Lundin Gold adds to Fruta del Norte discoveries

Canadian miner Lundin Gold (TSX: LUG) is advancing its Sandia copper-gold discovery toward a maiden resource after finding two more porphyry systems, strengthening the case that its Fruta del Norte mine in Ecuador is emerging as a district-scale mining camp.

The discoveries, Sandia Northeast and Sandia Southeast, increase the number of identified porphyry centres at Fruta del Norte to seven from five. The company now expects to publish a maiden resource for Sandia in early 2027, as the deposit continues to expand beyond its current 1.6-km-by-700-metre footprint. 

They extend a roughly 5-km mineralized corridor beside the operating mine. Sandia, first discovered in 2025, has grown to an interpreted footprint of about 1.6 km by 700 metres and 1 km deep. 

Lundin Gold now expects to publish a maiden resource in early 2027, slightly later than its previous target of the third or fourth quarter of 2026.

“Based on currently outlined dimensions, Sandia appears capable of supporting a maiden resource of approximately 500 million to one billion tonnes,” Jefferies analysts said in a note on Wednesday, adding that the deposit remains open to the north, east and at depth.

The discoveries reinforce the view that Fruta del Norte could become a broader copper-gold district, with multiple porphyry systems complementing its high-grade epithermal gold operation, the note said. If additional drilling confirms the emerging scale, Sandia could underpin a large bulk-tonnage operation and materially extend the district’s long-term production profile.

Long-term value

Jefferies estimates Sandia’s current footprint could support an initial resource of roughly 500 million to one billion tonnes, although the final size will depend on geological modelling, cut-off grades and continuity. 

Continued expansion could eventually allow Fruta del Norte to double current production levels within about five years, the analysts said.

The discoveries also shift greater investor attention toward Lundin Gold’s 55,000-hectare exploration land package, where sustained drilling continues to reveal additional porphyry centres alongside the company’s flagship gold mine. 

While Fruta del Norte remains a high-margin producer expected to deliver 475,000 to 525,000 ounces of gold annually, Jefferies said exploration success is becoming an increasingly important driver of the company’s long-term valuation.