VANCOUVER, BC, May 4, 2023
/CNW/ - Lundin Gold Inc. (TSX: LUG) (Nasdaq Stockholm:
LUG) (OTCQX: LUGDF) ("Lundin Gold" or the "Company") is
pleased to announce results from the near-mine and conversion
drilling programs at its 100% owned Fruta del Norte ("FDN") gold
mine in southeast Ecuador. Of
note, the near-mine drill program has discovered three new targets
of interest, Fruta del Norte South
("FDNS"), Bonza Sur and Castillo, located to the south of FDN (see
Figure 1). Highlights are outlined below and detailed results at
the end of the release. View PDF version.
Highlights from near-mine exploration holes drilled (not true
widths):
- Drill hole FDNS-2023-019 intersected 5.16 g/t gold ("Au") over
41.8 m from a depth of 397.3 m, including:
-
- 8.56 g/t Au over 18.0 m from
421.3 m (at FDNS)
- Drillhole BLP-2022-016 intersected 8.27 g/t Au over
39.0 m from a depth of 58 m, including:
-
- 277.0 g/t Au over 1.0 m from
70.0 m (at Bonza Sur)
- Drillhole BLP-2023-022 intersected 46.98 g/t Au over
3.5 m from a depth of 126.6 m, including:
-
- 87.58 g/t Au over 1.8 m from
128.3 m (at Bonza Sur)
Ron Hochstein, President and CEO,
commented, "I am pleased to announce exciting drill results
from Lundin Gold's near-mine
drilling program. These results demonstrate the significant
exploration potential of our land package that we have just started
to test. The discovery of FDNS, which shows similar characteristics
to FDN, and high-grade intercepts drilled at other targets of
interest along trend, are evidence of the potential significant
gold mineralization in multiple targets surrounding the FDN
deposit. Based on these results, we want to accelerate the
delineation of these new exploration opportunities and are
therefore planning to increase our near-mine drilling program for
2023 from 15,500 to 23,000 metres while maintaining our regional
exploration program at 12,500 metres."
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
(see news release published on January
26th, 2023) identified potential areas of
interest. Based on further drilling conducted at the start of 2023,
these areas are now better understood and have enabled the
delineation of a new mineralized zone, FDNS, and the discovery of
Bonza Sur and Castillo (see Figure 1 and 2). As of mid-April, a
total of 4,110 metres across eight holes, from surface and
underground, have been completed and all available assay results
received to date are set out in Table 1 and Table 3 at the end of
this release. Results are still pending for a number of the
reported drill holes.
FDN South
At FDNS, the current drill program aims to delineate new buried
epithermal mineralization located to the west of the East Fault.
Three drill holes recently completed intercepted wide hydrothermal
alteration zones of a similar composition to that found at FDN.
Results from hole FDNS-2023-019 indicate there is significant
potential to continue exploring along strike, to the north and
south, as well as along the downdip continuity, below the Suarez
Basin cover. Two rigs are currently turning at FDNS.
Bonza Sur
Drilling to test a geochemical soil anomaly along the south
extension of the East Fault intercepted a new mineralized zone,
Bonza Sur, that is located one kilometre south of FDN. Drill hole
BLP-2022-016 intercepted high grade gold mineralization hosted in a
wide hydrothermal alteration zone. Additional drilling has
confirmed that mineralization continues along strike to the south
and at depth. The geochemical soil anomaly at Bonza Sur extends
over 1.2 kilometres, and one rig is currently turning here (see
Figure 1 and 2).
Castillo
At Castillo, the first drill hole completed, BLPW-2022-017,
returned positive results. This target of interest, which is
located underneath the Suarez Basin to the west of the East Fault
and south of FDNS, is in a similar geological setting to FDN and
FDNS. This target area is planned to be further explored during
2023, where additional drilling will target wider mineralized zones
at depth.
West Structure
Along the west structure, underground exploration drill holes
intercepted a mineralized zone to the west of the West Fault. The
new zone is hosted in an unexplored geological setting that will be
further investigated.
Drilling Program Expansion
The near-mine exploration program results continue to
demonstrate the significant untapped exploration potential near the
current FDN deposit. Most of the near-mine drilling to date has
intercepted wide and consistent hydrothermal alteration zones
related to epithermal systems, and several early-stage discoveries,
such as FDNS and Bonza Sur, have already been made. As a result of
the recent advances and to accelerate delineation of these targets
and continue to explore other sectors along FDN's major structures,
the Company plans to increase the near-mine drilling program to a
minimum of 23,000 metres in 2023, compared to 15,500 metres
originally planned. This will result in an estimated increase of
$3.5 million, which combined with the
regional program, results in an estimated program cost of
$24.6 million on near-mine and
regional exploration for the year.
