Lundin GOLD Provides Update ON Regional Exploration Drilling
NEWS RELEASE
Vancouver, February 16, 2022
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 PROVIDES UPDATE ON REGIONAL EXPLORATION DRILLING
Lundin Gold Inc. (TSX: LUG; Nasdaq Stockholm: LUG) ("Lundin Gold" or the "Company) is pleased to provide an
update on the completed 2021 regional exploration drilling program of the Suarez pull-apart basin (“the Basin”)
and a preview of the 2022 program, which is now underway. The Basin is interpreted to be a 16 kilometre-long
geological structure trending south from Fruta del Norte, the Company ’s high grade operating gold mine in
south-eastern Ecuador.
Ron Hochstein, President and CEO commented, “The 2021 program continued to support and further strengthen
our position that buried Fruta del Norte style deposits occur within the southern Basin. Exploration of the southern
Basin has been challenging due to the topography and the thickness of the cover rocks, with this part of the Basin
being roughly 20 km 2 in area and mostly covered by post -mineral lithologies. With the results of the 2021
program, the 2022 program is underway and will continue to evaluate further south along both margins of the
Basin.”
2021 Program
Two target areas were drilled for a total of 11,136 m in 2021 : the Barbasco anomaly along the eastern margin
of the Basin, and Puente-Princesa along the western Basin margin (see Figure 1). While drilling in 2021 only
intersected relatively narrow, low grade vein mineralization, the drilling has been very encouraging as it has
confirmed that gold-bearing hydrothermal fluids circulated in the southern Basin at the same time as Fruta del
Norte was forming further north. The program has advanced the Company’s understanding of the southern
Basin and provided direction for the 2022 program, which will move into completely covered areas with the aim
of locating areas where mineralizing fluid flow was more focused.
At Barbasco, 5,387 m were completed in six drill holes (see Tables 1 and 2 for Barbasco drilling information).
Drilling at the target intersected zones of epithermal related alteration and multiple narrow (< 2 m wide), widely
spaced epithermal quartz-carbonate-sulphide veins in the Santiago Formation (the host rock of Fruta del Norte),
andesites and sediments . Most of the veins are anomalous in gold and silver and the epithermal pathfinder
elements arsenic and antimony. In the overlying Suarez (basin fill) sediments, broad intervals of marcasite
alteration with epithermal pathfinder geochemistry were intersected. The veining and alteration increase to the
south, with the interpretation that there is a component of lateral flow from this direction.
At Puente-Princesa, a total of 5,749 m was drilled in six holes (see Tables 1 and 3 for Puente Princesa drilling
information). Initial interpretations of the results are as follows:
- Drilling intersected a thick sequence of cover rocks, followed by Santiago Formation that was often
hydrothermally altered and brecciated. Broad zones of the Santiago Formation are anomalous in the key
epithermal pathfinder elements arsenic and antimony, but only narrow and low-grade gold intervals were
intersected, with a best intercept of 10 m at 0.46 g/t Au.
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- Mineralized (epithermal) clasts associated with some assay grades in the Suarez conglomerate were found
but contain less epithermal marcasite than Barbasco, with the interpretation that the mineralization in this
part of the Basin is part of an earlier (early or pre-basin) epithermal system.
2022 Program
The aim of the 2022 program is to find buried “Fruta del Norte” type epithermal gold -silver systems in the
southern Basin. Using the alteration and epithermal pathfinder geochemistry of the Suarez sediment as a vector,
exploration drilling is now focussed on areas completely covered by post-mineral rocks.
The Barbasco south area has been prioriti zed as a target area with access track and drill platform construction
underway. This untested part of the Basin margin is approximately 3 km long, is completely covered and is
upslope from the Puma surface epithermal clasts (of unknown origin) (see Figure 1 for location of Puma target
area).
At the Puente-Princesa target, drilling is underway, with two drill rigs currently turning , testing for buried
mineralization along the western Basin margin.
Background
The Basin has similar lithologies, alteration, geochemistry and structure to that around the Fruta del Norte
deposit at its northern end. Significantly, there are very large areas of epithermal related marcasite alteration,
highly anomalous in the epithermal pathfinder elements arsenic and antimony within the Basin sediments. This
is interpreted to have originated from epithermal systems that discharged fluid into the Basin and is a distinct
feature around the Fruta del Norte deposit. Although surface exposures of this alteration in the southern Basin
are limited by the cover rocks, drilling at Puma (in 2017/18) and Barbasco (2021) has delineated very extensive
areas of epithermal marcasite. Formed in unconsolidated sediment during the Jurassic period, this alteration has
a component of lateral flow from the source epithermal system.
