Development

Chapada (Suruca deposit)

Au
Lundin Mining Corporation
Goiás

,

Brazil

Acquisition:

2022 / 08 / 15

Agreement:

Royalty

Terms:

2.0% NSR

Chapada is an open pit copper-gold mine located 270 kilometres northwest of Brasília in Goiás state, Brazil. The mine reached commercial production in 2007 and is an open pit truck and shovel operation, with ore being treated through a flotation plant with capacity of 24 Mt per annum. The Chapada mine plan has three open pit mining areas in close proximity including Corpo and Corpo Sul, which are currently being mined, and the Suruca deposit that holds future development potential.

As part of Lundin’s ongoing exploration program aimed at increasing Mineral Resource estimation at Chapada, drilling was initiated at the Saúva deposit in 2021 and positive drill results were announced in 2022.

In February 2023, Lundin announced the maiden Indicated Mineral Resource Estimate for the Saúva deposit is 179.0 Mt at 0.32% copper and 0.20 g/t gold, containing 1.3 Blb of copper and 1.1 Moz of gold. The updated Proven & Probable Reserves at Chapada total 655.7 Mt at a grade of 0.23% copper and 0.13 g/t gold containing approximately 3.3 Blbs of copper and 3.7 Moz gold.*

Yamana, the previous owners, completed studies to evaluate several development opportunities at Chapada. These opportunities range in scope from plant optimization initiatives to enhance copper and gold recoveries, to a plant expansion to bring forward cash flows and pit wall pushbacks to expose higher grade ore zones. Lundin is currently evaluating these and other scenarios for expansion that would increase the processing rate up to 32 million tonnes per annum.

* Mineral Reserves for the Chapada open pit are estimated at metal prices of $3.35/lb copper and $1,600/oz gold and at open pit discard NSR cut-off grade of $4.72/t. For the Suruca gold only Mineral Reserve estimates cut-off grades of 0.19 g/t gold for oxides and 0.30 g/t for sulphides are used.

Recent Activity

January 2023

In 2022, copper production at Chapada was 45,739 t and gold production was 68,000 ounces, both of which achieved guidance.

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