Lundin releases NI 43-101 estimates on Candelaria LUNDIN MINING ANNOUNCES 2021 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES
Lundin Mining Corp. has released its mineral resource and mineral reserve estimates as at June 30, 2021. On a consolidated and attributable basis, estimated contained metal in the Proven and Probable Mineral Reserve categories total 5,302 kt of copper, 2,813 kt of zinc, 77 kt of nickel, 913 kt of lead and 6.6 Moz of gold.
Commenting on the June 2021 Mineral Resource and Mineral Reserve estimates, Marie Inkster, President and CEO said, " Exploration was one of the areas of our business most directly impacted at the onset of the global COVID-19 pandemic. Despite the challenges we were able to resume exploration programs safely and swiftly during the second half of 2020. These programs continued to create value over the past year, largely replacing mine depletion and adding to mineral inventories in our high-potential growth locations."
2021 Mineral Resource and Reserve Highlights
- Candelaria's total Measured and Indicated Mineral Resources of 1,244.5 Mt at 0.63% copper have increased by approximately 6% over last year's estimate of 1,179.4 Mt at 0.64% copper. The increase reflects the continued success of exploration campaigns in the underground mining sectors which have more than offset the year's mining depletion.
- Candelaria's total Proven and Probable Mineral Reserves are estimated to be 675.6 Mt at 0.53% copper, compared to last year's estimate of 684.4 Mt at 0.53% copper. While open pit Proven and Probable Mineral Reserves have declined due to the year's mine depletion, underground Proven and Probable Mineral Reserves have increased by approximately 4.0 Mt to 164.2 Mt at 0.83% copper. The increase over last year's estimate reflects the continued exploration success, particularly in the Candelaria North and South Sector underground mines. These additional Mineral Reserves are being included in study work evaluating the potential to increase ore production rates from the Candelaria underground mining sectors and improve the overall metal production profile.
- Chapada's copper-gold Measured and Indicated Mineral Resources are estimated to be 1,075.0 Mt at 0.23% copper and 0.14 g/t gold, compared to last year's estimate of 1,132.2 Mt at 0.23% copper and 0.14 g/t gold. Exploration successes since the last update have been offset by mine depletion and the effects of increased cost assumptions in determining the Net Smelter Return (NSR) cut-off value. There are presently six drill rigs on site, with a seventh arriving this month, making excellent progress advancing the 60,000 m 2021 drill campaign. Unfortunately, supply chain constraints experienced by third-party assay laboratories meant many encouraging drill results missed this year's estimation cut-off date. Local currency costs assumptions have increased to reflect the current operating environment while a conservative-to-spot USD/BRL exchange rate of 4.25 was used.
- Chapada's total copper-gold Proven and Probable Mineral Reserves are estimated to be 754.9 Mt at 0.23% copper and 0.14 g/t gold, compared to last year's estimate of 759.7 Mt at 0.23% copper and 0.15 g/t gold. Successful infill drilling campaigns have enabled the conversion of previously Inferred Mineral Resources to the Indicated Mineral Resource category (and accordingly are now included in Probable Mineral Reserves), largely offsetting the effects of the increased NSR cut-off values and the year's mine depletion.
- Total combined Eagle and Eagle East Proven and Probable Mineral Reserves are estimated to be 3.3 Mt at 2.4% nickel and 1.9% copper, compared to last year's estimate of 3.9 Mt at 2.6% nickel and 2.1% copper, with additions from underground drilling success being offset by the year's mine depletion. Underground targets on the peripheries of Eagle East are being explored and evaluated, which at current metal prices, provide real opportunities for mine life extension.
- Neves-Corvo's copper and zinc Measured and Indicated Mineral Resources are estimated to be 60.0 Mt at 2.3% copper and 68.4 Mt at 6.9% zinc, respectively. This compares to estimated Measured and Indicated Mineral Resources of 61.9 Mt at 2.3% copper and 71.3 Mt at 6.9% zinc, respectively, as of June 30, 2020. Neves-Corvo's 2020 and 2021 exploration programs have had modest scope as efforts and focus is on the Zinc Expansion Project's timely completion. Gains from in-mine exploration and infill drilling of the past year have been offset by mining depletion.
