Lundin Gold Reports Record Mineral Reserves and Expands the FDN District with FDNS Reserve and FDN East Inferred Resource
Lundin Gold Defies Depletion as Fruta del Norte District Expansion Delivers Record Reserves
The most recent news release dated February 17, 2026, reports updated Mineral Reserve and Resource estimates for the Fruta del Norte (FDN) gold mine in Ecuador as of December 31, 2025. Key highlights include: - Proven and Probable (P&P) Reserves increased to 5.85 million ounces (25.66 Mt at 7.09 g/t Au), representing a 6% year-over-year increase even after accounting for 2025 mining depletion of 0.53 Moz. - Inaugural Mineral Reserve for the FDNS (FDN South) deposit of 0.54 Moz at 6.66 g/t Au. - Inaugural Inferred Resource for the FDN East deposit of 0.42 Moz at 6.01 g/t Au. - Measured and Indicated (M&I) Resources increased to 7.48 Moz at 7.13 g/t Au. - Inferred Resources now total 2.03 Moz at 6.17 g/t Au. - Reserve estimates are based on a conservative gold price assumption of $1,700/oz.
This release is materially positive for several reasons: - Reserve Replacement: Successfully replacing and growing reserves beyond annual depletion is the primary metric for valuation sustainability in mining. The 6% net increase adds significantly to the mine life. - Speed of Delineation: The inaugural reserve at FDNS was delivered only 18 months after discovery, demonstrating management's efficiency in converting exploration success into economic assets. - District Scale Evidence: The introduction of an inaugural resource at FDN East confirms the "district-scale" potential management has long touted. It suggests FDN is not an isolated deposit but part of a larger mineralized system. - Valuation Support: By using a $1,700/oz gold price for reserves while spot prices (implied by realized prices in 2025 transcripts) are well above $3,000, there is a massive embedded margin of safety and potential for further reserve expansions if price assumptions are eventually updated.
Lundin Gold owns 100% of the Fruta del Norte gold mine in southeast Ecuador. FDN is one of the highest-grade operating gold mines in the world. Since achieving commercial production in 2019, the company has consistently exceeded production targets and expanded the resource base. The project is an underground operation that has now expanded into a multi-deposit district including FDNS, FDN East, and several emerging copper-gold porphyry systems (Sandia, Trancaloma).