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  Jul 24, 2007 - 02:30 ET
Lundin Mining Announces Second Quarter 2007 Operating Results

 
VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 24, 2007) - Lundin Mining Corporation ("Lundin Mining" or the "Company") (TSX:LUN)(AMEX:LMC)(OMX:LUMI) is pleased provide the following second quarter 2007 operating results. 

Joao Carrelo, Executive Vice President and COO of Lundin Mining, commented: "Group operations milled 17% more ore in the second quarter 2007 than during the same period in 2006. Although head grades for most operations were lower than in the second quarter 2006, increased run of mine ore throughput partially compensated for the potential shortfall in production of copper and zinc metal in concentrate. Lead and silver metal production, however, were up 18% and 6% respectively for the same comparable period. Excepting the programmed annual maintenance shutdowns in the third quarter, we will strive to increase throughput rates by rolling out productivity enhancement initiatives which are expected to further strengthen our competitive advantages. The acquisition of the Spanish nickel-copper mine Aguablanca during the third quarter will add to our copper production whilst providing a fourth metal, nickel, to our base metals product offering."

The following information is provided as if the companies (Lundin Mining Corporation and EuroZinc Mining Corporation) had operated on a combined basis since the first period presented. EuroZinc Mining Corporation was consolidated in Lundin Mining as at November 1, 2006.

Highlights and Significant Items for second quarter 2007

- For the second consecutive quarter operations mined and processed one million tonnes of ore

- Produced 24,400 tonnes of copper metal contained in concentrate

- Produced 40,550 tonnes of zinc metal contained in concentrate

- Produced 13,200 tonnes of lead metal contained in concentrate

- Produced 717,000 ounces of silver contained in concentrate

- Historically the highest throughput in one quarter processed at the Neves Corvo mine

- The Zinkgruvan mine continued to process through its mill record high throughputs 

- Despite protracted wage negotiations, production at the Galmoy mine in the second quarter increased by 30% in relation to the first quarter of the year

Mine Operations Highlights, Second Quarter 2007

Neves-Corvo

- Mined 596,906 tonnes of ore in the second quarter 2007, a 21% increase as compared with the second quarter 2006. The year to date results heralded the highest tonnage ever mined and processed in one half year throughout the mine's 19 year history. 

- Although the treatment of lower grade ore dropped the copper head grade to 4.6%, the increased throughput enabled the operation to produce 20,875 tonnes of copper metal in concentrate during the period, which represents a shortfall of 5.6% compared to the second quarter 2006. Copper ore head grades are expected to improve for the balance of the year when compared with the second quarter. The annual mine maintenance programme will cause the copper ore treatment plant to stop production for three days during the third quarter 2007. 

- The copper recovery year to date now stands at 87% whilst the concentrate grade was maintained close to 23%. 

- Zinc metal production in the second quarter 2007 was 6,048 tonnes, which was similar to the preceding quarter. Zinc head grades were 7.3% in the period and are expected to improve during the second half of the year compared with the second quarter 2007. 

- Mine maintenance and efficiency improvement modifications to plant processes during the third quarter are expected to bring the zinc ore treatment plant to a standstill for approximately five days. 

Zinkgruvan

- Mined 218,065 tonnes in the second quarter 2007, which represents a 13.8% increase in tonnage compared to the same period in 2006.

- A total of 230,768 tonnes of ore was processed in the mill during the second quarter 2007 thus exceeding the comparable period in 2006 by 27,066 tonnes or 13.3%.

- The operation registered lower feed grades of zinc but higher lead grades in the second quarter 2007 compared to the corresponding period in 2006. Zinc grades decreased from 11.9% to 7.8% whilst lead grades rose from 4.5% to 5.2%. Main contributing reason for the differences is associated with the extremely high zinc grades and unusually high production from Nygruvan during 2006. Zinc and lead grades are expected to improve in the third quarter 2007 compared with the second quarter. 

- Whilst zinc metal production was 25.9% lower in the second quarter 2007 compared with the second quarter 2006, the mill produced 10,664 tonnes of lead metal in concentrate, which represents an increase of 32.8% for the same periods of comparison.

- Recovery of lead was 2.5% higher in the second quarter 2007 compared with the second quarter 2006 and averaged 88.7% during the period.

- The annual maintenance programme is expected to cause the process plant to stop production for approximately ten days. 

Galmoy

- A total of 115,417 tonnes of ore was mined in the second quarter 2007 compared with 135,901 tonnes of ore during the same period in 2006. The production shortfall was mainly due to poor productivity from the longhole drilling rigs, stope sequencing alterations due to challenges experienced with the backfill program in the second half of 2006, and the ongoing negotiations on pay with the local unions.

- However, alterations in stope sequencing helped boost run of mine zinc ore grades, which were 12.9% in the second quarter 2007 compared with 11.7% in the second quarter 2006. Zinc head grades are expected to remain above 2006 levels.

- A second longhole rig was brought into production resulting in a significant increase in longhole metres drilled underground.

- The CW South ore body came back into production after a 10-month delay due to backfill challenges experienced in the second half of 2006. A study is underway to identify a process that will enable paste to set more rapidly.

- Wage negotiations with the local unions could continue to affect production rates during the third quarter. 

Storliden

- Management is studying the optimal closure programme for the Storliden mine, which is planned for during the fourth quarter of 2007. 

- Ore mined during the second quarter of 2007 was 79,100 tonnes as compared with 92,400 tonnes in the second quarter 2006.

- A total of 76,038 tonnes of ore was milled during the second quarter 2007, which represents an increase of 17.8% when compared with the first quarter of this year. 

