TORONTO, ONTARIO–(Marketwire - Aug. 31, 2010) - Lundin Mining Corporation (“Lundin” or the “Company”) (TSX:LUN)(OMX:LUMI) today reported its mineral reserve and resource estimates as at June 30, 2010, six months after the last release as at December 31, 2009. As advised when releasing the December estimates, Lundin has changed the timing of its mineral reserve and resource estimate to align the timing of updates with its annual planning process. Updates will occur annually hereafter.
Continued investment in mine exploration has resulted in the replacement of depletion at both Neves-Corvo and Zinkgruvan and a further increase in the copper mineral resources and reserves at Neves Corvo.
Items of note:
- Copper proven and probable mineral reserves at Neves-Corvo, including Lombador, have increased by 2.7 million tonnes (approximately 75,000 tonnes of contained copper). Copper measured and indicated mineral resources have increased by 5.8 million tonnes and now total 41 million tonnes at 3.3%Cu.
- Zinc proven and probable mineral reserves at Neves-Corvo, including Lombador, have reduced (from 54.2 million tonnes to 42.6 million tonnes) based on a re-interpretation of the definition of mineral reserves. Neves-Corvo has economic evaluation extending to 2030 i.e. currently a 20 year horizon, and has removed from reserves any material not scheduled by that date. This change has no impact on the zinc mineral resources.
Commenting on the June 2010 estimates, Mr. Phil Wright, President and CEO of Lundin Mining said “Exploration efforts have again replaced reserves mined since the last update and continue to increase estimates of copper mineral reserves and resources at Neves Corvo.”
The tables attached to this release summarize the mineral reserve and resource estimates for each of the Company’s mines as of June 30, 2010. Reserves and resources for the Tenke Fungurume copper/cobalt mine, in which Lundin Mining has a 24.75% equity interest, are unchanged from the December 2009 release.
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 its Zinkgruvan and Neves‐Corvo mines 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,
Phil Wright, President and CEO
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.
Note: To view the table “Mineral Reserves And Resources - 30 June 2010”, please click the following link: http://media3.marketwire.com/docs/lun0830.pdf
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, 2010. The Tenke Fungurume estimate is dated December 31, 2009.
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.
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 1.6% while for zinc mineral reserves a cut off of 4.3% is used for orebodies above the 550 level and 6.0% for the deeper Lombador orebody below the 550 level. Mineral reserves and resources for Neves-Corvo were estimated by the mine’s geology and engineering department under the guidance of Nelson Pacheco, Chief Geologist and Fernando Cartaxo, Mine Planning Engineer. Qualified Persons are Graham Greenway, Corporate Resource Geologist, employed by Lundin Mining and John Andreatidis, General Manager, employed by Neves-Corvo mine.
The zinc mineral resources and reserves are reported above a 3.1% zinc equivalent cut off. The Copper mineral resources and reserves are reported above cut-off grades of 1.5% copper and 2.0% copper respectively. The Qualified Person responsible for the 2010 Zinkgruvan mineral resource and reserve estimate is Lars Malmstrom, Resource Manager, employed by Zinkgruvan mine.
The mineral resources are reported above a 0.2% nickel cut off and the mineral reserves above a 0.25% nickel cut off. Mineral resources for Aguablanca were estimated by Graham Greenway, Lundin Mining. Mineral reserves were calculated by Aden Munoz, Chief Mine Engineer, Aguablanca. Qualified Persons are Graham Greenway and Steve Gatley, Director Technical Services, both employed by Lundin Mining.
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.
The mineral resources are based on a cut off of 1.30% copper equivalent and a cobalt to copper factor of 4.00. The 2009 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 reserve estimates for Tenke have been reviewed by John Nilsson, P.Eng. of Nilsson Mine Services Ltd on behalf of Lundin Mining. The mineral resource estimates have been prepared by John Nilsson, P.Eng., and Ron Simpson P.Geo. of GeoSim Services Inc. who are independent consultants and Qualified Persons.