Reserves and Resources
Early in 2023, Lundin Gold updated its estimate of Mineral Resources and Mineral Reserves as at December 31, 2022 for its Fruta del Norte (“FDN”) gold mine in Ecuador. The updated estimate built from the Company’s previously reported estimates of Resources and Reserves as at April 30, 2016. With this updated estimate, Lundin Gold more than replaced depletion of approximating 1.38 Moz of gold from mining activities since the beginning of operations at FDN.
Probable Mineral Reserves, as at December 31, 2022
The following table sets out the Company’s estimate of Probable Mineral Reserves at FDN as at December 31, 2022. For information with respect to the key assumptions, parameters and risks associated with the results of the Technical Report for Fruta del Norte, the Mineral Resource and Mineral Reserve estimates included therein and other technical information, please refer to the Technical Report filed on SEDAR.
| Mineral Reserves(1)(2)(3)(4)(5)(6) | |||||
|---|---|---|---|---|---|
| Category | Tonnage (M t) |
Grade (g/t Au) |
Contained Metal (M oz Au) |
Grade (g/t Ag) |
Contained Metal (M oz Ag) |
| Proven | 10.75 | 9.95 | 3.44 | 11.6 | 4.00 |
| Probable | 7.23 | 6.81 | 1.58 | 11.2 | 2.60 |
| Total | 17.98 | 8.68 | 5.02 | 11.4 | 6.59 |
Notes:
- The Qualified Person for the estimate is Jason Cox, P.Eng., an employee of SLR Consulting. The estimate has an effective date of December 31, 2022.
- Mineral Reserves were estimated using key inputs listed in the table below:
| Key Input | December 31, 2022 | Unit |
|---|---|---|
| Gold Price | 1,400 | $/oz |
| TS Mining Cost | 51 | $/t |
| D&F Mining Cost | 77 | $/t |
| Process, Surface Ops, G&A | 64 | $/t |
| Dilution Factor | 8 | Percent |
| Concentrate Transport & Treatment | 80 | $/oz |
| Royalty | 76 | $/oz |
| Gold Metallurgical Recovery | 88.5 | Percent |
- Gold cut-off grades for the different mining methods are listed in the table below:
| Gold Cut-off Grade | December 31, 2022 | Unit |
|---|---|---|
| Transverse Stope | 4.2 | g/t |
| Drift and Fill | 5.0 | g/t |
- Silver was not considered in the calculation of the cut-off grade.
- Tonnages are rounded to the nearest 1,000 t, gold grades are rounded to two decimal places, and silver grades are rounded to one decimal place. Tonnage and grade measurements are in metric units; contained gold and silver are reported as thousands of troy ounces.
- Rounding as required by reporting guidelines may result in summation differences.
Mineral Resources, inclusive of Mineral Reserves as at December 31, 2022
| Mineral Resources(1)(2)(3)(4)(5(6) | |||||
|---|---|---|---|---|---|
| Category | Tonnage (M t) |
Grade (g/t Au) |
Contained Metal (M oz Au) |
Grade (g/t Ag) |
Contained Metal (M oz Ag) |
| Measured | 9.30 | 12.09 | 3.60 | 12.80 | 3.80 |
| Indicated | 13.70 | 7.25 | 3.20 | 11.60 | 5.10 |
| Measured & Indicated | 23.00 | 9.20 | 6.80 | 12.10 | 8.90 |
| Inferred | 9.20 | 5.64 | 1.70 | 11.80 | 3.50 |
Notes:
- 2014 CIM Definitions Standards were followed for the classification of Mineral Resources.
- The Qualified Person for the estimate is Dorota El-Rassi, MSc., P.Eng., an employee of SLR Consulting. The estimate has an effective date of December 31, 2022.
- Measured and Indicated Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
- Inferred Mineral Resources are considered too speculative geologically to have economic considerations applied to them to enable them to be categorized as Mineral Reserves.
- Mineral Resources are reported at a cut-off grade of 3.4 g/t Au; which was calculated using a long term gold price of US$1,600/oz and metallurgical recovery of 88.5%.
- Mineral Resources are reported net of mined out shapes to December 31, 2022
- Numbers may not add due to rounding.
Additional information on Mineral Resource and Mineral Reserve estimates for Fruta del Norte is contained in the Technical Report, which is available under the Company's profile at www.sedar.com.
Qualified Persons
Technical information relating to Fruta del Norte, including estimates of Mineral Reserves and Resources contained on this website, has been reviewed and approved by Ron Hochstein, P. Eng., Lundin Gold’s President and CEO, and by Andre Oliveira, P. Geo, Lundin Gold’s Vice President, Exploration, both of whom are Qualified Persons in accordance with the requirements of NI 43-101.