Figure 1: Near-mine program
showing FDN, targets, drilling program completed and main
results
Figure 2: FDN-Bonza Sur long
section (looking East) showing targets and main results
CONVERSION PROGRAM
The Company's conversion program aims to convert Mineral
Resources to Mineral Reserves. The 2023 program, which entails
approximately 7,600 metres of drilling, is underway. Highlights
from the 2023 conversion program include (not true widths):
- Drill hole FDN-C23-002 intersected 10.18 g/t Au over
26.65 m from 112.3 m, including:
-
- 19.41 g/t Au over 8.9 m from
123.3 m
- Drill hole FDN-C23-003 intersected 7.84 g/t Au over
45.6 m from 101.2 m, including:
-
- 13.67 g/t Au over 5.8 m from
107.4 m, and;
- 12.67 g/t Au over 12.4 m from
132.2 m
- Drill hole FDN-C23-010 intersected 8.02 g/t Au over
24.6 m from 27.0 m, including 58.34 g/t over 2.7 m, and 12.12 g/t Au over 40.9 m from 81.6
m
Since January, a total of 1,706 metres across 10 drill holes
have been completed with all initial results confirming the
continuity, grades, and width of the drilled areas (see Tables 2
and 3) beyond the FDN Mineral Reserve boundary. In the
north-central sector of FDN, high grade drilling intercepts from
along the downdip extension of the deposit were returned. In the
southern extension, all drill holes intercepted wide zones of
hydrothermal alteration and confirmed the continuity of the deposit
in this sector with significant assay results (see Figure 3).
Figure 3: Fruta del Norte long
section showing main conversion drilling results
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 May 4, 2023 at
3:00 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 near-mine surface drilling program reported for intervals
thickness versus grade 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-2022-015
|
347.00
|
421.30
|
74.30
|
1.65
|
5.61
|
FDNS
|
Surface
|
Including
|
347.00
|
352.80
|
5.80
|
3.80
|
12.07
|
Including
|
372.00
|
378.70
|
6.70
|
4.15
|
7.36
|
Including
|
413.80
|
417.30
|
3.50
|
7.98
|
10.92
|
BLP-2022-016
|
58.00
|
97.00
|
39.00
|
8.27
|
18.65
|
Bonza
Sur
|
Surface
|
Including
|
70.00
|
71.00
|
1.00
|
277.00
|
198.00
|
BLPW-2022-017
|
117.00
|
119.00
|
2.00
|
12.14
|
1.31
|
Castillo
|
Surface
|
UGE-W-23-018
|
60.20
|
79.00
|
18.80
|
4.21
|
16.94
|
FDN West
(FDN
Resource)
|
Underground
|
UGE-W-23-018
|
94.00
|
109.60
|
15.60
|
5.84
|
25.65
|
Including
|
100.00
|
109.60
|
9.60
|
8.81
|
37.88
|
UGE-W-23-018
|
139.30
|
145.20
|
5.95
|
3.60
|
1.47
|
FDN West
(New Zone)
|
Including
|
139.30
|
142.20
|
2.95
|
6.07
|
1.98
|
FDNS-2023-019
|
397.30
|
439.10
|
41.80
|
5.16
|
31.28
|
FDNS
|
Surface
|
Including
|
421.30
|
439.10
|
18.00
|
8.56
|
31.51
|
BLP-2023-020
|
No significant
results
|
Bonza
Sur
|
Surface
|
UGE-DD-23-021
|
No significant
results
|
FDN
West
|
Underground
|
BLP-2023-022
|
10.00
|
46.60
|
36.30
|
1.03
|
4.76
|
Bonza
Sur
|
Surface
|
Including
|
25.30
|
27.30
|
2.00
|
2.80
|
5.31
|
BLP-2023-022
|
126.60
|
130.10
|
3.50
|
46.98
|
23.77
|
Including
|
128.30
|
130.10
|
1.80
|
87.58
|
41.87
|
FDNS-2023-023
|
Pending
results
|
FDNS
|
Surface
|
FDNS-2023-024
|
Pending
results
|
FDNS
|
Surface
|
BLP-2023-025
|
Pending
results
|
Bonza
Sur
|
Surface
|
Table 2: Drillhole assay results from the underground
conversion drilling program reported for intervals thickness versus
grade 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)
|
Sector
|
FDN-C23-001
