Lundin Gold Boosts Reserves, Expands Ecuador District with New Discoveries
Event summary
- Lundin Gold reported record Proven and Probable Mineral Reserves of 5.85 million ounces (Moz) as of December 31, 2025, a 6% year-over-year increase.
- The company added an inaugural Mineral Reserve of 0.54 Moz at FDNS (Fruta del Norte South), discovered in Q2 2024.
- Measured and Indicated Mineral Resources increased by 6% to 7.48 Moz, including a conversion of 0.77 Moz from Inferred Resources at FDNS.
- FDN East, a third near-mine deposit, was formally established with an inaugural Inferred Mineral Resource of 0.42 Moz Au.
The big picture
Lundin Gold's reserve expansion and new discoveries underscore the potential of the Fruta del Norte district in Ecuador, a region increasingly attractive for gold exploration. The rapid conversion of FDNS to a reserve highlights the company's geological expertise and efficient development practices, but also emphasizes the importance of ongoing exploration to maintain its production profile. This success positions Lundin Gold as a key player in the mid-tier gold producer landscape, but also exposes it to the inherent risks associated with operating in a frontier mining jurisdiction.
What we're watching
- Grade Sustainability
- The high grades at FDNS and FDN East will be critical to sustaining Lundin Gold's profitability; continued drilling will be needed to confirm these grades at depth and along strike.
- Conversion Risk
- The rapid conversion of Inferred Resources to Reserves at FDNS demonstrates operational efficiency, but the company faces risk in converting the remaining Inferred Resources at both FDNS and FDN East to higher confidence categories.
- Ecuadorian Politics
- Lundin Gold's continued success is contingent on a stable political and regulatory environment in Ecuador, and any shifts in government policy could impact operations and future exploration.
Related topics