Slide 1: Chapada Mine Site Visit
Chapada Mine Site Visit November 9, 2019 TSX: LUN Nasdaq Stockholm: LUMI Chapada, Brazil
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward-Looking Information and Non-GAAP Performance Measures Certain of the statements made and information contained herein is “forward-looking information” within the meaning of applicable Canadian securities laws. All statements other than statements of hi
Slide 3: Site Visit Agenda
Site Visit Agenda Welcome / Safety Introduction 8:30 am - 9:30 am Presentation and Q&A 9:30 am - 10:30 am Mine Tour 10:30 am - 12:00 pm Plant Tour 12:00 pm - 1:00 pm Lunch 1:00 pm - 2:15 pm Control Room 2:15 pm - 2:45 pm Tailings Storage Facility Tour 2:45 pm - 4:00 pm Core Shack 4:00 pm - 5:00 pm C
Slide 4: Chapada General Overview
Chapada General Overview Alto Horizonte • located in northern Goiás State • 270 km northwest of national capital of Brasilia and 320 km north of state capital of Goiânia • supported by road access with good connections to the local and national road network • average elevation of approximately 300 m
Slide 5: Brief History
Brief History Acquired by Lundin Mining July 2019 Historical Highlights Expansion Expansion to In-Pit Crushing • Chapada deposit discovered in 1973 by INCO to 20 Mtpa 22 Mtpa Introduced • explored and studied throughout late 1970’s, 80’s and April January January 90’s by various owners 2009 2011 201
Slide 6: Safety Performance
Safety Performance lundin mining 1,76 Total Recordable Injury Frequency Rate (LTH#RWC+MTC) 0,66 0,63 oas 053 0,50 0.60 64958 087, o38 i | 0,26 2011 2012 “2013. 2014 2015 2016 2017 2018 JAN FEB MAR APR MAY JUN LATRIFR ~ ~Target Lost Time Injury Frequency Rate (my) 0,25 0.26 0,20 0,00 0,00 0,00 2011 2
Slide 7: Safety Strategy
Safety Strategy Safety Culture - Journey Diagram based on Bradley Curve Safety Dupont Resources 7
Slide 8: Risk Management
Risk Management In-pit crushing Electrical substations with automatic fire detection and suppression systems Fire pumping system Reagent unload area Pebbles Circuit SAG / Ball mill lubication system 8
Slide 9: Mine Overview
Mine Overview Conventional Open Pit Truck and Excavator Operation • benefits from a low strip ratio (1.1 LOM) and North an in-pit crusher Processing Pit • production currently from the Cava Central Plant (central), Cava Norte (north), and Corpo Sul (south) pits Central Tailings Pit • eventually join
Slide 10: Mine Fleet
Mine Fleet • owner fleet of rigid frame haul trucks combined with capacity of 30 Mtpa primarily moving ore • a variety of diesel hydraulic excavators and front end loaders • contractor operated fleet with capacity of 48 Mtpa primarily moving hard rock waste • contractor operated fleet with capacity
Slide 11: Processing Facilities Overview
Processing Facilities Overview Conventional Crush, Grind, Float Processing Plant Plant • single-line plant to treat sulphide ores Facilities • current capacity of 65,000 tpd or 24.0 Mtpa • produces a high-quality gold-rich copper Mine concentrate Power Facilities • in 2018 the mill: Substation ROM O
Slide 12: Electrical System
Electrical System Chapada Connected to National Grid • majority hydro generated power • via private 230 kV line • line is 84km long from Itapaci - Maracá • main power substation 230 / 13.8 kV with three power transformers 42 MVA at mine • 2018 power cost <US$0.06 kW/h • current mine peak power deman
Slide 13: Water Balance
Water Balance • approximately 1,500 mm of rainfall per year • annual consumption is 3.4M m³/year and with contemplated expansions could increase to 7.0M m³/year, which is within the permitted level • recycled water constitutes roughly 86% of process requirements • the open pits are the primary sourc
Slide 14: Simplified Flow Sheet
Simplified Flow Sheet Stockpile Ball Mill Flotation Jaw Crusher (Rougher/Scavenger) MMD (Sizer) SAG Mill IPC (Gyratory) Flotation Flotation (Scalper SFR) (Column) Flotation (Cleaner) Flotation (Cleaner Scv SFR) (Re-Scavenger DFR) Vertimill Ore Tailings Thickener Larox Filter Concentrate Tailing Stor
Slide 15: Crushing & Ore Stockpile
Crushing & Ore Stockpile Primary Crushing Crushed Ore Stockpile • ore delivered by haul truck to one of two parallel crushing lines • ore drawn by three apron feeders onto the SAG mill feed conveyor • first line: – primary gyratory crusher located adjacent to the Central pit Crushed Ore Stockpile –
