Lundin Gold Begins Steps to Resume Operations at Fruta Del NorteJune 1, 2020
VANCOUVER, June 1, 2020 /CNW/ - Lundin Gold Inc. ("Lundin Gold" or the "Company") (TSX: LUG, Nasdaq Stockholm: LUG) is pleased to announce that its first phases for restart of operations at Fruta del Norte ("Fruta del Norte" or the "Mine") are well underway. The Company has shipped all of the concentrate and doré that had been stored at site since the suspension of operations on March 22, 2020. In addition, reagents, spare parts and other supplies, that had been accumulating at the port of Guayaquil are being transported to site. PDF Version.
On May 15, 2020, Ecuador's national government issued COVID-19 protocols that set out health and safety guidelines for the mining industry in order to enable operations to restart. In addition, the government established logistics corridors that facilitate transportation for the mining industry.
"The reestablishment of transportation corridors was an important first step in our plan to restart operations at the Mine," said Ron Hochstein, President and CEO of Lundin Gold. "We are in the last stages of finalizing the restart of our operations, which is expected to occur early in the third quarter of this year."
In addition to moving supplies, the other important phase is moving personnel back to site. The Company has instituted a strict protocol for personnel movement, which includes a seven-day quarantine period followed by a Polymerase Chain Reaction (PCR) test. Provided the results are negative, the employee or contractor will be allowed to enter Fruta del Norte. Our initiatives include increasing the lengths of work rotations in order to reduce the number of rotations, implementing regular health controls, social and physical distancing, the use of personal protective equipment (PPE) when distancing is not possible, disinfection of work areas and requiring the timely communication of symptoms.
While operations have been suspended, workers at site have been carrying out several projects and maintenance work in preparation for the restart of operations. The SAG mill was relined, maintenance of underground dewatering equipment took place and infrastructure and mill modifications to improve mill recoveries were implemented. In addition, with the opening of the logistics corridors, the work of the South Ventilation Raise has begun. The Company expects to release further details regarding the start of production within the next few weeks.
About Lundin Gold
Lundin Gold, headquartered in Vancouver, Canada, owns the Fruta del Norte gold project in southeast Ecuador. Fruta del Norte is among the largest and highest-grade gold projects in the world.
The Company's board and management team have extensive expertise in mine operations and are dedicated to advancing Fruta del Norte responsibly. The Company operates with transparency and in accordance with international best practices. Lundin Gold is committed to delivering value to its shareholders, while simultaneously providing economic and social benefits to impacted communities, fostering a healthy and safe workplace and minimizing the environmental impact. The Company believes that the value created through the development of Fruta del Norte will benefit its shareholders, the Government and the citizens of Ecuador.
The information in this release is subject to the disclosure requirements of Lundin Gold under the EU Market Abuse Regulation. This information was publicly communicated on June 1, 2020 at 5:00 a.m. Pacific Time through the contact persons set out below.
Caution Regarding Forward-Looking Information and Statements
Certain of the information and statements in this press release are considered "forward-looking information" or "forward-looking statements" as those terms are defined under Canadian securities laws (collectively referred to as "forward-looking statements"). Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as "believes", "anticipates", "expects", "is expected", "scheduled", "estimates", "pending", "intends", "plans", "forecasts", "targets", or "hopes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "will", "should" "might", "will be taken", or "occur" and similar expressions) are not statements of historical fact and may be forward-looking statements.
By their nature, forward-looking statements and information involve assumptions, inherent risks and uncertainties, many of which are difficult to predict, and are usually beyond the control of management, that could cause actual results to be materially different from those expressed by these forward-looking statements and information. Lundin Gold believes that the expectations reflected in this forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct. Forward-looking information should not be unduly relied upon. This information speaks only as of the date of this press release, and the Company will not necessarily update this information, unless required to do so by securities laws.
This press release contains forward-looking information in a number of places, such as in statements relating to the restart of operations, efforts to protect its workforce from COVID-19 and its plans to announce the restart of operations and estimates of 2020 production. There can be no assurance that such statements will prove to be accurate, as Lundin Gold's actual results and future events could differ materially from those anticipated in this forward-looking information as a result of the factors discussed in the "Risk Factors" section in Lundin Gold's Annual Information Form dated March 24, 2020, which is available at www.lundingold.com or on SEDAR.
Lundin Gold's actual results could differ materially from those anticipated. Factors that could cause actual results to differ materially from any forward-looking statement or that could have a material impact on the Company or the trading price of its shares include: risks relating to the impacts of a pandemic virus outbreak; risks associated with the Company's community relationships; risks related to financing requirements; failure by the Company to maintain its obligations under its credit facilities; operating risks; risks associated with the ramp up of mining operations; risks related to political and economic instability in Ecuador; risks related to production estimates; risks related to Lundin Gold's compliance with environmental laws and liability for environmental contamination; volatility in the price of gold; shortages of critical supplies; lack of availability of infrastructure; deficient or vulnerable title to mining concessions; easements and surface rights; risks related to the Company's workforce and its labour relations; inherent safety hazards and risk to the health and safety of the Company's employees and contractors; risks related to the Company's ability to obtain, maintain or renew regulatory approvals, permits and licenses; the imprecision of mineral reserve and resource estimates; key talent recruitment and retention of key personnel; volatility in the market price of the Company's shares; the potential influence of the Company's largest shareholders; uncertainty with the tax regime in Ecuador; measures to protect endangered species and critical habitats; the cost of non-compliance and compliance costs; exploration and development risks; the Company's reliance on one project; risks related to illegal mining; the reliance of the Company on its information systems and the risk of cyber-attacks on those systems; the adequacy of the Company's insurance; uncertainty as to reclamation and decommissioning; the ability of Lundin Gold to ensure compliance with anti-bribery and anti-corruption laws; the uncertainty regarding risks posed by climate change; the potential for litigation; limits of disclosure and internal controls; security risks to the Company; its assets and its personnel; conflicts of interest; the risk that the Company will not declare dividends; and social media and the Company's reputation.
SOURCE Lundin Gold Inc.
Lundin Gold Inc., Ron F. Hochstein, President and CEO, +593 2-299-6400, +1-604-806-3589; Lundin Gold Inc., Sabina Srubiski, Manager, Investor Relations, +1-604-806-3089, firstname.lastname@example.org, www.lundingold.com