Lundin Gold Announced Major Expansion Plans for Ecuador Mine

SEATTLE (Scrap Monster): Canadian miner Lundin Gold announced its decision to advance the expansion plans for its Frutad del Norte gol-silver mine and mill in Ecuador. The company plans to carry out $18.6 million expansion works at the mine. The expansion comes in less than a year after reaching commercial production.

According to company press release, it expects 20% expansion in mine and mill throughput and 8% increase in mineral reserves estimates at the mine by next year. Lundin Gold forecasts mine and mill throughput of 4,200 tonnes per day and mineral reserves of 5.4 million ounces by 2021. The mining method will change from Drift and Fill to Long Hole Stoping.

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The production for the next year is expected to range between 380,000 ounces and 420,000 ounces, at an average gold recovery of 90%. The all-in-sustaining-costs are expected to be between $770 and $830 per Oz of gold sold.

Ron Hochstein, President and CEO of Lundin Gold noted that the notable increase in probable reserves demonstrates the further upside potential of the ore body. The completion of underground drilling program will even add more to these estimates. The Covid-19 protocols at the mine will remain in place for the full year, at a cost of nearly $27 per Oz, he added.