Lundin Gold has big plans in Ecuador

Canadian company Lundin Gold is advancing its growth plans in Ecuador, continuing exploration to increase output at its Fruta del Norte mine and identifying another major deposit. 

“We have plans for growth in Ecuador. Thanks to the potential of the mine, we have started important exploration and expansion campaigns; 2025 will be a year of opportunities,” CEO Ron Hochstein told reporters.

Lundin earmarked US$45mn for exploration in Ecuador this year, almost the same amount as last year. Of the total, US$15mn will go to the Bonza Sur target near Fruta del Norte. The company plans to start extraction at Bonza Sur in 2030 or 2031.

The general exploration strategy involves conversion of resources to reserves, a near-mine program and a regional program.

The near-mine program is aimed at expanding known deposits and identifying new ones to increase inferred resources. The regional program focuses on developing a long-term gold inventory by exploring untested areas and searching for large epithermal systems similar to the current deposit.

"We have important work this year with exploration at Bonza and with engineering work, that is, continuing to understand the deposit and defining what would be needed to eventually develop it, the required permits, among other issues," Hochstein told BNamericas on the sidelines of an event to celebrate the company’s 10-year anniversary in Ecuador. 

He also said that the US$48mn processing plant expansion will be finished in the first quarter, as just US$8mn of the total remains to be invested.

“There's little left to do and little to invest. We're now in the commissioning phase,” Hochstein said.

Fruta del Norte, located in Zamora Chinchipe province, produced 502,029oz gold last year, up 4%. Guidance was 450,000-500,000oz.

This year's guidance is 475,000-525,000oz, with average mill throughput of 5,000t/d and improved gold recoveries.

According to Hochstein, the guidance will remain in place through 2027.

“We've laid a strong foundation for the mining sector. Fruta del Norte is a driving force of opportunities,” he added.

The mine's gold exports have reached US$4bn since 2019.

Since entering Ecuador, Lundin made purchases of US$1.2bn in the country, created 3,600 jobs, paid more than US$500m in taxes and royalties and spent US$44mn on social programs.