Lundin Mining Corporation

Neves-Corvo, Portugal

Neves-Corvo

Summary Report

Copper Zinc Mine


Neves-Corvo is an underground mine, 100 km north of Faro, Portugal, in the western part of the Iberian Pyrite Belt. The mine has been a significant producer of copper since 1989 and in 2006 commenced treating zinc ore. The processing of zinc-rich ore was suspended in November 2008 pending an improvement in zinc prices and the zinc facility was converted to treat copper ore. Zinc production is expected to recommence in 2011. Mine access is provided by one vertical five metres diameter shaft, hoisting ore from the 700 metre level, and a ramp from surface.

The mine employs both bench-and-fill and drift-and-fill stoping methods.

The ore treatment is carried out by conventional crushing, flotation, grinding, thickening and filtration processes.

Neves Corvo Mine

Location 100 km north of Faro, Portugal, in the western part of the Iberian Pyrite Belt
Ownership 100%
Type of ore body Volcanogenic massive sulfide (VMS)
Primary metal Copper
Secondary metal Zinc
2P reserves
   Copper-rich ores
   Zinc-rich ores
20.5mt @ 3.7% Cu, 0.9% Zn, 0.3% Pb, 44 g/t Ag
54.2mt @ 6.7% Zn, 0.4% Cu, 1.6% Pb, 59 g/t Ag
Type of mine Underground
Mine facilities and method 4.6mtpa shaft with separate ramp access. Mining based on mechanized stoping using primarily bench & fill and drift & fill methods with sand and paste backfill
Processing facilities A copper plant (2.5mtpa capacity); a zinc plant (presently being expanded to 1mtpa capacity); tailings impoundment; and backfill plants
End product Copper in concentrate (grading approx. 25%); Zinc in concentrate (grading approx. 50%)
Expected mine life 10+ years
Employees 910 full-time employee equivalents
Potential growth Neves-Corvo is considered to remain under-explored and $10 million is scheduled for near-mine exploration in 2010. A study looking at development of the Lombador zinc/lead/copper deposit is well advanced.
2010 Targets
Production Copper
Zinc
Cash costs USc/lb

77,000 tonnes contained in concentrate
6,000 tonnes contained in concentrate
125c/lb Cu
Click here to see full Reserves and Resources statement

Quarterly Operations Update