aguablanca mine - lundin mining · power, airport, etc.) ... • conventional...

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AguablancaAguablanca

MineMine

2

LOCATION

SPAINSPAIN

Huelva

AguablancaAguablanca• Located in mining-friendly

EU country

• Excellent infrastructures

(roads, ports, airport,

power, airport, etc.)

• 75 Km from Seville

• Close to European

suppliers & customers

• Skilled, stable workforce

AguablancaAguablanca

MineMine

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Infrastructure

Open Pit Clear Water Dam

UG Portal

Tailing Dam

ProcessPlant

Offices WasteDump

4

Open Pit Operation

• Conventional OP operation.

• Three push-backs.

• 8-meter benches (100% blasting).

• Equipment on Waste - (2 KOM PC2000/2 KOM PC 1250/CAT777 or KOM785 trucks)

• Equipment on Ore – (FH1200 (CAT777 or KOM785 trucks).

• 7.2 Mm3 budgeted for 2008 - 5 day/week shift regime - 20h/day.

5

Ore Processing Plant

• Conventional Crushing-Grinding-Flotation plant.

• Initial capacity 1.5 Mtpa 1.8 Mtpa in 2007 2.1 Mtpa in 2008.

• Bulk flotation Ni + Cu (prepared for differential).

• 75-81% Ni recovery (depending on head grades).

• 7-8% Ni and 7-9% Cu in concentrate.

• Operates a 7 day/week - 24h/day.

• 1.0 Mt treated in 2005 - 1.5 Mt in 2006 – forecast 1.7 Mt in 2007

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Reserves & Resources

UppeUppe

rr

bodybody

DeeDee

pp

bodbod

yy

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2007 Highlights

• Throughput capacity increase 1.5 to 1.7 Mtpa (Completed)• YTD processed 1.26 Mtof ROM ore (+20% cf 2006)• YTD Ni production 4,940 t (+ 178 t cf 2006)• YTD Ni concentrate grade 7.21% (+8.2% cf 2006)• YTD Cu concentrate grade 6.92% (+2.2% cf 2006)• YTD Tailings grade @ 0.13% Ni (cf 0.18% in 2006)• Improve Availability Plant - PMP in SAP (80% achieved)• Increase waste mining rate (2.1 to 4.6 Mm3pa) • Definition of UG orebody – drilling 10km (>13,000 completed)• U/G design and reserve statement (95% done for U/Body)

(Drilling Deep body)

• Implementation of OSHAS 18001 (Internal audit 09/07)

YTD refers to the period (January – September 2007)

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Production Profile 2007

Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 (*) TOTAL Variance

2006 2006 2006 2006 2006 2007 2007 2007 2007 20072007-

2006

Milled Ore (tonnes) 314,730 359,681 374,963 418,634 1,468,008 406,749 422,925 433,178 422,926 1,685,778 15%

Head Grade (%Ni) 0.68% 0.61% 0.60% 0.54% 0.60% 0.54% 0.54% 0.48% 0.57% 0.53% -12%

Head Grade (%Cu) 0.54% 0.49% 0.51% 0.47% 0.50% 0.45% 0.41% 0.38% 0.41% 0.41% -18%

Nickel Prod. (tonnes) 1,607 1,613 1,542 1,635 6,397 1,631 1,730 1,590 1,822 6,773 6%

Copper Prod. (tonnes) 1,548 1,596 1,697 1,775 6,616 1,645 1,569 1,535 1,561 6,310 -5%

Ni Recovery (%) 75.36% 73.22% 68.02% 72.28% 72.18% 74.02% 76.33% 77.09% 75.74% 75.78% 5%

Cu Recovery (%) 90.94% 91.21% 88.24% 90.99% 90.31% 90.75% 91.14% 92.08% 90.98% 91.22% 1%

Conc. Grade (%Ni) 7.07% 6.58% 6.35% 6.38% 6.58% 7.26% 7.33% 7.04% 7.51% 7.29% 11%

Conc. Grade (%Cu) 6.81% 6.50% 6.99% 6.92% 6.81% 7.32% 6.65% 6.80% 6.44% 6.79% 0%

REGISTERED RESULTS

(*) Real Oct results + Nov&Dec forecast

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Short Term Planning

• Increase processing capacity in 2008 (1.8 to 2.1 Mtpa - Capex @ US$ 10.8M)

• Process 1.8 Mtonnes in 2008 and 2.1 Mtonnes in 2009

• Capex to start up of U/G production 6.6 M USD

• Mine 100 Ktonnes @ 0.55% Ni & 0.58% Cu from U/G in 2008.

• Develop processing of Oxide Stockpile (> 1.0 Mt)

• Implementation of the ISO 14001

* Excludes 2.3 MUSD Exploration

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Underground Design

•Selected sub-level open stoping method with cemented aggregate fill.

•Standard mining equipment is used.

•Stope - 20m x 20m x 25m high (30m floor to floor).

•Sequence is conservative.

•Systematic ground support planned.

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UNDERGROUND DESIGNUpper

Orebody Data

• Sublevel Stoping with CRF.

