Lundin Mining Corporation

Zinkgruvan, Sweden

Zinkgruvan

Summary Report

Zinc Lead Silver mine


The Zinkgruvan mine is located approximately 250 km south-west of Stockholm, Sweden. Zinkgruvan has been producing zinc, lead and silver on a continuous basis since 1857. The operation consists of an underground mine and processing facility with associated infrastructure and a present nominal production capacity of 1 million tonnes of ore throughput.

The Company has commenced the development of the Zinkgruvan copper deposit which lies adjacent to the existing zinc deposits. In addition to facilitating copper production, this expansion is intended to improve zinc mining flexibility through a second underground crusher and a daylight ramp access.

Zinkgruvan Mine

Location Approximately 200 km south-west of Stockholm, Sweden
Ownership 100%
Type of ore body Sedimentary exhalative zinc, lead, copper and silver
Primary metal Zinc
Secondary metal Lead, silver, copper
2P reserves
   Zinc-rich ores
   Copper-rich ores

11.1mt @ 9.1% Zn; 4.3% Pb; 92g/t Ag
2.9mt @ 2.6% Cu, 0.3% Zn, 30 g/t Ag
Type of mine Underground
Mine facilities and method Two shafts access the mine with a ramp from surface under construction. Mining based on panel stoping and benching
Processing facilities A zinc plant (1.1mtpa capacity); a copper plant will be commissioned in Q2 2010 (0.4mtpa planned processing); tailings impoundment; and backfill plants
End product Zinc in concentrate (grading approx. 54%); Lead in concentrate (grading approx. 75%)
Expected mine life 10+ years
Employees 320 full time employee equivalents
Potential growth Production from the copper deposit is scheduled to commence in Q2 2010. Design production of 7,000 tonnes per annum of copper is expected to be reached in 2013.
2010 Targets
Production Zinc
Lead
Cash costs USc/lb

75,000 tonnes contained in ore
36,000 tonnes contained in ore
30c/lb Zn
Click here to see full Reserves and Resources statement

Quarterly Operations Update