VANCOUVER, BC, Jan. 26,
2023 /CNW/ - Lundin Gold Inc. (TSX: LUG)
(Nasdaq Stockholm: LUG) (OTCQX: LUGDF) ("Lundin Gold" or the
"Company") is pleased to announce initial drill results
from the 2022 near-mine exploration program at its 100% owned Fruta
del Norte ("FDN") gold mine in southeast Ecuador. Results from the drill program
identified new mineralized zones to the south and at depth of FDN's
currently defined Mineral Resources. Highlights and detailed
results are shown below (not true width). View PDF version.
Highlights from holes drilled to the south of FDN:
- Drillhole FDN2022-009 intersected 5.11 g/t Au over 30.3m from a depth of 267.7m, including;
-
- 9.79 g/t Au over 14.0m from
284.0m
- Drillhole FDN2022-006 intersected 3.99 g/t Au over 4.8m from 181.7m,
and 4.40 g/t Au over 8.1m from
213.9m
Highlights from holes drilled under the southern
portion of the FDN mineral resource envelope:
- Drillhole UGE-DD-22-008 intersected 4.11 g/t Au over
23.0m from 197.7m, including;
-
- 6.03 g/t Au over 10.0m from
202.7m
- Drillhole UGE-DD-22-005 intersected 3.53 g/t Au over
44.9m from 134.8m, including;
-
- 5.25 g/t Au over 12.9m from
134.8m, and;
- 4.32 g/t Au over 15.0m from
164.7m
Ron Hochstein, President and CEO,
commented, "These early drill results highlight the significant
potential of the largely unexplored area surrounding the FDN
mineral resource envelope. Results demonstrate the significant
potential of the epithermal system beyond the known limits of the
FDN deposit and support our belief that the near-mine program will
enable expansion of current Mineral Resources. To advance this
objective, we are increasing our near-mine exploration efforts with
a minimum of 15,500 metres of drilling in 2023 compared to 8,600
metres drilled in 2022".
NEAR-MINE EXPLORATION
PROGRAM
The near-mine exploration program was initiated in the third
quarter of 2022, and focuses on expanding the FDN mineral resource
envelope and testing several unexplored opportunities near the mine
site. To date approximately 8,600 metres have been drilled
across 16 holes, from surface and underground.
New Mineralized Zone Intercepted to the South of FDN's
Mineral Resource Envelope
To the south of the current FDN mineral resource envelope, a
surface drilling program continues to explore sectors along the two
main controlling structures of the FDN deposit, the East and West
faults. Along the southern extension of the East fault a new
mineralized zone has been intercepted. Initial promising results
suggest continuity of the epithermal system in this southern
direction.
This surface drilling program completed nine drill holes in 2022
(see Figure 1), most of them located between 200 and 900 metres
south of the FDN mineral resource envelope boundary. Assay results
received to date are set out in Table 1. Results for several drill
holes are pending.
Most of the drill holes intercepted wide hydrothermal alteration
zones of similar characteristics to those found at the FDN deposit.
This zone remains open at depth, along strike to the north and to
the south, where a gold and epithermal pathfinder elements soil
anomaly remains untested (see Figure 1). The 2023 program has
already started, with one rig drilling on this new zone and a
second rig to be added shortly.
Figure 1: Completed holes from the
2022 near-mine program and location of the new mineralized zone
intercepted to the south of FDN
Drilling also Indicates that the Deposit is Open at
Depth
In addition to the surface drilling, the near-mine program's
underground drilling focuses on the continuity of the FDN deposit
and west structure at depth. A total of seven drill holes were
completed under the southern portion of the FDN mineral resource
envelope. Initial results indicate new zones where the deposit
remains open at depth (see Figure 2). Assay results received to
date are set out in Table 1. Results for several drill holes are
pending.
Most of the results obtained from underground drilling exhibit
the same mineral hydrothermal alteration to that related to
mineralization in the southern extension of FDN's Mineral Resource
and confirm the continuity of the deposit at depth, below the
current resource. Underground drilling is being expanded in 2023 to
continue to explore at depth. The initial focus will be the
north-central sector below the highest-grade portion of the mineral
deposit, where the mine is currently operating (see Figure 2).
Figure 2: FDN longitudinal section
showing drilling results at depth, under the southern
extension
2023 Near-Mine Exploration Program
The 2023 near-mine program will include underground and surface
drilling at or near FDN. Indications from drilling in 2022 suggest
potential for the extension of FDN Mineral Resources at depth as
well as to the East, West and South of the current mineral resource
envelope. The 2023 near-mine program is targeting at least 15,500
metres of drilling at an estimated cost of $9.4 million.
