LUNDIN GOLD’S FRUTA DEL NORTE PRODUCED 28,678 OUNCES OF GOLD IN 2019 Ramp up to commercial production on schedule
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NEWS RELEASE
LUNDIN GOLD’S FRUTA DEL NORTE PRODUCED 28,678 OUNCES
OF GOLD IN 2019
Ramp up to commercial production on schedule
January 9, 2020 (Vancouver, Canada) Lundin Gold Inc. ("Lundin Gold" or the "Company")
(TSX: LUG, Nasdaq Stockholm: LUG) is pleased to report that ramp up to commercial
production is on schedule and on budget at its Fruta del Norte gold project (“Fruta del Norte”).
A total of 28,678 ounces (“oz”) of gold was produced by the end of 2019.
Of the total gold production, 3,411 oz were produced in the form of doré and 25,267 oz
produced as concentrate. A total of 3,400 tonnes of concentrate was produced of which 2,676
tonnes was shipped to a smelter in Finland by year end. Ramp up of operations continues
according to plan in both the mine and the process plant.
"I am proud to announce that o ur team ended 2019 by achiev ing a major milestone. We
produced first gold on schedule and on budget and exported our first shipments of concentrate
and doré in the fourth quarter of last year,” said Ron Hochstein, President and CEO of Lundin
Gold. “Ramp up is progressing well, and Lundin Gold expects to reach commercial production
on schedule in the second quarter of 2020.”
Mine Development and Production
Development continues to be in line with planned rates and, as at December 31, 2019, a total
of 13 kilometres ("km") of underground mine development was completed versus a target of
11.9 km. Raise boring of the south ventilation raise is ongoing and is expected to be completed
in the first quarter of 2020.
As at year end there were approximately 153,000 tonnes of ore stockpiled.
Construction
Construction progress was 99.2% complete as at year end . Only the paste plant and the
Zamora River bridge remain to be completed, which are anticipated to occur in the second and
third quarters of 2020, respectively. Construction of the water treatment plant was completed
by year end and is currently being commissioned.
Updated Life of Mine (“LOM”) and All-In Sustaining Cost Estimate (“AISC”)
The Company has updated the Fruta del Norte’s LOM plan from the Updated Project Estimate
(“UPE”), previously disclosed in September 2018 . Forecasted LOM AISC increased slightly
from the UPE estimate of $583/oz to $621 /oz of gold, representing a 6.5% or $38
increase. Approximately $26/oz, or 68% of this increase, is due to revised price assumptions
for gold ($1,400/oz from $1,250/oz) and silver ($15/oz from $20/oz), which increased estimates
of royalties and production taxes and decreased estimates of by-product credits, respectively.
In addition, estimates of operating costs and concentrate transport charges are marginally
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higher, partially offset by lower estimated sustaining capital costs. All amounts are in U.S.
dollars unless otherwise indicated.
Table 1. Life of Mine AISC ($/oz gold)
Area UPE AISC Updated AISC
On site operating cost 408 420
Transport, treatment and
refining charges 78 83
Royalties and production taxes 74 94
By-product silver credit (23) (17)
Cash Cost 537 580
Sustaining capital and closure
costs 46 41
AISC $ per oz Au 583 621
Note: Numbers may not add due to rounding
Additional Technical Information
The technical information relating to the Fruta del Norte Project contained in this Press Release
has been reviewed and approved by Ron Hochstein P. Eng, Lundin Gold's President and
CEO, who is a Qualified Person under NI 43-101.
About Lundin Gold
Lundin Gold, headquartered in Vancouver, Canada, owns the Fruta del Norte gold project in
southeast Ecuador. The Company's board and management team have extensive expertise
in mine operations and are dedicated to advancing Fruta del Norte to commercial production
in the second quarter of 2020.
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 Swedish Financial Instruments Trading Act. This information was publicly communicated
on January 9, 2020 at 2:30 p.m. Pacific Time through the contact persons set out below.
For more information, please contact
Lundin Gold Inc.
Ron F. Hochstein
President and CEO
+593 2-299-6400
+1-604-806-3589
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Lundin Gold Inc.
Sabina Srubiski
Manager, Investor Relations
+1-604-806-3089
www.lundingold.com
Follow Lundin Gold on Twitter
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
pertaining to the timing of commercial production, scheduling and the completion of commissioning, gold
and silver price assumptions, cash flow forecasts, projected capital and operating costs, mine life and
production rates, the Company's potential plans and operating performance, changes to the mine plan
and construction and infrastructure development.
There can be no assurance that such statements will p rove 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 27, 2019, 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: receipt of regulatory approvals, risks
associated with the Company's community relationships; risks and hazards inherent in mining and
processing; lack of ava ilability of or interference with infrastructure ; risks related to Lundin Gold's
compliance with increasingly strict environmental laws and liability for environmental contamination;
risks related political and economic instability in Ecuador; deficient or vulnerable title to mining
concessions and surface rights; risk to shareholders of dilution from future equity financings; failure to
maintain its obligations under its debt facilities; shortages of critical resources, such as skilled labour
and supplies, consumables and equipment; inherent safety hazards and risk to the health and safety of
the Company's employees and contractors; volatility in the price of gold; the cost of compliance or failure
to comply with applicable laws; the timely receipt of regul atory approvals, permits and licenses; risks
associated with the performance of the Company's contractors; the imprecision of Mineral Reserve and
Resource estimates; dependence on key personnel; volatility in the market price of the Company's
shares; the potential influence of the Company's largest shareholders; uncertainty with the tax regime
in Ecuador; measures required to protect endangered species; exploration and development risks; the
Company's reliance on one project risks related to artisanal and illegal mining; the reliance of the
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Company on its information systems and the risk of cyber-attacks on those systems; the ability to obtain
adequate insurance; uncertainty as to reclamation and decommissioning; the uncertainty regarding risks
posed by cl imate change; the ability of Lundin Gold to ensure compliance with anti -bribery and anti -
corruption laws; the potential for litigation; and limits of disclosure and internal controls.