- Copper Proven and Probable Mineral Reserves at Neves-Corvo are estimated to be 25.1 Mt at 2.1% copper, compared to last year's estimate of 29.7 Mt at 2.0% copper. Zinc Proven and Probable Mineral Reserves are estimated to be 24.8 Mt at 7.5% zinc, compared to last year's estimate of 30.1 Mt at 7.3% zinc. Estimated Mineral Reserve reductions are primarily a result of the year's mine depletion, as well as a revised cut-off values strategy aimed at improving profit margin and cash flow from the operation.
- Zinkgruvan total zinc Measured and Indicated Mineral Resources are estimated to be 20.3 Mt at 8.1% zinc and 4.0% lead, compared to last year's estimate of 22.6Mt at 8.7% zinc and 4.0% lead, the result of mine depletion, increased cut-off values, reinterpretation of the geological models and use of optimized stope volumes to constrain the estimates. Copper Measured and Indicated Mineral Resources of 4.0 Mt at 2.1% copper are essentially unchanged from the prior year's estimate.
- Zinkgruvan estimated zinc Proven and Probable Mineral Reserves have increased approximately 17% to 10.3 Mt at 7.9% zinc and 4.0% lead, from last year's estimate of 8.8 Mt at 7.9% zinc and 3.6% lead. The addition of the Dalby deposit to the Mineral Reserves has more than offset the effects of increased cut-off values. The copper Proven and Probable Mineral Reserves are estimated to be 2.2 Mt at 2.0% copper, below last year's estimate, the result of the year's mine depletion and increased cut-off values.
The table attached to this news release summarizes the Mineral Resource and Mineral Reserve estimates for each of the Company's mines as of June 30, 2021. For more information on the Mineral Resource and Mineral Reserve estimates for each of the Company's mines as of June 30, 2020 that are referred to in this news release please see the news release dated September 8, 2020.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining company with operations in Brazil, Chile, Portugal, Sweden and the United States of America, primarily producing copper, zinc, gold and nickel.
Mineral Resource Estimates - Inclusive of Mineral Reserves - June 30, 2021 Contained Metal Lundin Category 000's Cu Zn Pb Au Ag Ni Cu Zn Pb Au Ag Ni Mining Tonnes % % % g/t g/t % kt kt kt Moz Moz kt Interest Copper Candelaria Measured 479,622 0.45 0.10 1.59 2,158 1.5 25 80% Measured Open Pit (Stockpile) 83,695 0.31 0.08 1.32 259 0.2 4 80% Indicated 35,308 0.28 0.07 1.06 99 0.1 1 80% Inferred 6,237 0.21 0.04 0.63 13 - - 80% Candelaria Measured 35,695 0.41 0.09 0.37 147 0.1 - 80% La Espanola Indicated 39,697 0.39 0.08 0.39 155 0.1 - 80% Inferred 17,208 0.38 0.08 0.35 66 - - 80% Candelaria Measured 274,950 0.94 0.21 3.09 2,577 1.9 27 80% Measured Underground (Stockpile) 41 0.94 0.23 2.20 - - - 80% Indicated 295,536 0.83 0.18 2.75 2,458 1.7 26 80% Inferred 75,584 0.87 0.19 2.83 660 0.5 7 80% Chapada Measured 456,262 0.25 0.15 1,152 2.2 100% Indicated Copper (Stockpile) 116,234 0.19 0.13 221 0.5 100% Indicated 502,513 0.23 0.13 1,134 2.1 100% Inferred 209,102 0.23 0.08 473 0.5 100% Chapada Measured 12,737 0.42 0.2 100% Suruca Gold Indicated 134,780 0.54 2.3 100% Inferred 12,565 0.48 