Vancouver An inhouse reserve-resource update at Lundin Mining’s (LUN-T) Zinkgruvan mine in southern Sweden pegs the reserves slightly below the previous estimate while resource figures remain unchanged.
Qualified staff at the mine estimated proven and probable reserves of 8.81 million tonnes grading 9.9% zinc, 4.8% lead, and 101 grams per tonne silver, at the Nygruvan and Knalla deposits at the end of 2004.This compares with previous proven and probable reserves of 9.5 million tonnes averaging 9.8% zinc, 4.8% lead and 97 grams silver per tonne in the previous estimate.
Zinkgruvan’s reserves and resources, based on some 2,000 drill holes, were estimated in accordance with National Instrument 43-101. The main part of the reserve was calculated using a block model employing the ordinary kriging method while the mineral resource portion relied on the polygonal method.
Resources at the Nygruvan and Knalla deposits remained at 2.1 million tonnes averaging 8.6% zinc, 2.5% lead and 58 grams silver per tonne in the measured and indicated categories. Inferred resources stand at 8.1 million tonnes grading 9.9% zinc, 4.2% lead and 101 grams silver.
Resources were converted to reserves based on an economic cutoff of 250 Swedish kronor which is roughly equal to US$35.
In addition to the lead-zinc and silver traditionally mined at Zinkgruvan, a copper resource was discovered in 1997 in the Knallagruvan area of the mine. The copper resource comprises 2.7 million tonnes averaging 3.1% copper, 0.5% zinc and 48 grams silver per tonne in the indicated category. Inferred resources stand at 850,000 tonnes grading 3.3% copper, 0.2% zinc and 41 grams silver.
Lundin plans another 190 metres of underground development to facilitate some 20,000 metres of underground drilling this year. The drilling aims to expand resources and bring existing resources to the reserve category.
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