Lundin Gold Commits $100 Million to 2026 Ecuador Exploration Campaign, Plans 133,000 Meters of Drilling at Fruta del Norte Complex

Lundin Gold Plans $100M Exploration Campaign in Ecuador

Lundin Gold (TSX: LUG), the Canada-based mining company operating Ecuador's flagship Fruta del Norte gold mine, announced a $100 million exploration budget for 2026 -- the largest single-year exploration investment in Ecuador's mining history. The program targets 133,000 meters of drilling across the company's concession portfolio in Zamora Chinchipe province, southeastern Ecuador.

The announcement, made on February 12, 2026, alongside full-year 2025 results and 2026 guidance, signals strong institutional confidence in Ecuador's geological potential at a time when gold prices are trading near $2,900/oz -- close to historic highs.

2026 production guidance

Metric	2026 guidance	2025 actual
Gold production	475,000-525,000 oz	~490,000 oz
AISC	$1,110-$1,170/oz	~$1,050/oz
Mill throughput	5,500 t/d (current)	5,500 t/d
Gold price assumption	~$2,800-$2,900/oz	~$2,200/oz (avg)
Exploration spend	$100 million	~$65 million

At midpoint guidance of 500,000 oz and a gold price of $2,850/oz, Lundin Gold's gross revenue would reach approximately $1.43 billion -- making Fruta del Norte one of the most valuable single-mine gold operations in the Americas.

The $100 million exploration program

The 2026 exploration campaign is a 53% increase over the estimated $65 million spent in 2025 and represents a strategic escalation of Lundin Gold's resource delineation efforts:

Target	Meters	Objective
Fruta del Norte South	~45,000m	Resource expansion and development decision
Fruta del Norte extensions	~35,000m	Mine life extension, infill drilling
Regional targets	~53,000m	Greenfield exploration across concession package
Total	133,000m

Fruta del Norte South is the most significant near-term catalyst. The deposit sits immediately south of the main ore body and has shown promising intercepts in 2024-2025 drilling. A development decision on whether to build a decline and connect it to the existing underground infrastructure is expected in H1 2026.

Fruta del Norte: Ecuador's gold anchor

Fruta del Norte is Ecuador's only large-scale operating gold mine and has transformed the country's mining sector since it achieved commercial production in 2020:

| Parameter | Detail | |---|---|---| | Location | Zamora Chinchipe province, southeastern Ecuador | | Mine type | Underground (long-hole stoping) | | Ore reserves | 5.54 million ounces (proven + probable) | | Mine life | ~15 years (at current rates) | | Mill capacity | 5,500 tonnes per day | | Grade | ~8.5 g/t gold (exceptionally high for a large deposit) | | Recovery rate | ~92% | | Employees | ~3,500 (direct + contractors) |

The mine's 8.5 g/t average grade is among the highest of any major gold operation globally -- approximately 3-4x the industry average -- which underpins its low AISC and high margins.

Mill expansion study

Lundin Gold is evaluating a mill expansion to exceed the current 5,500 tonne-per-day throughput. The study is expected to deliver results in H2 2026, with a decision on whether to proceed with construction.

An expansion to 7,000-8,000 t/d -- widely considered the target range -- would increase annual gold production to 600,000-700,000 oz, potentially making Fruta del Norte one of the top 15 gold mines globally by output.

Scenario	Throughput	Est. annual production
Current	5,500 t/d	475,000-525,000 oz
Expanded (low)	7,000 t/d	~600,000 oz
Expanded (high)	8,000 t/d	~700,000 oz

Fiscal impact for Ecuador

Lundin Gold is the largest taxpayer in Zamora Chinchipe and one of the most significant private-sector fiscal contributors in Ecuador:

Fiscal contribution	2025 (est.)
Royalties (5%)	~$55 million
Corporate income tax (25%)	~$120 million
Windfall profit tax	~$30 million
Employee profit sharing (15%)	~$85 million
Total fiscal contribution	~$290 million

The company's presence has catalysed Ecuador's broader mining ambitions. The government has cited Fruta del Norte as the proof of concept for responsible large-scale mining in Ecuador -- a narrative critical for attracting investment to projects like the $3 billion Llurimagua copper deposit (tender expected in 2026) and the Cascabel copper-gold project in Imbabura.

Sector context: Ecuador's mining moment

Ecuador reopened its mining concession registry in late 2025 after a seven-year freeze, signalling the Noboa administration's commitment to expanding the sector. Combined with the Decree 273 royalty framework (4-8% sliding scale based on commodity prices), the regulatory environment is the most investor-friendly in Ecuador's mining history.

However, social licence remains the critical variable. CONAIE (the Confederation of Indigenous Nationalities of Ecuador) has mobilised against the government's mining reform legislation, and environmental groups continue to challenge concessions through Ecuador's unique rights of nature constitutional provision -- which successfully overturned the Llurimagua environmental licence in 2023.

What to watch

Monitor the Fruta del Norte South development decision in H1 2026 -- a positive outcome would add significant mine life and potentially justify the mill expansion independently. Track the mill expansion study results in H2 2026 for throughput targets and capex estimates. Watch for quarterly production reports to assess whether the 475,000-525,000 oz guidance is tracking at midpoint or above. The gold price trajectory above $2,800/oz creates exceptional margins at Lundin's cost structure -- every $100/oz above guidance assumptions generates approximately $50 million in additional free cash flow. Monitor CONAIE protests and any rights-of-nature legal challenges that could affect the broader concession environment.

Sources: MINING.COM, BNN Bloomberg, Lundin Gold Investor Relations