Lundin Mining Corporation

Lundin Mining Corporation

March 31, 2005 08:32 ET

Lundin Mining Reports on Up-dated Mineral Reserves for the Zinkgruvan Mine


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: LUNDIN MINING CORPORATION

TSX SYMBOL: LUN

MARCH 31, 2005 - 08:32 ET

Lundin Mining Reports on Up-dated Mineral Reserves for
the Zinkgruvan Mine

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 31, 2005) - Lundin
Mining Corporation (TSX:LUN)(O-List Stockholmsborsen:LUMI) ("Lundin
Mining" or the "Company") is pleased to announce it has received an
up-dated Mineral Reserve calculation for its Zinkgruvan Mine located in
southern Sweden.

As of December 31, 2004, the Proven and Probable Mineral Reserves at the
Zinkgruvan Mine were 8.81 million tonnes grading 9.9% zinc, 4.8% lead,
and 101 grams per tonne silver. The Mineral Reserves were calculated by
the Zinkgruvan Mine staff according to the rules of Canadian National
Instrument 43-101, for reporting Mineral Reserves and Mineral Resources.

The Mineral Reserves are reported separate from Mineral Resources.



Tonnes Zinc Lead Silver
The Zinkgruvan Mine (000s) (%) (%) (g/t)
------------------------------------------------------------------
Mineral Reserves
Proven
Nygruvan 1,702 12.6 3.4 64
Knalla 5,481 9.2 5.8 122
Total 7,183 10.0 5.3 109
Probable
Nygruvan 923 11.4 2.6 62
Knalla 704 6.5 2.9 75
Total 1,627 9.3 2.8 68
Total Proven and Probable 8,810 9.9 4.8 101
------------------------------------------------------------------
Mineral Resources
Measured
Nygruvan 551 6.7 0.9 25
Knalla 518 9.0 2.2 43
Total 1,069 7.8 1.5 34
Indicated
Nygruvan 410 12.5 1.7 57
Knalla 634 7.5 4.5 98
Total 1,044 9.5 3.4 82
Total Measured and Indicated 2,113 8.6 2.5 58
Inferred
Nygruvan 275 12.9 6.5 97
Knalla 7,889 9.8 4.1 101
Total Inferred 8,164 9.9 4.2 101
------------------------------------------------------------------


The Mineral Reserves and Resources of the Zinkgruvan Mine are based on a
database consisting of approximately 2000 drill holes. The main part of
the Mineral Reserve was calculated using a block model employing the
ordinary Kriging Method. The Mineral Resource calculation employed
mainly the Polygon Method. An economic cut-off value of 250 SEK (Swedish
Kronor) was used when converting Mineral Resources to Mineral Reserves.
For the Burkland deposit in the Knalla area of the mine a mining
recovery of 95% was used with 3% mining loss, 12% wall-rock and 3%
backfill dilution. For the remaining Nygruvan deposit, a mining recovery
of 95% was used with 5% mining loss and 20-25% dilution.

A copper deposit exists In the structural hanging wall of the Burkland
ore deposit consisting of copper in the form of disseminated and
stockwork chalcopyrite hosted in dolomitic marble. The resource estimate
for this deposit is calculated as:



Tonnes Copper Zinc Lead Silver
The Zinkgruvan Mine Copper Deposit (000s) (%) (%) (%) (g/t)
-----------------------------------------------------------------------
Mineral Resource
Indicated
Knalla 2,707 3.1 0.5 0.0 48
Inferred
Knalla 850 3.3 0.2 0.0 41
-----------------------------------------------------------------------


The Company reports that 20,000 meters of underground drilling is
planned for 2005, part of which will be used to define additional
Mineral Resources as well as convert existing Mineral Resources to the
Mineral Reserve category. In order to complete this drilling an
additional 190 meters of underground development will be completed to
provide appropriate drill stations.

The Qualified Persons responsible for the Zinkgruvan Mineral Reserve and
Resource calculations were Per Hedstrom and Lars Malmstrom, members of
the Zinkgruvan Mine staff and members the Australian Institute of Mining
and Metallurgy.

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
more than 95 percent of the shares of the mining and exploration company
North Atlantic Natural Resources AB (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

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Lundin Mining Corporation
    Sophia Shane
    Investor Relations North America
    (604) 689-7842
    or
    Lundin Mining Corporation
    Robert Eriksson
    Investor Relations Europe
    +46-8-545-07470
    www.lundinmining.com