Lundin GOLD Underground MINE Development Reaches the Orebody at Fruta Del Norte
885 West Georgia Street T +1 604 689 7842
Suite 2000 F +1 604 689 4250
Vancouver, BC [email protected]
Canada V6C 3E8 lundingold.com
NEWS RELEASE
LUNDIN GOLD UNDERGROUND MINE DEVELOPMENT REACHES
THE OREBODY AT FRUTA DEL NORTE
January 14, 2019 (Vancouver, Canada) Lundin Gold Inc. ("Lundin Gold" or the "Company")
(TSX: LUG , Nasdaq Stockholm: LUG) is pleased to announce that the underground mine
declines have reached the orebody, and level development has begun at its Fruta del Norte
gold project (“Fruta del Norte” or the “Project”) in Ecuador.
Project Highlights as at December 31, 2018:
• Total of 4.5 kilometre (”km”) of underground mine development achieved.
• K’isa decline is complete and mine development crews now working on multiple
production levels, advancing towards first stope in the second quarter of the year.
• Overall engineering 85% complete and Project construction 45% complete.
• Company has committed 70% of its capital expenditure.
• Majority of large process plant mechanical equiptment now on site.
• Poweline 22% complete.
• Mountain Pass Quarry Exploitation Agreement signed.
• More than three million manhours without a lost time incident achieved.
“Our team has reached, and in some cases exceeded the Project’s targets, all while
maintaining excellent safety standard s,” said Ron Hochstein, Lundin Gold’s President and
CEO. “With 70% of our capital expenditure committed and detailed engineering nearly done,
Fruta del Norte is on schedule to meet its target of producing first gold in the fourth quarter of
this year.”
Mine Development
As at December 31 , 2018 a total of 4.5 km of underground mine development had been
achieved.
The K’isa decline was completed on December 9, 2018, after 2.1 km of total development and
transitioned to production level 1170. Production level 1195 began on December 7, 2018 and
a total of 330 metres (“m”) of level development on two levels has been completed. December
average advance rates in K’isa were 9.0 m per day versus a target of 7.1 m per day.
The Kuri decline is at 2,070 m of total development and is progressing towards lower
production levels in the mine. This decline was completed this month. December average
advance rates in Kuri were 5.0 m per day versus a target of 4.2 m per day.
Overall, advance rates in both declines exceeded the plan by 11% due to better than expected
ground conditions and lower than anticipated water inflows.
Lundin Gold is preparing the first stages of transition to owner operations and its mining fleet
has started to arrive at Fruta del Norte. The first group of mining operator trainees began the
final part of their training program, which takes place on site.
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Process Plant
Process plant c oncrete foundations are 62% complete and structural steel erection is
progressing as planned. The remaining mechanical equipment is expected to be on site in the
first quarter and installation of the c arbon-in-leach circuit and grinding mills has started .
Commissioning of the process plant is still on track to begin in third quarter of this year.
With process plant engineering substantially complete, engineering efforts are now focussed
on the paste plant and water treatment plant facilities.
Mountain Pass Quarry and Tailings Storage Facility
The Company successfully negotiatied the Mountain Pass Quarry (the ”Quarry”) Exploitation
Agreement with the local government in the fourth quarter of 2018, and extraction of aggregate
materials began shorty after. Material from the Quarry was necessary to move forward with
the construction of the tailings storage facility.
Tailings storage facility access roads and the polishing pond were completed in the fourth
quarter, while construction advanced on the surface water perimeter diversion ditches around
the tailings storage facility.
Powerline
Construction continues on three front s with 28 out of 107 towers , or 22% of powerline
infrastructure, being complete.
Paste Plant
Paste plant mass earthworks were complete in the fourth quarter of 2018 and concrete works
have begun.
Other Infrastructure
The Company continues to make significant progress on other key facilities and infrastructure
including:
• Permanent mine maintence shop is in operation.
• Mine dry/ administration building is well advanced and the mine emergency power
substation is scheduled to be completed this quarter.
• The main Fruta del Norte power substation concrete is complete and the two main
transformers have arrived at site and are positioned on the foundations.
Several photos of the Project are appended to the end of this news release.
About Lundin Gold
Lundin Gold, headquartered in Vancouver, Canada, is developing its wholly-owned Fruta del
Norte gold project in southeast Ecuador. Fruta del Norte is one of the world's largest, highest-
grade 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 the fourth quarter of this year.
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
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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 January 14,
2019 at 5:00 a.m. PT through the contact persons set out below.
For more information, please contact
Lundin Gold Inc.
Ron F. Hochstein
President and CEO
+593 2-299-6400
+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 informati on 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 und uly 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 n umber of places, such as in statements
pertaining to: the anticipated timing of production and the progress of the development, construction and
operation of the Project, improvements to site logistics and completion of site and powerline
infrastructure and the acquisition of land and surface rights , the success of the Company’s exploration
plans and activities, exploration and development expenditures and reclamation costs, timing and
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success of permitting and regulatory approvals, project financing and future sources of liquidity, capital
expenditures and requirements, future tax payments and rates, cash flows and their uses.
Lundin Gold’s actual results could differ materially from those anticipated. Management has identified
the following risk factors which could have a material impact on the Company or the trading price of its
shares: the ability to arrange financing and the risk to shareholders of dilution from future equity
financings; the ability to maintain its obligations under the gold prepay and stream credit facilities, the
senior debt facility 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 contractors; 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 Company's shares; 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; 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 industry; 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 available under the Company’s profile at www.sedar.com .
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Figure 1. Underground mine declines have reached the orebody and begun level
development
Figure 2. Aerial view of the process plant
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Figure 3. Carbon-in-leach circuit installation
Figure 4. Mine dry/administration building well advanced
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Figure 5. Main Fruta del Norte substation concrete is complete and large transformers
are positioned on their foundations