Lundin Gold Extends High-Grade Gold at FDN South, Expands Potential at FDN East and Discovers New Copper-Gold Mineralization at Trancaloma Target
NEWS RELEASE
Vancouver, February 23, 2025
Lundin Gold Inc. Suite 2800, Four Bentall Centre Phone: +1 604 689 7842 lundingold.com
1055 Dunsmuir Street Fax: +1 604 689 4250 Email: [email protected]
Vancouver, BC, Canada, V7X 1L2
Lundin Gold Extends High-Grade Gold at FDN South, Expands Potential at FDN
East and Discovers New Copper-Gold Mineralization at Trancaloma Target
Lundin Gold Inc. (TSX: LUG) (Nasdaq Stockholm: LUG) (OTCQX: LUGDF) ("Lundin Gold" or the "Company")
today announced exceptional high -grade gold and interesting copper drilling results near its 100% owned
Fruta del Norte (“FDN”) gold mine in southeast Ecuador, including the highest -grade intercepts ever
recorded at the FDN South (“FDNS”) deposit. The Company also reported encouraging early-stage results at
the new Trancaloma target and continued exploration progress at FDN East. Highlights from the near mine
program at FDNS, FDN East and Trancaloma are outlined below and except as noted in appendix 1 these
results were not included in the 2024 Mineral Resource Estimate (“2024 MRE”) published on February 18,
2025. Detailed results are provided at the end of this release (see Appendix 1).
FDNS Drilling Highlights (not true widths):
• Drill hole UGE-S-24-212 intersected 173.98 grams per tonne (“g/t”) of gold (“Au”) over 8.45 m from
77.60 m, including:
o 572.47 g/t Au over 2.50 m
• Drill hole UGE-S-24-213 intersected 77.31 g/t Au over 10.90 m from 94.80 m, including:
o 394.78 g/t Au over 2.10 m
• Drill hole UGE-S-24-185 (included in 2024 MRE) intersected 49.86 g/t Au over 7.80 m from 59.00
m, including:
o 83.48g/t Au over 4.50 m
High grade drill holes, particularly UGE-S-24-212 and UGE-S-24-213 demonstrate significant potential for
further resource expansion at FDNS.
FDN East Drilling Highlights (not true widths):
• Drill hole FDNE-2024-200 intersected 3.15 g/t Au over 53.00 m from 277.80 m, including:
o 7.13 g/t Au over 8.40 m
• Drill hole UGE-E-24-210 intersected 10.16 g/t Au over 6.25 m from 238.85 m, including:
o 14.84 g/t Au over 3.25 m
These results confirm the continuity of gold mineralization, including the widest mineralized interval at
FDN East to date and highlight the potential for further discoveries in this early-stage target.
Trancaloma Drilling Highlights (not true widths):
• Drill hole BLP-2024-195 intersected 0.25% Cu, 0.08 g/t Au over 407.75 m from 22.50 m, including:
o 0.31% Cu and 0.10 g/t Au over 228.00 m
Initial drilling at the near mine Trancaloma target has identified copper and gold mineralization, requiring
further exploration to determine its significance.
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Ron Hochstein, President and CEO, commented, “I am very excited that our near mine exploration program
continues to deliver exciting results. The exceptional results at FDNS, the main driver of our recent mineral
resource growth, further demonstrate the potential of this key deposit. The ongoing exploration at FDN
East has provided encouraging results, highlighting the potential for new discoveries near our existing
infrastructure. We are also encouraged by early indications at the Trancaloma target having hit long
intersections of low-grade copper and gold mineralization and look forward to further exploration in this
area. With 13 rigs currently drilling and more planned, we are confident in our ability to further expand
resources and make new discoveries on the Fruta del Norte concession.”
NEAR-MINE EXPLORATION PROGRAM
The Company’s near-mine exploration strategy focuses on extending mine life through the expansion of
Mineral Resources at FDN by exploring and delineating new discoveries close to the operation. Over the
past two years, the exploration program has successfully driven resource growth and led to the discovery
of new sectors such as FDNS, Bonza Sur, FDN East, and now Trancaloma (Figure 1).
In 2024, the Company executed the largest drilling program on the land package that hosts FDN, with
more than 80,000 metr es completed across 284 drill holes. In 2025, a minimum of 80,000 metres are
planned in the near mine and conversion programs, primarily targeting the FDNS and Bonza Sur deposits
and, more recently, the Trancaloma target. Currently, 13 rigs are active on surface and underground.
FDNS
At FDNS, located along the south extension of FDN, a new geological interpretation supported by an
underground drill program initiated in the second quarter of 2024 successfully defined FDNS as a mineral
deposit containing 2.09 million ounces of Inferred Resource from 12.35 million tonnes with an average
grade of 5.25 g/t , with most of the mineralization grading above 7 g/t. (See press release published on
February 18th, 2025)
Since the start of this exploration program, a total of 37 drill holes were completed, and the recent results,
which were received after the recent Mineral Resource estimate update , continue to demonstrate its
significant exploration potential. Of note, drill holes UGE-S-24-212 (173.98 g/t Au over 8.45 m) and UGE-
S-24-213 (77.31 g/t Au over 10.90 m) are the highest-grade intercepts ever recorded in the sector and
indicate areas for further expansion at FDNS. Assay results from the drilling undertaken at F DNS are
presented in Table 1.
