lundin mining ni 43-101 technical report for … · lundin mining ni 43-101 technical report for...
TRANSCRIPT
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
November 2017
Wardell Armstrong InternationalBaldhu House, Wheal Jane Earth Science Park, Baldhu, Truro, Cornwall, TR3 6EH, United KingdomTelephone: +44 (0)1872 560738 www.wardell-armstrong.com
Wardell Armstrong is the trading name of Wardell Armstrong International Ltd,Registered in England No. 3813172.
Registered office: Sir Henry Doulton House, Forge Lane, Etruria, Stoke-on-Trent, ST1 5BD, United Kingdom
UK Offices: Stoke-on-Trent, Cardiff, Carlisle, Edinburgh, Greater Manchester, London, Newcastle upon Tyne,Sheffield, Taunton, Truro, West Bromwich. International Offices: Almaty, Moscow
ENERGY AND CLIMATE CHANGE
ENVIRONMENT AND SUSTAINABILITY
INFRASTRUCTURE AND UTILITIES
LAND AND PROPERTY
MINING AND MINERAL PROCESSING
MINERAL ESTATES
WASTE RESOURCE MANAGEMENT
DATE ISSUED: 30 November 2017
JOB NUMBER: ZT61-1659
VERSION:
REPORT NUMBER:
STATUS:
V2.0
MM1185
Final
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
November 2017
PREPARED BY:
Tim Daffern Consultant Mining Engineer
Richard Ellis Principal Resource Geologist
Philip King Technical Director of Process Engineering
Stuart Richardson
Edvard Glücksman
Andrew Beveridge
Senior Mining Engineer
Senior Environmental and Social Specialist
Principal Geotechnical Engineer
APPROVED BY:
Dr. P S Newall Managing Director of WAI
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 1
CONTENTS
1 SUMMARY........................................................................................................................... 8
1.1 Introduction ...............................................................................................................................8
1.2 Description & Location...............................................................................................................8
1.3 Geological Setting & Mineralisation ..........................................................................................9
1.4 Exploration.................................................................................................................................9
1.5 Mineral Resource Estimates ......................................................................................................9
1.6 Mining and Mineral Reserves ..................................................................................................10
1.7 Mineral Processing, Metallurgical Testing and Recovery Methods.........................................12
1.8 Infrastructure...........................................................................................................................12
1.9 Environmental Studies, Permitting and Social or Community Impact ....................................13
1.10 Capital and Operating Costs..................................................................................................13
1.11 Economic Analysis Results ....................................................................................................14
2 INTRODUCTION ................................................................................................................. 15
2.1 Independent Consultants.........................................................................................................15
2.2 Qualified Persons, WAI Review and Site Visit..........................................................................16
2.3 Units and Currency ..................................................................................................................17
3 RELIANCE ON OTHER EXPERTS............................................................................................ 18
4 PROPERTY DESCRIPTION AND LOCATION............................................................................ 19
4.1 Mineral Tenure ........................................................................................................................20
4.2 Surface Rights ..........................................................................................................................25
4.3 Royalties...................................................................................................................................25
4.4 Environmental Aspects ............................................................................................................26
4.5 Permits .....................................................................................................................................26
5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ........ 27
5.1 Accessibility..............................................................................................................................27
5.2 Climate .....................................................................................................................................27
5.3 Local Resources & Infrastructure.............................................................................................27
5.4 Physiography............................................................................................................................28
6 HISTORY ............................................................................................................................ 29
6.1 Ownership History ...................................................................................................................29
6.2 Exploration History ..................................................................................................................30
6.3 Historical Mineral Resources and Mineral Reserves ...............................................................31
6.4 Production................................................................................................................................32
7 GEOLOGICAL SETTING AND MINERALISATION..................................................................... 33
7.1 Regional Geology .....................................................................................................................33
7.2 Property Geology .....................................................................................................................34
7.3 Description of Mineralised Zones ............................................................................................37
8 DEPOSIT TYPES .................................................................................................................. 42
8.1 Mineral Deposit Type...............................................................................................................42
8.2 Exploration Model ...................................................................................................................43
9 EXPLORATION.................................................................................................................... 44
9.1 Near Mine Exploration.............................................................................................................44
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 2
9.2 Regional Exploration ................................................................................................................44
9.3 Future Exploration ...................................................................................................................44
10 DRILLING ........................................................................................................................... 45
10.1 Drilling by Vieille Montagne (1857-1990) and Union Miniere (1990-Late 1995) .................46
10.2 Drilling by North Limited (Late 1995-August 2000) ..............................................................47
10.3 Drilling by Rio Tinto (August 2000-June 2004)......................................................................47
10.4 Drilling by Lundin Mining (June 2004-2017) .........................................................................47
10.5 Drill Core Diameter ...............................................................................................................47
10.6 Drill Core Recovery................................................................................................................47
10.7 Extent of Drilling ...................................................................................................................48
10.8 Drill Hole Collar Surveys........................................................................................................48
10.9 Downhole Surveys.................................................................................................................48
10.10 Drill Sections......................................................................................................................48
11 SAMPLE PREPARATION, ANALYSES, AND SECURITY............................................................. 50
11.1 Core Sampling .......................................................................................................................50
11.2 Bulk Density Determination..................................................................................................52
11.3 Sample Preparation ..............................................................................................................52
11.4 Analysis .................................................................................................................................52
11.5 Sample Security and Chain of Custody .................................................................................53
11.6 Quality Assurance and Quality Control Programmes ...........................................................54
11.7 Adequacy of Procedures .......................................................................................................66
12 DATA VERIFICATION........................................................................................................... 67
13 MINERAL PROCESSING AND METALLURGICAL TESTING ....................................................... 70
14 MINERAL RESOURCE ESTIMATES ........................................................................................ 71
14.1 Introduction ..........................................................................................................................71
14.2 Mineral Resource Estimate Data ..........................................................................................71
14.1 Geological Interpretation and Domaining ............................................................................73
14.2 Drill Hole Data Processing.....................................................................................................76
14.3 Grade Capping.......................................................................................................................76
14.4 Compositing ..........................................................................................................................78
14.5 Continuity Analysis................................................................................................................79
14.6 Variography...........................................................................................................................80
14.7 Volumetric Modelling ...........................................................................................................81
14.8 Density ..................................................................................................................................82
14.9 Grade Estimation ..................................................................................................................84
14.10 Grade Estimation Validation .............................................................................................86
14.11 Mineral Resource Reconciliation ......................................................................................87
14.12 Mineral Resource Depletion and Non-Recoverable Mineral Resources ..........................90
14.13 Cut-Off Grades for Evaluation...........................................................................................90
14.14 Mineral Resource Classification ........................................................................................90
14.15 Mineral Resource Statement ............................................................................................91
14.16 Comparison to Previous Estimates ...................................................................................92
15 MINERAL RESERVE ESTIMATES ........................................................................................... 94
15.1 Methodology.........................................................................................................................94
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 3
15.2 Mineral Reserve Statement ..................................................................................................96
15.3 Mining Modifying Factors .....................................................................................................98
15.4 Reconciliation........................................................................................................................99
