Boliden’s mineral resources and mineral reserves show positive trend
The increased investments in exploration in recent years have, together with higher expectations of future metal prices, had a positive effect on the Boliden Group’s mineral resources and mineral reserves*.
“Our exploration results have been very good this year. The mineral resources in the Boliden Area and Garpenberg have showed stable development and increased dramatically at Aitik, albeit with low grades. We have also successfully reclassified two new deposits, Laver and Rockliden, as inferred mineral resources in 2012,” says Jan Moström, Director Boliden Mines.
Laver, in Norrbotten, is a large but relatively low grade copper deposit of a similar type to the Aitik one, while Rockliden, in Västernorrland, is a rich polymetallic mineralisation that contains not only gold, silver, copper, zinc and lead, but at times also high grades of antimony and arsenic. Rockliden has been known since the 1980s, but further exploration and improvements to both technological and market conditions mean that it can now be classified as a mineral resource.
The primary focus of Boliden’s exploration work is on zinc-, copper-, and precious metal-bearing ores. Boliden’s mineral resources and mineral reserves generally continued to show positive development in 2012, as a result both of exploration successes and of higher expectations of future metal prices. All of Boliden’s mining areas, with the exception of Tara, have reserves and resources sufficient for over 10 years’ production.
Boliden has approximately 50 active exploration projects. Exploration work has been conducted in the Boliden Area, Bergslagen, Norrbotten, Västernorrland, and along the edge of the Caledonian front, over and above the mine site exploration that is carried out in all mining areas. Field exploration work in Ireland is mainly being carried out in Limerick and Tullamore.
Results for 2012
The Boliden Area
The Boliden Area’s mineral reserves and mineral resources both developed positively. The reserves have increased by 0.6 Mtonnes, or 5 per cent, while the resources have increased by 2.5 Mtonnes, or 12 per cent. The mineral reserves totalled 12.7 Mtonnes (12.1 Mtonnes) and the mineral resources, 23.5 Mtonnes (21.1 Mtonnes).
34.3 Mtonnes of ore were mined during the year at Aitik and the mineral reserves there totalled 702 Mtonnes (710 Mtonnes). Mineral resources increased by 56 per cent to 2,760 Mtonnes (1,764 Mtonnes). 240 Mtonnes of that increase derive from exploration work with the remainder coming from changes in economic conditions. Most of the additions to the resources comprise low-grade material.
The mineral reserves increased by 2 Mtonnes to 25.6 Mtonnes (23.6 Mtonnes) and the mineral resources by 3.4 Mtonnes to 44.5 Mtonnes (41.0 Mtonnes). A new level was added at Lappberget, boosting the reserves, while exploration work at Dammsjön and Kvarnberget has resulted in an increase in mineral resources.
Tara mined 2.5 Mtonnes ore in 2012 and its mineral reserves fell by 1.7 Mtonnes to 14.0 Mtonnes (15.7 Mtonnes). Mineral resources increased by 0.9 Mtonnes to 11.4 Mtonnes (10.5 Mtonnes) through both exploration work and through the downgrading of tonnage from mineral reserves due to a more conservative approach to planning. Calculations suggest that mining the amounts downgraded from mineral reserve to mineral resource will be difficult, using available resources, due to their location, thickness, grades, or inherent rock mechanical risks.
The Tara mine needs new extraction permits and the relevant applications have been submitted. Negotiations with the authorities are in progress and temporary permits enabling operations to continue have been granted.
For further information, please contact:
Frans Benson, Director Investor Relations, + 46 8 610 1523
Marcela Sylvander, Director Group Communications, + 46 733 244 551
*Mineral resource and mineral reserve calculations, 2012
Mining companies are required to carry out a calculation of their mineral resources and mineral reserves every year. Boliden’s calculations and compilations are conducted in accordance with the recommendations issued by the Swedish industry association, SveMin. These recommendations have been drafted 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 a new term, mineral reserve.
Boliden reports mineral reserves and mineral resources separately, which means that reported mineral reserves are not included in the mineral resources.
A mineral resource is a concentration of minerals in the bedrock that may become commercially extractable.
Mineral reserves are 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 yields, etc., are taken into account in these calculations.
Boliden’s mineral resources and mineral reserves have been compiled under the supervision of Gunnar Agmalm, who is registered as a “Qualified Person” by SveMin. Gunnar Agmalm, Mineral Reserves and Project Evaluation Manager, is a member of AusIMM and has over 20 years’ experience in the mining and minerals industry. The calculations for Tara have been carried out under the supervision of John Ashton, Chief Mine Geologist, Tara Mines Ltd. John Ashton is a “Qualified Person” and a member of the Institute of Materials, Minerals and Mining and of the Institute of Geologists of Ireland, and has more than 25 years’ experience in the mining and minerals industry.
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:
|Gold||USD 1,200/troy oz.|
|Silver||USD 20/troy oz.|
For a complete table of Boliden’s mineral reserves and mineral resources 2012, see 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 4,800 employees and an annual turnover of approximately SEK 40 billion. Its shares are listed on NASDAQ OMX Stockholm, segment Large Cap, and on the Toronto Stock Exchange in Canada.