REGIONAL EXPLORATION
PROGRAM
Investigation of the Suarez Basin Continues
In 2022, Lundin Gold completed
approximately 17,600 metres of drilling across several targets in
the southern basin as part of its regional exploration program. The
program has successfully advanced in the identification of
important indicators that point toward the presence of buried
epithermal deposits in the southern basin. Through a detailed
geological interpretation of exploration data and additional
surface works, several targets of interest have been identified,
tested, and resulted in locating new potentially mineralized
structures. They include:
- Along the south western basin border, the Quebrada La Negra and
Puente Princesa targets were investigated with a total 6,987 metres
drilled across nine holes. At Quebrada La Negra, the drilling
program identified a new structure associated to the west border,
represented by wide hydrothermal alteration zones with breccias
and/or veins and disseminated sulfides. The program also drilled an
arsenic soil anomaly, where drilling intercepted a major structure
with quartz veins, hydrothermal carbonate-silica breccias and
sulfides hosted in the Santiago
formation, which is also the FDN hosting sequence. This
hydrothermal alteration zone possibly represents the northern
continuity of the Puente Princesa structure, defined in the second
quarter. All results are pending.
- Four drill holes were completed at Barbasco Norte for a total
of 2,123 metres to test a continuous geochemical gold soil anomaly
at the edge of the Suarez Basin. The drilling program intercepted
low grade values of gold and epithermal pathfinder element arsenic
in narrow hydrothermal alteration zones of similar composition to
that found in epithermal systems like Fruta del Norte. The obtained
geological data suggest an increase of the hydrothermal alteration
toward the east, close to the basin border and where additional
drilling is being planned in 2023.
- At Barbasco, the program explored for several indicators of
epithermal systems in distinct sectors of the target. Nine drill
holes for a total of 6,351 metres were completed. The drilling only
intercepted few and limited zones of hydrothermal alteration zones
at depth, and the current interpretation suggests additional
drilling is required to explore untested sectors located farther
east.
2023 Regional Program
Drilling under the regional program will focus on several
exploration targets located in the 16 km long Suarez Basin, with
the objective of identifying another FDN. The 2023 regional program
is estimated to cost $11.7 million
for planned drilling of 12,500 metres. This program is anticipated
to begin within the next few weeks.
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 January 26, 2023 at
3:00 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 activities and results,. 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.
APPENDIX 1
Table 1: Drillhole assay results
from the near-mine surface drilling program reported for intervals
above 3.5 g/t and minimum lengths of 4 metres. Drill hole
intercepts are reported in drill core lengths
Hole
ID
|
From
(m)
|
To
(m)
|
Interval
(m)
|
AU
(g/t)
|
Ag
(g/t)
|
Zone
|
BLPW-2022-002
|
No Significant
results
|
Surface
|
BLP-2022-003
|
No Significant
results
|
Surface
|
FDNS-2022-006
|
181.70
|
223.00
|
41.30
|
1.53
|
6.03
|
Surface
|
Including
|
181.70
|
186.50
|
4.80
|
3.99
|
7.51
|
Including
|
213.90
|
222.00
|
8.10
|
4.39
|
7.67
|
FDNS-2022-009
|
267.70
|
298.00
|
30.30
|
5.11
|
10.80
|
