BASE METALS

Lundin Mining reports 44% increase in copper resources

Although a proposed merger between HudBay Minerals and Lundin Mining collapsed a year ago, Lundin has been strengthening its mineral reserves and resource base.

Author: Dorothy Kosich
Posted: Tuesday , 23 Feb 2010

RENO, NV - 

Toronto and London-based Lundin Mining Monday reported a 44% increase in measured and indicated copper resources at the end of 2009 that will yield 160,000 tonnes of contained copper or the equivalent of two years of production.

The company also reported that three new deposits have been added to the mineral reserves of the Tenke Fungurume joint venture in the Democratic Republic of the Congo, resulting in an increase in Lundin's share of proven and probable reserves of 1.1 million tonnes of contained copper for a total of 4.2 million tonnes.

Lundin owns 24.75% of Tenke, which is operated by Freeport-McMoRan Copper & Gold. Lundin's share of Tenke cobalt reserves were reported to be 444,000 tonnes.

Phil Wright, CEO of Lundin said, "Our goal this past year was to increase copper resources at Neves-Corvo and the increases we have seen continue to justify this on-going investment, and our belief that Neves-Corvo remains under-explored."

Neves-Corvo is an operating underground copper and zinc mine in Portugal. At the end of 2008, the mine produced 89,206 tonnes of copper, 22,567 tonnes of zinc, and 926,740 ounces of silver.

Proven and probable reserves at Neves-Corvo were reported to be 753,000 tonnes of copper, 190,000 tonnes of zinc, 68,000 tonnes of lead and 29 million ounces of silver

"Equally pleasing is the growth of the mineral reserves at Tenke and the significant increase in the contained copper and cobalt in reserves," Wright said.

Company-wide Lundin reported proven and probable reserves of 2.1 million tonnes of copper, 4.9 million tonnes of zinc, 1.4 million tonnes of lead, 169 million ounces of silver, 48,000 tonnes of nickel and 110 tonnes of cobalt.

Total Lundin measured and indicated mineral resources were reported at 3.9 million tonnes of copper, 6.9 million tonnes of zinc, 2 million tonnes of lead, 261 million ounces of silver, 75 tonnes of nickel, and 231 million tonnes of cobalt.

The company is scheduled to release its quarterly results Thursday.