Lundin Gold raises FY'22 production forecast for Fruta Del Norte

Lundin Gold Inc. said Dec. 14 that full-year 2022 gold production at the Fruta del Norte mine in Ecuador is forecast to range between 405,000 ounces and 445,000 ounces, increasing from full-year 2021 guidance of between 380,000 ounces and 420,000 ounces.

The full-year 2022 guidance is based on an average head grade of 9.8 g/t and average gold recovery of 89%, slightly lower than the average head grade of 10.4 g/t and average gold recovery of 90% in 2021, as fluctuations are expected over the course of 2022 as different sections of the orebody is mined.

All-in sustaining costs are estimated to range between $860 and $930 per ounce of gold sold in 2022, higher than the 2021 forecast of between $770 and $830 per ounce of gold sold, attributed to a lower head grade of ore processed through the plant year over year, as well as higher transport costs, mining equipment maintenance and sustaining capital.

Sustaining capital range for 2022 is projected between $40 million and $45 million.

The Vancouver, British Columbia-headquartered gold mining company pegged its full-year 2023 output range at between 390,000 ounces and 430,000 ounces, at AISC of between $850 and $915 per ounce of gold sold, while full-year 2024 production is estimated between 400,000 ounces and 440,000 ounces at AISC of between $750 and $810 per ounce of gold sold.

For 2023, sustaining capital is forecast at between $30 million and $35 million, while 2024 sustaining capital is expected between $7 million and $12 million.

Meanwhile, Lundin Gold expects the completion of the South Ventilation Raise at Fruta del Norte to be completed by the end of the second quarter of 2022 at a cost of $6.2 million. A regional exploration program at Barbasco and Puente Princesa, consisting of 16,500 meters of drilling, will be conducted in 2022 at a forecast cost of $14 million.