Reserves and Resources Highlights
-- Copper contained in Measured and Indicated Resources at Neves-Corvo has remained essentially unchanged from the 2013 estimate with additions from infill and exploration drilling programs, offsetting mining depletion. Exploration drilling has again resulted in contained zinc in Measured and Indicated Resources increasing by approximately 5%. -- Copper Proven and Probable Reserves at Neves-Corvo decreased to 25.4 Mt at 2.8% copper largely as a result of mining depletion. Zinc Proven and Probable Reserves decreased to 20.6 Mt at 7.5% zinc as a result of mining depletion and a re-evaluation of cut-off grades for the Lombador North orebody. -- At Zinkgruvan, exploration drilling in the Mellanby, Borta Bokum and Nygruvan orebodies resulted in contained zinc in Measured and Indicated Resources increasing by approximately 9% despite depletion by mine production. -- Proven and Probable Zinc Reserves at Zinkgruvan have remained essentially unchanged from 2013 with new Reserves in Mellanby offsetting mining depletion. -- Proven and Probable Reserves in the Aguablanca open pit have decreased to 1.1 Mt and reflect the redesigned, shallower open pit together with mining depletion. However, the inclusion of underground Reserves has added 3.2 Mt and 4 years life to the mine. -- Infill drilling at Eagle increased the percentage of Proven versus Probable Reserves while total contained nickel and copper in the Proven and Probable Reserves were essentially unchanged. -- At Tenke Fungurume, Measured and Indicated Resources increased to 579.3 Mt at 2.6% copper and 0.3% cobalt. Contained copper and cobalt metal in these Resources increased by 8% and 11% respectively over the prior year and Lundin's attributable share now stands at 3.6 Mt of contained copper. Inferred Mineral Resources also increased to 343.2 Mt on a 100% basis. -- Proven and Probable Reserves at Tenke Fungurume increased slightly to 144.1 Mt at 2.9% Cu and 0.4% Co despite depletion by mining.
The tables attached to this release summarize the Mineral Reserve and Resource estimates for each of the Company's mines as of June 30, 2014. 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, 2013.
Commenting on the June 2014 Mineral Reserve and Resource estimates, Mr. Paul Conibear, President and CEO of Lundin Mining said "Once again we are pleased to see gains in overall contained copper and zinc metal Resources despite mining depletion occurring from operations that are all running at high tonnage throughputs."
About Lundin Mining
Lundin Mining is a diversified base metals mining company with operations and projects in Portugal, Sweden, Spain and the U.S.A. producing copper, zinc, lead and nickel. In addition, Lundin Mining holds a 24% equity stake in the world-class Tenke Fungurume copper/cobalt mine in the Democratic Republic of Congo and in the Freeport Cobalt Oy business, which includes a cobalt refinery located in Kokkola, Finland.
On Behalf of the Board,
Paul Conibear, 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.
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For Mineral Reserves and Resources table see attached file.
For further information, please contact: Sophia Shane, Investor Relations North America: +1-604-689-7842 John Miniotis, Senior Manager Corporate Development and Investor Relations: +1-416-342-5565 Robert Eriksson, Investor Relations Sweden: +46 8 545 015 50
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