15.5 WAI Review ...........................................................................................................................99
16 MINING METHODS........................................................................................................... 102
16.1 Access and Infrastructure ...................................................................................................103
16.2 Rock Mass Characterisation................................................................................................103
16.3 Underground Mine Layout..................................................................................................112
16.4 Mining Methodologies........................................................................................................113
16.5 Drill and Blast, Design and Operations ...............................................................................114
16.6 Ore and Waste Handling .....................................................................................................115
16.7 Production Schedule ...........................................................................................................115
16.8 Mine Infrastructure.............................................................................................................119
16.9 Mine Services ......................................................................................................................121
16.10 Equipment.......................................................................................................................123
16.11 Human Resource Arrangements.....................................................................................125
16.12 Health and Safety Management .....................................................................................125
17 RECOVERY METHODS....................................................................................................... 127
17.1 Flowsheet Description ........................................................................................................127
17.2 Process Plant Consumables ................................................................................................133
17.3 Plant Sampling ....................................................................................................................133
17.4 Mill Labour ..........................................................................................................................134
17.5 Assay Laboratory.................................................................................................................134
17.6 Historic Production Data.....................................................................................................135
17.7 Concentrate Storage and Transport ...................................................................................139
18 PROJECT INFRASTRUCTURE .............................................................................................. 141
18.1 Energy .................................................................................................................................141
18.2 Water ..................................................................................................................................141
18.3 Tailings Storage Facility.......................................................................................................141
19 MARKET STUDIES AND CONTRACTS.................................................................................. 145
20 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT............... 146
20.1 Environmental & Social Setting and Context ......................................................................146
20.2 Method of study and information sources .........................................................................146
20.3 Access to the Site ................................................................................................................148
20.4 Water Resources.................................................................................................................148
20.5 Infrastructure and Communications...................................................................................149
20.6 Project Status, Activities, Effects, Releases and Controls ...................................................149
20.7 Energy Consumption and Source........................................................................................151
20.8 Mine Waste.........................................................................................................................151
20.9 Water Management and Effluents .....................................................................................152
20.10 Air Quality .......................................................................................................................152
20.11 Noise and Vibration ........................................................................................................153
20.12 Hazardous Materials Storage and Handling....................................................................153
20.13 Biodiversity and Ecosystem Services ..............................................................................153
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 4
20.14 Fire Safety .......................................................................................................................154
20.15 Environmental and Social Impact Assessment ...............................................................154
20.16 Environmental Management ..........................................................................................154
20.17 Social and Community Management..............................................................................156
20.18 Health & Safety ...............................................................................................................158
20.19 Mine closure plans ..........................................................................................................158
21 CAPITAL AND OPERATING COSTS...................................................................................... 159
21.1 Mining Costs........................................................................................................................159
21.2 Mineral Process Plant Operating Costs...............................................................................159
21.3 Total Operating Costs..........................................................................................................160
21.4 Mining Capital Costs ...........................................................................................................161
21.5 Mineral Process Plant Capital Costs....................................................................................161
21.6 Total Capital Costs...............................................................................................................162
22 ECONOMIC ANALYSIS....................................................................................................... 163
23 ADJACENT PROPERTIES .................................................................................................... 164
24 OTHER RELEVANT DATA AND INFORMATION.................................................................... 165
25 INTERPRETATION AND CONCLUSIONS .............................................................................. 166
26 RECOMMENDATIONS....................................................................................................... 168
26.1 Geology and Mineral Resources .........................................................................................168
26.2 Mining and Mineral Reserves .............................................................................................168
26.3 Mineral Processing..............................................................................................................168
26.4 Environmental Studies, Permitting and Social or Community Impact................................168
27 REFERENCES .................................................................................................................... 170
TABLES
Table 1.1: Total Mineral Resources for Zinc Zones at Zinkgruvan ........................................................10
Table 1.2: Total Mineral Resources for Copper Zones at Zinkgruvan...................................................10
Table 1.3: Total Mineral Reserves for Zinc Zones at Zinkgruvan ..........................................................11
Table 1.4: Total Mineral Reserves for Copper Zones at Zinkgruvan.....................................................11
Table 2.1: Authors Responsibilities.......................................................................................................16
Table 4.1: Coordinates of the Zinkgruvan Mining Concession .............................................................21
Table 4.2: Coordinates of the Klara Mining Concession .......................................................................22
Table 4.3: Coordinates of the Marketop Mining Concession ...............................................................22
Table 4.4: Coordinates of the Dalby Hytta nr 1 Exploration Concession..............................................23
Table 4.5: Coordinates of the Flaxen nr 1 Exploration Concession ......................................................24
Table 4.6: Coordinates of the Hjortronmossen nr 1 Exploration Concession ......................................24
Table 4.7: Coordinates of the Orkaren nr 2 Exploration Concession....................................................25
Table 4.8: Coordinates of the Hövdingamon nr 2 Exploration Concession ..........................................25
Table 6.1: History of Exploration Drilling by Company .........................................................................31
Table 6.2: Zinkgruvan Production by Year from 1994 ..........................................................................32
Table 9.1: Exploration Budget for 2017 and 2018 ................................................................................44
Table 10.1: Summary of Drilling at Zinkgruvan.....................................................................................46
Table 11.1: Summary of Stratigraphic Sequence and Lithology Codes ................................................51
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 5
Table 11.2: Zinkgruvan Analytical Laboratory - AAS Detection Limits For Geological Samples ...........53
Table 11.3: ACME ICP-ES Method Detection Limits..............................................................................53
Table 11.4: GeoStats Standard Reference Materials and Reference Values ........................................61
Table 12.1: Summary of Drill Holes within Mineralised Zone Wireframes...........................................68
Table 14.1: Drill Hole Data used for Mineral Resource Estimation ......................................................72
Table 14.2: Summary of Zinkgruvan Search Parameters......................................................................85
Table 14.3: Summary of Annual Reconciliation (July 2016 to June 2017) ............................................88
Table 14.4: Total Mineral Resources for Zinc-Lead Zones at Zinkgruvan .............................................92
Table 14.5: Total Mineral Resources for Copper Zones at Zinkgruvan.................................................92
Table 15.1: Total Mineral Reserves for Zinc Zones at Zinkgruvan ........................................................96
Table 15.2: Total Mineral Reserves for Copper Zones at Zinkgruvan...................................................96
Table 15.3: Mining Factors 2017...........................................................................................................98
Table 15.4: Reconciliation: Average 2017 Stope Mining Factors (%) ...................................................99
Table 16.1: In Situ Stress Measurements............................................................................................104
Table 16.2: Geological Strength Index (GSI) .......................................................................................105
Table 16.3: Rock Strengths .................................................................................................................105
Table 16.4: Stope Dimensions for the 5-year Mine Plan ....................................................................108
Table 16.5: Production Drilling Design................................................................................................114
Table 16.6: Five Years Planned Production.........................................................................................116
Table 16.7: Underground Equipment List (Owned)............................................................................124
Table 16.8: Underground Equipment List (Contractor) ......................................................................124