|
90.80
|
116.80
|
26.00
|
4.08
|
16.66
|
North-Central
|
Including
|
103.90
|
116.80
|
12.90
|
5.97
|
18.22
|
FDN-C23-002
|
112.30
|
138.95
|
26.65
|
10.18
|
41.56
|
North-Central
|
Including
|
123.30
|
132.20
|
8.90
|
19.41
|
74.54
|
FDN-C23-003
|
101.20
|
146.80
|
45.60
|
7.84
|
34.15
|
North-Central
|
Including
|
107.40
|
113.20
|
5.80
|
13.67
|
34.15
|
Including
|
132.20
|
144.60
|
12.40
|
12.67
|
37.24
|
FDN-C23-004
|
117.40
|
145.50
|
28.10
|
4.05
|
33.25
|
North-Central
|
Including
|
133.70
|
138.60
|
4.90
|
6.26
|
42.02
|
FDN-C23-005
|
134.40
|
150.40
|
16.00
|
3.57
|
4.65
|
Southern
|
Including
|
140.40
|
145.40
|
5.00
|
8.97
|
6.32
|
FDN-C23-005
|
157.40
|
168.40
|
11.00
|
4.57
|
4.35
|
Including
|
161.40
|
167.40
|
6.00
|
6.65
|
4.27
|
FDN-C23-006
|
66.50
|
81.30
|
14.80
|
3.84
|
8.70
|
Southern
|
FDN-C23-007
|
48.50
|
208.70
|
160.20
|
4.27
|
5.60
|
Southern
|
Including
|
110.60
|
142.40
|
31.80
|
7.13
|
4.58
|
FDN-C23-008
|
21.00
|
26.00
|
5.00
|
4.74
|
17.72
|
Southern
|
FDN-C23-008
|
55.70
|
65.70
|
10.00
|
3.68
|
12.03
|
FDN-C23-008
|
152.60
|
164.60
|
12.00
|
4.16
|
1.95
|
FDN-C23-009
|
42.90
|
100.30
|
57.40
|
6.65
|
11.80
|
Southern
|
Including
|
57.30
|
60.30
|
3.00
|
37.18
|
33.57
|
Including
|
86.10
|
91.10
|
5.00
|
19.69
|
16.66
|
FDN-C23-010
|
27.00
|
51.60
|
24.60
|
8.02
|
12.94
|
Southern
|
Including
|
48.90
|
51.60
|
2.70
|
58.34
|
58.64
|
FDN-C23-010
|
81.60
|
122.50
|
40.90
|
12.12
|
8.51
|
Table 3: Collar locations of reported drill holes
Hole
ID
|
Prospect
|
Easting
|
Northing
|
Elevation
|
Azimuth
|
Dip
|
EOH
(m)
|
Zone
|
Year
|
FDNS-2022-015
|
FDNS
|
778174
|
9581879
|
1628
|
80
|
-60
|
695.00
|
Surface
|
2022
|
BLP-2022-016
|
Bonza
Sur
|
778454
|
9581060
|
1464
|
90
|
-55
|
497.00
|
Surface
|
2022
|
BLPW-2022-017
|
Castillo
|
778417
|
9581324
|
1429
|
270
|
-70
|
500.00
|
Surface
|
2022
|
UGE-W-23-018
|
FDN
Depth
|
778093
|
9583175
|
1178
|
280
|
-35
|
552.70
|
Underground
|
2023
|
FDNS-2023-019
|
FDNS
|
778174
|
9581879
|
1628
|
80
|
-67
|
808.75
|
Surface
|
2023
|
BLP-2023-020
|
Bonza
Sur
|
778574
|
9580793
|
1500
|
90
|
-55
|
496.40
|
Surface
|
2023
|
UGE-DD-23-021
|
FDNS
|
778093
|
9583175
|
1050
|
275
|
-75
|
306.50
|
Underground
|
2023
|
BLP-2023-022
|
Bonza
Sur
|
778574
|
9580793
|
1500
|
270
|
-50
|
332.45
|
Surface
|
2023
|
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
|
FDN-C23-001
|
FDN -
Conversion
|
778092
|
9583175
|
1049
|
295
|
-32
|
162.00
|
Underground
|
2023
|
FDN-C23-002
|
FDN -
Conversion
|
778092
|
9583175
|
1049
|
252
|
-43
|
176.70
|
Underground
|
2023
|
FDN-C23-003
|
FDN -
Conversion
|
778092
|
9583175
|
1049
|
240
|
-40
|
173.80
|
Underground
|
2023
|
FDN-C23-004
|
FDN -
Conversion
|
778092
|
9583175
|
1049
|
225
|
-36
|
203.40
|
Underground
|
2023
|
FDN-C23-005
|
FDN -
Conversion
|
778172
|
9582798
|
1081
|
280
|
-14
|
195.00
|
Underground
|
2023
|
FDN-C23-006
|
FDN -
Conversion
|
778172
|
9582798
|
1081
|
264
|
-9
|
181.70
|
Underground
|
2023
|
FDN-C23-007
|
FDN -
Conversion
|
778172
|
9582798
|
1081
|
264
|
-35
|
211.40
|
Underground
|
2023
|
FDN-C23-008
|
FDN -
Conversion
|
778172
|
9582797
|
1081
|
253
|
-11
|
180.00
|
Underground
|
2023
|
FDN-C23-009
|
FDN -
Conversion
|
778172
|
9582797
|
1083
|
248
|
-34
|
100.30
|
Underground
|
2023
|
FDN-C23-010
|
FDN -
Conversion
|
778172
|
9582796
|
1083
|
232
|
-35
|
122.50
|
Underground
|
2023
|
SOURCE Lundin Gold Inc.