Lundin Mining Corporation press release
Lundin Mining Announces 2021 Mineral Resource and Mineral Reserve Estimates
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TORONTO , Sept. 13, 2021 /CNW/ - (TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") today reported 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.
The information in this release is subject to the disclosure requirements of Lundin Mining under the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below on September 13, 2021 at 02:00 Eastern Time .
Cautionary Statement in Forward-Looking Information
Certain of the statements made and information contained herein is "forward-looking information" within the meaning of applicable Canadian securities laws. All statements other than statements of historical facts included in this document constitute forward-looking information, including but not limited to statements regarding the Company's plans, prospects and business strategies; the Company's guidance on the timing and amount of future production and its expectations regarding the results of operations; expected costs; permitting requirements and timelines; timing and possible outcome of pending litigation; the results of any Preliminary Economic Assessment, Feasibility Study, or Mineral Resource and Mineral Reserve estimations, life of mine estimates, and mine and mine closure plans; anticipated market prices of metals, currency exchange rates, and interest rates; the development and implementation of the Company's Responsible Mining Management System; the Company's ability to comply with contractual and permitting or other regulatory requirements; anticipated exploration and development activities at the Company's projects; and the Company's integration of acquisitions and any anticipated benefits thereof. Words such as "believe", "expect", "anticipate", "contemplate", "target", "plan", "goal", "aim", "intend", "continue", "budget", "estimate", "may", "will", "can", "could", "should", "schedule" and similar expressions identify forward-looking statements.
Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectations and beliefs of management, including that the Company can access financing, appropriate equipment and sufficient labor; assumed and future price of copper, nickel, zinc, gold and other metals; anticipated costs; ability to achieve goals; the prompt and effective integration of acquisitions; that the political environment in which the Company operates will continue to support the development and operation of mining projects; and assumptions related to the factors set forth below. While these factors and assumptions are considered reasonable by Lundin Mining as at the date of this document in light of management's experience and perception of current conditions and expected developments, these statements are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: risks inherent in mining including but not limited to risks to the environment, industrial accidents, catastrophic equipment failures, unusual or unexpected geological formations or unstable ground conditions, and natural phenomena such as earthquakes, flooding or unusually severe weather; uninsurable risks; global financial conditions and inflation; changes in the Company's share price, and volatility in the equity markets in general; volatility and fluctuations in metal and commodity prices; the threat associated with outbreaks of viruses and infectious diseases, including the COVID-19 virus; changing taxation regimes; reliance on a single asset; delays or the inability to obtain, retain or comply with permits; risks related to negative publicity with respect to the Company or the mining industry in general; health and safety risks; exploration, development or mining results not being consistent with the Company's expectations; unavailable or inaccessible infrastructure and risks related to ageing infrastructure; actual ore mined and/or metal recoveries varying from Mineral Resource and Mineral Reserve estimates, estimates of grade, tonnage, dilution, mine plans and metallurgical and other characteristics; risks associated with the estimation of Mineral Resources and Mineral Reserves and the geology, grade and continuity of mineral deposits including but not limited to models relating thereto; ore processing efficiency; community and stakeholder opposition; information technology and cybersecurity risks; potential for the allegation of fraud and corruption involving the Company, its customers, suppliers or employees, or the allegation of improper or discriminatory employment practices, or human rights violations; regulatory investigations, enforcement, sanctions and/or related or other litigation; uncertain political and economic environments, including in Brazil and Chile ; risks associated with the structural stability of waste rock dumps or tailings storage facilities; estimates of future production and operations; estimates of operating, cash and all-in sustaining cost estimates; civil disruption in Chile ; the potential for and effects of labor disputes or other unanticipated difficulties with or shortages of labor or interruptions in production; risks related to the environmental regulation and environmental impact of the Company's operations and products and management thereof; exchange rate fluctuations; reliance on third parties and consultants in foreign jurisdictions; climate change; risks relating to attracting and retaining of highly skilled employees; compliance with environmental, health and safety laws; counterparty and credit risks and customer concentration; litigation; risks inherent in and/or associated with operating in foreign countries and emerging markets; risks related to mine closure activities and closed and historical sites; changes in laws, regulations or policies including but not limited to those related to mining regimes, permitting and approvals, environmental and tailings management, labor, trade relations, and transportation; internal controls; challenges or defects in title; the estimation of asset carrying values; historical environmental liabilities and ongoing reclamation obligations; the price and availability of key operating supplies or services; competition; indebtedness; compliance with foreign laws; existence of significant shareholders; liquidity risks and limited financial resources; funding requirements and availability of financing; enforcing legal rights in foreign jurisdictions; dilution; risks relating to dividends; risks associated with acquisitions and related integration efforts, including the ability to achieve anticipated benefits, unanticipated difficulties or expenditures relating to integration and diversion of management time on integration; activist shareholders and proxy solicitation matters; and other risks and uncertainties, including but not limited to those described in the "Risk and Uncertainties" section of the Annual Information Form and the "Managing Risks" section of the Company's MD&A for the year ended December 31, 2020, which are available on SEDAR at www.sedar.com under the Company's profile. All of the forward-looking statements made in this document are qualified by these cautionary statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, forecast or intended and readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. 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 information. Accordingly, there can be no assurance that forward-looking information will prove to be accurate and forward-looking information is not a guarantee of future performance. Readers are advised not to place undue reliance on forward-looking information. The forward-looking information contained herein speaks only as of the date of this document. The Company disclaims any intention or obligation to update or revise forward – looking information or to explain any material difference between such and subsequent actual events, except as required by applicable law.
Cautionary Notes to Investors – Mineral Resource and Reserve Estimates
In accordance with applicable Canadian securities laws, all Mineral Reserve and Mineral Resource estimates of the Company disclosed or referenced in this news release have been prepared in accordance with the disclosure standards of Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ("NI 43-101"), and have been classified in accordance with Canadian Institute of Mining Metallurgy and Petroleum's "Definition Standards for Mineral Resources and Reserves" (the "CIM Standards"). Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
| | | | | | | | | | | | | | | | | | | Mineral Resource Estimates – Inclusive of Mineral Reserves – June 30, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | Contained Metal | | | | | | | | | Category | 000's | Cu | Zn | Pb | Au | Ag | Ni | | Cu | Zn | Pb | Au | Ag | Ni | Lundin 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% | | Open Pit | Measured (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% | | Underground | Measured (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% | | Copper | Indicated (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 | | 10,545 | 6,861 | 1,997 | 11.8 | 340 | 83 | | | | | | Note: totals may not summate correctly due to rounding | | not including Inferred Resources | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Mineral Reserve Estimates – June 30, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | Contained Metal | | | | | | | | | Category | 000's | Cu | Zn | Pb | Au | Ag | Ni | | Cu | Zn | Pb | Au | Ag | Ni | Lundin 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% | | Open Pit | Proven (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% | | Underground | Proven (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% | | Copper | Probable (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 | 2,813 | 913 | 6.6 | 138 | 77 | | | | | | | |