TORONTO, ONTARIO -- (Marketwire) -- 01/16/12 -- Lundin Mining Corporation (TSX: LUN)(OMX: LUMI) ("Lundin Mining" or the "Company") reports the following production results for the fourth quarter and full year 2011:
---------------------------------------------------------------------------- Wholly-owned operations FY Q4 FY Q4 (tonnes) 2011 2011 2010 2010 ---------------------------------------------------------------------------- Copper 75,877 27,488 80,035 24,908 Zinc 111,445 27,053 90,129 23,482 Lead 41,130 9,273 39,568 9,470 Nickel - - 6,296 1,062 ----------------------------------------------------------------------------
The figures above do not include the Company's attributable share of copper and cobalt production from the Tenke Fungurume mine, pending public release of those statistics by the operator, Freeport McMoRan.
Paul Conibear, President and CEO commented, "As expected, the fourth quarter was our best quarter of the year. Copper production for the quarter from our own operations exceeded expectations while zinc and lead approximated latest guidance. The Neves-Corvo mine finished the year very strongly. Both Zinkgruvan and Neves-Corvo continued to mine and mill record tonnes with an improving safety record. Our staff have responded very well to issues experienced earlier in the year, providing an excellent basis heading into 2012."
The results by mine are as follows:
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2011 2011
Production Production 2010 Actual
(contained tonnes) Results Guidance Production
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Neves-Corvo Cu 74,109 70,000 74,011
Zn 4,227 4,500 6,422
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Zinkgruvan Zn 75,147 76,000 72,206
Pb 32,339 34,000 36,636
Cu 1,768 1,500 540
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Galmoy Zn 32,071 31,000 11,501
(in ore) Pb 8,791 8,000 2,932
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Aguablanca Ni nil nil 6,296
Cu nil nil 5,484
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Total: Wholly-owned operations Cu 75,877 71,500 80,035
Zn 111,445 111,500 90,129
Pb 41,130 42,000 39,568
Ni nil nil 6,296
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Operational Commentary
-- Neves-Corvo: Higher grade stopes averaging 3.4% copper and the
utilization of the zinc plant for copper ore processing in the fourth
quarter helped make up for shortfalls resulting from issues that
hampered production earlier in 2011. The newly expanded zinc plant that
was temporarily converted to copper ore processing in August 2011 has
now been converted back to zinc processing.
Of particular note is the achievement of another annual tonnage record.
In 2010, operations hoisted approximately 2.6 million tonnes of ore and
0.8 million tonnes of waste. In 2011, operations hoisted more than 3.2
million tonnes of ore and 1.0 million tonnes of waste. Total hoisting
and milling was up 25% compared to the previous year. For five
consecutive years, Neves-Corvo has exceeded the previous year's mined
and milled tonnages.
-- Zinkgruvan: Despite down time late in October to complete maintenance on
the zinc grinding mill, Zinkgruvan finished 2011 with its best quarter
of zinc and copper production of the year. Zinkgruvan also achieved
another annual zinc and copper metal production record. Operations mined
and milled approximately 1.0 million tonnes of ore in 2010 and 1.1
million in 2011, which represents a new record in the history of the
mine.
-- Aguablanca: The new mining contractor continued pre-stripping operations
throughout the fourth quarter. Restart of open pit operations and first
concentrate production is scheduled for late in 2012.
-- Galmoy: Mining production from remnant ores exceeded expectations for
the year. Mining of residual ores is expected to cease during the first
quarter of 2012. The mine closure plan has been approved by regulatory
authorities and remains on schedule to be completed prior to the end of
2012.
-- Safety: It is notable that in addition to achieving record tonnages
mined and milled, the Company also achieved a significant improvement in
safety performance. In 2011, Total Recordable Incident Frequency
("TRIF") was the lowest in the Company's history at 1.61. This is a TRIF
reduction of more than 50% compared to 2010. A similar reduction was
achieved in the frequency of Lost Time Incidents. The improvement in our
safety performance over the last two years is attributed to the
implementation of a safety system modernization program and a
commendable effort to improve safety across the Company.
Details of operating statistics by mine, by quarter and for the year follow
in the attached table:
2011 Operating Statistics
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Total Q4 Q3 Q2 Q1
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Neves-Corvo
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Ore mined, copper (tonnes) 3,126,005 899,669 749,999 768,806 707,531
Ore mined, zinc (tonnes) 86,202 - 8,973 34,552 42,677
Ore milled, copper (tonnes) 3,197,783 920,480 797,470 736,050 743,783
Ore milled, zinc (tonnes) 63,074 - 63,074 - -
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Grade per tonne
Copper (%) 2.7 3.4 2.3 2.2 2.9
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Recovery
Copper (%) 85 85 83 83 86
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Concentrate grade
Copper (%) 24.4 24.3 24.5 24.2 24.5
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Production- tonnes (metal contained)
Copper 74,109 26,866 15,070 13,475 18,698
Zinc 4,227 382 1,874 1,020 951
Zinkgruvan
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Ore mined, zinc (tonnes) 1,028,523 226,995 257,365 255,995 288,168
Ore mined, copper (tonnes) 103,349 5,326 36,097 36,269 25,657
Ore milled, zinc (tonnes) 999,280 256,160 235,949 231,145 276,026
Ore milled, copper (tonnes) 109,666 37,651 22,186 20,677 29,152
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Grade per tonne
Zinc (%) 8.2 8.5 8.0 8.5 8.0
Lead (%) 3.9 3.7 3.7 4.1 4.2
Copper (%) 1.8 1.8 1.7 1.9 1.7
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Recovery
Zinc (%) 92 93 93 90 90
Lead (%) 82 80 83 83 82
Copper (%) 90 91 91 90 89
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Concentrate grade
Zinc (%) 52.6 52.4 53.0 52.7 52.4
Lead (%) 74.8 73.7 75.4 75.5 74.7
Copper (%) 25.2 25.6 24.3 24.4 26.2
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Production- tonnes (metal contained)
Zinc 75,147 20,337 17,459 17,582 19,769
Lead 32,339 7,621 7,368 7,829 9,521
Copper 1,768 622 349 356 441
Galmoy
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Ore mined (tonnes) 302,446 77,113 78,996 76,927 69,410
Ore milled (tonnes) 192,535 46,828 50,125 53,874 41,708
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Grade per tonne
Zinc (%) 22.7 20.3 24.8 22.5 23.4
Lead (%) 7.5 5.7 8.9 8.2 7.4
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Production- tonnes (metal contained)
Zinc 32,071 6,334 9,458 8,802 7,477
Lead 8,791 1,652 2,709 2,538 1,892
About Lundin Mining
Lundin Mining Corporation is a diversified 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 an expansion project at its Neves-Corvo mine along with its equity stake in the Tenke Fungurume copper/cobalt mine which is undergoing a major expansion to 195,000 tpa copper cathode production in the Democratic Republic of Congo.
On Behalf of the Board,
Paul Conibear, 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.
Contacts:
Lundin Mining Corporation
Sophia Shane
Investor Relations North America
+1-604-689-7842
Lundin Mining Corporation
John Miniotis
Senior Business Analyst
+1-416-342-5565
Lundin Mining Corporation
Robert Eriksson
Investor Relations Sweden
+46 8 545 015 50
www.lundinmining.com
