Lundin Gold increases Fruta del Norte reserves

Proven and probable mineral reserves at Lundin Gold's Fruta del Norte (FDN) mine in Ecuador increased to 5.54Moz of contained gold, with an average grade of 7.81g/t.

"The year-end 2024 mineral reserve and resource estimate marks another year of significant growth for FDN. This latest update represents the largest reserve and resource statement in the company’s history, based on contained gold ounces," CEO Ron Hochstein said in a press release published on Tuesday.

The increase is mainly due to successful conversion drilling, modifications to the mine design and some changes in technical parameters, the company said.

Mine design modifications include the replacement of drifts and fill with longhole stoping and improvements in mining dilution and recovery estimates.

Hochstein added that the success of the near-mine exploration program in 2024, focused on FDN South (FDNS), increased inferred resources by 1.7Moz through the drill bit.

"With continued conversion and exploration programs planned for 2025, I am very excited about the potential for further growth, including our plans to publish an initial resource for Bonza Sur later this year," Hochstein said.

According to the company, the near-mine exploration drilling program resulted in an increase of 59% to 2.36Moz of gold inferred resources, of which FDNS contributed 2.09Moz, with at an average grade of 5.25g/t and the majority grading above 7g/t.

The FDNS inferred resource will be a target of the 2025 conversion drilling program.

Lundin will invest US$45mn in exploration in Ecuador this year, similar to last year's amount.

Its overall exploration strategy includes the conversion of resources to reserves, the near-mine program and a regional program. The priority will be the near-mine program.