Table 17.1: Plant Consumables 2016..................................................................................................133
Table 17.2: Mill Labour 2017 ..............................................................................................................134
Table 17.3: Copper Plant Historic Data...............................................................................................137
Table 17.4: Concentrate Analyses.......................................................................................................139
Table 21.1: ZMAB Mining Operating Cost - Forecast 2018 to 2022 ...................................................159
Table 21.2: ZMAB Process Operating Cost – Plan/Forecast 2018 to 2022 .........................................160
Table 21.3: ZMAB Total Operating Cost – Forecast 2018 to 2022......................................................160
Table 21.4: Summary of Mine Sustaining Capital Plan from 2018 to 2022 ........................................161
Table 21.5: Summary of Mineral Processing Plant Sustaining Capital Plan from 2018 to 2022.........161
Table 21.6: Summary of Sustaining Capital Plan from 2018 to 2022 .................................................162
FIGURES
Figure 4.1: Property Location Map (Geology.com)...............................................................................19
Figure 4.2: Location of Licence Areas (SWEREF 99 TM Coordinate System) ........................................20
Figure 6.1: Comparison of Zinkgruvan Mineral Resources from 1982 to 2017 and Rate of Mining
Production.............................................................................................................................................31
Figure 7.1: Location of Zinkgruvan and Regional Geology....................................................................33
Figure 7.2: Geology of the Zinkgruvan Area .........................................................................................34
Figure 7.3: Stratigraphic Sequence at Zinkgruvan ................................................................................35
Figure 7.4: Location of Mineralised Zones at Nygruvan and Knalla Areas of Zinkgruvan.....................37
Figure 7.5: Plan View showing the Geology of Nygruvan Area.............................................................39
Figure 7.6: Geological Cross Section through Nygruvan Area ..............................................................39
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 6
Figure 7.7: Plan View showing the Geology of Burkland Zone including Copper Stockwork ...............41
Figure 7.8: Geological Cross Section through Lindängen and Sävsjön Zones.......................................41
Figure 8.1: Genetic Model for the Zinkgruvan Deposit (Jansson et al., (2017)) ...................................42
Figure 10.1: Plan Views Showing Location of Drill Holes and a) Mining and Exploration Concessions and
b) Inset of a) Showing Near Mine Area Only ........................................................................................49
Figure 11.1: Internal Pulp Duplicate Analysis Plots for Zinc .................................................................56
Figure 11.2: Internal Pulp Duplicate Analysis Plots for Lead ................................................................57
Figure 11.3: Internal Pulp Duplicate Analysis Plots for Silver ...............................................................58
Figure 11.4: Internal Pulp Duplicate Analysis Plots for Copper ............................................................59
Figure 11.5: Blank Sample Analysis for Zinc, Lead, Silver and Copper..................................................60
Figure 11.6: SRM Sample Analysis for Zinc, Lead, Silver and Copper for 309-16 .................................62
Figure 11.7: External Pulp Duplicate Analysis Plots for Zinc – ACME vs ALS CHEMEX .........................63
Figure 11.8: External Pulp Duplicate Analysis Plots for Lead – ACME vs ALS CHEMEX ........................64
Figure 11.9: External Pulp Duplicate Analysis Plots for Silver – ACME vs ALS CHEMEX .......................65
Figure 11.10: External Pulp Duplicate Analysis Plots for Silver – ACME vs ALS CHEMEX .....................66
Figure 14.1: Location of Drill Holes in the ZMAB Drill Hole Database ..................................................73
Figure 14.2: Mineralised Zones at Zinkgruvan......................................................................................75
Figure 14.3: Log Probability Plots of Zinc-Lead Mineralisation for Selected Samples for a) Zinc, b) Lead,
c) Silver and d) Copper..........................................................................................................................77
Figure 14.4: Log Probability Plots of Burkland Zone Copper Stockwork Mineralisation for Selected
Samples for a) Zinc, b) Lead, c) Silver and d) Copper............................................................................78
Figure 14.5: Histogram showing Sample Lengths for a) Zinc-Lead Mineralisation and b) Copper
Stockwork Mineralisation .....................................................................................................................79
Figure 14.6: Example Continuity Map of Zinc Grades at Burkland .......................................................80
Figure 14.7: Example of Modelled Variograms for Zinc Grades at Burkland........................................81
Figure 14.8: Plots of Density for Zinc-Lead Mineralisation a) Histogram of Density Measurements, b)
Histogram of Calculated Density Values Calculated from Zn, Pb and Ag Grades, and c) Q-Q Plot of
Measured Density against Calculated Density......................................................................................83
Figure 14.9: Histogram of Density Measurements for Burkland Copper Stockwork Zone...................84
Figure 14.10: Example SWATH Analysis for Zn in Burkland Zinc-Lead Mineralisation -1125m to -960m
Levels.....................................................................................................................................................87
Figure 14.11: Zinc-Lead Mineralisation Reconciliation for July 2016 to June 2017..............................89
Figure 14.12: Long Section through Zinkgruvan showing Resource Classification (ZMAB, 2017)........91
Figure 15.1: Long Section Through Nygruvan Area Showing Mineral Reserve Classification ..............97
Figure 15.2: Long Section Through Knalla Area Showing Mineral Reserve Classification ....................97
Figure 15.3: Long Section Through Copper Area Showing Mineral Reserve Classification ..................98
Figure 16.1: Location of Current Mining Areas...................................................................................102
Figure 16.2: Schematic Flow Sheet of the Paste Plant........................................................................110
Figure 16.3: Schematic Paste Distribution System .............................................................................111
Figure 16.4: Control Panel View of Paste Distribution System Control ..............................................111
Figure 16.5: Long-Section Through Nygruvan Zone Showing Mining Plan for 2018 - 2022 ...............117
Figure 16.6: Long-Section Through Sävsjön Zone Showing Mining Plan for 2018 - 2022 ..................117
Figure 16.7: Long-Section Through Western Areas Showing Mining Plan for 2018 – 2022...............118
Figure 16.8: Long-Section Through Burkland Zone Showing Mining Plan for 2018 - 2022 ................118
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 7
Figure 16.9: Long-Section Through Burkland Copper Stockwork Zone Showing Mining Areas for 2018 -
2022 ....................................................................................................................................................119
Figure 16.10: Schematic Ventilation system.......................................................................................121
Figure 16.11: Schematic Drill Water (2017)........................................................................................122
Figure 16.12: Schematic Mine Water Management (2017) ...............................................................123
Figure 17.1: Crushing Flowsheet.........................................................................................................128
Figure 17.2: Grinding Circuit ...............................................................................................................130
Figure 17.3: Zinc-Lead and Copper Flotation Flowsheets..................................................................131
Figure 17.4: Zinc-Lead Ore Plant Throughput and Head Grade.........................................................135
Figure 17.5: Zinc-Lead Ore Recoveries of Zinc and Lead ....................................................................136
Figure 17.6: Zinc and Lead Concentrate Grades .................................................................................136
Figure 17.7: Copper Plant Throughput and Head Grade ....................................................................137
Figure 17.8: Copper Plant Recovery and Concentrate Grade.............................................................138
Figure 18.1: Location of Enemossen TSF ............................................................................................142
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 8
1 SUMMARY
1.1 Introduction
Wardell Armstrong International Limited (“WAI”) was commissioned by Lundin Mining Corporation
(“Lundin”) to prepare an updated Technical Report in accordance with the disclosure requirements of
Canadian Securities Administrators’National Instrument 43-101, Standard of Disclosure for Mineral
Projects (“NI 43-101”) to disclose recent information about the Zinkgruvan underground polymetallic
base metal mine (“Zinkgruvan”), located in south-central Sweden. This includes an updated Mineral
Resources and Mineral Reserves estimate.
WAI undertook a technical due diligence of the Zinkgruvan mine and this study considered all aspects
of the Mineral Resources and Mineral Reserves estimates, including licencing, exploration, geology,
mining, processing, economics, and environmental and social issues, in accordance with guidelines of
the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) “CIM Definition Standards For
Mineral Resources and Mineral Reserves” 2014.
Lundin is a base metals mining company that produces copper, nickel, zinc and lead at four mines
operated by indirect subsidiaries in Portugal (Neves-Corvo Mine), Chile (Candelaria Mining Complex),
United States of America (Eagle Mine) and Sweden (Zinkgruvan Mine). In addition, Lundin indirectly
holds an equity stake in the Freeport Cobalt Oy business which includes a cobalt refinery located in
Kokkola, Finland. The Zinkgruvan mine is owned and operated by Zinkgruvan Mining AB (“ZMAB”) a
100% subsidiary of Lundin.
1.2 Description & Location
The Zinkgruvan polymetallic base metal mine is located in south-central Sweden, 175km west-
southwest of Stockholm and 210km northeast of Göteborg. The mine is situated in the southwest of
the Bergslagen mining district and is located 15km southeast of the town of Askersund. The Zinkgruvan
mine has a long history of production dating back to 1857 and the area has an excellent transport
network with international airports at Stockholm and Göteborg.
ZMAB holds three mining concessions and comprise the Zinkgruvan Mining Concession, the
neighbouring Klara Mining Concession and the Marketop Mining Concession. The Zinkgruvan Mining
Concession and the Klara Mining Concession cover the deposit and its immediate area. The Marketop
Mining Concession is located 40km east of Zinkgruvan, however no recent exploration or exploitation
has been undertaken on this mining concession. ZMAB also holds five exploration concessions which
surround the Zinkgruvan property and comprise the Dalby Hytta nr 1 Exploration Concession, the
Flaxen nr 1 Exploration Concession, the Hjortonmossen nr 1 Exploration Concession, the Orkaren nr 2
Exploration Concession and the Hövdingamon nr 2 Exploration Concession.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 9
1.3 Geological Setting & Mineralisation
The Zinkgruvan deposit is located in the southern part of the Bergslagen province of south-central
Sweden. The province comprises a Proterozoic aged (1.9 Ga) greenstone belt and hosts massive Zn-
Pb, Cu and Ag sulphide ores and banded iron formations. The supracrustal rocks are dominated by
felsic metavolcanics successions with limestones and calcsilicates commonly found within the
metavolcanics. The province was folded and metamorphosed to upper amphibolite facies during the
Svecofennian orogeny (1.9-1.8 Ga).
The Zinkgruvan deposit comprises a stratiform, massive Zn-Pb deposit situated in an east-west striking
synclinal structure within the lower Proterozoic Svecofennian supracrustal sequence (1.90 Ga - 1.88
Ga). The deposit exhibits distinctive stratification and extends for more than 5,000m along strike and
to depths of 1,600m. The orebody thickness ranges from 3m to 40m. In the central part of the deposit
the zinc-lead mineralisation is stratigraphically underlain by a substratiform copper stockwork.
