Lundin Gold Reports 204.26 g/t Au over 3.05 Metres at Bonza Sur; Quebrada Dorada Discovery Extends Gold Epithermal Trend to 8 km
Lundin’s high-grade FDN district exploration continues alongside a $154m tax dispute impacting its strong cash flow.
Lundin Gold Inc. (LUG) reported high-grade drilling results from its near-mine exploration programs at Fruta del Norte (FDN) in Ecuador. At the Bonza Sur target, the company intersected 204.26 g/t Au over 3.05m, including 1,035.60 g/t Au over 0.60m, marking the highest-grade interval ever recorded at the deposit.
In the Quebrada Dorada area, a new epithermal vein system was discovered, extending the continuous gold mineralized trend from 4 km to over 8 km. Initial intercepts from this discovery include 6.53 g/t Au over 13.05m and 20.15 g/t Au over 3.15m. Currently, three rigs are active at Bonza Sur and two at Quebrada Dorada, with QA/QC protocols following ALS laboratory standards.
On the same date, market commentary highlighted a $154 million tax assessment from Ecuador’s SRI for the 2023 fiscal year. Lundin disputes the assessment as inconsistent with its Exploitation Agreement. Management states the assessment does not impact current operations, guidance, or capital returns.
These updates do not alter the company’s mine plans or guidance.
The company continues to face a $154M Ecuador tax assessment, which was reiterated on September 24. Management disputes the calculation methodology and asserts that there will be no operational or financial impact. However, the assessment introduces jurisdictional and regulatory overhang that has contributed to the stock’s approximately 29% decline from its February peak.
The market has already priced in the tax dispute and gold price normalization.
Lundin Gold Inc. (LUG) is a producing gold miner operating the 100% owned Fruta del Norte (FDN) project in Ecuador. The company’s primary commodity is gold, with copper identified as a secondary commodity through newly discovered porphyry systems.
The company’s asset portfolio includes FDN, which is in active underground production, alongside FDNS and FDNE, which are in development or conversion stages. Regional targets such as Sandia, Trancaloma, Castillo, Bonza, and Bonza Sur are currently in exploration or definition stages.