Toronto, September 5, 2017 (TSX: LUN; OMX: LUMI) Lundin Mining Corporation (“Lundin Mining” or the “Company”) today reported its Mineral Resource and Mineral Reserve estimates as at June 30, 2017. On a consolidated and attributable basis, contained metal in the Proven and Probable Mineral Reserve categories totaled 3,232 kt of copper, 3,415 kt of zinc and 130 kt of nickel.
Commenting on the update, Mr. Paul Conibear, President and CEO of Lundin Mining said “We are pleased that our exploration efforts continue to add great value to our assets. Exploration success at Candelaria has resulted in further significant increases in underground Mineral Resources and Mineral Reserves that will allow us to continue to advance mine plan optimization and mine life extension in Chile. Study work and approval of the Zinc Expansion Project at Neves-Corvo and the Eagle East development at Eagle during the last year have contributed to increased Mineral Reserves at both mines. In the light of improved market conditions, we plan to accelerate exploration at all our mine sites in 2018 as well as advance at least two new copper-focused greenfield exploration projects”.
Highlights
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Total Candelaria Measured and Indicated Mineral Resources have increased by approximately 7.5% to 740.9 Mt at 0.70% Cu, from 689.0 Mt at 0.64% Cu reported as of June 30, 2016, reflecting the continued success of the exploration campaigns.
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Total Candelaria Proven and Probable Mineral Reserves have increased by approximately 3% to 497.5 Mt at 0.56% Cu, despite mining depletion. The open pit Proven and Probable Mineral Reserves, excluding stockpiles, have decreased to 315.9 Mt at 0.53% Cu, from 337.6 Mt at 0.54% Cu reported as of June 30, 2016, reflecting 12 months of depletion by mining.
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Total Candelaria Underground Proven and Probable Mineral Reserves now stand at 89.3 Mt at 0.88% Cu. This is a significant increase of 38.1 Mt over last year reflecting continued exploration success, particularly in the Candelaria Norte underground mine.
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An initial Eagle East Probable Mineral Reserve was reported on April 10, 2017 containing 1.5 Mt at 3.7% Ni and 3.0% Cu. The total combined Eagle and Eagle East Proven and Probable Mineral Reserves now stand at 4.7 Mt at 2.7% Ni and 2.3% Cu.
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Copper Proven and Probable Mineral Reserves at Neves-Corvo increased to 29.1 Mt at 2.4% Cu from 26.1 Mt at 2.7% Cu reported as of June 30, 2016, despite mining depletion. Zinc Proven and Probable Mineral Reserves have increased to 30.4 Mt at 7.7% Zn from 23.4 Mt at 7.2% Zn reported as of June 30, 2016, reflecting approval of the Zinc Expansion Project.
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Total copper Measured and Indicated Mineral Resources at Neves-Corvo has been reduced by mining depletion and geological re-interpretation to stand at 61.7 Mt at 2.4% Cu compared to 70.0 Mt at 2.7% Cu reported as of June, 2016. However, the total zinc Measured and Indicated Mineral Resources remain almost unchanged at 106.5 Mt at 6.1% Zn.
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At Zinkgruvan, the zinc Proven and Probable Mineral Reserves have increased to 11.9 Mt at 7.2% Zn and 2.9% Pb and copper Proven and Probable Mineral Reserves have increased to 5.3 Mt at 1.8% Cu.
The tables attached to this release summarize the Mineral Reserve and Mineral Resource estimates for each of the Company’s mines as of June 30, 2017.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining company with operations in Chile, the United States of America, Portugal, and Sweden, primarily producing copper, nickel and zinc. In addition, Lundin Mining holds an indirect 24% equity stake in the Freeport Cobalt Oy business, which includes a cobalt refinery located in Kokkola, Finland.
This is information that Lundin Mining Corporation is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons on September 5, 2017 at 5:00 p.m. Eastern Time.
For further information, please contact:
Mark Turner, Director, Business Valuations and Investor Relations: +1-416-342-5565
Sonia Tercas, Senior Associate, Investor Relations: +1-416-342-5583
Robert Eriksson, Investor Relations Sweden: +46 8 545 015 50
Cautionary Statement in Forward-Looking Information
Certain of the statements made and information contained in this news release (including, but not limited to, the attached “Mineral Resources and Mineral Reserves – June 30, 2017” tables and notes thereto) is “forward-looking information” within the meaning of the Canadian securities laws. Forward-looking statements include, but are not limited to, statements with respect to the estimation of Mineral Reserves and Mineral Resources, planned production increases, exploration, mine plan optimization, mine life extension, and project study and development. 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 and maintain necessary governmental permits; and other risks and uncertainties, including those described under “Risk and Uncertainties” section of the Company’s most recently filed Annual Information Form and the “Managing Risks” section of each of its Management’s 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, there can be no assurance that forward-looking information will prove to be accurate, and so readers are advised not to place undue reliance on forward-looking statements. The Company does not undertake to update such forward-looking information unless required under applicable laws.
Cautionary Notes to Investors – Mineral Resource and Reserve 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 adopted by the Canadian Securities Administrators (“NI 43-101”) and are classified in accordance with the Canadian Institute of Mining Metallurgy and Petroleum’s “CIM Definition Standards for Mineral Resources and Mineral Reserves” adopted on May 10, 2014 (the “CIM Standards”).
Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. Pursuant to the CIM Standards, 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.
