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Lundin expects gold production at Fruta del Norte to be ‘well in excess of 400 koz' in coming years

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(Kitco News) - On Tuesday, Lundin Gold (TSX: LUG) released its 2023 guidance and three-year gold production outlook.

The company reported that gold production at Fruta del Norte in 2023 is estimated to be between 425,000 and 475,000 oz based on an average throughput rate of 4,400 tpd.

All-in sustaining cost (AISC) for 2023 is expected to range between $870 and $940 per oz of gold sold, based on an assumed gold price of $1,650 / oz and silver price of $18.50 / oz.

For comparison, in 2022, the company expects that it will end the year at the high end of its production guidance of 430,000 to 460,000 oz and at the low end of or slightly below its AISC guidance of $820 to $870 per oz sold.

Lundin Gold anticipates higher unit costs in 2023 compared to 2022 due to mining and milling ore with lower grade, inflationary pressures resulting in increased costs of consumables and transportation, and higher maintenance requirements as equipment ages.

According to a press release, gold production at Fruta del Norte is estimated to be between 450,000 and 500,000 oz in 2024and between 465,000 and 515,000 oz in 2025.

President and CEO Ron Hochstein commented, "Now that the South Ventilation Raise has been completed, the additional ventilation will allow us to increase the rate of mining to 4,400 tonnes per day, to match the expected throughput of the mill. At current gold prices and considering the low cost nature of this mine notwithstanding inflationary pressure, we look forward to continuing generating strong free cash flow for years to come with a production forecast well in excess of 400,000 oz."

Lundin Gold, headquartered in Vancouver, Canada, owns the Fruta del Norte gold mine in southeast Ecuador. Fruta del Norte is among the highest-grade operating gold mines in the world.

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