0.2 100% Neves-Corvo Measured 8,985 3.6 0.8 0.3 44 321 75 26 13 100% Indicated 51,023 2.1 0.8 0.3 44 1,048 427 176 71 100% Inferred 12,681 1.8 0.8 0.3 34 231 99 36 14 100% Semblana Inferred 7,807 2.9 25 223 6 100% Zinkgruvan Measured 3,526 2.2 0.3 35 77 10 4 100% Indicated 486 2.0 0.6 36 9 3 1 100% Inferred 217 1.7 0.6 27 4 1 - 100% Zinc Neves-Corvo Measured 10,609 0.3 7.8 1.8 66 35 830 188 23 100% Indicated 57,742 0.3 6.7 1.4 61 196 3,872 795 113 100% Inferred 4,071 0.4 5.7 1.6 64 15 230 65 8 100% Zinkgruvan Measured 5,770 7.5 3.3 72 430 190 13 100% Indicated 14,568 8.3 4.3 76 1,214 622 36 100% Inferred 14,194 8.0 3.5 81 1,136 499 37 100% Nickel Eagle Measured 508 1.9 0.2 2.3 9 12 100% Indicated 399 1.6 0.1 2.1 6 9 100% Indicated Eagle East 2,148 2.5 0.3 10 2.9 53 - 1 63 100% Inferred 18 1.0 0.1 1.0 - - - - 100% Lundin Mining's share 10,5456,8611,99711.834083 Note: totals may not summate correctly due to rounding not including Inferred Resources Mineral Reserve Estimates - June 30, 2021 Contained Metal Lundin Category 000's Cu Zn Pb Au Ag Ni Cu Zn Pb Au Ag Ni Mining Tonnes % % % g/t g/t % kt kt kt Moz Moz kt Interest Copper Candelaria Proven 347,365 0.47 0.11 1.61 1,646 1.3 18 80% Proven Open Pit (Stockpile) 83,695 0.31 0.09 1.33 262 0.2 4 80% Probable 22,342 0.33 0.07 0.76 74 0.1 1 80% Total 453,401 0.44 0.11 1.52 1,981 1.5 22 80% Candelaria Proven 32,702 0.42 0.09 0.38 136 0.1 - 80% La Espanola Probable 25,297 0.40 0.09 0.39 102 0.1 - 80% Total 58,000 0.41 0.09 0.38 238 0.2 1 80% Candelaria Proven 77,126 0.87 0.20 3.19 673 0.5 8 80% Proven Underground (Stockpile) 41 0.95 0.24 2.20 - - - 80% Probable 87,006 0.79 0.18 2.92 691 0.5 8 80% Total 164,173 0.83 0.19 3.04 1,364 1.0 16 80% Chapada Proven 385,541 0.24 0.15 931 1.9 100% Probable Copper (Stockpile) 115,281 0.19 0.13 220 0.5 100% Probable 254,047 0.22 0.12 559 1.0 100% Total 754,870 0.23 0.14 1,710 3.3 100% Chapada Proven 11,454 0.42 0.2 100% Suruca Gold Probable 53,741 0.53 0.9 100% Total 65,195 0.51 1.1 100% Neves-Corvo Proven 4,382 3.2 0.6 0.2 34 141 25 7 5 100% Probable 20,708 1.9 0.6 0.2 31 395 122 44 20 100% Total 25,090 2.1 0.6 0.2 31 537 147 51 25 100% Zinkgruvan Proven 2,024 2.1 32 42 2 100% Probable 191 2.0 35 4 - - 100% Total 2,214 2.0 32 45 2 100% Zinc Neves-Corvo Proven 3,801 0.3 8.1 2.1 69 12 309 81 8 100% Probable 20,974 0.3 7.4 1.8 62 68 1,548 373 42 100% Total 24,774 0.3 7.5 1.8 63 80 1,858 454 50 100% Zinkgruvan Proven 3,051 7.6 3.3 80 231 102 8 100% Probable 7,219 8.0 4.2 88 576 306 20 100% Total 10,270 7.9 4.0 86 808 408 28 100% Nickel Eagle Proven 469 1.6 0.1 2.0 8 - 9 100% Probable 377 1.2 0.1 1.7 5 - 6 100% Probable Eagle East 2,434 2.1 0.2 8 2.5 51 - 0.7 61 100% Total 3,280 1.9 0.2 6 2.4 64 - 0.7 77 100% Note: totals may not summate correctly due to rounding Lundin Mining's share 5,302 2,813913 6.6 13877
Notes on Mineral Resource and Mineral Reserve Tables
Mineral Resources and Mineral Reserve estimates are shown on a 100% basis for each mine. The Measured and Indicated Mineral Resource estimates are inclusive of those Mineral Resource estimates modified to produce the Mineral Reserve estimates. All estimates are prepared as at June 30, 2021.