Surface
|
Including
|
284.00
|
298.00
|
14.00
|
9.79
|
16.83
|
FDNS-2022-012A
|
Pending
results
|
Surface
|
BLPW-2022-014
|
Pending
results
|
Surface
|
FDNS-2022-015
|
Pending
results
|
Surface
|
BLP-2022-016
|
Pending
results
|
Surface
|
BLPW-2022-017
|
Pending
results
|
Surface
|
UGE-SW-22-001
|
123.90
|
151.60
|
27.70
|
3.97
|
7.13
|
Underground
|
Including
|
123.90
|
127.90
|
4.00
|
6.67
|
9.33
|
Including
|
141.90
|
151.60
|
9.70
|
7.66
|
13.75
|
UGE-DD-22-004
|
3.70
|
28.50
|
24.80
|
4.65
|
5.06
|
Underground
|
Including
|
3.70
|
8.00
|
4.30
|
13.50
|
12.09
|
Including
|
24.00
|
28.50
|
4.50
|
11.34
|
9.79
|
UGE-DD-22-004
|
53.20
|
59.20
|
6.00
|
3.79
|
9.75
|
UGE-DD-22-004
|
139.70
|
143.70
|
4.00
|
4.82
|
8.35
|
UGE-DD-22-004
|
149.70
|
157.70
|
8.00
|
4.41
|
6.21
|
UGE-DD-22-004
|
173.70
|
180.70
|
7.00
|
5.43
|
5.73
|
UGE-DD-22-005
|
5.35
|
17.05
|
11.70
|
3.86
|
4.40
|
Underground
|
UGE-DD-22-005
|
38.75
|
44.45
|
5.70
|
4.40
|
4.84
|
UGE-DD-22-005
|
134.80
|
179.70
|
44.90
|
3.53
|
9.74
|
Including
|
134.80
|
147.70
|
12.90
|
5.25
|
13.91
|
Including
|
164.70
|
179.70
|
15.00
|
4.32
|
8.93
|
UGE-DD-22-008
|
42.00
|
60.00
|
18.00
|
7.18
|
13.91
|
Underground
|
Including
|
50.80
|
60.00
|
9.20
|
12.97
|
24.51
|
UGE-DD-22-008
|
82.30
|
87.30
|
5.00
|
4.41
|
8.24
|
UGE-DD-22-008
|
119.70
|
135.70
|
16.00
|
4.11
|
3.06
|
UGE-DD-22-008
|
197.70
|
220.70
|
23.00
|
4.11
|
1.27
|
Including
|
202.70
|
212.70
|
10.00
|
6.03
|
0.94
|
Hole
ID
|
From
(m)
|
To
(m)
|
Interval
(m)
|
AU
(g/t)
|
Ag
(g/t)
|
Zone
|
UGE-DD-22-010
|
51
|
72
|
21.00
|
4.19
|
7.00
|
Underground
|
Including
|
65
|
72
|
7.00
|
7.00
|
8.39
|
UGE-DD-22-010
|
116.2
|
123
|
6.80
|
4.05
|
23.46
|
UGE-DD-22-010
|
133.00
|
139.00
|
6.00
|
4.08
|
45.25
|
UGE-DD-22-010
|
180.15
|
190.00
|
9.85
|
4.42
|
103.48
|
UGE-DD-22-010
|
220.00
|
227.00
|
7.00
|
3.91
|
93.96
|
UGE-DD-22-010
|
269.85
|
273.85
|
4.00
|
4.36
|
75.15
|
UGE-DD-22-011
|
Pending
results
|
Underground
|
UGE-DD-22-013
|
Pending
results
|
Underground
|
Table 2: Collar locations of reported
drill holes
Hole
ID
|
Prospect
|
Easting
|
Northing
|
Elevation
|
Azimuth
|
Dip
|
EOH
(m)
|
Zone
|
BLPW-2022-002
|
FDN -
South
|
778265
|
9581568
|
1494
|
250
|
-70
|
542.4
|
Surface
|
BLP-2022-003
|
FDN -
South
|
778265
|
9581568
|
1494
|
70
|
-60
|
650.6
|
Surface
|
FDNS-2022-006
|
FDN -
South
|
778445
|
9581819
|
1519
|
275
|
-50
|
790
|
Surface
|
FDNS-2022-009
|
FDN -
South
|
778445
|
9581819
|
1519
|
290
|
-65
|
558.5
|
Surface
|
FDNS-2022-012A
|
FDN -
South
|
778445
|
9581819
|
1498
|
290
|
-74
|
415.5
|
Surface
|
BLPW-2022-014
|
FDN -
South
|
778454
|
9581060
|
1464
|
270
|
-55
|
494
|
Surface
|
FDNS-2022-015
|
FDN -
South
|
778174
|
9581879
|
1628
|
80
|
-60
|
695
|
Surface
|
BLP-2022-016
|
FDN -
South
|
778454
|
9581060
|
1464
|
90
|
-55
|
497
|
Surface
|
BLPW-2022-017
|
FDN -
South
|
778417
|
9581324
|
1429
|
270
|
-70
|
500
|
Surface
|
UGE-SW-22-001
|
FDN -
Depth
|
778175
|
9582522
|
1178
|
232
|
-50
|
801
|
Underground
|
UGE-DD-22-004
|
FDN -
Depth
|
778174
|
9582524
|
1178
|
280
|
-60
|
353.9
|
Underground
|
UGE-DD-22-005
|
FDN -
Depth
|
778173
|
9582525
|
1181
|
315
|
-60
|
400
|
Underground
|
UGE-DD-22-008
|
FDN -
Depth
|
778179
|
9582607
|
1176
|
260
|
-50
|
300
|
Underground
|
UGE-DD-22-010
|
FDN -
Depth
|
778177
|
9582888
|
1081
|
300
|
-45
|
348
|
Underground
|
UGE-DD-22-011
|
FDN -
Depth
|
778177
|
9582888
|
1081
|
315
|
-65
|
526.2
|
Underground
|
UGE-DD-22-013
|
FDN -
Depth
|
778177
|
9582888
|
1081
|
275
|
-40
|
301.6
|
Underground
|
SOURCE Lundin Gold Inc.