Name: Neves-Corvo mine.

Location: The Neves-Corvo mine is situated 15 km south-east of the town of Castro Verde, in the Alentejo province of southern Portugal.

Controlling Company: Lundin Mining Corporation, through its subsidiary Somincor.

Brief History: The Neves-Corvo orebodies were discovered in 1977. The Portuguese company Somincor was established to exploit the deposit and, by 1983, the Corvo, Graça, Neves and Zambujal sulphide deposits had been partially outlined, covering an area of about 1.5 km x 2 km. In 1985, Rio Tinto became involved in the project, forming a 49:51 joint venture with the Portuguese government. The project was reappraised, with eventual first production starting from the Upper Corvo and Graça orebodies in January 1989. From 1992 to 1994, a major mine deepening exercise was undertaken to access the Lower Corvo orebody. In June 2004, EuroZinc acquired a 100% interest in Somincor and in October 2006, EuroZinc merged with Lundin Mining and the Lundin Mining name was retained. In 2006, zinc production started at Neves-Corvo with processing through the modified tin plant. In mid-2009, a copper tailings retreatment circuit was commissioned to recover copper and zinc and, in late 2010, tailings disposal changed from subaqueous to paste methods at the Cerro do Lobo facility. In October 2010, a new high-grade, copper-rich massive sulphide deposit, Semblana, was discovered 1 km north-east of the Zambujal copper/zinc orebody. The Neves-Corvo zinc expansion project was completed in 2011. A further expansion of the existing zinc capacity is being considered, pending the finalisation of a strategic study for future underground access at Neves-Corvo. A feasibility study has shown that Lombador Phase 1 can be developed as a profitable and value accretive extension to the Neves-Corvo mine.

Brief Description: The Neves-Corvo mining operations are contained within a mining concession contract between the State and Somincor, covering 13.5 km2 and located in the parishes of Santa Bárbara de Padrŏes and Senhora da Graça de Padrŏes, counties of Catsro Verde and Almodôvar, in the district of Beja. The concession provides the right to exploit the Neves-Corvo deposits for copper, zinc, lead, silver, gold, tin and cobalt for an initial period of fifty years (from November 1994), with two further extensions of 20 years each.

Mining Method: Mining is based on mechanised stoping using primarily bench-and-fill and drift-and-fill methods with sand and paste backfill.

Products: Copper and zinc.

Major Infrastructure and Equipment: The Neves-Corvo operations consist of an underground mine, processing facilities and central administration offices at the mine site, a private harbour and loading facility at Setúbal, and sand-extraction facilities.

The mine-site infrastructure includes a main headframe, two process plants, a paste plant, a rail facility, offices, surface workshops, a mine store, a laboratory, a change house, a medical building, a restaurant, a weighbridge and a gatehouse. The mine and mill are served by a functional surface and underground maintenance department. All mobile and fixed plants are maintained on site, with engine rebuilds contracted out.

Geology/Mineralisation: Neves-Corvo is located in the western part of the Iberian pyrite belt that stretches through southern Spain into Portugal and which has historically hosted numerous major stratiform volcano-sedimentary massive sulphide deposits.

The Neves-Corvo deposits occur within the volcanic sedimentary complex, which consists of acid volcanics separated by shale units, with a discontinuous black-shale horizon immediately below the lenses. Above the mineralisation, there is a thrust-faulted repetition of volcano-sedimentary and flysch units. The whole assemblage has been folded into a gentle anticline, oriented north-west to south-east and plunging to the south-east, resulting in orebodies distributed on both limbs of the fold. All the deposits have been affected by subvertical and low-angle thrust faults, causing repetition in some areas.

Six massive sulphide lenses have been defined at Neves-Corvo, comprising Neves (divided into North and South), Corvo, Graça, Zambujal, Lombador (divided North, South and East), and Semblana.

The base metal grades are segregated by the strong metal zoning into copper, tin and zinc zones, as well as barren massive pyrite. The massive sulphide deposits are typically underlain by stockwork sulphide zones, which form an important part of the copper orebodies.

Reserves: Total proven and probable copper reserves as at December 31, 2012, were 24.11-million tonnes, grading 3.1% copper, 0.9% zinc, 0.2% lead and 40 g/t silver. Total proven and probable zinc reserves were 22.68-million tonnes, grading 0.3% copper, 7.4% zinc, 1.7% lead and 70 g/t silver.

Resources: Total measured resources for copper as at December 31, 2012, were 9.85-million tonnes, grading 4.9% copper, 1% zinc, 0.3% lead and 45 g/t silver. Total measured resources of zinc were 24.04-million tonnes, grading 0.3 % copper, 7.5% zinc, 1.8% lead and 67 g/t silver.

Total indicated resources as at December 31, 2012, were 40.35-million tonnes, grading 2.5% copper, 1% zinc, 0.3% lead and 47 g/t silver. Total indicated resources of zinc were 62.28-million tonnes, grading 0.3% copper, 5.5% zinc, 1.3% lead and 58 g/t.

Total inferred resources of copper as at December 31, 2012, were 25.42-million tonnes, grading 1.7% copper, 1.2% zinc, 0.4% lead and 47 g/t silver. Total inferred resources of zinc were 22.06-million tonnes, grading 0.3% copper, 4.5% zinc, 0.9% lead and 51 g/t silver.

Prospects: Neves-Corvo is considered to remain underexplored. An initial inferred resource estimate for Semblana deposit is 7.12-million tonnes, grading 2.8% copper +26 g/t silver. Potential for width, strike and depth extensions of this initial resource is considered excellent. A study investigating the development of the Lombador zinc/lead/copper deposit and the Semblana copper deposit is well advanced.

Contact Person: Senior business analyst, John Miniotis.

Contact details:
Lundin Mining Corporation
Tel +1 416 342 5560
Fax +1 416 348 0303
Email info@lundinmining.com
Website: www.lundinmining.com