Lundin Mining Corporation

Lundin Mining Corporation

March 08, 2005 10:49 ET

Lundin Mining Corporation: NAN Reports on Up-Dated Mineral Reserves for Storliden Mine


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: LUNDIN MINING CORPORATION

TSX SYMBOL: LUN

MARCH 8, 2005 - 10:49 ET

Lundin Mining Corporation: NAN Reports on Up-Dated
Mineral Reserves for Storliden Mine

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 8, 2005) - Lundin
Mining Corporation ("Lundin Mining" or the "Company") (TSX:LUN)(O-List
Stockholmsborsen:LUMI) is pleased to announce that North Atlantic
Natural Resources AB ("NAN") today reported that NAN has received an
up-dated independent Mineral Reserve calculation for its Storliden Mine
located in northern Sweden.

As of December 31, 2004, the Proven and Probable Mineral Reserves at the
Storliden Mine were 844 thousand tonnes grading 10% zinc, 3.6% copper,
0.3 grams per tonne gold and 25 grams per tonne silver. The Mineral
Reserves were calculated by Mr. Adam Wheeler, an independent mining
consultant based in Cornwall, England, according to the standards of
Canadian National Instrument 43-101, for reporting Mineral Reserves and
Mineral Resources.

The Mineral Reserves are reported separate from an additional 360,000
tonnes of Measured and Indicated Mineral Resources.



Tonnes Zinc Copper Gold Silver
The Storliden Mine (000s) (%) (%) (g/t) (g/t)
---------------------------------------------------------------
Mineral Reserves
Proven 726 10.3 3.6 0.3 25.0
Probable 119 8.0 3.2 0.3 24.3
Total 844 10.0 3.6 0.3 24.9
---------------------------------------------------------------
Mineral Resources
Measured 250 3.0 2.3 0.4 30.9
Indicated 110 3.0 2.2 0.5 32.6
Total 360 3.0 2.2 0.4 31.4
Inferred 25 2.0 2.3 0.6 44.2
---------------------------------------------------------------


For the three years of production from June 2002 to December 2004, the
Storliden Mine has produced a total of 752,000 tonnes of ore, with an
average grade of 10.1% zinc and 3.6% copper. This has enabled the
production of 128,500 tonnes of zinc concentrate and 86,500 tonnes of
copper concentrate. A small amount of gold and silver has also been
produced grading 0.6g/t Au and 34g/t Ag.

Adam Wheeler estimated the Mineral Resources and Mineral Reserves for
Storliden from a database of diamond drillhole information collected by
NAN, with input from Boliden and NAN geologists. The deposit has been
defined by 583 drill holes. The overall mineral resource estimate
employed a block model created in the Datamine software package. Grade
interpolation was performed using the Inverse Power of Distance Squared
(ID2) method for the following metals: copper, zinc, gold, silver.

The resource model calculations by Mr. Wheeler are based on an updated
survey of mining operations as of December 31, 2004 and a cut-off value
of SEK 150 per tonne based on a zinc price of USD 1,102 per tonne, a
copper price of USD 2,491 per tonne, a gold price of USD 350 per ounce
and a silver price of USD 5.00 per ounce. The minimum mining width was 5
metres except for certain extremities of the ore deposit where 4 metres
was used. Mining recovery varies from 100% to 95% and unplanned dilution
as high as 8% has been applied, depending on the mining method proposed
for each section of the orebody.

The Qualified Person under the auspices of the Canadian Institute of
Mining, Metallurgy and Petroleum ("CIM") responsible for these
calculations is Mr. Adam Wheeler, C. Eng, Eur. Ing, MIMM, an independent
mining consultant. Adam Wheeler completed the majority of the initial
geological modelling work during the first half of 2004. The updated
resource and reserve estimation work was completed during February 2005.
The work has been completed with assistance from both NAN and Boliden
technical personnel. This work also involved numerous visits to the mine
itself. For the development of the life-of-mine planning study, used in
the calculation of reserves, Adam Wheeler was also assisted by Dr. R.
Dowdell (C.Eng, MIMM), also an independent mining consultant based in
Cornwall, England.

Lundin Mining is a Canadian mining and exploration company with a
primary focus in Scandinavia. The main asset of the company is the
Zinkgruvan mine, located about 200 kilometers southwest of Stockholm,
Sweden. The mine has been producing zinc, lead and silver on a
continuous basis since 1857. Zinkgruvan has consistently ranked in the
lowest cost quartile among zinc mines in the world. Lundin Mining holds
approximately74 percent of the shares of NAN, a mining and exploration
company listed on the Stockholm Stock Exchange under the ticker symbol
NAN. NAN's primary asset is the Storliden copper and zinc mine in the
Skellefte District of northern Sweden, which has been in production
since 2002. A public offer has been made for the remaining outstanding
shares of NAN. Lundin Mining also holds a large copper/gold exploration
project in the prolific Norrbotten Mining District in northern Sweden.

ON BEHALF OF THE BOARD

Edward F. Posey, President

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Lundin Mining Corporation
    Sophia Shane
    Head of Corporate Communications
    (604) 689-7842
    (604) 689-4250 (FAX)
    or
    Lundin Mining Corporation
    Robert Eriksson
    Investor Relations - Europe
    +468-545-07470
    468-545-07471 (FAX)
    www.lundinmining.com