Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Lundin Gold’s (TSX: LUG) Fruta del Norte gold mine in Ecuador produced 94,250 ounces of gold during the third quarter of 2020, which was the mine’s first full quarter of operations.
Approximately 66,790 ounces were produced as a concentrate and 27,460 ounces as doré.
During the quarter, the mill processed approximately 324,000 tonnes at an average throughput rate of 3,340 tonnes per day, the company said. The average grade of ore milled for the quarter was 10.4 grams per tonne, and average recovery was 86.8%.
The underground mine, which produced its first gold in November 2019 and achieved commercial production in February 2020, was suspended over a three-month period earlier in the year due to the pandemic.
In July, Lundin resumed operations at Fruta del Norte and set its production guidance at 150,000 to 170,000 ounces for the second half of 2020.
Together with production achieved prior to the onset of the temporary suspension, total gold output for the year is estimated to be between 200,000 and 220,000 ounces.
Over a 13-year mine life, the operation is expected to produce an average of 325,000 ounces of gold annually at all-in sustaining costs (AISC) of $621 per ounce.