Deformation during the Svecofennian orogeny included isoclinal folding resulting in the stratigraphy
of the area being overturned. A regional north-northeast to south-southwest trending fault (the Knalla
fault) is present in the centre of the property and separates the deposit into two areas. The Nygruvan
area, which provided most of the historical mine production, is located to the east and strikes
northwest to southeast and dips subvertically to the northeast. The Knalla area is located to the west
of the fault and strikes northeast to southwest and dips variably to the northwest. The Knalla area is
further sub-divided into the following areas from northeast to southwest: Burkland, Lindängen (now
predominantly depleted by mining), Sävsjön, Mellanby, Dalby, Cecilia and Borta Bakom.
1.4 Exploration
To date a total of 3,908 underground drill holes for 580,938m and a total of 193 surface drill holes for
113,037m have been completed. The drilling has defined nine mineralised zones comprising Nygruvan,
Burkland, Burkland Copper Stockwork Zone, Lindängen, Sävsjön, Mellanby, Dalby, Cecilia and Borta
Bakom. All drilling is by diamond core drilling.
1.5 Mineral Resource Estimates
Mineral Resource estimation for the purpose of this Technical Report was undertaken by ZMAB and
reviewed by WAI. Mineral Resource estimation involved the usage of drill hole and geological mapping
data to construct three dimensional wireframes to define mineralised domains. Samples were
selected inside these wireframes, coded and composited. Boundaries were treated as hard with
statistical and geostatistical analysis conducted on composites identified in individual domains. Grades
were estimated into a geological block model representing each mineralised domain. Grade
estimation was carried out predominantly by ordinary kriging. Estimated grades were validated
globally, locally, and visually prior to tabulation of the Mineral Resource estimates. Reconciliation
indicates that the resource models perform well when compared to plant production data.
Mineral Resources are as defined by the CIM. The effective date of the Mineral Resource estimate is
June 30, 2017. A summary of the Mineral Resource statement is shown in Table 1.1 and Table 1.2.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 10
The stated Mineral Resource estimates are not materially affected by any known environmental,
permitting, legal, title, taxation, socio-economic, marketing, political or other relevant issues, to the
best knowledge of the authors. There are no known mining, metallurgical, infrastructure, or other
factors that materially affect this Mineral Resource estimate, at this time.
Table 1.1: Total Mineral Resources for Zinc Zones at Zinkgruvan
(Average Cut-Off Grade of 3.68% Zn Equivalent)
ResourceClassification
Tonnage(Kt)
Grade Metal
Zn(%)
Pb(%)
Ag(g/t)
Zn(Kt)
Pb(Kt)
Ag(Moz)
Measured 7,269 10.0 3.8 86 727 276 20
Indicated 8,399 8.7 3.7 82 731 311 22
Measured +Indicated
15,668 9.3 3.7 84 1,458 587 42
Inferred 9,431 8.5 3.5 81 802 330 25Notes:
1. Mineral Resources are reported in accordance with the guidelines of the CIM Definition Standards for Mineral Resources and Mineral Reserves (2014);
2. Mineral Resources are reported using a zinc equivalent cut-off grade based on a NSR breakeven price;
3. Metal prices used in the NSR evaluation are US$2.75/lb for copper, US$1.00/lb for zinc, US$1.00/lb for lead, and US$15.0/oz for silver. A silver price of $4.11/oz is used in the
calculation of NSR to reflect the royalty payment to Silver Wheaton;
4. Mineral Resources are not Mineral Reserves until they have demonstrated economic viability based on a feasibility study or pre-feasibility study;
5. Mineral Resources are reported inclusive of any Mineral Reserves;
6. Grade represents estimated contained metal in the ground and has not been adjusted for metallurgical recovery and;
7. Numbers may not add due to rounding.
Table 1.2: Total Mineral Resources for Copper Zones at Zinkgruvan
(Cut-Off Grade of 1.0% Cu)
ResourceClassification
Tonnage(Kt)
Grade Metal
Cu(%)
Zn(%)
Ag(g/t)
Cu(Kt)
Zn(Kt)
Ag(Moz)
Measured 4,357 2.3 0.3 32 100 13 4
Indicated 619 2.1 0.4 36 13 2 1
Measured +Indicated
4,976 2.3 0.3 32 113 16 5
Inferred 193 2.3 0.3 25 4 1 0.2Notes:
1. Mineral Resources are reported in accordance with the guidelines of the CIM Definition Standards for Mineral Resources and Mineral Reserves (2014);
2. Mineral Resources are not Mineral Reserves until they have demonstrated economic viability based on a feasibility study or pre-feasibility study;
3. Mineral Resources are reported inclusive of any Mineral Reserves;
4. Grade represents estimated contained metal in the ground and has not been adjusted for metallurgical recovery and;
5. Numbers may not add due to rounding.
1.6 Mining and Mineral Reserves
Mineral Reserves
The Mineral Reserve estimate for the Zinkgruvan deposit is classified in accordance with the CIM
Definition Standards for Mineral Resources and Mineral Reserves (2014). The effective date of the
Mineral Reserve estimate is June 30, 2017. A summary of the Mineral Reserve statement is shown in
Table 1.3 and Table 1.4.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 11
Table 1.3: Total Mineral Reserves for Zinc Zones at Zinkgruvan
(Average Cut-Off Grade of 3.68% Zn Equivalent)
ResourceClassification
Tonnage(Kt)
Grade Metal
Zn(%)
Pb(%)
Ag(g/t)
Zn(Kt)
Pb(Kt)
Ag(Moz)
Proven 8,100 7.4 3.0 68 602 241 18
Probable 3,801 6.7 2.7 51 253 101 6
Proven +Probable
11,901 7.2 2.9 63 855 342 24
Notes:
1. Mineral Reserves are as defined by CIM Definition Standards for Mineral Resources and Mineral Reserves (2014);
2. Mineral Reserves are reported using a zinc equivalent cut-off grade based on a NSR breakeven price;
3. Metal prices used in the NSR evaluation are US$2.75/lb for copper, US$1.00/lb for zinc, US$1.00/lb for lead, and US$15.0/oz for silver. A silver price of $4.11/oz is used in the
calculation of NSR to reflect the royalty payment to Silver Wheaton;
4. Modifying factors used include the use of NSR and mining cut-off values in defining the extraction (stope) shapes, along with dilution and recovery in the mining process;
5. The NSR is calculated on a recovered payable basis taking in to account copper, lead, zinc and silver grades, metallurgical recoveries, prices and realisation costs;
6. Mining, processing and administrative costs were estimated based on actual costs; and
7. Numbers may not add due to rounding.
Table 1.4: Total Mineral Reserves for Copper Zones at Zinkgruvan
(Cut-Off Grade of 1.5% Cu)
ResourceClassification
Tonnage(Kt)
Grade Metal
Cu(%)
Zn(%)
Ag(g/t)
Cu(Kt)
Zn(Kt)
Ag(Moz)
Proven 4,375 1.8 0.2 25 78 9 4
Probable 877 2.0 0.2 29 18 2 1
Proven +Probable
5,252 1.8 0.2 26 96 11 4
Notes:
1. Mineral Reserves are as defined by CIM Definition Standards for Mineral Resources and Mineral Reserves (2014);
2. Modifying factors used include the use of mining cut-off values in defining the extraction (stope) shapes, along with dilution and recovery in the mining process;
3. Mining, processing and administrative costs were estimated based on actual costs; and
4. Numbers may not add due to rounding.
Mine Engineering
The Zinkgruvan mine was developed in 1857 as an underground mine with the orebody at that time
outcropping at surface. It is currently known to extend to 1,600m below surface and is open at depth.
Mine access is currently via three shafts, with the principal P2 shaft providing ore and waste rock
hoisting and labour access to the -800m and -850m levels. The “daylight” ramp connects the surface
and the underground working through the “western areas”, providing direct vehicle access to the
mine.
A system of internal ramps is employed to access and hence exploit Mineral Reserve below the shaft.
The shafts and ramps provide for ventilation, electrical and compressed air reticulation, materials
handling and ore and waste handling.
The mine is highly mechanised, uses the best available technologies to control operations and uses
longhole panel and sub level bench stoping throughout the mine. All stopes are backfilled with either
cemented paste tailings or waste rock. Mining has reached the -1,300m level.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 12
1.7 Mineral Processing, Metallurgical Testing and Recovery Methods
The existing plant has been treating zinc-lead ores since 1977 and uses the conventional processing
technologies of crushing, grinding, flotation and concentrate dewatering to produce separate lead and
zinc concentrates. In 2010, a copper circuit was commissioned to produce copper concentrate using a
separate grinding, flotation and dewatering circuit.
