Lundin GOLD Provides Update ON Regional Exploration Program
NEWS RELEASE
Vancouver, August 4, 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 PROGRAM
Lundin Gold Inc. (TSX: LUG; Nasdaq Stockholm: LUG) ("Lundin Gold" or the "Company") is pleased to provide
an update on the 2022 regional exploration program of the Suarez basin (“the Basin”) . Until now, t he drilling
program has focused on two high priority targets, Barbasco and Puente Princesa. Through a detailed geological
interpretation of exploration data and additional surface works, four additional targets of in terest have been
identified: Barbasco Norte, Capullo, Puma and Quebrada La Negra, and a third rig has now been added to test
these new targets of interest. An estimated 16,500 metres is planned to be drilled in this year’s regional program,
at an estimated cost of US$14 million.
Ron Hochstein, President and CEO commented “While exploration in the south Basin is challenging, mainly due
to topography, thickness of the cover rocks, and post-mineral lithologies, our program continues to successfully
advance and return evidence of important indicators that point toward the presence of buried epithermal
deposits. Promising areas for further exploration and new drill targets have now been identified. The work done
to date on our regional program continues to support and further strengthen our understanding of this highly
prospective geological environment.”
Advancing in the Regional Exploration Program
At Barbasco Norte, one hole has already been completed, totalling 679 metres (see Tables 1 and 2). The target
is located to the north of Barbasco and is anomalous in gold and the epithermal pathfinder elements arsenic
and antimony in soil and rocks over a two-kilometre north-northwest trend. Initial drilling confirmed the same
stratigraphy as the Fruta del Norte deposit, with conglomerates of the Suarez Formation close to surface and
volcanic rocks from the Santiago Formation with some hydrothermal alteration at depth (see Figures 2 and 4).
Results are pending and additional drilling at this target is underway.
At Capullo, a first hole was recently started. This untested target lies within the central part of the Basin where
anomalous values of gold and the epithermal pathfinder elements arsenic and antimony are related to
hydrothermal alteration zones. Veins and veinlets of quartz are seen over a 300-metre-long trend (see Figure 4).
Additional mapping and rock sampling continues to delineate this target.
At Puma, a drill program is planned to start during the third quarter. The target lies within the southern end of
the Basin, and has a structural position, stratigraphy, and hydrothermal alteration like that of Fruta del Norte .
Anomalous values of gold and the epithermal pathfinder element arsenic in soil occur over a 1 -kilometre-long
trend (see Figure 4).
At Quebrada La Negra, a drilling program has been designed and is planned for the fourth quarter. The target
lies along the north continuity of the major structure recently intercepted at Puente Princesa and contains
anomalous gold and the epithermal pathfinder element arsenic in soil over 1.5 kilometres.
2022 Program to Date
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The regional program i s in its early stages with current drilling focused on the identification and definition of
potential mineralized structures that transect the favourable volcanic sequence of the Santiago Formation (Fruta
del Norte host rock). During the first half of 2022, 7,240 metres were drilled across nine holes, mainly at Puente-
Princesa and Barbasco , located along the margins of the Basin and covered by an extensive post mineral
sequence (see Figures 1 and 4).
At Puente-Princesa, a total of 4,723 metres were drilled across six holes (see Tables 1 and 2). Drilling intersected
a major structure , around 50 metres in width, characterized by intervals of quartz veins and hydrothermal
carbonate breccias with silica replacement and sulphides hosted in a post mineral volcanic sequence (see Figure
2). Initial results returned narrow low -grade gold intervals (hole PCS 2022 -16) and suggest further exploration
potential toward the north extension, at the Quebrada La Negra target, where anomalous gold and the
epithermal pathfinder element arsenic occurs in soil over a 1.5 kilometre northeast trend and are associated to
the conglomerate of the Basin (see Figure 1 and 4). Results pending for holes PCS 2022-19 and PCS 2022-21 .
Additional drilling is planned to better understand this target.
At Barbasco, 1,845 metres were completed across two drill holes (see Tables 1 and 3). Drilling intersected zones
of epithermal related alteration and narrow (< 1 m wide), widely spaced epithermal quartz-carbonate-sulphide
veins in the volcanic sequence of the Santiago Formation , containing anomalous values of gold and the
epithermal pathfinder elements arsenic and antimony (hole BAR-2022-015). Drilling also intercepted a thick
sequence of finely laminated silica on top of the volcanic rocks in the Santiago Formation, a proximal indicator
of epithermal systems (hole BAR-2022-017). Results are pending for hole BAR-2022-017 and additional drilling
is underway to test underneath this silica layer as well as additional drilling to the east (see Figure 3).
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 NI 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 insertio n 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 1, 202 2, 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.
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 res ponsibly. 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, fos tering 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.
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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 August 4, 2022 at 3:30 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 respe ct 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", "antic ipates",
"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 the se
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 prospects, plans and 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 21, 2022 , 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 in clude: risks
associated with the Company's community relationships; risks related to political and economic instability in Ecuador; risks related to
estimates of production, cash flows and costs; the impacts of a pandemic virus outbreak; risks inherent to mining operations; failure of
the Company to maintain its obligations under its debt facilities; shortages of critical supplies; control of the Company's largest
shareholders; risks related to Lundin Gold’s compliance with environmental laws and liability for environmental contamination; the lack of
availability of infrastructure; the Company's reliance on one mine; exploration and development risks; risks related to the Company’s
ability to obtain, maintain or renew regulatory approvals, permits and licenses; uncertainty with the tax regime in Ecuador; risks related
to the Company’s workforce and its labour relations; volatility in the price of gold; the reliance of the Company on its information systems
and the risk of cyber-attacks on those systems; deficient or vulnerable title to concessions, easements and surface rights; inherent safety
hazards and risk to the health and safety of the Company’s employees and contractors; the imprecision of Mineral Reserve and Resource
estimates; key talent recruitment and retention of key personnel; volatility in the market price of the Company’s shares; measures to
protect endangered species and critical habitats; social media and reputation; the cost of non -compliance and compliance costs; risks
related to illegal mining ; the adequacy of the Company’s insurance; risks relating to the declaration of dividends; 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; limits of disclosure and internal controls; security risks to the Company, its assets
and its personnel; the potential for litigation; and risks due to conflicts of interest.