• Paste Fill being evaluated and potential for OPEX reduction (~6 $/t).

• Production hoisted through the existing adit by trucks.

• Prepare Deep orebody infrastructure whilst Upper orebodyproduces..

• Contractor tenders now available for adjudication.

Unit 2008 2009 2010

Capex 000 USD 6,638 0 0

Ore hoisted tonnes 102,005 220,153 202,700

Ni grade % 0.55% 0.65% 0.77%

Cu grade % 0.58% 0.65% 0.74%

Unit operating cost USD/ore tonne 58.96 44.93 50.76

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Production Profile

Ni & Cu Metal Production

(tonnes)

Open pit & U/G

Aguablanca Exploration-Spain

Aguablanca Mine (Ni-Cu-PGE)Aguablanca Mine (Ni-Cu-PGE)The newest and largest Ni sulphide mine in Western EuropeThe newest and largest Ni sulphide mine in Western Europe

• 1983 Granting Provisional State Reserve

• 1989 JV agreement Presur and Rio Tinto Minera (later Atlantic Cooper)

• 1993 Discovery of the Aguablanca Ni bearing gossan

• 1994-1996 RTM completed a PFS including 33,000 m of drilling.

• 2001 RNGM acquired Aguablanca

• BFS completed by July 2002

• Construction started in early 2003

• First concentrate produced on Dec 2004

Aguablanca Exploration-History


Aguablanca Reserves and Resources Summary

Nickel/Copper - Aguablanca (0.2% Ni cut-off) YE 2006

Category Tonnes

(000)

Ni(%)

Cu(%)

Contained

Ni (Tonnes)

ContainedCu (Tonnes)

P + P 11,500

14,800

0.60

0.58

0.47 69,100

86,400

54,400

M + l 0.48 71,400

Inferred 4,700 0.40 0.31 18,800 14,400

A open pit optimization plan is currently underway as well as an economic study for an UG mining operation.

Reserves

Resources

2007 Exploration Main objective: to expand and upgrade existing resources and discover new

satellite orebodies

• US$2.9m budget including 15,500 m of drilling.

• Three UG rigs currently running. 14,725 m completed to date.

• Drilling focused on the Deep Body where a 25x25 infill drilling program is now being finalized.

• A 635 line Km VTEM airborne survey completed plus borehole and surface EM surveys.


2007 Exploration Highlights


Nickel sulphide explorationThis is what we are looking for..

Nickel sulphide explorationThis is what we are looking for..

Massive sulphides at the Aguablanca Deep Body: 2,20 meters at 6,3% Ni and 1,5 % Cu.

Massive sulphides at the Aguablanca Deep Body: 2,20 meters at 6,3% Ni and 1,5 % Cu.

• Wide and continuous intervals of disseminated and semimassivesulphide mineralization defined at the Deep Body indicating an strong UG mining potential.

• 200 m proven strike length but still open to the east. Average true thickness around 20 m. Weighted average grades of 0,9% Ni and 0,6% Cu plus Pt+Pd+Au credits.

• Several new VTEM and off hole conductors delineated and ready for drill testing.

Aguablanca exploration potential


Mainorebody

DeclineDeclineGabbroGabbro

Deep Body(projected from -50 m level)

PitOutlinePitOutline

Northorebody

Discovery hole 1085.30m at 0.94% Ni+0.41% Cu

¹

7400 E

7425 E

7450 E

OPEN

100 m

5400 N

5300 N

5300 N

7200 E

7300 E

7400 E

7500 E

Deep Body –50m Level Map


Ni mineralization >0.5%

AGU-106114.30 m @ 0.77 % Ni, 0.80 % CuInc. 3.20 m @ 1.16 % Ni, 0.82 % Cu

AGU-107934.10m @ 1.05 % Ni, 0.91 % CuInc. 15.80 m @ 1.4 % Ni, 0.76 % Cu




CompletedDrill-holes

>0.5 % NiCut-off

¹

50 m


AGU-109817.95m @ 1.04 % Ni, 0.72 % Cu

AGU-108619.65m @ 0.92 % Ni, 0.56 % Cu

AGU-10957.85m @ 1.21 % Ni, 0.65 % Cu


AGU-1058

AGU-1056

AGU-1027

AGU-1025

AGU-1006

AGU-1007

AGU-1013AGU-1009

AGU-1048

400m

300m

200m

100m

00m

6758

AGU-10

6544

AGU-27 6507

6714

66096630

67456744

6749

5500 N

5600 N

5200 N

Open pitPhase-3

S

N

AGU-1060

AGU-1062

AGU-1093

AGU-1090

AGU-1011

5100 N

Deep Body Section 7350 E

Cut-off

>1.0 % Ni

>0.5 % Ni

Underground Drilling 2006

Underground Drilling 2007


AGU-109334.00m @ 0.60 % Ni, 0.45 % Cu


AGU-109039,40 @ 0.73 % Ni, 0.80 % CuInc. 11,45 m @ 1,32% Ni, 0.88%Cu


• US$6m total Ni exploration budget including 26,400 m of drilling.

• 20,400 m allocated to UG drilling and surface near mine exploration.