The plant also produces paste from the tailings for underground backfill.
The zinc-lead and the copper ores are both relatively easy to process and have resulted in good
metallurgical performances. The zinc-lead ore responds favourably to beneficiation with recoveries of
zinc and lead being typically 90% and 83%, respectively. Copper recovery from the copper ore has
been in excess of 88% since the circuit was commissioned. The quality of all concentrate is uniformly
high and they are readily accepted by customers, although silica levels in the zinc concentrate have
been penalised on occasion and have, at times, neared the maximum range stated in some of the
smelting agreements.
Significant improvements have been made to the crushing plant in recent years by simplifying the
circuit and de-coupling the plant from the mine hoist system. A significant proportion of the zinc-lead
ore is now fed to the AG mill as is, without the need for pre-screening and pebble crushing.
In 2017 a second AG mill was installed which can treat either copper or zinc-lead ores. Copper ore
throughput is 60-65 tph and commissioning trials of the second SAG mill with the zinc-lead ore were
in progress during the WAI site visit. Daily peak tonnages of over 4,000 tpd, while processing zinc-lead
ore through both AG mills have been registered since then.
The ores to the west of the Knalla area are reported to contain a more iron rich sphalerite which may
result in slightly lower zinc grade in the zinc concentrate produced. Testwork programmes are being
undertaken to determine what modifications to the plant’s reagent regime may be required to
optimally treat these ores.
1.8 Infrastructure
The site is serviced by high quality state roads, secure high voltage electricity supply, fresh water,
telecommunications, and operations are supported by a local and national logistics supply chain
ensuring highly efficient site activities with minimal need for site based warehousing. The integration
of suppliers extends to delivery of goods directly to the underground logictics hubs.
Tailings
The annual production of tailings is approximately 1.1Mtpa with 35% used as mine backfill and 65%
disposed at the Enemossen Tailings Storage Facility (TSF), located about 4km south from the
processing plant,
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 13
A new TSF has been constructed directly east of the existing TSF, known as the Enemossen East TSF
which was designed and constructed under the supervision of Knight Piésold Ltd.
1.9 Environmental Studies, Permitting and Social or Community Impact
The mining licence for Zinkgruvan has recently been extended for the extraction and processing of up
to 1.5Mtpa (with a maximum of 1.2Mtpa of zinc-lead ore and 0.5Mtpa of copper ore).
ZMAB has established plans for the continuous monitoring and management of water, waste, air
quality, biodiversity, Health and Safety and stakeholder engagement. These plans are updated to
reflect changes to business needs and Lundin corporate-level standards for environmental and social
management, which are commensurate with international best practice standards.
The operations infrastructure, including access roads and energy sources, meets best practice
requirements and general housekeeping, safety and security standards at the mine are compliant with
international best practice. ZMAB maintain positive relations with local communities through informal
and formal stakeholder engagement activities, including through community initiatives and
continuous interaction via social media.
1.10 Capital and Operating Costs
The forecast operating cost for 2018 for the mine is 278.1SEK/t. The operating cost is therefore
US$34.8/t at an exchange rate of US$0.125 per 1SEK.
The forecast operating cost for 2018 for the mineral processing plant is 132.9SEK/t. The operating cost
is therefore US$16.6/t at an exchange rate of US$0.125 per 1SEK.
As part of maintaining an efficient and effective operating plant, ZMAB have allocated a sustaining
capital budget of 22,500 KSEK between 2018 and 2022. The budget estimate is to an accuracy of +/-
25% and is based on ZMAB in-house experience. The sustaining capital budget includes a provision for
an upgrade to the backfill paste plant and distribution lines, ongoing raises of the Enemossen East TSF,
upgrades to the concentrate handling facilities and continued noise reduction programmes. The
budgeted processing plant capital expenditures for the 2013 and 2016 period as set out in the previous
Technical Report included addition of a new AG grinding mill, which has been successfully installed as
a second hand unit. The construction of a new TSF has also been completed.
Sustaining capital in the mine includes on-going horizontal and vertical development necessary to
achieve the mine schedule, infill diamond drilling, together with mobile and other equipment
replacement programmes. A total of 1,180,379 KSEK is forecast to be spent over the next 5 years. This
is an increase from the previous 5 years, reflecting both increased renewal of mine equipment and
the expansion of mine operations in the western areas of the underground operations.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 14
1.11 Economic Analysis Results
Companies which are active and current producers of saleable product issuing a NI 43-101 Technical
Report may exclude the information required under Section 22 for Technical Reports on properties
unless the Technical Report includes a material expansion of current production. The Lundin Annual
Report can be found at: http://www.lundinmining.com/s/Investors.asp
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 15
2 INTRODUCTION
This Technical Report has been prepared by WAI in accordance with the disclosure requirements of NI
43-101 to disclose recent information about the Zinkgruvan mine, located in south-central Sweden.
This includes an updated Mineral Resources and Mineral Reserves estimate.
Lundin is a base metals mining company that produces copper, nickel, zinc and lead at four mines
operated by indirect subsidiaries in Portugal (Neves-Corvo), Chile (Candelaria Mining Complex), United
States of America (Eagle Mine) and Sweden (Zinkgruvan Mine). In addition, Lundin indirectly holds an
equity stake in the Freeport Cobalt Oy business which includes a cobalt refinery located in Kokkola,
Finland. The Zinkgruvan mine is operated by ZMAB a 100% subsidiary of Lundin.
A technical due diligence of the Zinkgruvan operation was undertaken by WAI. This study considered
all aspects of the mine including licencing, geology, exploration, mining, mineral processing,
economics, and environmental and social issues. Mineral Resource and Mineral Reserve estimation,
for the purposes of this Technical Report, was undertaken by ZMAB and reviewed by WAI. The Mineral
Resource and Mineral Reserve estimates are reported in accordance with the CIM standard
referenced in NI 43-101. This Technical Report has been prepared in accordance with the
requirements of Form 43-101F1.
2.1 Independent Consultants
WAI has provided the mineral industry with specialised geological, mining and mineral processing
expertise since 1987, initially as an independent company, but from 1999 as part of the Wardell
Armstrong Group (WA). WAI’s experience is worldwide and has been developed in the coal and
metalliferous mining sector.
Our parent company is a mining engineering/environmental consultancy that services the industrial
minerals sector from nine regional offices in the UK and international offices in Almaty, Kazakhstan
and Moscow. Total worldwide staff compliment is in excess of 400.
WAI, its directors, employees and associates neither has nor holds:
Any rights to subscribe for shares in Lundin either now or in the future;
Any vested interests in any mining or exploration concessions (“licences”) held by
Lundin;
Any rights to subscribe to any interests in any of the licences held by Lundin either
now or in the future;
Any vested interests in either any licences held by Lundin or any adjacent licences; or
Any right to subscribe to any interests or licences adjacent to those held by Lundin,
either now or in the future.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 16
WAI’s only financial interest is the right to charge professional fees at normal commercial rates, plus
normal overhead costs, for work carried out in connection with the investigations reported here.
Payment of professional fees is not dependent either on project success or project financing.
WAI has a demonstrated track record in undertaking independent assessments of Mineral Resources
and Mineral Reserve estimates, project evaluations and audits, MERs and independent feasibility
evaluations to bankable standards on behalf of exploration and mining companies and financial
institutions worldwide.
2.2 Qualified Persons, WAI Review and Site Visit
Qualified Persons from WAI who have reviewed the Mineral Resource and Mineral Reserve estimates
and supervised the production of this report are as follows:
Richard Ellis, BSc, MSc (MCSM), CGeol, EurGeol, FGS, Principal Resource Geologist;
Philip King, BSc, CEng, FIMMM, Technical Director of Mineral Processing; and
Tim Daffern, BEng, CEng, MBA, FIMMM, FAusIMM, MSME, MCIM, ACSM, Consulting
Engineer
These consultants are considered to be independent Qualified Persons according to the definitions
given in NI 43-101. The responsibilities of WAI during the preparation of the different sections of this
Technical Report are shown in Table 2.1.
