GOLD: Lundin awards Fruta underground development contract

ECUADOR – Vancouver-based Lundin Gold has awarded the underground development contract for the Fruta del Norte gold project to a pair of South American companies – Ingenierie y Construcciones Mas Errazuriz Limitada y Filiales of Chile and Sevilla y Matinez Ingenieros CA Semaica of Ecuador. Mas Errazuriz and Semaica will become the key contractor the for portals and soft tunneling work and development of the twin declines and other works ahead of production. Planning and mobilization of equipment will begin immediately. [caption id="attachment_1003717281" align="alignleft" width="291"] Core from Lundin Gold’s Fruta del Norte project in Ecuador.[/caption] Lundin is sole owner of the Fruta property 80 km east of the city of Loja in the southeast region of the country. The project has proven and probable reserves of 15.5 million tonnes grading 9.67 g/t gold and 12.7 g/t silver. Estimated capital cost including contingency before production begins is US$669 million. The first gold pour is expected early in 2020 and output will average 340,000 oz. per year. Kinross Gold sold the Fruta del Norte project to Lundin Gold in 2014 in a cash and share deal valued at US$240 million. See www.LundinGold.com for more information about the project.