Regulatory News:
The results of the 2014 calculations of Boliden’s mineral
resources and mineral reserves* include increases in the mineral
resources at Garpenberg and Kankberg, as well as the previously
announced increase in Aitik’s mineral reserves. Boliden is
expanding its exploration activities to include the Outokumpu field
and Kuhmo in Finland.
“Boliden’s exploration activities in 2014 focused both on
mine-site exploration in Sweden and Ireland, and on field
exploration in northern Sweden. We achieved good results in
Garpenberg, where we have seen a 90 per cent increase of the
mineral resources, albeit with lower grades. Mineral reserves
overall have increased more than the volumes mined at most of the
mines. The acquisition of the exploration rights in the Outokumpu
field and Kuhmo will see Boliden expand its exploration activities
to include these areas, starting in 2015, with the primary emphasis
on mine-site exploration around the Kylylahti mine,” says Jan
Mostr�m, President Boliden Mines.
Boliden’s strategy in recent years has been to prioritise the
mine-site exploration, largely because the lead time from
identification of a deposit to production is shorter, and the
favourable geological conditions at Boliden’s mines. Mine-site
exploration activities have successively extended the lifespan of
Boliden’s mining areas and this has, in turn, enabled the massive
investments in Aitik 2010 and Garpenberg 2014 and the opening of
the Kankberg gold mine 2012. The goal is to secure a minimum of ten
years’ production, which is currently the case at most mining
areas, with the exception of Tara and Kylylahti.
The primary focus of Boliden’s exploration work is on zinc-,
copper-, and precious metal-bearing ores. Boliden has some 50
active exploration projects and invested a total of SEK 279 million
(SEK 298 m) in exploration work in 2014.
Results, 2014
Aitik
39 Mtonnes of ore were mined during the year at Aitik. A new
reserve and resource estimation, revealing substantial increases in
the mine’s mineral reserves was announced in conjunction with
Boliden’s presentation in May 2014 of the expansion plans for Aitik
that will see the mine’s production level increased to 45 Mtonnes
per year by 2017. Minor changes have occurred since May,
corresponding to an increase in the reserve of 4 per cent and a
corresponding reduction in resources. The average copper grade of
the mineral reserve is 0.22 per cent.
Garpenberg
The mineral reserve at Garpenberg increased by 1.3 million
tonnes (3 per cent), albeit with lower grades. This is due to low
grades in newly added areas and the fact that this year’s
production occurred in areas with higher grades than the reserves
average grade. Mineral resources increased by 35 Mtonnes (90 per
cent) following the addition of areas with low grades. The average
zinc and silver grades of the mineral reserve are 4.3 per cent and
120 g/t, respectively.
The Boliden Area
Mineral resources in the Boliden Area have increased by 800
Ktonnes, while reserves have declined by approximately the same
amount (930 Ktonnes). The exploration work at the Kankberg mine
during the year has yielded the best results. The average zinc and
copper grades in the mineral reserves’ complex sulphide ores are
5.4 per cent and 0.5 per cent, respectively, while the average gold
grade in the gold ore’s is 3.5 g/t.
Tara
Tara’s mineral reserve increased by 2.2 Mtonnes (17 per cent)
due to the upgrading of mineral resources. The grades of the
additional quantities are, however, slightly lower, resulting in a
lowering of the overall grade of the mineral reserve. The increase
in the mineral reserve has effectively replaced the entire quantity
of ore, 2.3 Mtonnes, mined during the year. The average zinc grade
of the mineral reserve is 6.6 per cent.
Kylylahti
Boliden acquired the Kylylahti mine in October 2014. Virtually
no exploration work was conducted in the area during the year and
the mineral reserve has decreased by the 670,000 tonnes of ore
mined during the year. The average copper grade of the ore reserve
is 1.58 per cent.
The purchase of the Kylylahti mine from Altona Mining Ltd also
included a number of deposits and project ideas previously reported
as mineral resources by Altona. These reports are based on a study
conducted in 2009 by Vulcan Resources Ltd and which has not been
updated since then. Boliden does not believe that these deposits
represent any significant value for the company or that the
projects are sufficiently advanced that they can, at present, be
reported as mineral resources.
For further information, please contact:
Marcela Sylvander, Director Group Communications, +
46 733 244 551
Sophie Arnius, Director Investor Relations, + 46 8 610
1523
*Mineral resource and mineral reserve calculations, 2014
Mining companies are required to compile a calculation of their
mineral resources and mineral reserves every year. Boliden’s
calculations and compilations are carried out in accordance with
the recommendation of the Swedish industry organisation for mining
and metal companies, SveMin, which are also in accordance with
international regulations. Some of these regulations have been
amended, effective as of 2012, and the term, ore reserve, has been
replaced by the term, mineral reserve. Boliden reports mineral
reserves and mineral resources separately, which means that
reported mineral reserves are not included in the mineral
resources.
Mineral resources are concentrations of minerals in the bedrock
that may become commercially extractable. Mineral reserves are
deducted from those parts of a mineral resource that can be mined
and processed in accordance with the company’s demands on
profitability. Factors such as waste rock dilution, pillar offset
and process recovery rates, etc., are taken into account in these
calculations.
The mineral resources and mineral reserves that have been
compiled and presented in this press release have been reviewed and
approved by Gunnar Agmalm, Boliden’s Mineral Reserves and Project
Evaluation Manager, who is registered as a “Qualified Person” by
SveMin and as a “Competent Person” in accordance with JORC.
The prices employed when calculating mineral reserves are, in
the main, planning prices, which are an anticipated average price
for metals or exchange rate for currencies over the coming business
cycle. Boliden currently employs the following planning prices:
Copper USD 6,600/tonne Zinc USD 2,300/tonne Lead USD
2,300/tonne Gold USD 1,200/troy oz. Silver USD 20/troy oz.
Molybdenum USD 15/lb. Tellurium USD 150/kg USD/SEK 6.50 EUR/SEK
8.45
For a complete table listing Boliden’s mineral reserves and
mineral resources for 2014, see the enclosed pdf.
Boliden is a metals company with a commitment to sustainable
development. Our roots are Nordic, but our business is global. The
company’s core competence is within the fields of exploration,
mining, smelting and metals recycling. Boliden has a total of
approximately 4,900 employees and a turnover of SEK 37 billion. Its
shares is listed on NASDAQ OMX Stockholm, segment Large Cap.
www.boliden.com
This information was brought to you by Cision
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BolidenMarcela Sylvander, + 46 733 244 551Director
Group CommunicationsorSophie Arnius, + 46 8 610 1523Director
Investor Relations
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