Boliden: Boliden’s Mineral Resources and Mineral Reserves Show Positive
BOLIDEN, Sweden -- February 11, 2013
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
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
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.
*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
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:
Copper USD 6,300/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 280/kg
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.
This information was brought to you by Cision http://www.cisionwire.com
Frans Benson, Director Investor Relations
+ 46 8610 1523
Marcela Sylvander, Director Group Communications
+ 46733244 551
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