Lundin Gold embarks on Fruta del Norte expansion
Less than one year after reaching commercial production, Lundin Gold is embarking on an expansion of the mine and mill at the Fruta del Norte operation, in Ecuador.
At an estimated capital cost of $18.6-million, Fruta del Norte’s throughput rate would increase to 4 200 t/d, the Toronto-listed miner said on Tuesday.
Construction would start in the first quarter of 2021, followed by the mine ramping production to 4 200 t/d in the third quarter and the mill in the fourth quarter of 2021.
“With this added gold production coming on line in the last quarter of 2021, we will increase the average annual gold production from 325 000 oz/y to 340 000 oz/y over the life-of-mine," said president and CEO Ron Hochstein.
Gold production at Fruta del Norte for 2021 is estimated to be between 380 000 oz and 420 000 oz. Mill production is estimated at an average rate of 3 500 t/d until the fourth quarter when production is planned to ramp up to the expanded capacity.
All-in sustaining costs for 2021 are expected to range between $770/oz and $830/oz of gold sold.
Hochstein added that an increase in probable reserves demonstrated the further upside potential of the orebody.
“We anticipate adding even more to these estimates upon completion of an underground drilling programme which began last month. Fruta del Norte continues to be one of the few multimillion-ounce, high-grade gold assets in production."
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