When reporting its operational and financial results for the second quarter of 2019, Lundin Gold (TSX:LUG) announced that it expects first gold production from the Fruta del Norte project in Ecuador to be delivered in the fourth quarter of this year.
The Canadian miner also said that, given that the development of the project remains on track and on budget with 78% already completed, it plans to achieve commercial production in the second quarter of 2020.
Lundin reports that 92% of the total projected capital expenditure for Fruta del Norte has been committed
During the first six months of 2019, Lundin reached peak construction and by mid-June, the company had begun mining the first production stope.
When the sixth month of the year ended, 8 kilometres of underground mine development had been completed, which means that the process is also ahead of projections.
The Vancouver-based firm also said that at the end of the last quarter, earthworks was 87% complete, concrete 96%, steel 83%, mechanical 73%, piping 59%, electrical 82% and instrumentation 65%. Meanwhile, the construction of the process plant is on track for the commissioning of systems beginning in the third quarter of 2019.
Earthworks at the site’s tailings storage facility are 72% done and dam liner installation commencing during the quarter.
“Fruta del Norte continues to progress on schedule and on budget. Contractor underground development is nearing completion with owner’s crews ramping up, and production stopes are now being mined,” Ron Hochstein, the company’s president and CEO, said in a media statement. “During the third quarter, we expect the three major surface projects – process plant, powerline and tailings storage facility – to be completed and undergo commissioning.”