Lundin GOLD Announces Increase IN Mineral Reserves to 5 .50 Million Ounces
NEWS RELEASE
Vancouver, March 27, 2024
Lundin Gold Inc. 885 West Georgia Street, Suite 2000 Phone: +1 604 689 7842 lundingold.com
Vancouver, BC, V6C 3E8 Fax: +1 604 689 4250 Email: [email protected]
LUNDIN GOLD ANNOUNCES INCREASE IN MINERAL RESERVES TO 5 .50 MILLION
OUNCES
Lundin Gold Inc. (TSX: LUG) (Nasdaq Stockholm: LUG) (OTCQX: LUGDF) ("Lundin Gold" or the "Company")
today reports its updated estimates of Mineral Reserves (“Reserves”) and Mineral Resources (“Resources”) as
at December 31, 2023 for its Fruta del Norte gold mine (“FDN”) in Ecuador. The tables of the updated estimates
of Mineral Reserves and Resources can be found at the end of this release.
Highlights
• Measured and Indicated Resources are reported at 23.53 Mt (”Mt”) with an average grade of 9.24
grams per tonne (”g/t”) containing 6.99 million ounces (”Moz”) of gold.
• Proven and Probable Reserves for FDN are reported at 21.70 Mt with an average grade of 7.89 g/t
containing 5.50 Moz of gold.
2022 Mineral Reserves 5.02
Mining Depletion (-) 0.48
Technical Updates and Mine Design Changes (+) 0.58
Resource Conversion (+) 0.38
2023 Mineral Reserves 5.50
Ron Hochstein, President and CEO, commented, “ I am extremely pleased to announce our year -end Reserve
and Resource estimate. With this updated estimate, Lundin Gold has grown FDN’s Mineral Reserves since
operations began in 2019, adding approximately 2.6 Moz before mining depletion. This kind of succe ss is only
possible with an asset of exceptional quality like FDN and a strong geology team. Our 2023 conversion drilling
program has enabled us to grow our Measured and Indicated Resources, and the near-mine program has also
provided additions to our Inferred Resources. Based on planned conversion and exploration programs for 2024,
I am very excited for the potential to add more ounces over the coming year.”
Mineral Resources Update
The 2023 conversion drilling campaign was successful at reclassifying Inferred Resources to Indicated in areas
immediately beyond the current Reserve boundary. The new areas of Indicated Resources are illustrated in
Figure 1, and include extensions to the North, at depth and to the South of the FDN deposit.
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Figure 1: New Zones of Indicated Resources from 2023 Conversion Drilling
A total of 0.35 Moz of new Inferred Resources were also added as a result of the conversion and near-mine
drilling completed in 2023. Inferred Resources are reported at 7.98 Mt with an average grade of 5.77 g/t
containing 1.5 Moz.
Figure 2: 2022 Resources Compared to 2023 Resources1,2
Notes:
(1) Measured and Indicated Mineral Resources are reported inclusive of Mineral Reserves.
(2) For information on the 2022 Resources, see the “Amended NI 43-101 Technical Report Fruta del Norte Mine Ecuador”
dated March 29, 2023 which is available under the Company's profile on SEDAR+ at www.sedarplus.ca.
3.6 Moz
2.9 Moz
3.2 Moz 4.1 Moz
1.7 Moz 1.5 Moz
2022 2023
Measured Resources Indicated Resources Inferred Resources
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Mineral Reserves Update
Increases to the Reserve estimate are primarily due to successful conversion drilling, modifications to the mine
design, and some changes to technical parameters. Mine design modifications include: a higher proportion of
longhole mining versus drift and fill , and improvements in mining dilution and recovery estimates. Technical
parameter modifications include minor changes in cut-off grade estimates and higher mill recoveries which are
expected after the Process Plant Expansion is completed later this year. It should be noted that unit costs per
tonne for drift and fill mining increased as compared to 2022 based on anticipated ground conditions from
better geotechnical information. The cut-off gold price of $1,400/oz was unchanged from the year prior.
