VANCOUVER, BC, July 18, 2022 /CNW/ - Lundin Gold Inc. (TSX: LUG) (Nasdaq Stockholm: LUG) ("Lundin Gold" or the "Company") is pleased to announce that the near mine exploration program at Fruta del Norte ("FDN") has begun. The Company's near mine program will focus on targets within and around the existing operation and explore sectors in the continuities of the FDN deposit and along the extension of major structures. The 2022 program, which is expected to cost US$4 million, is planned to include over 6,000 metres of drilling from both underground and surface, new geophysical surveys, geological mapping, and geochemical sampling. One underground rig is currently turning, with a second surface rig to be added shortly, focused on expanding the FDN mineral envelope and sectors adjacent to the mine site (see Figure 1). PDF version.

The inception of this new near mine exploration program, which will run in parallel to the ongoing regional exploration program, is in line with Lundin Gold's commitment to expand and replace Mineral Resources and Mineral Reserves at FDN, to extend FDN's life of mine, and in turn, sustainably grow production.

Ron Hochstein, President and CEO commented, "I am excited to announce the start of our near mine exploration program at Fruta del Norte. The program represents an important step to creating a sustainable pathway to replace Mineral Reserves and grow Mineral Resources. With the significant cash flow from FDN, exploration is a core focus for Lundin Gold, and I believe that there is significant scope from these drilling activities to expand FDN and discover satellite deposits close to our infrastructure. Our objective is to increase the current life of mine and generate significant additional value. I look forward to keeping our shareholders updated on the drill program."

Near Mine Exploration Program to Drill Largely Untested Sectors

The FDN deposit is one of the premier high grade gold discoveries of the last 50 years. It is an impressive epithermal system with a significant mineral resource inventory comprised of approximately 7.35 million ounces as Indicated Mineral Resources and approximately 2.13 million ounces as Inferred Mineral Resources, all occurring in less than 1.5 kilometres of extension. Historically, exploration activities have concentrated on the delineation and conversion of FDN in the area where most of the underground development and drilling has occurred to date. A recent exploration data review demonstrated a much wider mineralization footprint nearby the deposit itself. Several targets of interest are essentially untested, with similar geological conditions to those at FDN, and present significant new exploration opportunities.

The FDN deposit is limited by two major faults, to the west and to the east, which are key geological structures controlling its mineralization. Limited drilling has been carried out beyond the confines of the deposit or adjacent to these major structures, where the same hosting sequences from FDN remain unexplored. Starting in 2022, the near-mine drilling program will test both structures along the continuity of the deposit and explore for new epithermal systems in the East, West and Downdip sectors (see Figures 2 and 3).

The Bonza West and Castillo sectors, located in the south extension of the FDN structural corridor, represent a large area that extends continuously for more than two kilometres, with rock and soil samples showing geochemical anomalous values for gold and pathfinder elements (arsenic, antimony) and the same favourable lithological hosting sequence as at FDN (see Figure 4). Only limited shallow drilling was undertaken in these areas in the past, and therefore these sectors remain largely untested, and a surface drilling program will be initiated imminently.

In parallel to the near-mine program, regional exploration drilling continues, with two drill rigs currently turning at Barbasco and Puente-Princesa. The aim of the 2022 program is to find buried "Fruta del Norte" type epithermal gold-silver systems in the southern Basin.

Qualified Persons

The technical information contained in this News Release has been reviewed and approved by Andre Oliveira, P. Geo, Vice President, Exploration of the Company, who is a Qualified Person in accordance with the requirements of NI 43-101.