Lundin Gold estimates three-year production at 400,000 oz. annually

Lundin Gold (TSX: LUG), 100% owner of the Fruta del Norte mine in Ecuador, estimates that over the next three years the mine will average 400,000 oz. of gold annually.

As for next year, the company anticipates producing between 405,000 and 445,000 oz. of gold at an all in-sustaining cost of between US$860 and US$930 per oz. of gold sold.

Sustaining capital in 2022 is estimated at US$40 to US$45 million, with US$22.9 million related to tailings dam construction. Another US$7.4 million is budgeted for surface infrastructure, including a new warehouse and expanded ore pad to accommodate ore blending. Replacing mobile equipment will cost US$3.6 million, and the continuing resource expansion drill program will cost US$2.5 million. The company is also working on the US$6.2-million South ventilation raise, which will be complete by the end of the second quarter.

Lundin Gold also said it is planning 16,500 metres of exploration drilling at Barbasco and Puente Princesa. Budget for the program is US$14 million.

At Dec. 31, 2020, Fruta had proven and probable reserves of 20.3 million tonnes grading 8.03 g/t gold and 11.5 g/t silver, containing 5.2 million oz. of gold and 7.5 million oz. of silver.

The company is looking forward to generating a strong free cash flow at current gold prices. This, said president and CEO Ron Hochstein in a news release, will open several options – future growth through increased production, debt reduction and shareholders’ distributions.

The Fruta del Norte mine achieved commercial production in March 2020. It is the first large-scale modern gold mine in Ecuador.

Visit www.LundinGold.com for more information.