Lundin Mining Unveils Vicuña Technical Study Results Showcasing Global Impact

Lundin Mining Corporation has revealed the results of its integrated technical study for the Vicuña Project, a significant endeavor in the mining industry. This project spans the Filo del Sol and Josemaria deposits and stands as a joint venture between Lundin Mining and BHP. The study has established a strong economic foundation, aiming to position Vicuña among the world’s leading copper, gold, and silver mines.

Vicuña Project Overview

The Vicuña Project is designed to employ a staged development approach, allowing for effective capital deployment and risk management. The first phase focuses on the Josemaria deposit, followed by expansion to the Filo del Sol deposit and associated infrastructure improvement.

Key Economic Highlights

• Average annual production estimates are set at 400,000 tonnes of copper, 700,000 ounces of gold, and 22 million ounces of silver over the first 25 years.
• Expected peak production could exceed 500,000 tonnes of copper per year.
• The project is anticipated to have a life of over 70 years, yielding 22.3 million tonnes of copper, 37.2 million ounces of gold, and 763 million ounces of silver.
• The overall project is projected to generate an average annual free cash flow of $2.2 billion during its initial 25 years of operation.
• The net present value (NPV) is estimated at $9.5 billion based on conservative price assumptions.

Projected Development Stages

The Vicuña Project will develop in three distinct stages:

• Stage 1: Focuses on establishing an initial open-pit mine at the Josemaria deposit and a concentrator.
• Stage 2: Develops the Filo del Sol leachable oxides alongside a copper recovery plant.
• Stage 3: Expands the concentrator and further develops the Filo del Sol sulphide deposit for sustainable production.

Funding and Cost Profile

Lundin Mining has announced an increase in its credit facility to $4.5 billion, ensuring comprehensive funding for the construction phase. The capital intensity for the first stage is projected at under $30,000 per tonne of copper equivalent, showing favorable financial metrics.

Mineral Resources and Reserves

The study reports significant increases in mineral resources, with improvements noted in both Measured and Inferred categories across copper, gold, and silver:

• Copper: 14 million tonnes measured and indicated, and 32 million tonnes inferred.
• Gold: 36 million ounces measured and indicated, and 61 million ounces inferred.
• Silver: 729 million ounces measured and indicated, and 1,051 million ounces inferred.

Projected Employment and Economic Impact

The Vicuña Project is expected to generate significant employment, creating about 5,500 direct jobs during construction and an additional 19,000 indirect jobs. The overall contribution to Argentina’s economy during production is estimated at nearly $965 million annually, translating to over $69 billion throughout the project’s life.

Next Steps for Vicuña Project

Moving forward, Lundin Mining plans to enhance project readiness through detailed engineering designs, initiate construction for infrastructure improvements, and maintain community engagement. The ultimate goal is to commence production and solidify Vicuña’s status as a top copper producer globally.

For additional updates, stay tuned to Filmogaz.com as Lundin Mining progresses on this pivotal venture in mining development.