Lundin Gold Discovers Two New Copper-Gold Porphyries, Increasing District Total to Seven; Targets Early 2027 Maiden Resource Estimate for Sandia Porphyry
Lundin expands the Sandia porphyry footprint with long moderate-grade intercepts, adding two early-stage discoveries that enhance cluster potential.
Lundin Gold Inc. announced the discovery of two new copper-gold porphyry systems, Sandia Northeast and Sandia Southeast, bringing the total number of identified porphyry centres at Fruta del Norte to seven. The company also reported drilling results from the main Sandia deposit, extending its footprint to approximately 1,600 m strike × 700 m width × 1,000 m depth.
Highlight intercepts included: - SND‑2026‑510: 909.45 m at 0.46% CuEq (0.38% Cu, 0.06 g/t Au, 1.93 g/t Ag, 39.06 ppm Mo), including 401.10 m at 0.56% CuEq - SND‑2026‑502: 551.30 m at 0.50% CuEq (0.42% Cu, 0.08 g/t Au, 1.62 g/t Ag, 17.05 ppm Mo), including 307.95 m at 0.61% CuEq - Sandia Northeast discovery: 454 m at 0.31% CuEq - Sandia Southeast discovery: 172.40 m at 0.28% CuEq
A total of 16,920 metres in 24 holes were completed at Sandia, with four rigs active. The company targets a maiden mineral resource estimate for the Sandia porphyry in early 2027.
Lundin Gold Inc. (LUG) is a large, debt-free gold producer with a market capitalization of approximately CAD 18.6 billion, operating a single mine that generates strong free cash flow. The company’s porphyry exploration program offers valuable long-term optionality, though the market has previously absorbed higher-grade Sandia results without sustained positive price reactions. For instance, the February 12, 2026 release of a 1.08% CuEq core triggered a one-day sell-off, after which the stock remained rangebound.
The current news confirms a large system and adds two early-stage satellite targets. However, there is no resource estimate or preliminary economic assessment, and the grades remain moderate. For a company of this size, such incremental exploration news is insufficient to move the needle meaningfully on valuation. While the release de-risks the porphyry cluster thesis, it does not change the near-term investment case.
Lundin Gold Inc. operates the high-grade underground Fruta del Norte gold mine in Ecuador. In 2025, the company produced 498,315 oz of gold and sold 503,330 oz at an average realized price of $3,594/oz, with an all-in sustaining cost (AISC) of $1,015/oz. This performance generated record free cash flow of $926 million. During the first quarter of 2026, production reached 119,742 oz at an AISC of $1,114/oz.
The company holds $704 million in cash, carries zero debt, and pays a substantial quarterly dividend consisting of a fixed $0.30 component plus a variable portion. Near-mine exploration efforts include the FDNS and FDN East epithermal gold discoveries, as well as a porphyry copper-gold camp hosting seven centers. Lundin Gold has allocated a 2026 exploration budget of $85 million for 133,000 meters of drilling. A maiden resource estimate for Sandia is targeted for early 2027.