Qualified Persons
The technical information contained in this News Release has been reviewed and approved by Stephen Leary,
MAusIMM CP(Geo), a consultant to the Company, who is a Qualified Person under National Instrument 43-101.
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, QAQC and data verification
procedures, please see Lundin Gold’s Annual Information Form dated March 2, 2021, filed under the Company’s
profile on SEDAR (www.sedar.com).
About Lundin Gold
Lundin Gold, headquartered in Vancouver, Canada, owns the Fruta del Norte gold mine in southeast Ecuador and
a large exploration land package that hosts the Fruta del Norte deposit at its northern edge. 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 committed to delivering value to its shareholders, while
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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 EU Market
Abuse Regulation. This information was publicly communicated on February 16, 2022 at 2:00 p.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
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, object ives,
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 relating to the interpretation of
results from the 2021 exploration program and underlying assumptions and the timing and plans for the Company’s 2022 expl oration
activities. 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 2, 2021, 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: risks
relating to the impacts of a pandemic virus outbreak, political and economic instability in Ecuador, production estimates, mining
operations, the Company's community relationships, ability to maintain obligations or comply with debt, financing requirements, volatility
in the price of gold, shortages of critical supplies, compliance with environmental laws and liability for environmental contamination, lack
of availability of infrastructure, the Company's reliance on one mine, deficient or vulnerable title to concessions, easement s and surface
rights, uncertainty with the tax regime in Ecuador, the Company's workforce and its labour relations, inherent safety hazards and risks to
the health and safety of the Company's employees and contractors, the Company's ability to obtain, maintain or renew regulato ry
approvals, permits and licenses, the imprecision of mineral reserve and resource estimates, key talent recruitment and retention of key
personnel, volatility in the market price of the shares, the potential influence of the Company's largest shareholders, measures to protect
endangered species and critical habitats, the reliance of the Company on its information systems and the risk of cyber -attacks on those
systems, the cost of non -compliance and compliance costs, exploration and development risks, risks related to illegal mining, the
adequacy of the Company's insurance, uncertainty as to reclamation and decommissioning, the ability of Lundin Gold to ensure
compliance with anti -bribery and anti - corruption laws, the uncertainty regarding risks posed by climate change, the potential for
litigation, limits of disclosure and internal controls, security risks to the Company, its assets and its personnel, conflict s of interest, risks
that the Company will not declare dividends and social media and reputation.
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Figure 1: Map of Drill hole locations
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Table 1: Collar Locations of Drill Holes
Hole ID Prospect Easting Northing Elevation Azimuth Dip EOH (m)
BAR-2021-001 Barbasco 777420 9574023 1670 90 -45 1031.7
BAR-2021-002 Barbasco 777742 9574002 1699 90 -45 1007
BAR-2021-003 Barbasco 777899 9573603 1803 90 -45 983
BAR-2021-004 Barbasco 778131 9573497 1908 90 -45 854
BAR-2021-005 Barbasco 778140 9573298 1947 90 -45 743
BAR-2021-006 Barbasco 778243 9573100 1980 90 45 768
