The first large-scale modern gold mine in Ecuador

History

Fruta del Norte was discovered in 2006 by Aurelian Resources, after the third drill hole of a three-hole drill program intersected an average of 4.14 g/t gold and 8.5 g/t silver over 237.3m. An initial Inferred Mineral Resource estimate was released in late 2007, consisting of 58.9 Mt grading 7.23 g/t gold and 11.8 g/t silver, at a cut-off grade of 2.3 g/t gold-equivalent. Kinross Gold Corporation (Kinross) subsequently acquired the asset in 2008 for approximately C$1.2 billion. After years of further drilling, Mineral Resource updates, and a PFS, Kinross announced that it would not proceed with development of the Fruta del Norte project.

In December 2014, Lundin Gold acquired Fruta del Norte from Kinross, along with Kinross’s other concessions in Ecuador for US$240 million. In 2016, the Company completed an independent feasibility study for the Fruta del Norte project and completed two other significant milestones that allowed the Company to commence development of the mine. First, the Government of Ecuador (GOE) approved the environmental impact assessment (EIA) for Fruta del Norte and then granted the related environmental license. Second, the Company successfully negotiated and entered into two key agreements with the GOE, the Exploitation Agreement (EA) and the Investment Protection Agreement (IPA), which established the fiscal, operation and commercial terms and conditions for the development and operation of Fruta del Norte. Both the EA and the IPA are publicly available on the Company's profile on SEDAR.

From 2017 to 2019, Lundin Gold focused on the development and construction of Fruta del Norte. In order to do so, during that same period, the Company secured the necessary financing, through both equity and debt. By the end of 2019, Lundin Gold had met its objective of achieving first gold production at Fruta del Norte and reached commercial production in February 2020, ahead of schedule.

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TSX: LUG $ 10.22
OMX: LUG kr 70.6
Gold: $ 1802.25