Slide 16: Grinding
Grinding • grinding circuit consists of a primary 34 x 19 ft SAG mill. Power was increased as part of 2016/17 plant optimization initiative to increase throughput • two pebble crushers for SAG mill oversize • cyclopac consisting of six hydrocyclones • primary cyclone underflow can be routed to eithe
Slide 17: Rougher–Scavenger Flotation & DFR
Rougher–Scavenger Flotation & DFR • rougher flotation circuit consists of two lines of rougher-scavenger flotation cells • each line has a bank of five flotation cells retrofitted with Outotec mechanisms • retrofit of flotation cells completed as part of 2016/17 plant optimization initiative to incr
Slide 18: Regrinding & Scalper Cleaner SFR
Regrinding & Scalper Cleaner SFR • concentrate regrind circuit consists of a Metso Vertimill in closed circuit with a bank of four hydrocyclones • installed two Stage Flotation Reactor (SFR Woodgrove) on scalper circuit as part of 2017 plant optimization initiative to increase copper and gold recove
Slide 19: Cleaner and Column Flotation & Thickener
Cleaner and Column Flotation & Thickener • cleaner tailings are pumped to a new bank of four SFR cleaner scavenger flotation cells • a bank of two Wemco tank cells operate as scavenger cleaner cells in parallel with the new SFR cleaner scavengers. Concentrate from these cells is pumped to the cleane
Slide 20: Concentrate Filtration & Storage
Concentrate Filtration & Storage • thickened concentrate is filter pressed to approximately 8% moisture • trucks are weighed before loading and samples are taken from each loader bucket during loading • loaded trucks are weighed, tarped, and sealed • concentrate is transported 1,630 km to the Port o
Slide 21: Tailings Storage Facility (TSF)
Tailings Storage Facility (TSF) • TSF is located northwest of Chapada open pit • all dams raised by centerline methods Main • Main Dam and Dyke III comprise compacted earth fill Dam starter dams raised with cyclone tailings • Dyke II is a compacted earth fill dam for water retention • Main Dam is cu
Slide 22: Mineral Resources Offer Upside Potential
Mineral Resources Offer Upside Potential Mineral Resources, effective June 30, 2019 A A’ +400 m 2018 Reserves Chapada OP 2018 Resources OP +200 m Potential low grade (<0.19% Cu) resource confirmed by drilling – Baruzinho Grade Shell should be updated Baru Sucupira NM-159: 39 m @ 0.23% Cu 0.21 g/t Au
Slide 23: Mineral Reserves Support Long Life & Optimization
Mineral Reserves Support Long Life & Optimization Mineral Reserves, effective June 30, 2019 • 1.76Mt of contained copper and 4.5 Moz of contained gold in Mineral Reserves • support operational life of Chapada to 2050 at 24.0 Mpta throughput • increased Mineral Reserves in the Sucupira and Baru NE de
Slide 24: Metal Production
Chapada Production Profile1 120 100 kt of copper / koz of gold 80 Metal Production 60 40 20 0 2019 2020 2021 2022 2023 2030 2031 2032 2033 2034 2042 2043 2044 2045 2046 2024 2025 2026 2027 2028 2029 2035 2036 2037 2038 2039 2040 2041 2047 2048 2049 2050 Copper Gold 1. Production shown is based on th
Slide 25: Operating Costs
Operating Costs Average • continuous production since 2007 and operating costs Operating Cost Unit 2020 2021 2022 2023 2024 2020-24 are tracked and well understood Mining $/t material moved 2.04 2.01 2.06 2.04 2.18 2.06 • over 80% of the operating costs are locally $/t milled denominated in R$ Minin
Slide 26: Capital Costs
Capital Costs Total • over 80% of the capital costs are locally denominated in R$ Capital Cost (US$M) 2020 2021 2022 2023 2024 2020-24 Sustaining • estimated using 2019 US$ and a 3.75 R$/US$ exchange rate Mine 8.7 18.5 12.5 19.7 7.5 66.9 • capital costs include primarily: Mill 13.5 0.8 0.8 2.7 1.1 1
Slide 27: Expansion and Optimization
Expansion and Optimization • previous Feasibility-level study and basic engineering work undertaken to support expansion from 24.0 Mtpa to 32.0 Mtpa, Baru NE potentially in stages • significant opportunities to create additional value at Chapada with Cava Norte processing plant throughput expansions
Slide 28: Sucupira Infrastructure Relocation
