VANCOUVER, BC, Aug. 4, 2022
/CNW/ - 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, the 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 interest 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. PDF Version
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
The regional program is 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 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 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 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 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 August 4, 2022 at 3:30 p.m. Pacific Time through
the contact persons set out below.
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 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 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.
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 for 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 that
the 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 descriptions 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
regulations thereunder.
Figure 1: Near Mine Exploration Program
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
|
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
|
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
|
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
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
Figure 4: Geological map, main explored targets and the
completed drill holes in 2022
SOURCE Lundin Gold Inc.