Results from drill hole UGE-S-24-164 and UGE-S-24-212 show that the FDNS deposit remains open along
the south direction. Drilling of this area will be done from the recently reopened South Portal, where one
rig is currently turning. Two other underground rigs are currently active in the main part of the FDNS
deposit as part of the conversion drilling program (Figure 2).
FDN East
At FDN East, the 2024 near mine exploration program intercepted a new buried epithermal mineralized
system located only 100 metres east of FDN ( see Figure 1 and 3). The gold mineralization at FDN East
shows similar hydrothermal alteration, mineralogical characteristics and hosting rocks to those found at
FDN and FDNS and is also buried by a sedimentary cover.
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Since its discovery, the drilling program has focused on expanding on the initial positive results and the
recent drilling intercepts confirmed the mineralization continuity in the central portion of the target and
indicate a potential trend toward FDNS that requires further drilling. Drill hole FDNE-2024-200 (3.15 g/t
over 53m, including 7.13 g/t Au over 8.40 m) intercepted the widest mineralized interval at FDN East to
date. Assay results from the drilling undertaken at FDN East are presented in Table 2. Some results are
pending. Currently, one surface drill rig is turning at FDN East.
Trancaloma
The near-mine exploration program continues to generate discoveries in unexplored areas close to FDN.
Several drill holes from surface were completed as part of a systematic exploration program to test new
targets and resulted in the discovery of new Cu -Au mineralization at Trancaloma, located less than one
kilometre east from the Bonza Sur deposit (Figure 1 and 4).
Four drill holes were completed and all returned anomalous values of copper and gold, potentially related
to an outer hydrothermal alteration halo of a porphyry system. Three drill holes ended in mineralization
requiring further follow-up drilling. A drill hole one kilometre east of the initial drill holes intercepted a
long hydrothermal alteration zone with disseminated copper bearing sulfides plus quartz-chalcopyrite
veins and results are pending. Initial results from the drilling undertaken at Trancaloma are presented in
Table 3. Currently, two surface drill rigs are turning at Trancaloma.
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Figure 1: Map showing FDN mine and main near-mine exploration targets
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Figure 2: Map showing FDNS near-mine exploration with selected FDNS and FDN East exploration drilling
results
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Figure 3: FDN-FDN East Cross section and selected exploration drilling results
Figure 4: Trancaloma map showing Bonza Sur deposit and initial drilling program results
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Qualified Persons
The technical information contained in this News Release has been reviewed and approved by Andre
Oliveira, P. Geo, Vice President, Exploration of the Company, who is a Qualified Person in accordance with
the requirements of National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
Samples consist of half HQ and NQ-size diamond core that are split by diamond saw on site, prepared at
the ALS laboratory in Quito, and analysed by 50g fire assay and multi -element (ICP-AES/ICP-MS) at the
ALS Laboratory in Lima, Peru. The quality assurance -quality control (QA -QC) program of Lundin Gold
includes the insertion of certified standards of known gold content, blank and duplicate samples . The
remaining half core is retained for verification and reference purposes . For further information on the
assay, QA-QC and data verification procedures, please see Lundin Gold’s Annual Information Form dated
March 26, 2024, filed under the Company’s profile at 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 and are dedicated to operating
Fruta del Norte responsibly. The Company operates with transparency and in accordance with
international best practices. Lundin Gold is committed to deliverin g value to its shareholders through
operational excellence and growth, while simultaneously providing economic and social benefits to
impacted communities, fostering a healthy and safe workplace and minimizing the environmental impact.
Furthermore, Lundin Gold is focused on continued exploration on its extensive and highly prospective
land package to identify and develop new resource opportunities to ensure long -term sustainability and
growth for the Company and its stakeholders.
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 February 23, at 10:00 a.m.
Pacific Time through the contact persons set out below.
For more information, please contact
Ron F. Hochstein Brendan Creaney
President and CEO Vice President, Corporate Development & Investor Relations
Tel: +1-604-806-3589 Tel: +1-604-376-4595
[email protected] [email protected]
Ron F. Hochstein Brendan Creaney
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",
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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 forwa rd-
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 relating to the Company’s
exploration plans, activities and results and the potential to expand Lundin Gold’s estimates of Mineral Reserves and Resources.
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 "Ri sk
Factors" section in Lundin Gold's Management’s Discussion and Analysis dated February 20, 2025 , which is available
at www.lundingold.com or www.sedarplus.ca.
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: instability in Ecuador; community relations; reliability of power supply; tax changes in Ecuador; security;
availability of workforce and labour relations; mining operations; waste disposal and tailings; environmental compliance; ill egal
mining; Mineral Reserve and Mineral Resource estimates; infrast ructure; regulatory risk; government or regulatory approvals;
forecasts relating to production and costs; gold price; dependence on a single mine; shortages of critical resources; climate
change; exploration and development; control of Lundin Gold; dividen ds; information systems and cyber security; 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; competiti on 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; conflicts of interest; violation of anti -bribery and corruption laws; internal controls;
claims and legal proceedings; and reclamation obligations.