Figure 3: Comparison Between 2023 and 2024 Reserves
Mineral Resource and Reserve Summary
The tables below summarize the Mineral Resource and Mineral Reserve estimates for FDN effective as of
December 31, 2023. Additional information on Mineral Resource and Mineral Reserve estimates for Fruta del
Norte is contained in the “Amended NI 43-101 Technical Report Fruta del Norte Mine Ecuador” dated March
29, 2023 (the “FDN Technical Report ”) which is available under the Company's profile on SEDAR+ at
www.sedarplus.ca. Except as set out in this release, major assumptions, parameters and risks associated with
the Company's 2023 Mineral Resource and Mineral Reserve estimates are listed in the FDN Technical Report.
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Mineral Resources, as at December 31, 2023
Mineral Resources(1)(2)(3)(4)(5)(6)(7)
Category Tonnage
(M t)
Grade
(g/t Au)
Contained Metal
(M oz Au)
Grade
(g/t Ag)
Contained
Metal
(M oz Ag)
Measured 7.75 11.74 2.93 12.7 3.18
Indicated 15.78 8.00 4.06 12.5 6.32
Measured & Indicated 23.53 9.24 6.99 12.6 9.50
Inferred 7.98 5.77 1.48 11.3 2.90
Notes:
(1) 2014 CIM Definition Standards were followed for the classification of Mineral Resources.
(2) The Qualified Person for the estimate is Freddy Ildefonso, Msc, P.Geo , Mineral Superintendent of Fruta del Norte
Mine.
(3) Measured and Indicated Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources that are
not Mineral Reserves do not have demonstrated economic viability.
(4) Inferred Mineral Resources are considered too speculative geologically to have economic considerations applied to
them to enable them to be categorized as Mineral Reserves.
(5) Mineral Resources are reported at a cut-off grade of 3.4 g/t Au , which is calculated using a long-term gold price of
US$1,600/oz and metallurgical recovery of 91.2%.
(6) Mineral Resources are reported net of mining to December 31, 2023, and uses drill hole data available as of October
31, 2023.
(7) Figures may not add due to rounding.
Mineral Reserves, as at December 31, 2023
Mineral Reserves (1)(2)(3)(4)(5)(6)(7)(8)
Tonnage
(M t)
Grade
(g/t Au)
Contained Metal
(M oz Au)
Grade
(g/t Ag)
Contained Metal
(M oz Ag)
Proven 7.56 9.42 2.29 10.5 2.55
Probable 14.14 7.06 3.21 11.7 5.34
Total 21.70 7.89 5.50 11.3 7.89
Notes:
(1) 2014 CIM Definitions Standards on Mineral Resources and Reserves have been followed.
(2) The Qualified Person for this estimate is Terry Smith P.Eng, Lundin Gold’s Chief Operating Officer.
(3) Mineral Reserves have an effective date of December 31, 2023.
(4) Mineral Reserves were estimated using key inputs listed in the table below:
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Key Input December 31,
2022
December 31,
2023 Unit
Gold Price 1,400 1,400 $/oz
Transverse Stoping Mining Cost 51 53 $/t
Drift & Fill Mining Cost 77 95 $/t
Process, Surface Ops, G&A Cost 64 72 $/t
Surface Royalties, Sustaining Capital, Closure Costs 15 8 $/t
Dilution Factor 8 8 Percent
Concentrate Transport & Treatment 80 50 $/oz
Royalty 76 79 $/oz
Gold Metallurgical Recovery 88.5 91.2 Percent
(5) Gold cut-off grades for the different mining methods are listed in the table below:
Gold Cut-off Grade December 31,
2022
December 31,
2023 Unit
Transverse Stope 4.2 4.0 g/t
Drift and Fill 5.0 5.3 g/t
(6) Silver was not considered in the calculation of the cut -off grade but is recovered and contributes to the revenue
stream.
