Lundin Mining Announces First Ore Shipment at Eagle Mine
July 16 2014 - 5:37PM
Marketwired Canada
Lundin Mining Corporation (TSX:LUN)(OMX:LUMI) ("Lundin Mining" or the "Company")
is pleased to provide an update on the final stages of construction and mine
operations commencement of the high grade Eagle nickel-copper project, as well
as an exploration update on the Eagle East nickel-copper deposit located in the
Upper Peninsula of Michigan, USA.
The project reached a key milestone through the delivery of first ore from mine
to mill for plant commissioning. With this achievement the project remains well
on schedule for first concentrate production in early Q4/2014.
Paul Conibear, President and CEO commented, "Through the hard work of the entire
team at the Eagle Mine, along with great community support, we are very excited
to be in a position to deliver the project on time and on budget. The Company's
focus remains on ensuring that all remaining development activities continue to
meet or exceed targets as we look forward to the Eagle Mine becoming a
significant cash flow generator for the Company and a tangible contributor to
the economy of the region prior to year end."
Recent project highlights include:
-- Mine surface facility construction is 100% complete, and underground
development to facilitate production ramp-up is on track.
-- The ore haulage route agreement through the City of Marquette was
approved by the Marquette City Commission in May. Ore shipments to the
mill commenced in early July as scheduled.
-- Mill site construction is over 90% complete and commissioning with first
feed is expected within the next 8 weeks.
-- Commencement and ramp-up of concentrate production is expected by early
Q4/14, with full commercial production expected during Q2/15.
-- Negotiations for off-take of nickel and copper concentrates have
resulted in sales agreements for a significant portion of the production
with competitive terms.
-- Total capital cost forecast remains at $400 million, with final costs
expected to come in on or slightly under budget.
-- The number of employees and contractors onsite for construction and
operations peaked at over 700 in the second quarter with over 75% local
employee content.
-- Operational readiness is on plan, with recruitment 100% complete.
-- As of July 1st Eagle has worked over 700,000 hours since its last lost-
time injury, achieving the best safety record across all company
operations.
Exploration work continues from underground with in-fill and step out drilling
on the Eagle Mine deposit and from surface on targets relatively close to the
Eagle Mine. Initial surface drilling priority has been for step out drilling on
the Eagle East deposit, an ultramafic intrusion which lies 1 kilometer east of
the Eagle Mine. The accompanying map and long section show the location of Eagle
East in relation to the Eagle deposit. Directional drilling was used to drill
multiple down-plunge deviations from a single parent hole to trace the Eagle
East feeder to depth.
The drilling intersected deep semi-massive sulphide and intrusive breccia
interpreted to be the feeder dyke to Eagle East. A summary of the composite
intervals from the first two down plunge holes drilled is shown below, along
with preliminary sections showing location of the two holes. Highlights include:
-- 34.58 meters at 1.33% nickel and 1.02% copper (DDH 08EA222C, 832.68
meters to 867.26 meters)
-- 9.18 meters at 1.62% nickel, 1.32% copper (DDH 08EA222C, 867.26 meters
to 876.44 meters)
-- 23.79 meters at 1.44% nickel and 1.06% copper (DDH 08EA222D, 839.45
meters to 863.24 meters)
-- 6.5 meters at 1.67% nickel and 1.89% copper (DDH 08EA222D, 932.21 meters
to 938.71 meters)
Eagle East hosts disseminated mineralisation along the keel and margins of the
intrusion. Grades are typically in the range of 0.3% to 1% nickel and 0.3% to
0.7% copper. Thin massive sulphide occurs along the base of the intrusion and
ranges in thickness from centimeters to almost three meters. To date, no Mineral
Resource has been defined at Eagle East.
The semi-massive sulphide breccia character and higher grade metal content in
the new intercepts from Eagle East are similar to parts of the Eagle Mine
deposit. They are evidence that with depth, Eagle East becomes more analogous to
the Eagle deposit than the Company previously thought, which increases its
potential for higher grade mineralization significantly. Higher grade
mineralization has now been encountered in three deviation holes plunging more
than 200 m down dip from the bottom of previously drilled mineral intercepts.
----------------------------------------------------------------------------
Interval
BHID From (m) To (m) (m) (i) ROCK Ni % Cu %
----------------------------------------------------------------------------
08EA222C 832.68 867.26 34.58 Mineralized 1.33 1.02
peridotite/Intrusive breccia
----------------------------------------------------------------------------
08EA222C 867.26 876.44 9.18 Intrusive breccia/ Semi- 1.62 1.32
massive sulphide
----------------------------------------------------------------------------
08EA222C 876.44 905.00 28.56 Peridotite, disseminated 0.33 0.35
sulphide
----------------------------------------------------------------------------
08EA222C 905.00 927.96 22.96 Intrusive breccia 0.82 0.94
----------------------------------------------------------------------------
----------------------------------------------------------------------------
08EA222D 828.95 883.63 54.68 Mineralized peridotite 1.24 0.93
----------------------------------------------------------------------------
Includes 839.45 863.24 23.79 Mineralized peridotite 1.44 1.06
----------------------------------------------------------------------------
Includes 875.46 883.63 8.17 Intrusive breccia 1.44 0.99
----------------------------------------------------------------------------
08EA222D 932.21 938.71 6.50 Semi-massive sulphide, net 1.67 1.89
texture
----------------------------------------------------------------------------
Robert Mahin, CPG, NI 43-101 QP for Eagle Mine
(i)True width not known
Assay results from one other deviation hole are pending and deep directional
drilling at Eagle East will continue into the third quarter.
Sampling and Analytical Protocol:
NQ sized drill core was logged, cut in half with a diamond saw and sampled by
Company personnel at its facilities in Negaunee. Mineralized intervals are
analyzed for a multi-element suite using industry standard ICP methods at ALS
Chemex Laboratory, Vancouver.
QA/QC
A standardised protocol of quality control sample insertion using certified
reference material, blanks and duplicates are used to monitor the quality of the
sampling process and assay results.
Qualified Person
Robert Mahin, AIPG Certified Professional Geologist, Exploration Manager for
Eagle Mine, is a Qualified Person as defined by National Instrument 43-101 and
has reviewed and approved the technical information contained in this release
regarding the Eagle East exploration drilling.
About Lundin Mining
Lundin Mining Corporation is a diversified base metals mining company with
operations in Portugal, Sweden and Spain, 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 Kokkola cobalt refinery located in Finland.
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.
To view the maps accompanying this press release please click the following
link: http://media3.marketwire.com/docs/LUNDMAPS716.pdf
FOR FURTHER INFORMATION PLEASE CONTACT:
Sophia Shane
Investor Relations North America
+1-604-689-7842
John Miniotis
Senior Manager Investor Relations
+1-416-342-5565
Robert Eriksson
Investor Relations Sweden
+46 8 545 015 50
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