Lundin Gold Inc. (TSX: LUG) (Nasdaq Stockholm: LUG) (OTCQX: LUGDF) (“Lundin Gold” or the “Company”) announced exceptional high-grade gold and interesting copper drilling results near its 100% owned Fruta del Norte (“FDN”) gold mine in southeast Ecuador, including the highest-grade intercepts ever recorded at the FDN South (“FDNS”) deposit. The Company also reported encouraging early-stage results at the new Trancaloma target and continued exploration progress at FDN East. Highlights from the near mine program at FDNS, FDN East and Trancaloma are outlined below and except as noted in appendix 1 these results were not included in the 2024 Mineral Resource Estimate (“2024 MRE”) published on February 18, 2025.
FDNS Drilling Highlights (not true widths):
- Drill hole UGE-S-24-212 intersected 173.98 grams per tonne (“g/t”) of gold (“Au”) over 8.45 m from 77.60 m, including:
- 572.47 g/t Au over 2.50 m
- Drill hole UGE-S-24-213 intersected 77.31 g/t Au over 10.90 m from 94.80 m, including:
- 394.78 g/t Au over 2.10 m
- Drill hole UGE-S-24-185 (included in 2024 MRE) intersected 49.86 g/t Au over 7.80 m from 59.00 m, including:
- 83.48g/t Au over 4.50 m
High grade drill holes, particularly UGE-S-24-212 and UGE-S-24-213 demonstrate significant potential for further resource expansion at FDNS.
FDN East Drilling Highlights (not true widths):
- Drill hole FDNE-2024-200 intersected 3.15 g/t Au over 53.00 m from 277.80 m, including:
- 7.13 g/t Au over 8.40 m
- Drill hole UGE-E-24-210 intersected 10.16 g/t Au over 6.25 m from 238.85 m, including:
- 14.84 g/t Au over 3.25 m
These results confirm the continuity of gold mineralization, including the widest mineralized interval at FDN East to date and highlight the potential for further discoveries in this early-stage target.
Trancaloma Drilling Highlights (not true widths):
- Drill hole BLP-2024-195 intersected 0.25% Cu, 0.08 g/t Au over 407.75 m from 22.50 m, including:
- 0.31% Cu and 0.10 g/t Au over 228.00 m
Initial drilling at the near mine Trancaloma target has identified copper and gold mineralization, requiring further exploration to determine its significance.
Ron Hochstein, President and CEO, commented, “I am very excited that our near mine exploration program continues to deliver exciting results. The exceptional results at FDNS, the main driver of our recent mineral resource growth, further demonstrate the potential of this key deposit. The ongoing exploration at FDN East has provided encouraging results, highlighting the potential for new discoveries near our existing infrastructure. We are also encouraged by early indications at the Trancaloma target having hit long intersections of low-grade copper and gold mineralization and look forward to further exploration in this area. With 13 rigs currently drilling and more planned, we are confident in our ability to further expand resources and make new discoveries on the Fruta del Norte concession.”
NEAR-MINE EXPLORATION PROGRAM
The Company’s near-mine exploration strategy focuses on extending mine life through the expansion of Mineral Resources at FDN by exploring and delineating new discoveries close to the operation. Over the past two years, the exploration program has successfully driven resource growth and led to the discovery of new sectors such as FDNS, Bonza Sur, FDN East, and now Trancaloma.
In 2024, the Company executed the largest drilling program on the land package that hosts FDN, with more than 80,000 metres completed across 284 drill holes. In 2025, a minimum of 80,000 metres are planned in the near mine and conversion programs, primarily targeting the FDNS and Bonza Sur deposits and, more recently, the Trancaloma target. Currently, 13 rigs are active on surface and underground.
FDNS
At FDNS, located along the south extension of FDN, a new geological interpretation supported by an underground drill program initiated in the second quarter of 2024 successfully defined FDNS as a mineral deposit containing 2.09 million ounces of Inferred Resource from 12.35 million tonnes with an average grade of 5.25 g/t, with most of the mineralization grading above 7 g/t. (See press release published on February 18th, 2025)
Since the start of this exploration program, a total of 37 drill holes were completed, and the recent results, which were received after the recent Mineral Resource estimate update, continue to demonstrate its significant exploration potential. Of note, drill holes UGE-S-24-212 (173.98 g/t Au over 8.45 m) and UGE-S-24-213 (77.31 g/t Au over 10.90 m) are the highest-grade intercepts ever recorded in the sector and indicate areas for further expansion at FDNS.
Results from drill hole UGE-S-24-164 and UGE-S-24-212 show that the FDNS deposit remains open along the south direction. Drilling of this area will be done from the recently reopened South Portal, where one rig is currently turning. Two other underground rigs are currently active in the main part of the FDNS deposit as part of the conversion drilling program.
FDN East
At FDN East, the 2024 near mine exploration program intercepted a new buried epithermal mineralized system located only 100 metres east of FDN. The gold mineralization at FDN East shows similar hydrothermal alteration, mineralogical characteristics and hosting rocks to those found at FDN and FDNS and is also buried by a sedimentary cover.
Since its discovery, the drilling program has focused on expanding on the initial positive results and the recent drilling intercepts confirmed the mineralization continuity in the central portion of the target and indicate a potential trend toward FDNS that requires further drilling. Drill hole FDNE-2024-200 (3.15 g/t over 53m, including 7.13 g/t Au over 8.40 m) intercepted the widest mineralized interval at FDN East to date. Currently, one surface drill rig is turning at FDN East.
Trancaloma
The near-mine exploration program continues to generate discoveries in unexplored areas close to FDN. Several drill holes from surface were completed as part of a systematic exploration program to test new targets and resulted in the discovery of new Cu-Au mineralization at Trancaloma, located less than one kilometre east from the Bonza Sur deposit.
Four drill holes were completed and all returned anomalous values of copper and gold, potentially related to an outer hydrothermal alteration halo of a porphyry system. Three drill holes ended in mineralization requiring further follow-up drilling. A drill hole one kilometre east of the initial drill holes intercepted a long hydrothermal alteration zone with disseminated copper bearing sulfides plus quartz-chalcopyrite veins and results are pending. Currently, two surface drill rigs are turning at Trancaloma.
