Highlights from the December 31, 2011 Mineral Reserve and Resource estimates for Tenke Fungurume include:
-- Proven and Probable Mineral Reserves increased to 155.7 million metric tonnes ("Mt") at 2.8%Cu and 0.3%Co -- Measured and Indicated Mineral Resources increased from 455.7 Mt at December 2010 to 496.4 Mt at 2.6%Cu and 0.3%Co. -- Inferred Mineral Resources increased from 218.2 Mt at December 2010 to 246.6 Mt at 2.0%Cu and 0.2%Co. -- Lundin's attributable share of copper in Proven and Probable Mineral Reserves now stands at 1.1 Mt and in Measured and Indicated Mineral Resources at 3.1 Mt. -- The updated resources are based on drilling from 12 deposits on the concession. In addition, a further four new deposits have been drilled and will be added to Mineral Reserve and Resource estimates next year.
The tables attached to this release summarize the Mineral Reserves and Resources for the Tenke Fungurume copper/cobalt mine, in which Lundin Mining has an ultimate 24% equity interest(a), are reported as at December 31, 2011.
Phase 2 Expansion
The Phase 2 expansion, which will increase total annual mine production to approximately 195,000 tonnes of copper cathode and 15,000 tonnes of cobalt hydroxide, is advancing on schedule and budget. Major items of mining equipment have arrived on site and construction of the expanded solvent extraction and electro-winning facilities are well advanced. The Phase 2 Expansion project is targeted for completion in 2013.
TFM continues to engage in drilling activities, exploration analyses and metallurgical testing to evaluate the potential of the highly prospective minerals district at Tenke. These analyses are being incorporated in future plans to evaluate opportunities for additional expansion.
Commenting on the December 2011 Mineral Resource and Reserves estimates, Mr. Paul Conibear, CEO of Lundin Mining said "We are pleased that the Tenke Fungurume resources and reserves continue to show excellent growth, reinforcing the basis for ongoing concession wide planning of potential future expansions. Going forward, we expect to see continued large scale exploration programs alongside the ongoing metallurgical test-work on mixed and sulphide ores to further add value to all stakeholders-.
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 project at Neves-Corvo mine 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,
For further information, please contact:
Sophia Shane, Investor Relations North America: +1-604-689-7842
John Miniotis, Senior Business Analyst: +1-416-342-5565
Robert Eriksson, Investor Relations Sweden: +46 8 545 015 50
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.
(a) Notes on Mineral Reserves and Resources Table
Lundin Mining holds an effective 24.75% interest in the Tenke Fungurume copper and cobalt concessions in the DRC. The Company's interest in Tenke will be reduced to 24% after receiving the required government approval of the modifications to the Tenke Fungurume Mining's bylaws that reflect the signed agreements with the DRC government. Figures in this release utilize 24% for Lundin Mining attributable metal quantities.
The Tenke Fungurume estimate is dated December 31, 2011. The Tenke Fungurume Mineral Resources and Mineral Reserves are estimated by the operator Freeport-McMoRan Copper & Gold Inc. ("Freeport"). The mineral reserves are prepared to SEC standards while the mineral resources shown in the text and the table are not reported under United States SEC guidelines, but are reported under the 43-101 Canadian guidelines. The estimate methodology was reviewed by Lundin Mining's independent Qualified Persons. Mineral Resources are inclusive of Mineral Reserves with the exception of the stockpile material.
The Mineral Resources are an estimate of what is mineralized material in the ground based on a cut-off of 1.30% copper equivalent and a cobalt to copper factor of 4.00 without assigning economic probability. The 2011 Mineral Reserves are based on smoothed pit designs for measured and indicated resources using metal prices of US$2.00/lb Cu and US$10.00/lb Co. The Mineral Resource (not reported under United States SEC guidelines) and Reserve estimates (reported under United States SEC guidelines) for Tenke have been prepared by Freeport staff and reviewed by independent consultants and Qualified Persons John Nilsson, P.Eng. of Nilsson Mine Services Ltd and Ron Simpson P.Geo. of GeoSim Services Inc., on behalf of Lundin Mining. Messrs Simpson and Nilsson consent to the inclusion in this release of the Mineral Resource and Mineral Reserve information in the form and context in which it appears.
For tables, please see attached file.