EuroZinc accelerates mine-site exploration at Neves-Corvo

Vancouver With new reserve and resource estimates in hand, EuroZinc Mining (EZM-T, EZM-X) has accelerated mine-site exploration in order to identify additional reserves and extend the life of its Neves-Corvo copper-zinc-tin mine in southern Portugal.

Neves-Corvo is situated in the Iberian Pyrite Belt, which also hosts numerous volcanogenic massive sulphide deposits, including those comprising the Aljustrel zinc-lead-silver mine that the company aims to bring back into production.

EuroZinc acquired Neves-Corvo in June of 2004. For the full year 2005, the underground mine produced 89,500 tonnes of copper (contained in concentrates) at a net cash-cost of US$0.77 per lb.

Neves-Corvo consists of five deposits enriched in copper, tin and zinc metals, which typically form discrete high-grade zones that are selectively mined and milled to produce copper and tin concentrates. Starting this summer, zinc production will replace tin production, as not enough tin remains in the deposit to support full-time production.

Proven and probable copper reserves at the deposit total 16.8 million tonnes grading 5.47% copper, plus a probable zinc reserve of 10.6 million tonnes at 7.96% zinc.

The measured and indicated copper resource stands at 18.67 million tonnes grading 5.97% copper, 0.26% lead, and 1.1% zinc, plus a further 7.3 million tonnes of 3.96% copper, 0.3% lead, and 0.57% zinc in the inferred category. The indicated zinc resource stands at 26.18 million tonnes at 0.58% copper, 1.25% lead, 6.4% zinc and 62.48 grams silver per tonne, plus another 24.17 million tonnes of 0.41% copper, 1.4% lead, 5.55% zinc and 62.05 grams silver in the inferred category.

EuroZinc notes that the contained copper in the latest reserve estimate is 6% higher than at the end of 2004, after mining 2.2 million tonnes grading 5% copper during 2005. Drilling will continue this year to test higher grade zinc zones and better understand the grade distribution of the large zinc resource.

EuroZinc’s 2006 mine-site exploration program will include 20,000 metres of surface step-out drilling and 19,000 metres of underground infill drilling. These programs are expected to expand reserves and resources that could extend the life of the mine beyond 2022.