Make Kitco Your Homepage

Lundin Gold On Schedule With Fruta del Norte Project

Kitco News

Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!

(Kitco News) - Lundin Gold Inc. (TSX: LUG) has begun mining of its first production stope at the Fruta del Norte gold project in Ecuador, the company announced late Tuesday.

“Fruta del Norte reached another important milestone on schedule,” said Ron Hochstein, president and chief executive officer. “At the end of May, overall construction progress was 73% complete and 88% of the project’s capital expenditure was committed.”

The first gold pour is expected later this year, he continued.

The processing plant was 80% completed as of the end of May, the company said. All major pieces of processing equipment have been installed. Wet commissioning of initial systems is expected to start in early July and continue throughout the third quarter. The powerline was 88% completed at the end of May, with agreements reached on all easements necessary to finish construction, the company said.

On Tuesday, Lundin drew another $142 million from its $350 million credit facility. This brings the total so far to $301 million. Officials said the next draw is expected later this year as the project nears its production ramp-up stage.

The company’s website describes Fruta del Norte as a large, high-grade gold deposit with probable reserves of 5.02 million ounces of gold grading at 8.74 grams per tonne. Construction began in the middle of 2017.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Precious Metal Charts

Follow Kitco News