The first large-scale modern gold mine in Ecuador

Reserves and Resources

In 2016, the Company filed a technical report for the Fruta del Norte project prepared in accordance with NI 43-101 and entitled “Fruta del Norte Project Ecuador NI 43-101 Technical Report on Feasibility Study” dated June 15, 2016 with an effective date of April 30, 2016 (the “Technical Report”). This Technical Report was prepared by Amec Foster Wheeler Americas Limited, with the support of four other globally recognized, leading engineering firms. Except as set out below, the assumptions, parameters and risks associated with the Company's Mineral Resource and Mineral Reserve estimates set out herein are as set out in the Technical Report.

Probable Mineral Reserves, as at December 31, 2020

Updates to the original estimate of Probable Mineral Reserves in the Technical Report have been made from time to time, although not material individually or collectively, to reflect current mine plans, new information and production. Most recently, the Company updated its estimates of Probable Mineral Reserves for Fruta del Norte to 5.41 million oz due to changes in planned mining method.

The following table shows the Company’s estimate of Probable Mineral Reserves at the Fruta del Norte Mine as of December 31, 2020 as adjusted by the 2020 Reserve and 2020 production.(2)(3)(4)(5)(6)(7)

2020 Reserve(1) Processed in Remainder of 2020(8) December 31, 2020(9)
Mt 20.8 0.6 20.3
Au (g/t) 8.1 9.84 8.03
Au (Moz) 5.41 0.18 5.24
Ag (g/t) 11.8 12.0 11.5
Ag (Moz) 7.68 0.22 7.46


  1. The 2020 Reserve has been estimated in accordance with CIM Standards and NI 43-101. The 2020 Reserve is as at July 31, 2020 and reflects mill feed from January 1, 2020 to July 31, 2020.
  2. All Mineral Reserves in this table are Probable Mineral Reserves. No Proven Mineral Reserves were estimated.
  3. Mineral Reserves were estimated using key inputs listed in the table below:
Key Input 2020 Reserve December 31, 2020 Unit
Gold Price 1,400 1,400 $/oz
TS 47 47 $/t
D&F 69 69 $/t
Process, Surface Ops, G&A 57 57 $/t
Dilution Factor 8 8 Percent
Concentrate Transport & Treatment 92 92 $/oz
Royalty 77 77 $/oz
Gold Metallurgical Recovery 91.7 91.7 Percent
  1. Gold cut-off grades for the different mining methods are listed in the table below:
Gold Cut-off Grade 2020 Reserve December 31, 2020 Unit
Gold Price 3.8 3.8 g/t
TS 4.4 4.4 g/t
  1. Silver was not considered in the calculation of the cut-off grade.
  2. Tonnages are rounded to the nearest 1,000 t, gold grades are rounded to two decimal places, and silver grades are rounded to one decimal place. Tonnage and grade measurements are in metric units; contained gold and silver are reported as thousands of troy ounces.
  3. Rounding as required by reporting guidelines may result in summation differences.
  4. Corresponds to mill feed from August 1, 2020 to December 31, 2020.
  5. Numbers may not add due to rounding.

Mineral Resources, inclusive of Mineral Reserves as at December 15, 2015(1)(2)(3)(4)(5)

Category Tonnage (M t) Grade (g/t Au) Contained Metal (M oz Au) Grade (g/t Ag) Tonnage (M oz Ag)
Indicated 23.8 9.61 7.35 12.9 9.89
Inferred 11.6 5.69 2.13 10.8 4.05


  1. The Qualified Person for the estimate is Mr. David Ross, P.Geo., an employee of RPA. The estimate has an effective date of 31 December, 2015.
  2. Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
  3. Mineral Resources are reported at a cut-off grade of 3.5 g/t Au; which was calculated using a long term gold price of US$1,500/oz.
  4. Mineral Resources are constrained within underground mineable shapes that assume a minimum thickness of 2 m; metallurgical recovery of 94%; total operating costs of US$145/t milled (mining cost of US$60/t milled; process costs of US$35/t milled; G&A costs of US$15/t milled; surface infrastructure costs of US$28/t milled; concentrate transport and treatment costs of US$7/t milled); royalties of US$71/oz and selling costs of US$65/oz.
  5. Numbers may not add due to rounding.

Additional information on Mineral Resource and Mineral Reserve estimates for Fruta del Norte is contained in the Technical Report, which is available under the Company's profile at

Qualified Person

Technical information relating to Fruta del Norte, including estimates of Mineral Reserves and Resources contained on this website, has been reviewed and approved by Ron Hochstein P. Eng, Lundin Gold’s President & CEO. Ron is a Qualified Person under National Instrument 43-101.

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