Lundin Gold provides 2020 outlook for Ecuador mine

The mine is forecast to produce between 200 000 oz and 220 000 oz during the year, of which 150 000 oz to 170 000 oz will be produced in the second half.

Operations at Fruta del Norte were suspended in March, in response to the coronavirus pandemic. Before the suspension, Lundin Gold had aimed to produce about 300 000 oz of gold this year.

The company said that its average mill production in the second half of 2020 was projected at 3 200 t/d at an estimated average head grade of 10 g/t.

Average gold recovery is anticipated to be about 85% during this time and is expected to reach design levels of 92% late in the fourth quarter.

All-in sustaining costs (AISC) for the second half of 2020 would range between $770/oz and $850/oz, reflecting the additional Covid-19 costs and the ramping up of production originally anticipated to have occurred once commercial production was achieved in February.

The AISC also includes $10.4-million in sustaining capital that includes costs for the tailings dam raise, the purchase of surface mobile equipment and other efficiency improvement projects.

Lundin said it would resume regular shipping of concentrate to the port in the next few days.