Boliden Reports Stable Development of Mineral Resources and Mineral Reserves
BOLIDEN, Sweden -- February 12, 2014
The results of the 2013 calculations of Boliden’s mineral (STO:BOL)(TSX:BLS)
resources and mineral reserves* show increases in the mineral reserves at
Garpenberg and in the Boliden Area, and increased mineral resources at Tara
and the Laver and Rockliden deposits.
“We have seen a generally healthy trend in mineral resources and reserves,
although it comes with lower grades at Garpenberg. All of the mining areas,
with the exception of Tara, now have mineral reserves that correspond to 10
years’ mining operations or more. At Tara, we have extended the mine’s planned
useful life to 2019,” says Jan Moström, SVP Boliden Mines.
Boliden’s investments in exploration during the last 10 years have, together
with the anticipated price trend for metals, resulted in large increases in
mineral resources and mineral reserves. This has, in turn, enabled the massive
investments in Aitik and Garpenberg and the opening of the Kankberg gold mine.
It has also helped extend production plans in the Group’s other mining areas.
The primary focus of Boliden’s exploration work is on zinc-, copper-, and
precious metal-bearing ores. Boliden has approximately 50 active exploration
projects and invested a total of SEK 300 million (SEK 350 m) in exploration
work in 2013. Field exploration work was conducted in the Skellefte field,
Bergslagen, Norrbotten, Västernorrland and along the Caledonian front, over
and above the mine-site exploration carried out in all mining areas. Field
exploration work in Ireland is mainly being carried out in Limerick and
37 million tonnes of ore were mined during the year at Aitik. The mineral
reserves and mineral resources there decreased to 633 million tonnes (702
Mtonnes) and 2,400 million tonnes (2,760 Mtonnes), respectively. The decrease
is mainly an effect of new drill hole information.
1.5 million tonnes of ore were mined at Garpenberg during the year. The
mineral reserves increased to 36.3 million tonnes (25.6 Mtonnes), while
mineral resources fell to 36.3 million tonnes (44.5 Mtonnes). Drilling and
updating has reduced the average grades of both the reserves and the
The Boliden Area
1.5 million tonnes of ore were mined in the Boliden Area during the year. The
mineral reserves increased to 16.0 million tonnes (12.7 Mtonnes), while
mineral resources fell to 18.8 million tonnes (23.5 Mtonnes). Several
locations in both Renström and Kristineberg have been successfully upgraded to
mineral reserves, and there has been a substantial increase of mineral
resources at Kankberg.
2.5 million tonnes of ore were mined at Tara during the year, but mineral
reserves there fell by only 0.9 million tonnes (from 14.0 Mtonnes to 13.1
Mtonnes). This has enabled an extension of the mine’s production plan to 2019.
Mineral resources increased to 13.3 million tonnes (11.4 Mtonnes).
*Mineral resource and mineral reserve calculations, 2013
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 profitability requirements. 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 6,600/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
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 34 billion. Its shares are listed on NASDAQ OMX Stockholm,
segment Large Cap.
This information was brought to you by Cision http://news.cision.com
Marcela Sylvander, Director Group Communications
+ 46(0)733244 551
Sophie Arnius, Director Investor Relations
+ 46 (0)8610 1523
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