• 6,000 m allocated to regional exploration mostly to drill testing the newly generated VTEM anomalies.

• Detailed surface and borehole EM surveys to better define drill targets.

Aguablanca - 2008Nickel Exploration

Nickel Targets

Aguablanca Regional Exploration-Spain

•Predominant land position -2564 km2 -in one of Europe’s most prospective and pro-mining regions.

•Wide intervals of low grade, disseminated magmatic sulphidemineralization already intersected at Cortegana, Argallón and Calzadilla.

•Narrow high grade drill intercepts at Cortegana returned up to 1.36% Ni and 0.2% Cu.

•US$ 1,7 m exploration budget for 2007 comprising 2478 line Km airborne VTM survey; ground and borehole EM surveys and 5000 m of drilling.

Airborne magnetic map with main Ni projectsAirborne magnetic map with main Ni projects

•Multiple VTEM anomalies already identified in the 6 covered areas. Drill testing will commence early next year.25 Km

CAMPILLO DE LLERENA

CAMPILLO DE LLERENA

AGUABLANCA MINE

AGUABLANCA MINE

CALZADILLACALZADILLA

CORTEGANACORTEGANA

ARGALLON ARGALLON

SIERRA LEON SIERRA LEON

RIBERA DELFRESNO

RIBERA DELFRESNO

An emerging new nickel belt with strong exploration potential.An emerging new nickel belt with strong exploration potential.


1Km VTEM conductors

AGUABLANCA

MINE

AGUABLANCA AGUABLANCA

MINEMINE

Magnetic first vertical derivative¹

Portugal - Mine site and

Regional Exploration

• Summary of 2007 Results

–Neves Corvo Minesite Exploration

–Aljustrel Minesite Exploration

–Regional Exploration

Neves CorvoMinesite Exploration

• 2007 Goals– Infill Lombador South Zinc Zone (LSZZ)

to upgrade Inferred tonnes to Indicated;

– Expand LSZZ Inferred resource.

LSZZ Drill Intersections

Drillhole From (m) To (m) Interval (m)

Est. True

Width (m) Pb % Zn %

ND20A-1 696.0 731.0 35.0 34 3.2 9.4

NE18C-3 747.0 777.0 30.0 28 2.5 8.1

NF22A 911.0 966.0 55.0 53 2.5 8.5

NF22A-1 901.0 936.0 35.0 35 0.7 7.7

NF24 902.0 960.0 58.0 58 2.6 8.7

NF24A-1 893.0 938.5 45.5 45 2.5 9.0

NF34 1,151.8 1,219.0 67.2 67 2.9 8.0

NG20 863.0 895.0 32.0 30 2.4 9.8

Plan Showing Deposits with Existing Underground

Development

Lombador

Neves

Graça

Corvo

3 km

Zambujal

LSZZ

LSZZ 2006 Resource Shape

55m @ 8.51% Zn

67m @ 8.03% Zn

16m @ 3.92% Cu

270 m

etres

Neves CorvoMine Lease

GREY: Inf 8.3 Mt @ 7.7% Zn

All at 3.3%Zn cutoffGREY: Inf 8.3 Mt @ 7.7% Zn

3.3%Zn cutoff

2006 Neves-CorvoZinc Resource

Zinc resources were estimated using a 3.3% cut-off.

The indicated resources are inclusive of those mineral resources

modified to produce the mineral reserve

1,397

1,887

1,827

60

Contained

000’s of tonnes

1324.861.2Measured

4,0286.2029.4Indicated

4,1606.1530.6M+I

3,0805.4925.5Inferred

Metal

Million pounds

Zinc Grade (%)

Tonnes (Mt)

1,397

1,887

1,827

60

Contained

000’s of tonnes

1324.861.2Measured

4,0286.2029.4Indicated

4,1606.1530.6M+I

3,0805.4925.5Inferred

Metal

Million pounds

Zinc Grade (%)

Tonnes (Mt)

Resource Expansion Potential

700 metres

620 metres

100m massive

sulphide

47m @ 4.2% Zn

stockwork

55m @ 8.51% Zn

67m @ 8.03% Zn

Lombador

Neves

Corvo

Resource Expansion Potential

Aljustrel Mine Site Exploration

• 2007 Goals

– Infill and expand Feitais deposit;– Infill Estação deposit.

Feitais Deposit Expansion

Added in 2007

Target Area

For 2008

Feitais and EstaçãoDeposits

615 metres

590 metres

Feitais – conversion of

Inferred to Indicated,

Expansion of Inferred

Estação – infill drilling,

Step-outs to determine

Deposit limits

Represa

Fault

Regional Exploration

• 2007 Goals– Complete compilation and organization

of historical exploration data;– Complete levelling of historic gravity

data;– Drill test priority areas;– TEM orientation and surveying;– AirFTG survey.

LombadorTEM

Estação Inverted TEM Section

Completed and Planned AirFTG

Survey Completed

October 2007

Proposed AirFTG

Expansion

Aljustrel

Neves Corvo

aguablanca mine - lundin mining · power, airport, etc.) ... • conventional...

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