Lundin Gold at Fruta del Norte: cost outlook and expansion notes for mine planners
Reviewed by Joe Ashwell
First reported on MINING.com
30 Second Briefing
Lundin Gold expects Fruta del Norte in southeast Ecuador to hold steady at 475,000–525,000 oz. gold per year from 2026–2028 at an average head grade of 8.3 g/t, while cash costs rise to $900–$960/oz and AISC to $1,110–$1,170/oz on a $4,000/oz gold price assumption. The underground mine, currently permitted for 5,500 t/d, will see decisions in 2026 on developing the South zone and a potential throughput expansion that could alter 2028 output. A record US$85 million exploration budget will fund 133,000 m of drilling, including 100,000 m of near-mine work targeting high-grade epithermal systems and a porphyry corridor.
Technical Brief
- A higher gold price assumption of US$4,000/oz adds ~US$150/oz to unit costs versus 2025 guidance.
- Increased Ecuadorian royalties and employee profit-sharing obligations are the primary drivers of higher forecast unit costs.
Our Take
With Fruta del Norte’s head grade above 8 g/t and cash operating costs guided in the US$900–960/oz range, Lundin Gold sits in the lower half of the cost curve among the gold operations in our database, which gives it more room than typical Latin American peers to absorb the projected cost uplift.
The record US$85 million exploration budget at Fruta del Norte, combined with a 12‑year stated mine life and substantial inferred resources, signals that Lundin Gold is likely prioritising near‑mine discoveries to extend life rather than greenfield growth, a pattern seen in several other high‑grade underground gold assets in our coverage.
Anglo American and Teck, also mentioned here via their proposed US$53 billion merger, appear in other recent gold‑linked deals in our database, suggesting that Lundin Gold’s Ecuadorian exposure is being evaluated by investors against a backdrop of larger diversified groups repositioning their copper‑gold portfolios in Latin America.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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