Lundin GOLD Now Past One Kilometre of Underground MINE Development at Fruta Del Norte
NEWS RELEASE
LUNDIN GOLD NOW PAST ONE KILOMETRE OF UNDERGROUND
MINE DEVELOPMENT AT FRUTA DEL NORTE
April 16, 2018 (Vancouver, Canada) Lundin Gold Inc. ("Lundin Gold" or the "Company")
(TSX: LUG, Nasdaq Stockholm: LUG) is pleased to announce that is has reached major
construction milestones and is now past one kilometre of underground mine development at
its Fruta del Norte gold project (“Fruta del Norte” or the “Project”) in Ecuador.
Construction Highlights:
• Process plant SAG and ball mill foundation bases have been poured
• Major earthworks continue with completion of River road, which significantly improves
site logistics
• Completion of first major pond for site water management system
• Powerline contractor mobilizing to start construction later this quarter
• 1,000-person construction camp completed
“We continue to advance Fruta del Norte on budget and on schedule. Overall engineering is
26% co mplete and construction is 16% complete, and we are continuously looking for
efficiencies as we move the Project forward,” said Ron Hochstein, President and CEO of
Lundin Gold.
Mine Development
As at March 31, 2018, a total of 1,193 metres (“m”) of underground mine development has
been achieved, with 531 m and 632 m in the Kuri and K’isa declines, respectively. The average
advance rate for March was 5.95 m per decline per day, versus a target of 5.17 m per day
based on ground type encountered. All underground development in March was classified as
good ground type conditions.
As well, earlier this month the Company awarded the underground drill/bolt mining fleet to
Epiroc Rock Drills AB. With this order, over 84% of the production fleet contracts have been
placed. The outstanding mine equipment left to be ordered is the explosives delivery, shotcrete
equipment and mine support equipment.
Process Plant Construction
Process plant excavation was 65% complete at the end of March. The ball mill and the SAG
mill base concrete foundation s were poured on March 10 and March 25 respectively.
Excavation of the CIL plant area is progressing well. Over the next couple of months, the
Company is planning on completing the mill foundations, and concrete work on the CIL plant
area is expected to commence.
As part of the overall water management system, the first of several large lined collection ponds
was completed.
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Major Earthworks
With the completion of the River road connecting the camp to the Project site, site logistics
have greatly improved. Travel time between camp and the Project site is now approximately
10-15 minutes, whereas it previously took up to 45 minutes using the Mountain Pass road.
The North Access road is now an estimated 42% complete, and work is substantially complete
on the road to the tailings storage facility.
Powerline
The powerline engineering, procurement and construction contractor is mobilizing and
anticipated to begin construction later this quarter. Easement agreements have been reached
with nearly all the affected landholders, and the remaining easements are expected to be
obtained in the coming weeks.
Construction Camp
The new 1,000-person construction camp is complete, and all rooms are available for
occupancy. Combined with the existing Las Pe ñas camp, over 1,700 people can be
accommodated at site. Occupancy averaged 1,165 people in March, and total project
employment now exceeds 2,200 people, including contractors. The new kitchen and dining
room are expected to be finished by the end of the month.
About Lundin Gold
Lundin Gold, headquartered in Vancouver, Canada, is developing its wholly -owned Fruta del
Norte gold project in south east Ecuador. Fruta del Norte is one of the highest -grade and
largest gold projects currently under construction. The Company’s board and management
team have extensive expertise in mine construction and operations and are dedicated to
advancing this project through to first gold production in 2019.
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 people of Ecuador.
This press release has been reviewed and approved by Ron Hochstein, P. Eng., a
metallurgical engineer and the Company's President and CEO, who is a Qualified Person
under Canadian National Instrument 43-101.
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 submitted for publication on April 16,
2018 at 3:00 am PT through the contact persons set out below.
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For more information, please contact:
Lundin Gold Inc.
Ron F. Hochstein
President and CEO
+593-2-299-6400
+1-604-806-3589
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 belie ves 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 pert aining the timing of first production and the progress of the development,
construction and operation of the Project , improvements to site logistics and completion of
camp infrastructure and the acquisition of land and surface rights . Factors that could ca use
actual results to differ materially from the Company’s expectations include, but are not limited
to; the ability to arrange financing and the risk to shareholders of dilution from future equity
financings; the ability to maintain its obligations under its current project financing and other
debt; risks related to carrying on business in Ecuador; volatility in the price of gold; the timely
receipt of regulatory approvals, permits and licenses; risks associated with the performance of
the Company’s contra ctors; risks inherent in the development of an underground mine;
deficient or vulnerable title to mining concessions and surface rights; shortages of critical
resources, labour and key executive personnel, such as input commodities, equipment and
skilled labour, and the dependence on key personnel; risks associated with the Company’s
community relationships; unreliable infrastructure; volatility in the market price of the
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Company’s shares; and the potential influence of the Company’s largest shareholders;
uncertainty with the tax regime in Ecuador; measures required to protect endangered species;
the cost of compliance or failure to comply with applicable laws; exploration and development
risks; the accuracy of the Mineral Reserve and Resource estimates for the Fruta del Norte
Project and the Company’s reliance on one project; risks related to artisanal and illegal mining;
uncertainty as to reclamation and decommissioning; risks associated with the Company’s
information systems; competition in the mining indu stry; the ability to obtain adequate
insurance; risks of bribery or corruption; the potential for litigation; and limits of disclosure and
internal controls.
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 20, 2018, which is avail able under the
Company’s profile at www.sedar.com.
Figure 1. Over 1 km of underground development has been achieved at Fruta del Norte
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Figure 2. SAG and ball mill base concrete foundations
Figure 3. First major pond for site water management completed
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Figure 4. New construction camp and original Las Peñas camp provide capacity for over
1,700 personnel