Lundin Gold to invest $100 million in 2026 Ecuador exploration

By Alexandra Valencia

LOS ENCUENTROS, ECUADOR, Feb 12 (Reuters) - Canadian miner Lundin Gold LUG.TO is investing $100 million this year in an exploration campaign to extend the life of its Fruta del Norte mine in Ecuador as the price of gold remains high.

The investment aims to bolster exploration efforts adding some 133,000 meters of drilling across concessions in the Amazonian province of Zamora Chinchipe, executives said this week, an area affected by illegal mining activities.

Lundin wants to increase its existing reserves totaling 5.54 million ounces, and identify new deposits through a three-year project launched in 2025.

"To extend the mine's life, we have seven drilling rigs inside the mine and another eleven on the surface, primarily for resource generation from new deposits," Maria Eugenia Rodriguez, exploration manager at Fruta del Norte, told reporters during a tour of the facility.

She said exploration had already identified copper porphyry deposits near the existing gold site.

Ecuador holds significant mineral reserves but has trailed Andean neighbors like Peru and Chile in large-scale mining development. The sector frequently faces opposition from local communities, legal challenges, and shifting regulations.

Fruta del Norte, Ecuador's first large-scale underground mine, began production in late 2019 with an initial 12-year lifespan. In 2025, the mine produced nearly 500,000 ounces of gold, while exports of gold concentrate and ore bars are expected to reach approximately $1.8 billion in 2025.

Executives said the new exploration platforms operate under strict environmental guidelines to minimize their impact.

"Today, Fruta del Norte is one of the most important gold mines in the world, and with current gold prices in the global context, it allows us to pursue growth opportunities in Ecuador and internationally," said Juan Jose Herrera, director of business sustainability at Lundin Gold.

Gold prices have traded at historic highs recently, supported by geopolitical tensions and shifts in global monetary policy. JPMorgan last week said it expects gold prices to reach $6,300 per ounce by the end of 2026.

Lundin Gold expects to produce between 475,000 and 525,000 ounces of gold annually from 2026 to 2028.