Lundin GOLD Reports Significant Drilling Intercepts from Its Conversion Program at the Fruta Del Norte Deposit
NEWS RELEASE
Vancouver, November 21, 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 REPORTS SIGNIFICANT DRILLING INTERCEPTS FROM ITS
CONVERSION PROGRAM AT THE FRUTA DEL NORTE DEPOSIT
Lundin Gold Inc. (TSX: LUG; Nasdaq Stockholm: LUG; OTCQX:LUGDF) ("Lundin Gold" or the "Company")
is pleased to announce results from its conversion drilling program at its 100% owned Fruta del Norte gold
mine in southeast Ecuador . The conversion drilling program, targeting Inferred Mineral Resources
(“Inferred Resources”) along the southern extension of the Fruta del Norte deposit, aims to extend the
mine life by converting Inferred Resources. Results obtained have confirmed the wide, consistent nature
of mineralization throughout the southern sector and have also generated new targets outside of the
resource envelope for further work as part of the Company’s near mine program.
Ron Hochstein, President and CEO , commented, “I am pleased to announce these exciting drill results ,
which have confirmed the continuity of mineralization along the southern extension of our current Inferred
Resources and will support the completion of a Mineral Reserve and Resource update and subsequent 43-
101 report, anticipated to be released in the first quarter of 2023 . Additionally, several of these results
suggest that Fruta del Norte remains open at de pth and underlines the significant potential for resource
growth through the near mine exploration program.”
CONVERSION DRILLING PROGRAM
Since 2021, the Company has been advancing its conversion program at Fruta del Norte, with the objective
of converting Inferred Resources to Measured or Indicated Resources. The Fruta del Norte deposit is
currently estimated to contain a large Inferred Resource of approximately 11.6 million tonnes averaging
5.69 grams per tonne (“g/t”) gold , containing 2,130,300 ounces of gold . A t otal of 18,340 metres of
underground drilling across 88 drill holes has been completed , the results of which will improve
confidence in and further support the geological model and assist the Company in preparing an update to
the current Mineral Reserve and Resource estimate at Fruta del Norte.
Numerous drill holes returned high grade intercepts associated with a hydrothermal alteration zone with
veins, veinlets and minor breccias or stockwork zones hosted by a volcanic rock domain (see Table 1) .
These results confirm that the mineralized zone extends a further 300 metres past the current Fruta del
Norte Mineral Reserve boundary, in the southern direction (see Figure 1) . Some of the most notable
results include the following drill intercepts (not true width):
- 12.57 g/t of gold over 101.30 metres (FDN22-229)
- 10.76 g/t of gold over 163.20 metres (FDN21-112)
- 12.67 g/t of gold over 98.30 metres (FDN21-165)
- 17.93 g/t of gold over 51.45 metres (FDN22-198)
Complete assay results for the entire conversion drilling program can be found in Tables 3 and 4 in the
Appendix.
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Results from t he conversion program allow for better delineat ion of the distribution and controls of
higher-grade mineralized zones within the known Inferred Resource and significantly enhance the
southern extension in the current geological model. The Company is in the process of analyzing the full
set of this data with the objective of preparing an updated estimate of Mineral Reserves and Resources
for Fruta del Norte in accordance with National Instrument 43 -101 (“NI 43-101”) by the end of the first
quarter of 2023. Based on the new geological model, further conversion drilling targets will be defined for
2023 and 2024.
Table 1: Highlights of Fruta del Norte conversion drilling for intervals greater than 3.5 g/t1 and minimum
drilling length of 4 metres. All drill hole intercepts are reported in drilling lengths.
Hole ID From (m) To (m) Interval (m) Au (g/t) Ag (g/t)
FDN21-078 0.00 104.10 104.10 6.78 14.99
including 57.00 65.60 8.60 47.43 47.12
FDN21-112 0.00 163.20 163.20 10.76 7.10
including 26.90 55.50 28.60 49.83 22.16
FDN21-160 0.00 81.65 81.65 10.64 4.48
FDN21-160 85.65 159.25 73.60 6.18 5.38
including 113.00 118.00 5.00 34.87 3.22
FDN21-165 74.55 172.85 98.30 12.67 5.55
including 75.50 84.90 9.40 83.98 25.82
FDN21-167 77.00 185.00 108.00 6.75 5.33
including 128.00 141.70 13.70 10.67 6.15
FDN21-168 0.00 84.00 84.00 7.71 7.47
including 65.70 70.45 4.75 126.70 68.84
FDN22-198 62.40 113.85 51.45 17.93 10.69
including 67.45 88.00 20.55 43.54 13.24
FDN22-229 0.00 101.30 101.30 12.57 8.31
including 38.20 53.00 14.80 68.42 17.44
1 Mineral Resources are reported at a cut-off grade of 3.5 g/t Au; which was calculated using a long term gold price
of US$1,500/oz.
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Figure 1: Fruta del Norte north-south longitudinal section and some significant results from conversion
drilling
POTENTIAL AREAS FOR EXPANSION AT DEPTH AT FRUTA DEL NORTE
In addition to supporting the conversion of Inferred Resources, some conversion drilling results have also
provided additional targets for our near mine exploration program. These drilling intercepts from the
deepest boundary of the Fruta del Norte mineral resource envelope indicate that the deposit remains
open at depth. The results have defined new potential areas for resource growth, below the defined
mineral resource envelope in the north sector and along the southern extension (see Figure 2).