Estimates for all operations are prepared by or under the supervision of and verified by a Qualified Person as defined in NI 43-101 or have been audited and verified by independent Qualified Persons on behalf of Lundin Mining. The technical and scientific information in this news release has been prepared in accordance with NI 43-101 and has been reviewed and verified by Graham Greenway, P.Geo, Group Resource Geologist, Lundin Mining, who is a "Qualified Person" under NI 43-101.
Reference herein of $ or USD is to United States dollars, CLP is to Chilean pesos, BRL is to Brazilian reais, EUR refers to euros, and SEK is to Swedish kronor. Mineral Reserves for all active mines have been estimated using metal prices of $3.00/lb copper, $1.00/lb zinc, $0.95/lb lead, $6.50/lb nickel and $1,500/oz gold. Exchange rates used were EUR/USD 1.25, USD/SEK 7.50, USD/CLP 620 and USD/BRL 4.25 for Mineral Reserve and Mineral Resource estimates. For the Suruca gold deposit Mineral Reserve, the metal prices used were $3.00/lb copper and $1,250/oz gold and an exchange rate of USD/BRL 3.95.
Candelaria and Ojos
Candelaria and La Espanola open pit Mineral Resource estimates are reported within a conceptual pit shell based on metal prices of $3.45/lb copper and $1,500/oz gold with cut-off grades of 0.15% and 0.17% copper, respectively. Underground Mineral Resources are estimated at a cut-off grade of 0.45% copper within confining grades shells of 0.40% copper. Mineral Reserves for the Candelaria open pit, Espanola open pit and underground for the Candelaria property are estimated at cut-off grades of 0.16%, 0.19% and 0.50% copper, respectively. Underground Mineral Reserves for the Ojos del Salado property, Santos and Alcaparrosa mines, are estimated at cut-off grades of 0.55% copper and 0.60% copper respectively. Patricio Calderon, Consultant Geologist, Patricio Oyarce, Senior Engineer Technical Services Open Pit and Cristian Erazo, Deputy Manager Technical Services Candelaria Underground, each of whom is a Registered Member, Chilean Mining Commission, employed by the Candelaria Mining Complex and is a Qualified Person as defined under NI 43-101, supervised the preparation of and verified the Mineral Resource estimate, open pit Mineral Reserve and underground Mineral Reserve estimates, respectively.
For further information, refer to the Technical Report entitled Technical Report for the Candelaria Copper Mining Complex, Atacama Province, Region III, Chile dated November 28, 2018, which is available on the Company's SEDAR profile at www.sedar.com.
