN - Conversion
778174
9582525
1179
285
-43
221.80
Underground
2023
FDN-C23-020
FDN - Conversion
778174
9582524
1179
270
-46
210.10
Underground
2023
FDN-C23-021
FDN - Conversion
778174
9582524
1181
270
20
71.00
Underground
2023
FDN-C23-022
FDN - Conversion
778174
9582523
1179
255
-58
170.50
Underground
2023
FDN-C23-023
FDN - Conversion
778174
9582523
1179
255
-44
200.90
Underground
2023
FDN-C23-024
FDN - Conversion
778174
9582523
1180
255
-14
110.50
Underground
2023
FDN-C23-025
FDN - Conversion
778174
9582523
1182
255
40
81.30
Underground
2023
FDN-C23-026
FDN - Conversion
778174
9582523
1179
240
-42
230.50
Underground
2023
FDN-C23-027
FDN - Conversion
778174
9582523
1180
239
-28
200.20
Underground
2023
FDN-C23-028
FDN - Conversion
778174
9582523
1180
239
-5
120.35
Underground
2023
FDN-C23-029
FDN - Conversion
778174
9582523
1181
239
20
111.20
Underground
2023
FDN-C23-030
FDN - Conversion
778174
9582523
1182
240
40
100.00
Underground
2023
SOURCE Lundin Gold Inc.
For further information: Ron F. Hochstein, President and CEO, Tel (Ecuador): +593 2-299-6400, Tel (Canada): +1-604-806-3589, [email protected]; Finlay Heppenstall, Director, Investor Relations and Corporate Development, Tel: +1 604 806 3089, [email protected]
Lundin Gold Inc.