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Lundin Gold Inc
Symbol LUG
Shares Issued 119,666,840
Close 2018-04-13 C$ 4.86
Market Cap C$ 581,580,842
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Lundin Gold completes one km of development at Fruta

2018-04-16 07:44 ET - News Release

Mr. Ron Hochstein reports

LUNDIN GOLD NOW PAST ONE KILOMETRE OF UNDERGROUND MINE DEVELOPMENT AT FRUTA DEL NORTE

Lundin Gold Inc. has reached major construction milestones and is now past one kilometre of underground mine development at its Fruta del Norte gold project in Ecuador.

Construction highlights:

  • Process plant SAG (semi-autogenous grinding) and ball mill foundation bases have been poured.
  • Major earthworks continue with the completion of the river road, which significantly improves site logistics.
  • The company completed the first major pond for the site water management system.
  • A power line contractor is mobilizing to start construction later this quarter.
  • A 1,000-person construction camp has been completed.

"We continue to advance Fruta del Norte on budget and on schedule. Overall engineering is 26 per cent complete and construction is 16 per cent complete, and we are continuously looking for efficiencies as we move the project forward," said Ron Hochstein, president and chief executive officer of Lundin Gold.

Mine development

As at March 31, 2018, a total of 1,193 metres of underground mine development has been achieved, with 531 m and 632 m in the Kuri and K'isa declines, respectively. The average advance rate for March was 5.95 metres per decline per day, versus a target of 5.17 m per day based on ground type encountered. All underground development in March was classified as good-ground-type conditions.

As well, earlier this month the company awarded the underground drill/bolt mining fleet to Epiroc Rock Drills AB. With this order, over 84 per cent of the production fleet contracts have been placed. The outstanding mine equipment left to be ordered is the explosives delivery, shotcrete equipment and mine support equipment.

Process plant construction

Process plant excavation was 65 per cent complete at the end of March. The ball mill and the SAG mill base concrete foundations were poured on March 10 and March 25, respectively. Excavation of the CIL (carbon in leach) plant area is progressing well. Over the next couple of months, the company is planning on completing the mill foundations, and concrete work on the CIL plant area is expected to commence.

As part of the overall water management system, the first of several large lined collection ponds was completed.

Major earthworks

With the completion of the river road connecting the camp to the project site, site logistics have greatly improved. Travel time between camp and the project site is now approximately 10 to 15 minutes, whereas it previously took up to 45 minutes using the Mountain Pass road. The North Access road is now an estimated 42 per cent complete, and work is substantially complete on the road to the tailings storage facility.

Power line

The power line engineering, procurement and construction contractor is mobilizing and anticipated to begin construction later this quarter. Easement agreements have been reached with nearly all the affected landholders, and the remaining easements are expected to be obtained in the coming weeks.

Construction camp

The new 1,000-person construction camp is complete, and all rooms are available for occupancy. Combined with the existing Las Penas camp, over 1,700 people can be accommodated at site. Occupancy averaged 1,165 people in March, and total project employment now exceeds 2,200 people, including contractors. The new kitchen and dining room are expected to be finished by the end of the month.

About Lundin Gold Inc.

Lundin Gold, headquartered in Vancouver, Canada, is developing its wholly owned Fruta del Norte gold project in southeastern Ecuador. Fruta del Norte is one of the highest-grade and largest gold projects currently under construction. The company's board and management team have extensive expertise in mine construction and operations, and are dedicated to advancing this project through to first gold production in 2019.

The company operates with transparency and in accordance with international best practices.

This press release has been reviewed and approved by Ron Hochstein, PEng, a metallurgical engineer and the company's president and chief executive officer, who is a qualified person under Canadian National Instrument 43-101.

Additional information

The information in this release is subject to the disclosure requirements of Lundin Gold under the European Union Market Abuse Regulation.

We seek Safe Harbor.

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