Chapada
The Chapada and Suruca SW copper-gold Mineral Resource estimates are reported within a conceptual pit shell based on metal prices of $3.45/lb copper and $1,725/oz gold and at a variable NSR marginal cut-off averaging $5.15 per tonne. For the Suruca gold only Mineral Resource estimates, cut-off grades of 0.16 g/t gold for oxides and 0.23 g/t for sulphides were used. Mineral Reserves for the Chapada open pit are estimated at a NSR cut-off of $5.15 per tonne. For the Suruca gold only Mineral Reserve estimates cut-off grades of 0.19 g/t gold for oxides and 0.30 g/t for sulphides are used. Renan Garcia Lopes, Geology and Mineral Resources Coordinator, Registered Member of Australasian Institute of Mining and Metallurgy - MAusIMM CP(Geo), employed by Chapada, prepared the Chapada and Suruca Mineral Resource estimates and Jean-Francois St-Onge, PEO and OIQ, Director Technical Services, Lundin Mining, reviewed and verified the Mineral Reserve. Both Messrs. Lopes and St-Onge are Qualified Persons as defined under NI 43-101.
For further information, refer to the Technical Report entitled Technical Report on the Chapada Mine, Goias State, Brazil, dated October 10, 2019 which is available on Lundin Mining's SEDAR profile at www.sedar.com.
Eagle and Eagle East
The Eagle Mineral Resources and Reserves are reported above a fixed NSR cut-off of $123/t for long-hole stope and sills. The Eagle East Mineral Resources are reported within constraining grade shells based on a fixed NSR cut-off of $142/t and the Mineral Reserves are reported above $142/t for long-hole stopes and $152/t for cut-and-fill stopes. The NSR is calculated on a recovered payable basis considering nickel, copper, cobalt, gold and PGM grades, metallurgical recoveries, prices and realization costs. The Eagle Mineral Resource and Reserve estimates are prepared by the mine's geology and mine engineering department under the guidance of Lars Olaussen, Technical Services Principal and Josh Lam, P.Eng, Mine Superintendent, both of whom are employees of Eagle Mine. The Eagle East Mineral Resource estimate was prepared by Graham Greenway, P.Geo, Group Resource Geologist, Lundin Mining, who also reviewed and verified the Eagle Mineral Resource estimate. Josh Lam, P.Eng, reviewed and verified the Eagle and Eagle East Mineral Reserve estimates. Messrs. Greenway and Lam are Qualified Persons as defined under NI 43-101.
For further information, refer to the Technical Report entitled Technical Report on the Eagle Mine, Michigan, U.S.A. dated April 26, 2017, which is available on the Company's SEDAR profile at www.sedar.com.
Neves-Corvo and Semblana
The copper Mineral Resources are reported within geological volumes based on a nominal NSR copper cut-off value of EUR 32.85/t (grade equivalent to 1.0% copper), and the zinc Mineral Resources are reported within geological volumes based on a nominal NSR zinc cut-off value of EUR 30.55/t (grade equivalent to 4.5% zinc). The copper and zinc Mineral Reserve estimates have been calculated using variable NSR values based on area and mining method. The NSR is calculated on a recovered payable basis considering copper, lead, zinc and silver grades, metallurgical recoveries, prices and realization costs. The copper Mineral Reserves are estimated above a site average cut-off of EUR 44.4/t (grade equivalent to 1.41% copper). For zinc Mineral Reserve estimates a site average cut-off of EUR 45.4/t (grade equivalent to 5.40% zinc) is used. Mineral Reserves and Mineral Resources for Neves-Corvo were estimated by the mine geology and mine engineering departments at Neves-Corvo under the guidance of Sandra Santos, CEng MIMMM, Geological Engineer, and Sofia Pinto, Chief Mine Planning Engineer, each of whom is employed by the Neves-Corvo mine. Sandra Santos, prepared the Neves-Corvo Mineral Resource estimate and Jean-Francois St-Onge, PEO and OIQ, Director Technical Services, Lundin Mining, reviewed and verified the Mineral Reserve estimate. Both Ms. Santos and Mr. St-Onge are Qualified Persons as defined under NI 43-101.
The Mineral Resources at Semblana are estimated above a cut-off grade of 1.0% copper. The Mineral Resource estimate contained in this news release was prepared by Graham Greenway, P.Geo, Group Resource Geologist, Lundin Mining, who is a Qualified Person as defined under NI 43-101.