(7) Tonnages are rounded to the nearest 1,000 t, gold grades are rounded to two decimal places, silver grades are
rounded to one decimal place, and costs are rounded to the nearest dollar. Tonnage and grade measurements are in
metric units; contained gold and silver are reported as thousands of troy ounces.
(8) Figures may not add due to rounding.
Qualified Persons
In this news release, the Qualified Person for the Mineral Resource estimate is Freddy Ildefonso, Msc, P.Geo,
Mineral Superintendent of Fruta del Norte Mine and the Qualified Person for the Mineral Reserve estimate is
Terry Smith P.Eng, Lundin Gold’s Chief Operating Officer, both of whom are Qualified Persons in accordance
with the requirements of National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-
101”).
The technical information contained in this news release has been reviewed and approved by Terry Smith, P.
Eng., Lundin Gold’s Chief Operating Officer , and Andre Oliviera, P. Geo., Lundin Gold’s Vice President,
Exploration, both of whom are Qualified Persons in accordance with the requirements of NI 43-101.
For information on Lundin Gold’s QAQC and data verification procedures, please refer to Lundin Gold’s Annual
Information Form dated March 26, 2024, filed under the Company’s profile on SEDAR+ (www.sedarplus.ca).
About Lundin Gold
Lundin Gold, headquartered in Vancouver, Canada, owns the Fruta del Norte gold mine in southeast Ecuador.
Fruta del Norte is among the highest-grade operating gold mines in the world.
The Company's board and management team have extensive expertise in mine operations and are dedicated
to operating Fruta del Norte responsibly. The Company operates with transparency and in accordance with
international best practices. Lundin Gold is commi tted to delivering value to its shareholders, while
simultaneously providing economic and social benefits to impacted communities, fostering a healthy and safe
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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 EU Market
Abuse Regulation. This information was publicly communicated on March 27, 2024 at 6:00 a.m. Pacific Time
through the contact persons set out below.
For more information, please contact
Ron F. Hochstein Finlay Heppenstall
President and CEO Director, Investor Relations and Corporate Development
Tel (Ecuador): +593 2-299-6400 Tel: +1 604 806 3089
Tel (Canada): +1-604-806-3589 [email protected]
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", "ex pects", "is
expected", "scheduled", "estimate s", "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 tak en", 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 fo rward-
looking statements and information. Lundin Gold believes that the expectations reflected in this forward -looking informa tion 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 n ecessarily 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 estimates of Mineral
Reserves and Mineral Resources and the anticipated Process Plant Expansion and improvement of recoveries. There can be no assurance
that such statements will prove 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 26, 2024, which is available at www.lundingold.com or at www.sedarplus.ca
Lundin Gold's actual results could differ materially from those anticipated. Factors that could cause actual results to differ materially f rom
any forward-looking statement or that could have a material impact on the Company or the trading price of its shares include: instability in
Ecuador; community relations; forecasts relating to production and costs; mining operations; security; non -compliance with laws and
regulations and compliance costs; tax changes in Ecuador; waste disposal and tailings; government or regulatory approvals; environmental
compliance; gold price; infrastructure; dependence on a single mine; exploration and development; control of Lundin Gold; ava ilability of
workforce and labour relations; dividends; information systems and cyber security; Mineral Reserve and Mineral Resource estimates; title
matters and surface rights and access; health and safety; human rights; employee misconduct; measures to protect biodiversity ;
endangered species and critical habitats; global economic conditions; shortages of critical resources; competition for new projects; key
talent recruitment and retention; market price of the Company’s shares; social media and reputation; insurance and uninsured risks;
pandemics, epidemics or infectious disease outbreak; climate change; illegal mining; conflicts of interest; ability to maintain obligations or
comply with debt; violation of anti-bribery and corruption laws; internal controls; claims and legal proceedings; and reclamation obligations.