Lundin Gold

Primary ticker: TSX:LUG
Stage of development: Development
Primary minerals: Gold
Project to promote: Fruta del Norte gold project

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Lundin Gold is developing its wholly-owned Fruta del Norte Gold Project in southeast Ecuador. It is one of the world’s highest-grade and largest gold mines currently under construction, with reserves of 5.02 million ounces grading 8.74 g/t gold. Average annual gold production during the first 13 years is expected to exceed 310,000 ounces per year with an estimated AISC of US$583 per ounce.

The Company’s board and management team have extensive expertise in mine construction and operations, and are dedicated to advancing this project through to first gold production in the fourth quarter of next year. The Company believes that the value created through the development of Fruta del Norte will benefit its shareholders, the Government and the people of Ecuador.

Management Profile

Ron Hochstein, President and CEO

Ron has a wealth of experience in the mining industry. Mr. Hochstein has worked for the Lundin family directly and as a consultant for over twenty years. Prior to becoming President and CEO of Lundin Gold, Mr. Hochstein served as President and CEO of Denison Mines Corp. (TSX, NYSE MKT) for seven years, having joined a predecessor company to Denison in 1999. Earlier in his career, Mr. Hochstein was a Project Manager with Simons Mining Group and worked at Noranda Minerals as a metallurgical engineer. Mr. Hochstein has a B.Sc. in metallurgical engineering and an MBA. Mr. Hochstein became President and Chief Executive Officer in 2014 and was instrumental in the acquisition of Fruta del Norte.

What is your rationale for attending 121 Mining Investment?

Lundin Gold is attending Mining 121 to meet new investors. Our Fruta del Norte is one of the largest, high-grade gold mines currently under construction, and we expect first gold in the fourth quarter of next year. On an enterprise value/gold reserves basis, we are at $295, and expect the valuation to increase the closer we get to production. The Company is also attending this conference in order to educate investors on how far the mining industry in Ecuador has come. Large-scale mining is a new industry for the country, and one which Ecuador believes will bring significant foreign direct investment. The country’s geology presents lots of potential, and there are more than 30 mining companies active in-country. Lundin Gold’s Fruta del Norte gold project will be the first large-scale underground mine in Ecuador.

What are your key goals for the next 3, 6 and 12 months?

3 Months:

– First development stopes to be mined

6 Months:

– Powerline to be completed and connected to national grid
– Tailings storage facility to be completed
– Process plant to start commissioning

12 Months:

– First gold

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Lundin Gold views maintaining its social license as a challenge facing the Company, and we are committed to business sustainability. To maintain our social license, we have ongoing engagement with a variety of stakeholders, which includes community roundtables, frequent meetings with local, provincial and national, stakeholders and an open-door policy. Lundin Gold makes it a priority to employ people from the local communities, and our community investment strategy focuses on developing infrastructure in the nearby townships and strengthening regional economic activity through local value chains and local procurement.

In a sentence, what do you think makes your company such a compelling investment?

Lundin Gold’s Fruta del Norte gold project is the next major high-grade gold mine to go into production, and we intend on building the Company into a million ounce gold producer with the next five to seven years.