Sucupira Infrastructure Relocation • current mine plan includes the development and mining of the Sucupira orebody • infrastructure relocations necessary regardless of ultimate mill throughput rate • location and capital estimates based on previous basic engineering undertaken as part of expansionar
Slide 29: Suruca Project Overview
Suruca Project Overview • Mineral Reserve of 65.2Mt grading 0.51 g/t gold estimated to contain 1.07 Moz • Feasibility Study considers oxide material through a heap leach process • sulphide material to be fed into a modified Chapada processing plant at the end of the mine life • exploration activitie
Slide 30: Focused Exploration Strategy
Focused Exploration Strategy Near Mine Deposits Jatobá + • anticipate a significant increase in Chapada Buriti Norte exploration expenditures, largely focused on near mine targets Sucupira/Cava Norte • a Mineral Inventory Range Analysis Baruzinho (MIRA) study was completed in Q4/19 Baru/Baru NE • MI
Slide 31: Responsible Mining
Responsible Mining Environmental Management • taking care of nature is essential to preserve our future. Chapada monitors its impacts and has initiatives to reduce its footprint ISO 14001:2015 Certification Best international practices and environmental controls Comprehensive Water Monitoring & Geoc
Slide 32: Responsible Mining
Responsible Mining Environmental Education Center • designed to promote the development of activities related to environmental education, as part of the company’s commitment to sustainability • since 2012 several activities were held with young students and citizens from the three surrounding cities
Slide 33: Responsible Mining
Responsible Mining Social Investments • Chapada supports a range of social investment initiatives in order to promote opportunities of long-lasting benefit sharing Reducing dependency Economic Participatory process on on the mining sector Diversification Partnership Seminar social investment decisio
Slide 34: Contribution to the Local Economy
Contribution to the Local Economy • ensuring that local communities benefit from resource development in a meaningful way CFEM – Mining Royalty - 2018 USD 8.3M (60% transfered to Alto Horizonte) ISS 2018 – Tax on Services – Alto Horizonte USD 4.3M Transfers from the Value Added Tax (state level) to
Slide 35: Social License to Operate
Social License to Operate • The Commonwealth Scientific and Industrial Research Organization - CSIRO is an independent Australian federal government agency responsible for scientific research Do you accept the presence of Good level of SLO; Chapada mine in the municipality? great foundation 5 – Very
Slide 36: Visitor Instructions
Visitor Instructions • you must wear your Personal Protective Equipment in all areas − hardhat with chin strap − safety glasses − ear protection − safety Boots − high visibility vest • observe the safety signs in the areas you are visiting • please keep your ID badge visible at all times • remain by
Slide 37: Appendix
Appendix lundin mining
Slide 38: Geological Overview
Geological Overview A A’ 0.1 % Cu Shell 0.1 % copper shell 38
Slide 39: Historical Plant Throughput & Feed Grades
Historical Plant Throughput & Feed Grades1 0.7 23 22.9 21.6 21.8 20.6 20.4 0.6 19.9 19.8 19.2 17.3 0.5 14.9 13.5 0.4 0.3 0.2 0.1 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Tonnes (Mt) Copper Grade (%) Gold Grade (g/t) 1. as disclosed in the NI 43-101 Technical Report dated October
Slide 40: 24.0 Mtpa Processing Plan
24.0 Mtpa Processing Plan1 24.0 0.3 0.3 0.2 12.0 0.2 0.1 0.1 - 0.0 2019 2020 2021 2027 2028 2029 2030 2036 2037 2038 2039 2045 2046 2047 2048 2022 2023 2024 2025 2026 2031 2032 2033 2034 2035 2040 2041 2042 2043 2044 2049 2050 Tonnes (Mt) Gold Grade (g/t) Copper Grade (%) 1. based on the NI 43-101 T
Slide 41: Life of Mine Plan – 24 Mtpa
Life of Mine Plan1 – 24 Mtpa 1. Production shown is based on the NI 43-101 Technical Report dated October 10, 2019, available on the Company’s website and SEDAR under the Company’s profile page. See also slide 42. 41
Slide 42: NI 43-101 Compliance
NI 43-101 Compliance Unless otherwise indicated, Lundin Mining Corporation (the “Company”) has prepared the technical information in this presentation including Mineral Reserve and Mineral Resource estimates (“Technical Information”) based on information contained in the technical reports and news r
Slide 43: www.lundinmining.com
www.lundinmining.com | TSX: LUN | Nasdaq Stockholm: LUMI