Table 2.1: Authors Responsibilities
Author Responsible for Preparation of Section/s
Richard Ellis 1. Summary; 2. Introduction; 3. Reliance on Other Experts; 4. Property
Description and Location; 5. Accessibility, Climate, Local Resources,
Infrastructure and Physiography; 6. History; 7. Geological Setting and
Mineralisation; 8. Deposit Types; 9. Exploration; 10. Drilling; 11. Sample
Preparation, Analyses and Security; 12. Data Verification; 14. Mineral Resource
Estimates; 23. Adjacent Properties; 24. Other Relevant Data and Information;
25. Interpretation and Conclusions; 26. Recommendations; 27. References
Philip King 1. Summary; 13. Mineral Processing and Metallurgical Testing; 17. Recovery
Methods; 18. Project Infrastructure; 19. Market Studies and Contracts; 24.
Other Relevant Data and Information; 25. Interpretation and Conclusions; 26.
Recommendations; 27. References
Tim Daffern 1. Summary; 15. Mineral Reserve Estimates; 16. Mining Methods; 18. Project
Infrastructure; 19. Market Studies and Contracts; 20. Environmental Studies,
Permitting and Social or Community Impact; 21. Capital and Operating Costs;
22. Economic Analysis; 24. Other Relevant Data and Information; 25.
Interpretation and Conclusions; 26. Recommendations; 27. References
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 17
Other WAI consultants who contributed to this report included:
Stuart Richardson, BSc MSc IEng ACSM MCSM, Senior Mining Engineer;
Edvard Glücksman, BA, BSc, MSc, PhD, CSci, GradMIMMM, Senior Environmental and
Social Specialist; and
Andrew Beveridge, BSc, ACSM, FGS, MAusIMM, Principal Geotechnical Engineer.
A site visit to the Zinkgruvan Property was undertaken by Richard Ellis, Philip King, Tim Daffern and
Edvard Glücksman between October 10 to October 11, 2017, covering aspects related to licencing,
geology, exploration, QA/QC, mineralogy, mining, laboratory testwork, mineral processing, access and
infrastructure and environmental and social issues.
2.3 Units and Currency
All units of measurement used in this report are metric unless otherwise stated. Tonnages are
reported as metric tonnes (“t”), precious metal values in grams per tonne (“g/t”) or parts per million
(“ppm”).
Unless otherwise stated, all references to currency or “US$” are to United States Dollars (US$).
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 18
3 RELIANCE ON OTHER EXPERTS
This Technical Report has been prepared by WAI on behalf of Lundin Mining Corporation (“Lundin”)
for which WAI has wholly relied upon the data presented by Lundin Mining Corporation in formulating
its opinion. The information, conclusions, opinions, and estimates contained herein are based on:
Information made available to WAI by Lundin and ZMAB at the time of preparing this
Technical Report including previous internal and external reports (on the varied
disciplines) prepared by or for Lundin on Zinkgruvan; and
Assumptions, conditions, and qualifications as set forth in this Technical Report.
WAI have not carried out any independent exploration work, drilled any holes or carried out any
sampling and assaying at the various project areas.
The authors have not reviewed the land tenure situation and have not independently verified the legal
status or ownership of the properties or any agreements that pertain to the licence areas. The results
and opinions expressed in this report are based on the authors’field observations and assessment of
the technical data supplied by Lundin.
The metallurgical, geological, mineralisation, exploration techniques and certain procedural
descriptions, figures and tables used in this report are taken from reports prepared by others and
provided to WAI by Lundin.
Though WAI is confident that the opinions presented are reasonable, a substantial amount of data has
been accepted in good faith. Whilst WAI has endeavoured to validate as much of the information as
possible, WAI cannot be held responsible for any omissions, errors or inadequacies of the data
received. WAI has not conducted any independent verification or quality control sampling, or drilling.
WAI has not undertaken any accounting, financial or legal due diligence of Zinkgruvan or the
associated company structures and the comments and opinions contained in this Technical Report are
restricted to technical and economic aspects associated with Zinkgruvan.
WAI has not undertaken any independent testing, analyses or calculations beyond limited high level
checks intended to give WAI comfort in the material accuracy of the data provided. WAI cannot accept
any liability, either direct or consequential for the validity of information that has been accepted in
good faith.
Except for the purposes legislated under applicable Canadian securities laws, any use of this Technical
Report by any third party are at that party’s sole risk.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 19
4 PROPERTY DESCRIPTION AND LOCATION
The Zinkgruvan mine is located in south-central Sweden in Närke County at approximately 58°49’N
latitude, 15°06’E longitude. The mine is situated 175km west-southwest of Stockholm and 210km
northeast of Göteborg. While there is a small village called Zinkgruvan surrounding the mine, the
nearest significant communities are Åmmeberg and Askersund, 10km and 15km NW respectively from
the mine. These towns house the majority of the mine employees. Askersund is located at the north
end of Lake Vättern, the second largest lake in Sweden. The largest lake in the country, Lake Vänern,
is some 50km due west of Askersund. The location of the Zinkgruvan property is shown in Figure 4.1.
Figure 4.1: Property Location Map (Geology.com)
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 20
4.1 Mineral Tenure
ZMAB holds three mining concessions, the Zinkgruvan Mining Concession, the neighbouring Klara
Mining Concession and the Marketop Mining Concession. The Zinkgruvan Mining Concession and the
Klara Mining Concession cover the deposit and its immediate area. The Marketop Mining Concession
is located 40km east of Zinkgruvan, however no recent exploration or exploitation has been
undertaken on this mining concession. ZMAB also holds five exploration concessions which surround
the Zinkgruvan property and comprise the Dalby Hytta nr 1 Exploration Concession, the Flaxen nr 1
Exploration Concession, the Hjortonmossen nr 1 Exploration Concession, the Orkaren nr 2 Exploration
Concession and the Hövdingamon nr 2 Exploration Concession. The extent of the licence areas is
shown in Figure 4.2.
Figure 4.2: Location of Licence Areas (SWEREF 99 TM Coordinate System)
Mining Concessions
4.1.1.1 Zinkgruvan Mining Concession
The Zinkgruvan Mining Concession, initially consisted originally of a large number of small mining
rights but was consolidated in 2000 into one concession covering an area of 2.54km2 and is valid until
01 January 2025. If mining continues after these years, the concessions can be extended for periods
of 10 years. The concession provides the rights to extract and process lead, copper, silver and zinc in
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 21
ores. A summary of the licence coordinate locations in the Swedish Coordinate System 1990 (RT90 2.5
gon V) is shown in Table 4.1.