PCS-2021-007 Puente-Princesa 775400 9573744 1536 270 -60 596.9
PCS-2021-008 Puente-Princesa 775808 9573772 1540 270 -60 687
PCS-2021-009 Puente-Princesa 776191 9573480 1570 270 -70 1031
PCS-2021-010 Puente-Princesa 776497 9572456 1603 270 -75 1291
PCS-2021-011 Puente-Princesa 776497 9572456 1603 270 -50 1271
PCS-2021-012 Puente-Princesa 775685 9574661 1540 270 -45 872
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Table 2: Barbasco Drill Results (>0.1 g/t Au)
Grade
Hole ID From (m) To (m) Interval (m) Au (g/t) As (ppm) Sb (ppm)
BAR-2021-001 449.00 451.00 2.00 0.17 9 0.6
716.00 718.00 2.00 0.19 26 1.1
BAR-2021-002 772.20 774.00 1.80 0.18 63 0.8
867.00 872.00 5.00 0.24 34 0.9
BAR-2021-003 110.70 112.50 1.80 0.24 27 0.5
140.00 142.00 2.00 0.11 187 1.2
166.00 168.00 2.00 0.15 90 0.6
261.00 263.00 2.00 0.11 150 1.5
279.40 280.00 0.60 1.59 127 1.4
532.00 534.00 2.00 0.24 27 1.5
743.00 744.55 1.55 0.11 74 1.2
886.20 887.00 0.80 0.14 69 2.2
940.50 941.50 1.00 0.17 78 3.3
BAR-2021-004 147.00 149.00 2.00 0.10 759 33.8
191.00 193.00 2.00 0.12 27 4.3
195.00 197.00 2.00 0.10 45 5.4
203.00 205.00 2.00 0.15 101 6.8
324.25 327.25 3.00 0.12 187 3.1
329.25 331.25 2.00 0.23 350 6.5
477.00 478.00 1.00 0.28 81 1.5
522.00 523.00 1.00 0.10 139 2.2
580.50 581.50 1.00 0.10 125 0.8
589.40 591.25 1.85 0.12 95 1.1
636.00 637.00 1.00 0.11 86 1.7
664.50 665.50 1.00 0.14 28 0.7
676.50 678.50 2.00 0.12 122 0.5
684.50 685.70 1.20 0.17 88 1.3
698.00 702.00 4.00 0.23 46 0.5
713.00 714.50 1.50 0.12 90 0.7
733.35 735.00 1.65 0.13 54 0.5
741.10 742.00 0.90 0.13 88 1.8
758.00 760.15 2.15 0.14 61 0.7
802.00 804.70 2.70 0.31 14 0.6
BAR-2021-005 98.00 100.00 2.00 0.10 54 2.1
136.00 138.00 2.00 0.14 181 3.3
404.00 406.00 2.00 0.10 78 4.5
443.00 445.00 2.00 0.10 4 0.8
476.00 478.00 2.00 0.16 119 1.4
493.00 495.00 2.00 0.10 125 1.0
498.50 501.50 3.00 0.14 14 0.6
533.35 534.40 1.05 0.20 178 1.0
550.50 551.50 1.00 0.14 4 0.5
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Grade
Hole ID From (m) To (m) Interval (m) Au (g/t) As (ppm) Sb (ppm)
566.45 568.00 1.55 0.39 45 2.0
577.00 579.00 2.00 0.23 7 0.5
587.18 587.65 0.47 0.74 118 2.6
590.50 592.50 2.00 0.12 15 0.7
629.20 632.00 2.80 0.14 29 1.1
634.00 636.00 2.00 0.12 15 0.4
639.00 641.00 2.00 0.49 11 0.7
650.00 652.00 2.00 0.27 8 0.6
664.00 666.00 2.00 1.11 16 0.4
674.00 676.00 2.00 0.38 13 0.8
694.00 695.30 1.30 0.15 85 0.9
741.00 743.00 2.00 0.10 23 0.7
BAR-2021-006 139.50 141.00 1.50 0.36 33 1.7
320.00 322.00 2.00 0.15 66 4.7
350.00 353.00 3.00 0.13 63 3.6
361.00 363.00 2.00 0.83 4 1.2
367.00 369.00 2.00 0.10 2 0.5
371.30 375.00 3.70 0.16 15 0.5
381.00 383.00 2.00 0.11 19 1.1
399.00 401.00 4.00 0.23 31 0.6
493.25 493.48 0.23 0.10 54 0.6
592.10 593.10 1.00 0.12 42 0.3
702.00 703.00 1.00 0.15 65 2.1
708.00 709.00 1.00 0.11 88 3.2
Intervals are calculated using a 0.1 g/t Au lower cut-off.
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Table 3: Puente Princesa Drill Results (>0.1 g/t Au)
Grade
Hole ID From (m) To (m) Interval (m) Au (g/t) As (ppm) Sb (ppm)
PCS-2021-007 28.00 30.00 2.00 0.11 4 0.3
56.00 62.00 6.00 0.43 7 0.8
254.00 260.00 6.00 0.15 29 0.8
PCS-2021-008 280.00 281.00 1.00 0.12 16 0.4
PCS-2021-009 631.00 643.00 12.00 0.15 78 15.2
665.00 667.00 2.00 0.14 23 2.6
671.00 681.00 10.00 0.46 51 4.4
882.00 884.00 2.00 0.10 97 3.7
888.00 890.00 2.00 0.24 9 1.5
973.00 977.00 4.00 0.14 154 1.3
1000.00 1001.00 1.00 0.36 63 1.4
PCS-2021-010 532.00 534.00 2.00 0.10 116 2.4
691.50 692.50 1.00 0.76 40 2.2
1047.00 1049.00 2.00 0.22 630 3.0
1207.50 1209.50 2.00 0.17 960 3.3
PCS-2021-011 1042.00 1043.00 1.00 0.22 374 6.2
1045.00 1046.00 1.00 0.23 285 2.7
1047.00 1048.00 1.00 0.25 740 7.6
1110.00 1112.00 2.00 0.57 70 1.0
1249.40 1250.80 1.40 0.10 342 1.5
PCS-2021-012 169.00 172.00 3.00 0.20 173 1.0
247.50 248.50 1.00 0.13 73 1.5
266.44 269.50 3.06 0.17 302 2.7
382.00 384.00 2.00 0.10 8 0.3
Intervals are calculated using a 0.1 g/t Au lower cut-off.