- As the operation draw nearer to closure, copper and zinc grades are expected to drop when compared to the same periods in 2006. The production from the mine will be lower in the third quarter 2007 compared with the second quarter due to the three-week vacation in July. 

The following table highlights the production results for the second quarter 2007 and 2006 and for the year 2006.



Q2 Q2 Year End
-----------------------------------------------------------
2007 2006 2006
-----------------------------------------------------------
Mined Ore (tonnes)
Neves-Corvo Copper 491,063 491,557 1,957,505
Neves-Corvo Zinc 105,843 - 147,625
Neves-Corvo Total 596,906 491,557 2,107,272
Zinkgruvan 218,065 191,621 787,889
Galmoy 115,417 135,901 605,438
Storliden 79,100 92,400 346,652
-----------------------------------------------------------
1,009,488 911,479 3,847,251
-----------------------------------------------------------
Milled Ore (tonnes)
Neves-Corvo Copper 524,922 492,300 1,946,852
Neves-Corvo Zinc 106,820 - 147,675
Neves-Corvo Total 631,742 492,300 2,094,527
Zinkgruvan 230,768 203,702 787,003
Galmoy 122,371 145,905 616,536
Storliden 76,038 63,711 362,316
-----------------------------------------------------------
1,060,919 905,618 3,860,382
-----------------------------------------------------------
Head Grade

Copper
Neves-Corvo 4.6% 5.0% 4.6%
Storliden 2.1% 3.8% 3.2%

Zinc
Neves-Corvo 7.3% - 8.4%
Zinkgruvan 7.8% 11.9% 10.3%
Galmoy 12.9% 11.7% 11.8%
Storliden 7.1% 9.8% 8.5%

Lead
Zinkgruvan 5.2% 4.5% 4.6%
Galmoy 3.1% 3.2% 3.2%

Recovery

Copper
Neves-Corvo 86.7% 89.0% 88.4%
Storliden 91.4% 91.9% 91.5%

Zinc
Neves-Corvo 77.6% - 60.2%
Zinkgruvan 93.5% 94.4% 93.8%
Galmoy 81.9% 82.2% 82.6%
Storliden 91.9% 91.4% 91.0%

Lead
Zinkgruvan 88.7% 86.6% 88.5%
Galmoy 72.6% 66.2% 66.8%

Concentrate Grade

Copper
Neves-Corvo 22.7% 24.6% 24.7%
Storliden 29.0% 29.1% 29.2%

Zinc
Neves-Corvo 48.8% - 49.1%
Zinkgruvan 54.1% 54.4% 54.0%
Galmoy 51.9% 52.0% 51.8%
Storliden 54.3% 53.9% 54.5%

Lead
Zinkgruvan 76.4% 75.9% 75.0%
Galmoy 64.0% 64.1% 63.5%

Metal contained in concentrate

Copper (tonnes)
Neves-Corvo 20,875 22,116 78,576
Storliden 1,500 2,200 10,642
-----------------------------------------------------------
22,375 24,316 89,218
-----------------------------------------------------------
Zinc (tonnes)
Neves-Corvo 6,048 - 7,505
Zinkgruvan 16,916 22,827 75,909
Galmoy 12,612 14,000 60,055
Storliden 4,973 5,678 27,824
-----------------------------------------------------------
40,549 42,505 171,293
-----------------------------------------------------------
Lead (tonnes)
Zinkgruvan 10,664 8,030 31,850
Galmoy 2,573 3,094 13,256
-----------------------------------------------------------
13,237 11,124 45,106
-----------------------------------------------------------
Silver (ounces)
Zinkgruvan 491,989 438,637 1,760,907
Galmoy 23,145 52,737 131,797
Neves-Corvo 201,571 182,720 645,521
-----------------------------------------------------------
716,705 674,094 2,538,225
-----------------------------------------------------------

 


The Company plans to release the second quarter 2007 financials before the opening of trading on the 14th of August, and a conference call will be held on the 14th of August. 

Lundin Mining is a rapidly growing mining and exploration company engaged in the extraction, development, acquisition and discovery of base metal deposits internationally. The company currently owns four operating mines: Neves-Corvo in Portugal, the Zinkgruvan and Storliden mines in Sweden, and the Galmoy mine in Ireland. A fifth mine under development, the Aljustrel mine in Portugal, will be brought into production in the third quarter of 2007. In addition, the Company holds an extensive exploration portfolio as well as interests in international ventures and development projects including the world class Ozernoe zinc project in Russia and the Tenke Fungurume copper/cobalt project in the DRC.

Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the Ontario Securities Act or "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 of the United States. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to foreign currency fluctuations; risks inherent in mining including environmental hazards, industrial accidents, unusual or unexpected geological formations, ground control problems and flooding; risks associated with the estimation of mineral resources and reserves and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the companies' expectations; the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; uncertain political and economic environments; changes in laws or policies, foreign taxation, delays or the inability to obtain necessary governmental permits; and other risks and uncertainties, including those described under Risk Factors Relating to the Company's Business in the Company's Annual Information Form and in each management discussion and analysis. Forward-looking information is in addition based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of copper and zinc; that the companies can access financing, appropriate equipment and sufficient labour and that the political environment where the Companies operate will continue to support the development and operation of mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements. 


FOR FURTHER INFORMATION PLEASE CONTACT:

Lundin Mining Corporation
Joao Carrelo
Executive Vice President and COO
+44-1189657545

or

Lundin Mining Corporation
Catarina Ihre
Manager, Investor Relations
+46-70-607-9263

or

Lundin Mining Corporation
Sophia Shane
Investor Relations, North America
(604) 689-7842
(604) 689-4250 (FAX)
Website: www.lundinmining.com