Table 4.1: Coordinates of the Zinkgruvan Mining Concession
Coordinate Point Easting (m) (RT90 2.5 gon V) Northing (m) (RT90 2.5 gon V)
1 1,457,822.1 6,520,732.1
2 1,457,764.9 6,520,905.1
3 1,457,882.0 6,521,127.0
4 1,458,092.0 6,521,201.0
5 1,458,252.0 6,521,673.0
6 1,458,496.7 6,522,047.1
7 1,458,822.1 6,522,071.2
8 1,458,876.1 6,522,158.3
9 1,459,107.8 6,522,624.9
10 1,459,379.4 6,522,488.7
11 1,459,312.0 6,522,345.0
12 1,459,383.0 6,522,310.0
13 1,459,333.0 6,522,204.0
14 1,459,356.0 6,522,081.0
15 1,459,423.0 6,522,061.0
16 1,459,420.0 6,522,055.0
17 1,459,554.0 6,521,991.0
18 1,459,478.0 6,521,832.0
19 1,459,844.0 6,521,675.0
20 1,460,150.0 6,522,400.0
21 1,460,688.1 6,521,345.6
22 1,460,599.2 6,521,349.3
23 1,460,593.7 6,521,229.5
24 1,460,757.8 6,521,157.9
25 1,460,836.5 6,520,974.0
26 1,460,872.3 6,520,989.5
27 1,460,909.1 6,520,807.7
28 1,460,385.2 6,520,700.3
29 1,460,158.7 6,520,807.6
30 1,459,992.7 6,520,744.2
31 1,459,740.8 6,521,410.3
32 1,459,403.6 6,521,286.5
33 1,459,342.1 6,521,453.4
34 1,459,072.5 6,521,591.1
35 1,458,888.6 6,521,292.4
36 1,458,825.3 6,521,269.5
37 1,458,852.2 6,521,185.9
38 1,458,685.5 6,521,127.6
39 1,458,713.6 6,521,042.3
4.1.1.2 Klara Mining Concession
The Klara Mining Concession was granted in 2002 and covers 3.55km2, mainly over the western part
of the deposit and is valid until 18 December 2027. If mining continues after these years, the
concessions can be extended for periods of 10 years. The Klara Mining Concession includes a
restriction stipulating that mining must always be done with a minimum rock cover of at least 150m
and in planned residential areas the cover has to be 400m. This restriction has no impact on mining
because the ore zones in the Klara concession are found at depths below 400m. The concession
provides the rights to extract and process zinc, lead, copper, silver, gold, cobalt and nickel in ores. A
summary of the licence coordinate locations in the Swedish Coordinate System 1990 (RT90 2.5 gon V)
is shown in Table 4.2.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 22
Table 4.2: Coordinates of the Klara Mining Concession
Coordinate Point Easting (m) (RT90 2.5 gon V) Northing (m) (RT90 2.5 gon V)
1 1,457,010.00 6,522,120.00
2 1,458,480.22 6,523,152.74
3 1,459,426.54 6,523,388.86
4 1,459,733.00 6,523,235.50
5 1,459,555.00 6,522,860.00
6 1,460,150.00 6,522,400.00
7 1,459,844.00 6,521,675.00
8 1,459,478.00 6,521,832.00
9 1,459,554.00 6,521,991.00
10 1,459,420.00 6,522,055.00
11 1,459,423.00 6,522,061.00
12 1,459,356.00 6,522,081.00
13 1,459,333.00 6,522,204.00
14 1,459,383.00 6,522,310.00
15 1,459,312.00 6,522,345.00
16 1,459,379.40 6,522,488.70
17 1,459,107.80 6,522,624.90
18 1,458,876.10 6,522,158.30
19 1,458,822.10 6,522,071.20
20 1,458,496.72 6,522,047.10
21 1,458,359.00 6,521,842.00
22 1,458,252.00 6,521,673.00
23 1,458,092.00 6,521,201.00
24 1,457,882.00 6,521,127.00
25 1,457,764.90 6,520,905.10
26 1,457,460.00 6,520,800.00
4.1.1.3 Marketop Mining Concession
The Marketop Mining Concession lies 40km due east of Zinkgruvan, covers an area of 0.70km2 and is
valid until 06 March 2026. No recent exploration or exploitation has been conducted within this
concession. The concession provides the rights to extract and process lead, gold, copper, silver and
zinc in ores. A summary of the licence coordinate locations in the Swedish Coordinate System 1990
(RT90 2.5 gon V) is shown in Table 4.3.
Table 4.3: Coordinates of the Marketop Mining Concession
Coordinate Point Easting (m) (RT90 2.5 gon V) Northing (m) (RT90 2.5 gon V)
1 1,497,858 6,524,654
2 1,499,095 6,523,817
3 1,499,014 6,523,698
4 1,499,472 6,523,388
5 1,499,315 6,523,154
6 1,498,084 6,523,986
7 1,498,172 6,524,122
8 1,497,709 6,524,434
Exploration Concessions
The Swedish exploration permit system allows three renewals following the initial granting of an
exploration concession. The initial exploration concession is valid for three years (years 1-3). During
this time if the holder wishes to extend the concession period an application to the Mining
Inspectorate should be submitted. If adequate exploration has deemed to have been undertaken by
the Mining Inspectorate within the concession during the initial three years then a first renewal of the
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 23
concession can be applied for. The first renewal period is for three years (years 4-6). A second renewal
of up to 4 years (years 7-10) can then be applied for if special reasons for the second renewal can be
demonstrated by the applicant (e.g the applicant can demonstrate successful exploration within the
concession). A third renewal of up to 5 years (years 11-15) can be granted by the Mining Inspectorate
if exceptional reasons can be demonstrated and that extensive work has been undertaken within the
concession and that further exploration will likely result in a mining concession.
The holder of an exploration concession can, at any point, withdraw the permit or decide not to renew
the permit. The area of the exploration concession will then be under a one year moratorium period.
During that year no other company can claim that area for exploration purposes.
The holder must by law report all results (drilling results, analyses, geophysical data, soil sampling data
etc.) from exploration to the Mining Inspectorate within three months after termination of the
exploration permit. If requested the exploration data cannot be disclosed by the Mining Inspectorate
for a maximum of four years. After four years the exploration data is made public.
Although not a requirement of the Mining Inspectorate, ZMAB holds a meeting once a year with the
Mining Inspectorate to inform them of ongoing exploration projects.
4.1.2.1 Dalby Hytta nr 1 Exploration Concession
Dalby Hytta nr 1 Exploration Concession covers an area of 7.80km2 and is valid until 1 July 2018. A
summary of the licence coordinate locations in the Swedish Coordinate System 1990 (RT90 2.5 gon V)
is shown in Table 4.4.
Table 4.4: Coordinates of the Dalby Hytta nr 1 Exploration Concession
Coordinate Point Easting (m) (RT90 2.5 gon V) Northing (m) (RT90 2.5 gon V)
1 1,455,776.00 6,525,000.00
2 1,455,782.00 6,525,140.00
3 1,455,736.00 6,525,295.00
4 1,455,327.00 6,526,324.00
5 1,455,000.00 6,527,000.00
6 1,455,600.00 6,527,620.00
7 1,456,520.00 6,527,060.00
8 1,458,480.22 6,523,152.74
9 1,457,089.00 6,522,177.00
10 1,456,560.00 6,523,030.00
11 1,456,137.00 6,525,000.00
Zinkgruvan is actively drilling on the Dalby Hytta nr 1 Exploration Concession and will be submitting
an application to convert a large part of the concession to a Mining Concession in early 2018.
4.1.2.2 Flaxen nr 1 Exploration Concession
The Flaxen nr 1 Exploration Concession covers an area of 19.8km2 and is valid until 15 September 2019.
A summary of the licence coordinate locations in the Swedish Coordinate System 1990 (RT90 2.5 g V)
is shown in Table 4.5.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 24
Table 4.5: Coordinates of the Flaxen nr 1 Exploration Concession
Coordinate Point Easting (m) (RT90 2.5 g V) Northing (m) (RT90 2.5 g V)
1 1,458,480.22 6,523,152.74
2 1,458,133.58 6,523,835.24
3 1,459,550.00 6,525,000.00
4 1,461,430.00 6,523,090.00
5 1,462,360.00 6,523,460.00
6 1,463,600.00 6,523,180.00
7 1,463,420.00 6,522,680.00
8 1,464,360.00 6,520,900.00
9 1,462,765.00 6,519,050.00
10 1,462,035.00 6,517,690.00
11 1,462,825.00 6,517,000.00
12 1,462,825.00 6,516,450.00
13 1,461,660.00 6,517,375.00
14 1,461,180.00 6,518,580.00
15 1,460,575.00 6,518,990.00
16 1,459,992.70 6,520,744.20
17 1,460,158.70 6,520,807.60
18 1,460,385.20 6,520,700.30
19 1,460,909.10 6,520,807.70
20 1,460,872.30 6,520,989.50
21 1,460,836.50 6,520,974.00
22 1,460,757.80 6,521,157.90
23 1,460,593.70 6,521,229.50
24 1,460,599.20 6,521,349.30
25 1,460,688.10 6,521,345.60
26 1,460,150.00 6,522,400.00
27 1,459,555.00 6,522,860.00
28 1,459,733.00 6,523,235.50
29 1,459,426.54 6,523,388.86
Hjortronmossen nr 1 Exploration Concession
The Hjortronmossen nr 1 Exploration Concession covers an area of 5.3km2 and is valid until 24 April
2018. A summary of the licence coordinate locations in the Swedish Reference Frame Coordinate
System 1999, Transverse Mercator (SWEREF 99 TM) is shown in Table 4.6.
