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 (TSX: LUG) updated its estimates of reserves and resources for its Fruta del Norte (FDN) gold mine in Ecuador. Proven and probable reserves contain 4.5 million oz. of gold in 21.7 million tonnes of ore with an average grade of 7.89 g/t gold.
The measured and indicated resources contain 7.0 million oz. in 23.5 million tonnes averaging 9.24 g/t gold.
“With this updated estimate, Lundin Gold has grown FDN’s mineral reserves since operations began in 2019, adding approximately 2.6 million oz. before mining depletion,” said Lundin Gold president and CEO Ron Hochstein.
“Our 2023 conversion drilling program has enabled us to grow our measured and indicated resources, and the near-mine program has also provided additions to our inferred resources. Based on planned conversion and exploration programs for 2024, I am very excited for the potential to add more ounces over the coming year.”
Much of the reason the M+I resources grew was due to reclassifying inferred material to indicated in areas immediately beyond the current reserve boundary. The new indicated areas include extensions to the north, at depth, and to the south of the FDN deposit.
A total of 350,000 oz. of gold was added to the inferred material as a result of conversion and near-mine drilling completed in 2023.
The inferred resource contains 1.5 million oz. of gold in 8.0 million tonnes with a grade of 5.77 g/t gold.
Lundin Gold produced 281,273 oz. from the Fruta del Norte mine in 2023. The all-in sustaining cost per ounce of gold sold was $860.
