Lundin Gold’s Fruta del Norte Plan Links Processing, Exploration, and Power
Lundin Gold is presenting Fruta del Norte as a three-part operating story: higher processing capacity, continued exploration, and a dedicated power solution. Primicias updated its report on August 24, 2026, at 10:40 p.m. The mine is in Yantzaza, Zamora Chinchipe.
The plant currently processes an average of 5,500 tonnes of mineralized material per day. The company plans to reach 7,000 tonnes per day on a stable basis within one year. The company's Ecuador spokesperson, Juan Jose Herrera, clarified that the plan is not to extract more gold automatically; it is to process more material as ore grade declines over the life of the operation.
Lundin Gold's stated target is to sustain a production profile near 500,000 ounces annually. Its forecast for 2026-2028 is 475,000 to 525,000 ounces annually. The company also expects the first resource estimate for the Sandia discovery in early 2027, after reporting two new porphyry mineralized systems and a total of seven within the exploration area.
Capital allocation extends beyond the plant. The 2026 exploration budget is USD 85 million, divided into USD 56 million near-mine exploration, USD 21 million regional exploration, and USD 8 million for converting resources into reserves. The company reports approximately 5.85 million ounces of reserves and an expected mine life through 2034.
Power is a separate execution constraint. Fruta del Norte consumes around 20 MW and falls within Ecuador's high-voltage consumer group. The government requires large electricity users to have their own generation by the end of 2026. Lundin Gold signed a contract with Hidroquest for hydroelectric generation covering current demand, with a margin to reach 25 to 27 MW. Operation is expected in the fourth quarter of 2026.
What to watch
- Whether the 7,000-tonne processing target is reached on schedule.
- Whether Sandia's resource estimate expands the reserve and mine-life case.
- Whether the Hidroquest project enters operation in the fourth quarter.
- Whether exploration spending produces a repeatable pipeline beyond Fruta del Norte.
The investment signal is capacity conversion. More throughput has value only if power, reserves, exploration, and operating execution advance together.
Source: Primicias
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