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  Oct 27, 2010 - 09:09 ET
Lundin Mining Discovers New Copper Deposit at Neves-Corvo

 

TORONTO, ONTARIO--(Marketwire - Oct. 27, 2010) - Lundin Mining Corporation (TSX:LUN)(OMX:LUMI) ("Lundin Mining" or the "Company") is pleased to announce the discovery of a new copper-rich massive sulphide deposit at its 100% owned Neves-Corvo mine in southern Portugal.

Surface exploration drilling near the Neves-Corvo mine has discovered a sixth deposit to add to the Neves, Corvo, Graça, Zambujal and Lombador sulphide deposits. Each of these original five massive sulphide deposits hosts one or more copper-zinc(-tin) orebodies and the discovery of a sixth massive sulphide deposit is a significant event in the history of the mine. This new deposit has been named the Semblana deposit and is located only 1.3 km northeast of the Zambujal orebody in an area which has not previously been drilled. To see attached maps please click on: http://media3.marketwire.com/docs/MAPS1027.pdf.

Neil O'Brien, Senior Vice President of Exploration and New Business Development for Lundin Mining commented, "The last discovery of this significance at Neves-Corvo was the initial discovery of the Lombador massive sulphide deposit 22 years ago."

"In the past 5 years exploration drilling has successfully defined more than 40 million tonnes of zinc resources at Lombador. The discovery of the Semblana deposit, however, demonstrates that new high-grade copper deposits of the calibre of the original discoveries can still be found at Neves-Corvo," Dr. O'Brien said.

The Semblana area was targeted on the basis of coincident gravimetric and ground electromagnetic geophysical anomalies and extrapolation of favourable geology down dip of the Zambujal orebody and along strike of the Corvo orebody. Three widely spaced initial holes were drilled, intercepting weak sulphide stockwork mineralization containing anomalous copper and tin values.

Borehole electromagnetic ("BHEM") surveying was performed in each of these three drill holes, resulting in the identification of a strong off-hole conductor. Hole SO48 was the first to test this conductor and intercepted a thin bed of zinc-bearing massive pyrite underlain by pyritic stockwork type sulphides, thereby confirming the source of the geophysical anomaly as concentrated sulphide mineralization.

Hole PSL48, located 180 metres along strike to the northwest of the intercept in SO48, intercepted 67 metres (from 883 to 950 metres) of strong copper/zinc-enriched massive and stockwork type sulphides returning a best assay interval of 36.5 metres grading 1.4% copper, including 6.0 metres grading 3.4% copper and 2.6% zinc.

Subsequent holes have intercepted additional thick massive and stockwork type sulphide intervals, including 4.0 metres grading 4.6% copper in hole PSL48A-1 and 21.0 metres grading 4.2% copper in hole PSK50-1. These intersections are located respectively 100 metres northeast and 230 metres north of PSL48.

Importantly, in addition to the high copper grades intercepted in holes PSL48, PSL48-1 and PSK50-1, each of these drill holes has encountered concentrated values of tin (e.g., hole PSL50-1 contains a 3.0 metre interval averaging 1.2% tin) suggesting that the Semblana deposit is geologically similar to the high-grade Corvo orebody located approximately one kilometre to the west.

Assays are pending for two additional massive sulphide and stockwork intersections from holes PSJ46 (300 metres northwest of PSL48) and PSI50 (400 metres north of PSL48).

Highlighted drill results are summarized below:

Hole No. From (metres) To (metres) Thickness (metres) Copper (%) Zinc (%) Lead (%) Tin (%)
PSK50-1 931.0 952.0 21.0 4.16 0.27 0.05 0.15
PSL48A-1 923.0 927.0 4.0 4.58 0.82 0.18 0.27
PSL48 900.0 936.5 36.5 1.44 0.73 0.27 0.12
including 902.0 909.0 7.0 2.32 0.20 0.05 0.13
and 929.5 935.5 6.0 3.39 2.64 1.15 0.28

Exploration drilling has currently outlined an area of at least 600 metres by 250 metres of massive sulphide + stockwork mineralization in 7 drill holes. This new deposit remains open in almost all directions and appears to be almost flat-lying. Drill intersections shown above are interpreted to be true thicknesses. Additional BHEM surveying indicates that the conductive sulphide mineralization has significant size potential. There are currently four drill rigs delineating the extent of this new discovery.

Sampling and Analytical Protocol

NQ sized drill core was logged, cut in half with a diamond saw and sampled by Company personnel at its facilities at the Neves-Corvo mine. Mineralized intervals are analyzed for a suite of elements including Zn, Cu, Pb and Sn at the Neves-Corvo laboratory using XRF methods.

Qualified Person

Bob Carmichael, P.Eng., General Manager, Resource Exploration, is the Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical information contained in this release.

About Lundin Mining

Lundin Mining Corporation is a diversified base metals mining company with operations in Portugal, Sweden, Spain and Ireland, producing copper, zinc, lead and nickel. In addition, Lundin Mining holds a development project pipeline which includes expansion projects at its Zinkgruvan and Neves‐Corvo mines along with its equity stake in the world class Tenke Fungurume copper/cobalt project in the Democratic Republic of Congo.

On Behalf of the Board,

Phil Wright, President and CEO

Forward Looking Statements

Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the Ontario Securities Act. 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 Company's 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, nickel, lead and zinc; that the Company can access financing, appropriate equipment and sufficient labour and that the political environment where the Company operates 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
Sophia Shane
Investor Relations North America
+1-604-689-7842
or
Lundin Mining Corporation
John Miniotis
Senior Business Analyst
+1-416-342-5565
or
Lundin Mining Corporation
Robert Eriksson
Investor Relations Sweden
+46 8 545 015 50
www.lundinmining.com