Cautionary Note to U.S. Investors concerning estimates of Measured, Indicated, and Inferred Resources:
The mineral resource estimates included in this press release have been prepared in accordance with Canadian National Instrument 43-
101 – Standards of Disclosure fo r Mineral Projects. The United States Securities and Exchange Commission (the "SEC") has adopted
amendments to its disclosure rules to modernize the mineral property disclosure requirements. U.S. investors are cautioned th at the
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disclosure the Company provides on its mineral properties in this news release may be different from the disclosure that an issuer subject
to SEC reporting requirements would otherwise be required to provide. Therefore, the information contained in this news release
containing descr iptions of the Company's mineral properties may not be comparable to similar information made public by U.S.
companies subject to reporting and disclosure requirements under the U.S. federal securities laws and the rules and regulatio ns
thereunder.
Figure 1: Near Mine Exploration Program
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Table 1: Collar Locations of Completed Drill Holes
Figure 2: Puente Princesa and Barbasco Norte Cross Section and the main 2022 completed holes.
Hole ID Prospect Easting Northing Elevation Azimuth Dip EOH (m)
BAR-2022-015 Barbasco 778055 9572075 2057.17 90 -45 922
BAR-2022-017 Barbasco 777731 9571971 1959.08 90 -45 923
BAR-2022-018 Barbasco Norte 777232 9574795 1758.6 90 -45 679
PCS-2022-013 Puente-Princesa 775800 9572500 1591.3 270 -50 1013
PCS-2022-014 Puente-Princesa 775685 9574661 1539.62 270 -80 910.7
PCS-2022-016 Puente-Princesa 775685 9574661 1539.62 90 -60 413
PCS-2022-016A Puente-Princesa 775685 9574661 1539.62 90 -55 1202
PCS-2022-019 Puente-Princesa 776010 9574668 1583.5 90 -50 590
PCS-2022-021 Puente-Princesa 776010 9574668 1583.5 90 -65 595
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Intervals are calculated using a 0.1 g/t Au lower cut-off.
Table 2: Puente Princesa Drill Results (>0.1 g/t Au) - Received as at August 4, 2022
Hole_ID From (m) To (m) Interval (m) Au (g/t) Ag (ppm) Grade
As (ppm)
Sb (ppm)
PCS-2022-013 264.15 265.15 1 0.104 0.18 39.7 0.33
267.15 268.15 1 0.854 0.45 59.3 0.35
331 333 2 0.128 0.42 53.6 0.61
333 334 1 0.143 0.28 27.5 0.24
334 335 1 0.182 0.43 51.4 0.37
335 336 1 0.132 0.3 16.1 0.62
336 337 1 0.384 0.54 73.4 0.47
511 513 2 0.11 0.16 3.1 1.24
PCS-2022-014 426 427.9 1.9 0.153 0.43 171 3.13
506 507 1 0.419 1.77 1620 13.65
507 508 1 0.506 1.8 2410 23
729 731 2 0.152 0.59 9.3 0.29
731 733 2 0.157 0.39 8.4 0.42
737 739 2 0.153 0.46 5.4 0.29
739 741 2 0.109 0.36 3.4 0.24
741 743 2 0.21 0.92 16.8 0.13
743 745 2 0.196 0.6 10.6 0.16
745 747 2 0.23 0.94 17.7 0.16
749 751 2 0.241 0.7 14.3 0.17
751 753 2 0.274 1.72 8.9 0.19
753 755 2 0.137 2.42 5.6 0.18
755 757 2 1.03 1.7 26.5 0.29
771 772 1 0.198 0.53 3.2 0.23
779 780 1 0.247 0.31 2.1 0.16
804 805 1 0.12 0.19 1.3 0.23
PCS-2022-016A 1083 1084 1 0.106 0.08 40.2 0.42
1093 1094 1 0.1 0.46 4.3 1.05
1126 1127 1 0.117 0.19 5.9 1.15
1127 1128 1 0.111 0.62 13.9 1.12
1128 1129 1 0.115 0.28 12.9 1.02
1185 1186 1 0.203 0.21 7.2 0.4
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Figure 3: Barbasco Cross Section and the main 2022 completed holes (results in long real intervals).
Hole_ID From (m) To (m) Interval (m) Au (g/t) Ag (ppm) As (ppm) Sb (ppm)
BAR-2022-015 48 50 2 0.141 0.1 52.9 0.44
56 58 2 0.107 0.07 8.1 0.39
78.15 79.3 1.15 0.115 0.2 103 2.85
692.4 693.3 0.9 1.02 0.36 22.8 0.64
693.3 694.2 0.9 0.33 0.24 51.9 0.48
740 742 2 0.146 0.14 25.7 0.55
742 744 2 0.508 0.15 21.4 0.47
Intervals are calculated using a 0.1 g/t Au lower cut-off.
Table 3: Barbasco Drill Results (>0.1 g/t Au) - Received as at August 4, 2022
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Figure 4: Geological map, main explored targets and the completed drill holes in 2022