Lundin Mining Corporation
TSX : LUN

Lundin Mining Corporation

March 31, 2006 16:10 ET

Lundin Mining Reports on Updated Mineral Reserves and Mineral Resources for the Zinkgruvan, Galmoy and Storliden Mines and on the Zinkgruvan Exploration Proposal

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 31, 2006) - Lundin Mining Corporation ("Lundin Mining" or the "Company") (TSX:LUN)(O-list at Stockholmsborsen:LUMI) is pleased to announce that it has received updated Mineral Reserve and Mineral Resource estimates for the Zinkgruvan Mine, located in southern Sweden, the Galmoy Mine, located in County Kilkenny, Ireland, and the Storliden Mine located in the Skellefte District, northern Sweden.

Zinkgruvan

As of December 31, 2005, the Proven and Probable Mineral Reserves at the Zinkgruvan Mine were 8.161 million tonnes grading 9.7% zinc, 4.7% lead and 98 grams per tonne silver. The Mineral Reserves, which are reported in addition to Mineral Resources, were estimated by the Zinkgruvan Mine staff in accordance with the requirements of the Canadian Securities Administrators' National Instrument 43-101 ("NI 43-101") and the Council of the Canadian Institute of Mining, Metallurgy and Petroleum definitions ("CIM standards"). The estimates were audited by Watts, Griffis and McOuat Limited of Toronto, Canada, in accordance with the provisions of NI 43-101 and the CIM standards.



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Tonnes Zinc Lead Silver
The Zinkgruvan Mine (000s) (%) (%) (g/t)
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Mineral Reserves (1)
Proven 6,267 9.8 5.3 111
Probable 1,894 9.2 2.5 57
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Total 8,161 9.7 4.7 98
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Tonnes Zinc Lead Silver
The Zinkgruvan Mine (000s) (%) (%) (g/t)
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Mineral Resources (1)
Measured 611 6.7 1.0 25
Indicated 1,236 9.2 3.3 86
Total Measured and Indicated 1,847 8.4 2.5 66

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Total Inferred 8,463 10.5 4.4 105
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The Zinkgruvan Mine Tonnes Zinc Copper Silver
Copper zone (000s) (%) (%) (g/t)
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Mineral Resources (2)
Indicated 2,800 0.5 2.9 32
Inferred 890 0.2 3.1 28
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(1) Zinkgruvan zinc/lead Mineral Reserves and Mineral Resources are estimated using a 250 SEK Net Smelter Return ("NSR") cut-off and minimum mining width of 3.0m. The metal prices used are US$992/t for Zn, US$661/t for Pb, US$5.50/oz for Ag and the assumed exchange rate is 8.00 SEK/US$.

(2) Zinkgruvan copper Mineral Resources are estimated using a 2% copper cut-off.

The Qualified Persons responsible for the audit of the Zinkgruvan Mineral Reserve and Resource estimates were John Sullivan, P. Geo., Senior Geologist and Stephen Cheeseman, P. Geo., Senior Associate Geologist.

Galmoy

As of December 31, 2005, the Proven and Probable Mineral Reserves at the Galmoy Mine were 3.553 million tonnes grading 14.7% zinc, 4.1% lead and 26 grams per tonne silver. The Mineral Reserves, which are reported in addition to Mineral Resources, were estimated by the Galmoy Mine staff according to the standards and definitions incorporated in the Code for Reporting Mineral Exploration Results, Mineral Resources and Mineral Reserves ("IMM Reporting Code"), and were audited by Watts, Griffis and McOuat Limited in accordance with the requirements of NI 43-101 and restated to comply with the CIM standards.



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Tonnes Zinc Lead Silver
The Galmoy Mine (000s) (%) (%) (g/t)
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Mineral Reserves (3)
Proven 2,892 15.9 4.6 31
Probable 660 9.6 2.0 5
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Total 3,553 14.7 4.1 26
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Tonnes Zinc Lead Silver
The Galmoy Mine (000s) (%) (%) (g/t)
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Mineral Resources (4)
Measured 1,071 11.8 2.5 63.4
Indicated 536 9.0 1.6 2.3
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Total Measured and Indicated 1,607 10.9 2.2 43.0
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(3) Galmoy Mineral Reserves are estimated using a 6.0% zinc equivalent ("ZnEq") cut-off. ZnEq equals % Zn + 1/2 % Pb.

(4) Galmoy Mineral Resources are estimated using a 4.5% ZnEq cut-off and 3.7m minimum mining thickness.

The Qualified Persons responsible for the audit and restatement of the Galmoy Mineral Reserve and Resource estimates were John Sullivan, P. Geo., Senior Geologist and Stephen Cheeseman, P. Geo., Senior Associate Geologist.

Storliden

As of December 31, 2005, the Proven and Probable Mineral Reserves at the Storliden Mine were 0.527 million tonnes grading 8.5% zinc, 3.1% copper, 0.3 grams per tonne gold and 24 grams per tonne silver. The Mineral Reserves are reported separate from an additional 0.323 million tonnes of Measured and Indicated Mineral Resource of which 0.255 million tonnes is inaccessible being material predominately in pillars or beneath. The estimates have been prepared in accordance with the requirements of NI 43-101 and comply with the CIM standards.



