Lundin Gold more than triples Bonza Sur deposit length near Fruta del Norte

Lundin Gold (TSX: LUG; OTCQX: LUGDF) confirmed on Wednesday that the strike length of the Bonza Sur deposit has more than tripled following the latest batch of results from drilling near its Fruta del Norte mine in southeastern Ecuador.

One drill hole returned a gold grade of 2.35 grams per tonne (g/t) over 100.3 metres from 333.2 metres, including 3.30 g/t over 53.2 metres from 353.8 metres. Other highlighted drill holes had 1.54 g/t gold over 123.5 metres from 72.9 metres, 1.43 g/t gold over 115.6 metres from 47.4 metres, and 1.22 g/t gold over 133.2 metres from 31.9 metres.

These holes are part of Lundin's ongoing near-mine exploration program -- the largest ever undertaken on the concessions hosting the FDN mine. At least 65,000 metres of drilling is targeted in 2024, primarily focused on the Bonza Sur deposit. To date, about 56,110 metres have been completed.

The latest results, says Lundin, confirm the "significant size" of Bonza Sur, extending the deposit's length by 800 metres to approximately 2.6 kilometres and widened it to 150 metres.  Importantly, it remains open for further discovery in all directions and at depth, the company adds.

"The significant and rapid advance of Bonza Sur from an early-stage exploration target to a mineral deposit is an exciting time for Lundin Gold. Our drilling program continues to highlight the meaningful potential of this new discovery," Ron Hochstein, CEO of Lundin Gold, commented.

The Bonza Sur deposit was discovered in 2023 through drilling a geochemical soil anomaly 1 km south of the FDN mine. Since then, over 90 drill holes have been completed. The results, according to the company, consistently point to further growth potential, with the new 2.35 g/t intercept being a "prime example."

With the confirmation of its size and more drilling results to come, Lundin now plans to release an initial mineral resource at Bonza Sur mid-year 2025.

The Bonza Sur drill results sent Lundin Gold's shares up by 2.5% as of 11:15 a.m. in Toronto, giving the Canadian gold miner a market capitalization of $8.4 billion.