Slide 1: Neves-Corvo Zinc Expansion Project
TSX: LUN OMX: LUMI Neves-Corvo Zinc Expansion Project May 2017 Neves-Corvo, Portugal 1
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward-Looking Information and Non-GAAP Performance Measures All statements, other than statements of historical fact, made and information contained or incorporated by reference in or made in giving this presentation and responses to questions is "forward-lo
Slide 3: Lundin Mining
Lundin Mining High Quality Meaningful Scale Financial Strength Competitive Mines Growth Oriented - strong margins at all - high value expansion - proven track record for operations projects and exploration rigorous investment - demonstrated operational upside at all operations approach, focused on e
Slide 4: Neves-Corvo: More than years of responsible mining
Neves-Corvo More than 25 years of responsible mining Situated in western part of Iberian Pyrite Belt 1988 – Joint venture between the Portuguese government and Rio Tinto 1989 – Initial production of copper 1990 – Tin production commences 2006 – Initial production of zinc and acquisition by Lundin Mi
Slide 5: Current Mining Operations
Current Mining Operations Mining five underground deposits - Zambujal - Graça - Neves - Corvo - Lombador (Phase 1; LP1) Shaft to hoist material to surface - current capacity of ~4.9 Mtpa - from 700m level to surface at ~1,200m Conveyor descends 150m from 700m level to transport ore from deeper in mi
Slide 6: Current Processing Operations
Current Processing Operations Two processing plants - copper plant capacity of ~2.5Mtpa - zinc plant capacity of ~1.1Mtpa - conventional crushing - rod and ball mill grinding circuits - sequential flotation - concentrate thickening and dewatering - producing copper, zinc, and lead concentrates Total
Slide 7: Concentrate Transport
ConcentrateTransport Copper and zinc concentrates railed to private port facility in Setúbal Lead concentrate containerized and trucked to ports for oceanic shipment 7
Slide 8: Tailings Management
Tailings Management Thickened and pumped to Cerro de Lobo facility ~3km from mine site Paste tailings for sub-aerial deposition in cells 8
Slide 9: Neves-Corvo – Current Operations
Neves-Corvo – Current Operations Employees approximately 1,700 people (1,000 employees and 700 contractors) Social economic studies show that for each position created approximately 6 indirect positions are generated in the country More than 90% of our workforce is local or live in the towns surroun
Slide 10: Neves-Corvo – Zinc Expansion Project
Neves-Corvo – Zinc Expansion Project 10
Slide 11: Compelling Project Economics
Compelling Project Economics Assuming $1.00/lb zinc ($1.10/in in 2020), $3.00/lb copper, $0.90/lb lead, and €/US$ 1.15 - pre-production capital costs of €257 million including a 15% contingency - incremental post-tax NPV8% of €180 million - post-tax IRR of 22% - undiscounted incremental cash flow €4
Slide 12: LOM Zinc Production Profile
LOM Zinc Production Profile Zinc Production Profile1 (metal in concentrate, kt Zn) 186 175 176 166 150 153 142 131 129 101 84 89 72-77 74 70 70-75 66-71 71 72 67 69 72 71 69 68 66 65 59 2016A 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Zinc Expansion Project 2016 LOM Averag
Slide 13: LOM Lead Production Profile
LOM Lead Production Profile Lead Production Profile1 (metal in concentrate, kt Pb) 26.5 22.4 22.5 21.7 20.5 20.6 19.0 19.0 15.3 15.2 10.9 7.4 6.2 5.9 4.1 5.6 5.1 5.1 5.2 4.9 4.7 4.8 4.1 4.2 4.0 3.6 3.5 2.8 2016A 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Zinc Expansion Pro
Slide 14: LOM Copper Production Profile
LOM Copper Production Profile Copper Production Profile1 (metal in concentrate, kt Cu) 59 58 52 45-50 54 53 47 41-46 42-47 43 40 36 34 34 31 25 18 15 16 14 10 10 9 2016A 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Zinc Expansion Project 2016 LOM Average annual copper produc
Slide 15: Main Project Aspects
Main Project Aspects Production to be maximized from existing mining areas as well as from the deeper higher zinc grade Lombador Phase 2 (LP2) New underground crusher and conveyor system for handling ore from LP1 and LP2 Minor upgrades to existing shaft Expansion of zinc plant to 2.5 Mtpa capacity E
Slide 16: Mineral Reserve Estimate
Mineral Reserve Estimate Feasibility Study includes an additional Mineral Reserve estimate (below) for LP2 reported for the first time Lombador Phase 2 Mineral Reserve Estimate (June 30, 2016)1 Zinc Copper Tonnes Zn Cu Pb Ag Tonnes Zn Cu Pb Ag Category (kt) (% ) (% ) (% ) (g/t) (kt) (% ) (% ) (% ) (
Slide 17: Capital and Operating Costs
Capital and Operating Costs1 Pre-production capital costs Estimated Cost Area (€ million) estimated at €257 million including Mining 118.2 a 15% contingency Process Plant Facilities, Services, and Site Development 74.3 Indirects 19.5 Sustaining capital for entire Owners Cost 11.1 Neves-Corvo operati
Slide 18: ZEP Mining
ZEP Mining Ore production from the existing areas increased primarily in the higher grade areas of LP1 and Lombador LP1 Production and LP2 Expansion Areas Corvo South-East LP2 production will ramp-up to complement depletion from accelerated production from other mining areas Expansion area includes
Slide 19: ZEP Mining – LP2
ZEP Mining – LP2 Conventional ramp and mine development used in all areas of Mining Areas for LP2 (North and South) the expansion Optimized bench-and-fill primary mining method as is utilized in LP1 Stopes are ~15m wide x ~20m high and mined bottom up with paste backfill Mucking by conventional LHDs
Slide 20: Materials Handling
Materials Handling New primary crusher station - at 280-260 level - similar to existing station designs with improvements incorporated - includes jaw crusher, rock breaker, grizzly Silos for storage of zinc ore, copper ore, and waste; each with feeder to ramp conveyor system Approximately 3.2 km of
Slide 21: Processing Plant
Processing Plant Expansion to utilize and add to the existing process equipment and related facilities - new grinding and flotation buildings - new control room and electrical rooms - new emergency stockpile feed system - new SAG mill, previously purchased - repurposed secondary grinding mill - addi
Slide 22: Off-Site Facilities
Off-Site Facilities No upgrades or modification to off-site facilities - capacity of rail infrastructure, port and warehouses are all adequate to handle increase concentrate with small logistical changes Existing electricity feed capable of handling increased demand - no upgrade required of feed fro
Slide 23: Tailings Management
Tailings Management Expansion of 25 ha all within current landownership Increase to the current plan height of 4m Expanded tailings thickenings plant Thickened Tailings Terraces – Revised Design (2014) 23
Slide 24: Permitting and Next Steps
Permitting and Next Steps ZEP subject to environmental review leading to updated Environmental License EIA submitted to the regulatory authorities in November 2016 Granted Project of National Interest (PIN) status in recognition of scale and potential contribution to the national economy EIA approva
Slide 25: Development Schedule
Development Schedule In anticipation of permitting approval - project team formed and contract awarded for engineering and procurement services with detailed design work started - final designs and contract documentation under preparation for underground development, materials handling system, and s
Slide 26: Exploration and Future Potential
Exploration and Future Potential 26
Slide 27: 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 28: TSX: LUN OMX: LUMI
TSX: LUN OMX: LUMI 28