Toronto, September 01, 2011 (TSX: LUN; OMX: LUMI) Lundin Mining Corporation
(“Lundin Mining” or the “Company”) today reported its Mineral Reserve and
Resource estimates as at June 30, 2011. Highlights include:
• Exploration programs have been successful in replacing mined depletion and
adding to Mineral Resources and Reserves at all key mine operations. At
Lundin Mining's 100% owned assets, contained copper and zinc in Measured
and Indicated Mineral Resources, both increased by 4%.
• At Tenke Fungurume, as per our previously filed (31 March 2011) Technical
Report, Measured and Indicated Resources increased by 33% for copper and
19% for cobalt above the prior year's estimates, for which Lundin Mining's
attributable share through equity ownership is 24%.
Other items of note:
• Copper Proven and Probable Mineral Reserves at Neves-Corvo have increased
by 4.5 million tonnes (approximately 15,000 tonnes of contained copper).
• Zinc Proven and Probable Mineral Reserves at Neves-Corvo have been reduced
from 42.6 million tonnes to 23.1 million tonnes reflecting:
- The zinc cutoff grade for reserve reporting being increased from 4.3% Zn to
5.0% Zn as a result of changed assumptions on by-product credits and operating
cost trends.
- Zinc Reserves from Lombador Phase II being re-categorized to Measured and
Indicated Resource status pending the completion of a strategic overall
property underground materials handling study currently underway and subsequent
economic assessments.
• Ongoing exploration drilling has again increased total copper and zinc
contained in Lombador Resources. Development of a new exploration drilling
horizon in connection with the advancement of the Phase I Lombador ramp
will allow a program of underground exploration drilling to further define
and potentially expand this important asset.
• The Semblana discovery has not been reflected in this Mineral Resource
estimate. Resource delineation drilling continues with four rigs and an
inaugural resource estimate for Semblana remains on schedule for year end.
• The 3D seismic survey, completed in Q2, has successfully identified the
extent of the Semblana deposit which will aid in the completion of the
resource delineation drilling. In addition, 18 new exploration targets have
also been identified in relatively close proximity to existing mine
workings. All targets are interpreted to lie within the favourable mine
stratigraphy, including satellite-type targets close to Semblana as well as
targets located down-dip of the Zambujal, Corvo and Lombador orebodies.
Drill-testing of the first of these targets has just commenced.
• Mineral Reserves at Zinkgruvan have remained largely unchanged as the mine
continues to consistently replace its production with new reserves.
The tables attached to this release summarize the Mineral Reserve and Resource
estimates for each of the Company's mines as of June 30, 2011. Mineral Reserves
and Resources for the Tenke Fungurume copper/cobalt mine, in which Lundin
Mining has a 24% equity interest, are reported as at December 31, 2010.
About Lundin Mining
Lundin Mining Corporation is a diversified Canadian base metals mining company
with operations in Portugal, Sweden, Spain and Ireland, producing copper, zinc,
lead and nickel. In addition, Lundin Mining holds a development project
pipeline which includes expansion projects at Neves‐Corvo mine along with its
equity stake in the world class Tenke Fungurume copper/cobalt mine in the
Democratic Republic of Congo.
On Behalf of the Board,
Paul Conibear, CEO
For further information, please contact:
Sophia Shane, Investor Relations North America: +1-604-689-7842
John Miniotis, Senior Business Analyst: +1-416-342-5565
Robert Eriksson, Investor Relations Sweden: +46 8 545 015 50
Forward Looking Statements
Certain of the statements made and information contained herein is
“forward-looking information” within the meaning of the Ontario Securities Act.
Forward-looking statements are subject to a variety of risks and uncertainties
which could cause actual events or results to differ from those reflected in
the forward-looking statements, including, without limitation, risks and
uncertainties relating to foreign currency fluctuations; risks inherent in
mining including environmental hazards, industrial accidents, unusual or
unexpected geological formations, ground control problems and flooding; risks
associated with the estimation of Mineral Resources and Reserves and the
geology, grade and continuity of mineral deposits; the possibility that future
exploration, development or mining results will not be consistent with the
Company's expectations; the potential for and effects of labour disputes or
other unanticipated difficulties with or shortages of labour or interruptions
in production; actual ore mined varying from estimates of grade, tonnage,
dilution and metallurgical and other characteristics; the inherent uncertainty
of production and cost estimates and the potential for unexpected costs and
expenses, commodity price fluctuations; uncertain political and economic
environments; changes in laws or policies, foreign taxation, delays or the
inability to obtain necessary governmental permits; and other risks and
uncertainties, including those described under Risk Factors Relating to the
Company's Business in the Company's Annual Information Form and in each
management discussion and analysis. Forward-looking information is in addition
based on various assumptions including, without limitation, the expectations
and beliefs of management, the assumed long term price of copper, nickel, lead
and zinc; that the Company can access financing, appropriate equipment and
sufficient labour and that the political environment where the Company operates
will continue to support the development and operation of mining projects.
Should one or more of these risks and uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary materially from
those described in forward-looking statements. Accordingly, readers are advised
not to place undue reliance on forward-looking statements.
