New discovery around the Fruta North gold mine in Ecuador

Canada's Lundin Gold is currently focused on aggressively pursuing the replacement of its Fruta del Norte gold mine in Ecuador, increasing production and finding another deposit with similar characteristics.

Juan Jose Herrera, the company's sustainable development manager, told a meeting of the Ecuadorian Chamber of Mines, "We are looking for reserves to take over and increase the reserve base, increase production and look for another deposit like Fruta North." The company's exploration strategy consists of three aspects: conversion, perimine and regional exploration."

The 2024 exploration investment involves $44 million, which is the largest exploration investment in the mine's history.

The goal of exploration around the mine is to increase the inferred resources by expanding known deposits and finding new deposits.

At the same time, the regional exploration program aims to increase long-term gold resource reserves, primarily through exploration of unproven areas and the search for large low-temperature hydrothermal systems similar to currently mined deposits.

Herrera added that at present, Lundin Gold is debt-free and is able to look for various growth opportunities, especially around Fruta North where there is a lot of potential.

In August, results from the Bonza Sur target were released, and the company said it would increase its drilling program around the mine by 10,000 meters to 66,000 meters.

The company said the Bongsanam deposit is located very close to Fruta North and shows great potential.

Bongsanam is in its early stages, but reserves are expected to be announced in the first half of next year, Herrera said.

Last year, Lundin Mining's only active mine produced 481,274 ounces of gold. The company's 2024 target is 450,000 to 500,000 ounces.

Herrera said it was "highly likely" that the company would reach the upper end of its production target.

Fruta Norte can be mined until 2034, but Lundin wants to expand its presence in Ecuador as exploration progresses, hoping to produce for another 50 years.