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Tonnes Zinc Copper Gold Silver
The Storliden Mine (000s) (%) (%) (g/t) (g/t)
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Mineral Reserves (5)
Proven 405 9.7 3.4 0.3 26
Probable 122 4.4 2.1 0.2 21
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Total 527 8.5 3.1 0.3 24
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Tonnes Zinc Copper Gold Silver
The Storliden Mine (000s) (%) (%) (g/t) (g/t)
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Mineral Resources (6)
Measured 222 4.4 2.5 0.4 31
Indicated 101 3.5 2.2 0.5 33
Total Measured and Indicated 323 4.1 2.4 0.4 32

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Total Inferred 26 2.0 2.3 0.6 45
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(5) Storliden Mineral Reserves are estimated using a 400 SEK NSR cut-off. The metal prices used are US$1,653/t for Zn, US$3,857/t for Cu, US$450/oz for Au and US$7.00/oz for Ag and the assumed exchange rate is 7.00 SEK/US$.

(6) Storliden Mineral Resources are estimated using a 150 SEK NSR block cut-off.

The Qualified Person responsible for these estimates is Mr. Adam Wheeler, C. Ing, Eur, Ing, MIMM, an independent consultant. The work has been completed with assistance from both NAN and Boliden technical personnel. This work also included visits to the mine itself. For the development of the Life of Mine Study used in the estimation of Mineral Reserves, Adam Wheeler was also assisted by Dr R. Dowdell (C.Eng, MIMM), an independent mining consultant based in Cornwall, England.

Readers should refer to the following technical reports, each of which is available for review on the SEDAR website located at http://www.sedar.com under the Company's profile, for additional disclosure relating to the key assumptions, parameters and methods used to estimate the Mineral Resources and Mineral Reserves and for a general discussion of the extent to which the estimate of Mineral Resources or Mineral Reserves may be materially affected by any known environmental, permitting, legal, title or other relevant issues:

- "Ore Reserves and Mineral Resources of the Zinkgruvan Mine in South Central Sweden" dated December 31, 2004 and prepared by Lars Malmstrom, Chief Geologist of Zinkgruvan Mining AB and Per Hedstrom, Senior Geologist of Zinkgruvan Mining AB

- "A Technical Report of the Galmoy Mine and Prospecting Licenses held by Arcon in the Irish Midlands - Republic of Ireland for Lundin Mining Corporation" dated April 22, 2005 and prepared by John R. Sullivan, P. Geo. Senior Geologist, G. Ross MacFarlane, P. Eng. Senior Associate Metallurgical Engineer and Stephen B. Cheesman, P. Geo. Senior Associate Geologist, of Watts, Griffis and McOuat Limited, Consulting Geologists and Engineers

- "Technical Report on the Storliden Mine, Sweden" dated February 2005 and prepared by Adam Wheeler, C. Eng., Eur. Ing.

Zinkgruvan - Exploration Proposal

A multi-year, integrated in-mine and near-mine exploration programme has begun with the objective of finding and developing new Mineral Reserves to further extend the mine life of this core asset. Starting this year, a special exploration team, comprised of exploration and mine staff and consultants, will use the most advanced geological models and exploration tools available to locate new zones that can be developed from existing mine infrastructure. Potential for new discoveries is considered excellent. This new target development work is in addition to the ongoing mine exploration programme that includes the development of two underground exploration drifts from which, compared to previous years, an increased amount of drilling will take place this year to define Mineral Resources and Mineral Reserves.

ON BEHALF OF THE BOARD

Karl-Axel Waplan, President and CEO

Lundin Mining is a Canadian mining and exploration company with a global focus in base metals. The main assets of the company are the Zinkgruvan zinc/lead/silver mine, located about 200 kilometres southwest of Stockholm, Sweden and the Galmoy zinc/lead mine in Ireland. The Zinkgruvan mine has been producing zinc, lead and silver on a continuous basis since 1857 and has consistently ranked in the lowest cost quartile among zinc mines in the world. Approximately 720,000 tonnes of ore per year are mined and treated at Galmoy, resulting in production of about 80,000 tonnes of zinc in concentrates, 20,000 tonnes of lead in concentrates and a significant amount of silver. Lundin Mining also owns the Storliden zinc/copper mine in the Skellefte District of northern Sweden. In addition to the three mines, Lundin Mining holds exploration permits covering substantial areas in Sweden as well as in Ireland. Lundin Mining also holds about 19.9% of the outstanding shares of Union Resources - which controls 38% of the world-class zinc/lead deposit, Mehdiabad, in central Iran.

Contact Information

  • Lundin Mining Corporation
    Sophia Shane
    Investor Relations - North America
    (604) 689-7842
    (604) 689-4250 (FAX)
    or
    Lundin Mining Corporation
    Robert Eriksson
    Investor Relations - Europe
    +46-8-545 074 70
    or
    Lundin Mining Corporation
    Karl-Axel Waplan
    President and CEO
    +46-8-545 074 70
    +46-8-545 074 71 (FAX)
    www.lundinmining.com