Most of the drilling results obtained are of a hydrothermal alteration similar to that occurring in Fruta del
Norte’s Mineral Reserves, where the mine is currently operating (see Table 2). In the northern part of the
deposit, drill holes intercepted wide hydrothermal alteration zones represented by breccias, veining or
stockwork zones, very similar in style and geometry to that found in the area currently being mined . In
the southern extension, the Fruta del Norte deposit changes to a veining dominant style hosted in volcanic
rocks, with drilling results suggesting potential for growth along the downdip continuity.
The near mine program currently has one underground rig turning, which is further investigating the
continuity of the Fruta del Norte system at depth, in both the north and south sectors. In addition to the
underground rig, the program includes two surface rigs testing the southerly extension of Fruta del Norte.
To the end of October, 6,190 metres have been drilled on this program.
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Table 2: Highlights from Fruta del Norte drilling at depth for intervals greater than 3.5 g/t1 and minimum
drilling length of 4 metres. All drill hole intercepts are reported in drilling lengths.
Hole ID From (m) To (m) Interval (m) Au (g/t) Ag (g/t)
FDN21-129 160.60 169.60 9.00 6.51 1.78
FDN21-151 108.55 125.00 16.45 6.01 6.11
FDN21-152 132.50 141.00 8.50 8.72 16.72
FDN22-217 192.10 203.20 11.10 17.22 4.62
FDN22-227 137.85 180.00 42.15 4.27 1.78
including 161.00 177.40 16.40 7.29 3.07
FDN22-233 132.45 169.45 37.00 3.77 1.46
including 132.45 142.55 10.10 4.77 2.03
including 162.85 169.45 6.60 5.21 1.36
Figure 2: Fruta del Norte north-south longitudinal section and conversion drilling results indicate new
areas to explore at depth
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 insertion of certified standards of known gold content, blank and duplicate samples. The
1 Mineral Resources are reported at a cut-off grade of 3.5 g/t Au; which was calculated using a long term gold price
of US$1,500/oz.
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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 21, 2022, 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 min e 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 simultaneously prov iding 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 November 21, 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 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",
"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 Company’s
exploration activities and results, such as effo rts to expand Mineral Resources estimates, upgrade Inferred Resources to other
higher categories of Mineral Resources and to prepare an update to estimates of Mineral Resources and Reserves at Fruta del
Norte. There can be no assurance that such statements will prove to be accurate, as Lundin Gold's actual results and future events
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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 impa ct on the Company or the trading price of its
shares include: 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.
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APPENDIX
Figure 3: Map of the conversion drilling program
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Table 3: Drillhole assay results from Fruta del Norte conversion drilling program reported for intervals
above 3.5 g/t and minimum drilling length of 4 metres.
Hole ID From (m) To (m) Interval (m) Au (g/t) Ag (g/t)
FDN20-067 Not Significant results
FDN21-077 69.60 152.80 83.20 5.73 6.50
FDN21-078 0.00 104.10 104.10 6.78 14.99
FDN21-079 104.40 181.50 77.10 5.01 6.03
FDN21-092 Not Significant results
FDN21-095 82.50 148.00 65.50 5.35 5.31
FDN21-097 138.30 179.00 40.70 3.84 2.67
FDN21-098 89.60 155.10 65.50 4.07 2.50
FDN21-100 93.50 137.70 44.20 5.76 9.70
FDN21-102 Not Significant results
FDN21-104 Not Significant results
FDN21-105
72.75 90.65 17.90 18.51 9.45
138.00 186.40 48.40 4.53 2.12
FDN21-109 Not Significant results
FDN21-111 0.00 43.70 43.70 5.83 7.82
FDN21-112 0.00 163.20 163.20 10.76 7.10
FDN21-114 21.50 106.50 85.00 4.23 6.50
FDN21-116 17.00 100.00 83.00 3.49 5.23
FDN21-117 Not Significant results
FDN21-119 0.00 10.00 10.00 25.27 16.09
FDN21-121
0.00 11.40 11.40 10.44 8.92
189.20 196.80 7.60 5.10 0.77
FDN21-123 Not Assays
FDN21-125
0.00 9.20 9.20 11.38 8.31
192.00 202.85 10.85 8.21 1.68
FDN21-127 Not Significant results
FDN21-129 160.60 169.60 9.00 6.51 1.78
FDN21-130 116.20 158.70 42.50 6.86 3.00
FDN21-132 Not Significant results
FDN21-134 104.40 161.00 56.60 4.08 2.20
FDN21-136 134.55 168.40 33.85 6.22 2.06
FDN21-138 108.45 173.10 64.65 8.54 3.67
FDN21-140 128.75 170.70 41.95 3.86 1.44
FDN21-142 115.40 168.70 53.30 5.65 3.25
FDN21-144 151.30 160.20 8.90 6.19 2.96
FDN21-147 0.00 99.45 99.45 4.56 4.87
FDN21-149 0.00 105.20 105.20 4.34 5.64