Lundin focusing on replacing depleted reserves and discovering another major deposit in Ecuador

Canada's Lundin Gold is concentrating efforts on replacing reserves at its Fruta del Norte (FDN) underground mine in Ecuador, increasing production and finding another deposit with similar characteristics.

“We are looking to replace the ounces extracted and increase the reserve base, as well as increase production and find another deposit similar to Fruta del Norte. The exploration strategy has three pillars: conversion, near-mine program and regional program,” the company's business sustainability manager Juan José Herrera told a conference hosted by Ecuador’s chamber of mines.

The 2024 exploration program involves US$44mn and is considered the largest ever carried out at the site.

The objective of the near-mine program is to increase inferred resources by extending known deposits and identifying new ones.

The regional program, meanwhile, aims to develop a long-term gold inventory by exploring untested areas and searching for large epithermal systems similar to the deposit currently being mined.

Herrera added that Lundin is currently a debt-free company, which allows it to pursue organic and inorganic growth opportunities, especially considering the significant potential that exists around Fruta del Norte.

In August, following the results obtained at its Bonza Sur target, the company said it will extend its near-mine exploration drilling program by 10,000m to 66,000m.

Bonza Sur is located very close to FDN and shows significant potential, the company said.

Herrera told BNamericas that Bonza Sur is very early stage but reserves are expected to be declared in the first half of next year.

“The outlook is excellent, and in the medium term, FDN production will increase,” added Herrera.

Last year FDN, Lundin’s only operating mine, produced 481,274oz of gold. The company's guidance for 2024 is 450,000-500,000oz.

According to Herrera, it seems “very possible” that the upper end of the range will be reached.

FDN is estimated to have a useful life up to 2034, but with the exploration campaigns the company hopes to substantially increase its presence in the country and continue operating there for another 50 years.