Cautionary Notes to Investors - Reserve and Resource Estimates
In accordance with applicable Canadian securities regulatory requirements, all
Mineral Reserve and Mineral resource estimates of the Company disclosed or
incorporated by reference in this news release have been prepared in accordance
with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral
Projects (“NI 43-101”), classified in accordance with Canadian Institute of
Mining Metallurgy and Petroleum's “CIM Standards on Mineral Resources and
Reserves Definitions and Guidelines” (the “CIM Guidelines”). The definitions of
Mineral Reserves and Mineral resources are set out in our disclosure of our
Mineral Reserve and Mineral resource estimates in our Annual Information Form.
The Company uses the terms “Mineral resources”, “measured Mineral resources”,
“indicated Mineral resources” and “inferred Mineral resources”. While those
terms are recognized by Canadian securities regulatory authorities, they are
not recognized by the United States Securities and Exchange Commission the
“SEC”) and the SEC does not permit U.S. companies to disclose resources in
their filings with the SEC. Pursuant to the CIM Guidelines, Mineral resources
have a higher degree of uncertainty than Mineral Reserves as to their existence
as well as their economic and legal feasibility. Inferred Mineral resources,
when compared with measured or indicated Mineral resources, have the least
certainty as to their existence, and it cannot be assumed that all or any part
of an inferred Mineral resource will be upgraded to an indicated or measured
Mineral resource as a result of continued exploration. Pursuant to NI 43-101,
inferred Mineral resources may not form the basis of any economic analysis,
including any feasibility study. Accordingly, readers are cautioned not to
assume that all or any part of a Mineral resource exists, will ever be
converted into a Mineral Reserve, or is or will ever be economically or legally
mineable or recovered.
(For tables, see attached file)
Notes on Mineral Reserves and Resources Table
Mineral Reserves and Resources are shown on a 100 percent basis for each mine.
Mineral Resources for all operations are inclusive of Reserves and all
estimates, with the exception of Tenke Fungurume, are prepared as at June 30,
2011. The Tenke Fungurume estimate is dated December 31, 2010.
Estimates for all 100% owned operations are prepared by or under the
supervision of a Qualified Person as defined in National Instrument 43-101.
Tenke Proven and Probable Mineral Reserves are estimated by the operator
Freeport-McMoRan Copper & Gold Inc. (“Freeport”), and are prepared to SEC
standards and are reviewed by Lundin Mining's independent Qualified Persons.
Except as noted below, Mineral Reserves have been calculated using assumed
long-term average prices of US$2.50/lb copper, US$1.00/lb zinc, US$0.90/lb
lead, US$8.50/lb nickel and exchange rates of EUR/USD 1.35 and USD/SEK 7.50.
Reserves at Tenke Fungurume have been calculated using assumed long-term
average prices of US$2.00/lb copper and US$10.00/lb cobalt.
Neves-Corvo
The Mineral Resources are reported above cut-off grades of 1.0% for copper and
3.0% for zinc. The copper Mineral Reserves are reported above a cut-off of 1.4%
while for zinc Mineral Reserves a cut-off of 5.0% is used for orebodies other
than Lombador. For the Lombador Phase 1 a zinc cut-off of 6.0% was applied
for Mineral Reserve reporting. Mineral Reserves and Resources for Neves-Corvo
were estimated by the mine's geology and mine engineering departments under the
guidance of Nelson Pacheco, Chief Geologist and Fernando Cartaxo, Chief Mine
Planning Engineer. Qualified Persons are Graham Greenway, Group Resource
Geologist and Stephen Gatley, Director Technical Services, both employed by
Lundin Mining.
Zinkgruvan
The zinc Mineral Resources and Reserves are reported above a 3.7% zinc
equivalent cut-off. The Copper Mineral Resources and Reserves are reported
above cut-off grades of 1.0% copper and 1.8% copper respectively. The
Zinkgruvan Mineral Resource and Reserve estimates are prepared by the mine's
geology and mine engineering department under the guidance of Lars Malmström,
Resource Manager, employed by Zinkgruvan mine. Qualified Persons are Graham
Greenway and Stephen Gatley.
Aguablanca
The Mineral Resources and Reserves are reported above a 0.18% nickel cut off.
Mineral Resources and Reserves for Aguablanca were estimated by the mine's
geology and mine engineering departments under the guidance of César Martinez
and Jorge Llidó. Qualified Persons are Graham Greenway and Stephen Gatley.
Galmoy
The Mineral Resources are reported above a cut-off of 4.5% zinc equivalent. The
Mineral Reserves are those tonnes above a 6.0% zinc equivalent cut off that are
amenable to mining and treatment at an adjacent mine. The Qualified Person
responsible for the Galmoy Mineral Resource and Reserve estimate is Paul
McDermott, Technical Services Superintendent, an employee of Galmoy mine.
Tenke Fungurume
The Mineral Resources are based on a cut off of 1.30% copper equivalent and a
cobalt to copper factor of 4.00. The 2010 Mineral Reserves are based on pit
limits defined in the current mine plan, use a cut off grade of 1.52% (acid
soluble) copper equivalent and a cobalt to copper equivalency factor of 4.4.
The Mineral Resource and Reserve estimates for Tenke have been prepared by
Freeport staff and reviewed by independent consultants and Qualified Persons
John Nilsson, P.Eng. of Nilsson Mine Services Ltd and Ron Simpson P.Geo. of
GeoSim Services Inc., on behalf of Lundin Mining.