Table 4.6: Coordinates of the Hjortronmossen nr 1 Exploration Concession
Coordinate Point Easting (m) (SWEREF 99 TM) Northing (m) (SWEREF 99 TM)
1 498,713 6,530,412
2 499,456 6,529,352
3 499,724 6,529,495
4 500,030 6,529,029
5 500,311 6,527,253
6 499,544 6,527,034
7 497,955 6,527,824
8 497,934 6,529,553
Orkaren nr 2 Exploration Concession
The Orkaren nr 2 Exploration Concession covers an area of 18.9km2 and is valid until 29 September
2020. A summary of the licence coordinate locations in the Swedish Reference Frame Coordinate
System 1999, Transverse Mercator (SWEREF 99 TM) is shown in Table 4.7.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 25
Table 4.7: Coordinates of the Orkaren nr 2 Exploration Concession
Coordinate Point Easting (m) (SWEREF 99 TM) Northing (m) (SWEREF 99 TM)
1 504,190.00 6,528,430.00
2 510,102.32 6,521,042.97
3 508,859.56 6,521,307.90
4 507,934.48 6,520,926.89
5 506,032.42 6,522,813.32
6 504,633.15 6,521,638.07
7 502,982.72 6,524,837.61
8 503,679.10 6,525,240.00
9 503,789.30 6,525,823.00
10 504,424.70 6,525,655.00
11 505,292.50 6,526,154.00
12 503,814.15 6,528,159.29
Hövdingamon nr 2 Exploration Concession
The Hövdingamon nr 2 Exploration Concession covers an area of 5.2km2 and is valid until 29 September
2020. A summary of the licence coordinate locations in the Swedish Reference Frame Coordinate
System 1999, Transverse Mercator (SWEREF 99 TM) is shown in Table 4.8.
Table 4.8: Coordinates of the Hövdingamon nr 2 Exploration Concession
Coordinate Point Easting (m) (SWEREF 99 TM) Northing (m) (SWEREF 99 TM)
1 501,460.62 6,524,757.54
2 501,795.60 6,524,085.82
3 502,216.78 6,523,062.26
4 502,264.62 6,522,907.89
5 502,260.31 6,522,767.89
6 502,621.13 6,522,772.23
7 503,067.63 6,520,808.31
8 503,606.63 6,519,962.10
9 503,528.35 6,519,904.18
10 503,994.01 6,518,590.26
11 503,711.00 6,518,860.00
12 503,567.00 6,519,252.00
13 503,209.00 6,519,444.00
14 502,844.00 6,519,227.00
15 501,940.00 6,520,780.00
16 501,292.00 6,523,298.00
17 501,284.00 6,524,653.00
4.2 Surface Rights
The surface land in the concessions areas belong mainly to private individuals. The regulations of the
exploitation concessions involve no particular restrictions on the mining operation.
4.3 Royalties
ZMAB does not pay any mining royalties to the Swedish State.
Under an agreement with Wheaton Precious Metals (formerly Silver Wheaton), the Company has
agreed to deliver all future production of silver contained in concentrate produced from the
Zinkgruvan mine. The Wheaton Precious Metals agreement with the Zinkgruvan mine includes a
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 26
guaranteed minimum delivery of 40 million ounces of silver over an initial 25 year term. If at the end
of the initial term the Company has not met its minimum obligation, it must pay Wheaton Precious
Metals $1.00 for each ounce of silver not delivered. An aggregate total of approximately 21.6 million
ounces has been delivered since the inception of the contract in 2004.
Mining Tax
The corporate taxation rate in Sweden is 22%.
4.4 Environmental Aspects
A summary of the valid environmental permits obtained by ZMAB are detailed in Section 20.
The reclamation provision at the Zinkgruvan mine at December 31, 2016 was $17.1 million (2015 -
$16.1 million). This provision is based on future reclamation costs being settled between 2021 and
2051. The Company has obtained letters of credit related to its site restoration provision.
4.5 Permits
The mine is currently operated under an Environmental Licence granted by the Swedish authorities
for mine life extension and a new tailings management facility at Enemossen East. The application was
submitted to authorities in August 2012 (2015-01-30, case M 2927-12 and case 1421-11) and approved
in January 2015 for the extraction and processing of 1.5Mtpa of ore, including a maximum of 1.2Mtpa
of zinc-lead ore and 0.5Mtpa of copper ore.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 27
5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY
5.1 Accessibility
The Zinkgruvan property can be reached from Stockholm along highway E18 in a westerly direction
for a distance of 200km to Örebro; from Örebro southward on highway E20 and County Road 50 for a
distance of 50km to Askersund, and then by a secondary paved road for a further 15km through
Åmmeberg to Zinkgruvan. Access to Örebro is also possible by rail and by aircraft on scheduled flights
from Copenhagen amongst other locations.
Askersund is located at the north end of Lake Vättern, the second largest lake in Sweden. The largest
lake in the country, Lake Vänern, is some 50km due west of Askersund. The port of Otterbäcken on
Lake Vänern is about 100km from Zinkgruvan by road. The port of Göteborg on Sweden's west coast
is accessible by lake and canal from Otterbäcken, a distance of some 200km.
There are no major centres of population close to the mine, although several small villages with
populations numbered in the hundreds lie within the Mining Concessions.
5.2 Climate
The warm Gulf Stream in the Atlantic gives Sweden a milder climate than other areas at the same
latitude. Stockholm, the capital, is at almost the same latitude as southern Greenland but has an
average temperature of 18°C in July. The winter temperatures average slightly below freezing and
snowfall is moderate.
Temperature records for Zinkgruvan show that the mean annual temperature is 5.5°C. Mean monthly
temperatures are below freezing from December through March. The coldest month is February, with
an average maximum temperature of -4.1°C and an average minimum of -11.1°C. The warmest month
is August with an average maximum temperature of 18.2°C and an average minimum of 12.2°C. Annual
precipitation is about 750mm, ranging from a low of 11mm in March to a high of 144mm in August.
5.3 Local Resources & Infrastructure
The community of Askersund has a population of about 14,000. The village of Zinkgruvan has about
290 inhabitants. Zinkgruvan is the largest private employer in the municipality with about 340
employees and approximately 100 contractors. Other local economic activities include agriculture,
construction and light service industries. The town of Askersund has a modest tourist industry in the
summer and is a full service community.
The nearest airport is in Örebro with flights to Copenhagen and other centres. Örebro also hosts a
university and considerable light and heavy industry. As with virtually all of southern Sweden there is
an extensive network of paved highways, rail service, excellent telecommunications facilities, national
grid electricity, an ample supply of water and a highly educated work force.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 28
5.4 Physiography
The property is located in very gently rolling terrain at about 175m above mean sea level ("masl") and
relief in the area is 30m to 50m. The land is largely forest and drift covered and cut by numerous small,
slow moving streams, typical of glaciated terrain and very reminiscent of boreal-forested areas of
Canada such as the Abitibi area of northern Ontario and Quebec. Outcrop is scarce.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 29
6 HISTORY
6.1 Ownership History
The Zinkgruvan deposit has been known since the 16th century but it was not until 1857 that large
scale production began under the ownership of the Vieille Montagne Company of Belgium.
Vieille Montagne, the world leader in the mining and processing of zinc ores at that time, agreed to
purchase the properties, including mineral rights and extensive surface rights in farm and forest land
and in 1857 a Royal Warrant was issued by the Swedish Crown authorising this purchase by a foreign
company and documenting the terms of operation of the mine.
The first shipment of ore from Zinkgruvan to Belgium was made in 1860. Vieille Montagne
metallurgists, accustomed to treating oxidised ores in carbonate gangues, encountered severe
technical problems in smelting the sulphide ores; however, the problem was eventually solved by the
addition of a roaster on site in 1864. On site processing was carried out at Åmmeberg with its small
port facility on Lake Vättern. From the port, shipments of ore and (later) concentrate were shipped
out through the Swedish lake and canal system to the sea and on to Belgium. An annual ore production
rate of around 300kt was maintained by Vieille Montagne at Zinkgruvan mine until the end of 1976.
From 1976, Vieille Montagne undertook a mine expansion programme at Zinkgruvan. A new main
shaft was sunk to gain access to additional deeper ore and the mining method was modified to allow
for heavier, mechanised equipment. A new concentrator and tailings storage facility were built
adjacent to the mine to replace the existing Åmmeberg facilities. Vieille Montagne brought the new
facilities on line at the beginning of 1977 and the rate of production gradually began to increase
towards the target of 600ktpa, which was achieved in 1982.
In 1990, Vieille Montagne was merged into the Union Miniere group of Belgium, with continued
industrial activities in Åmmeberg and Zinkgruvan through a Swedish branch, Vieille-Montagne
Sweden, which in 1991 was incorporated as a Swedish company, Union Miniere Sverige AB, and in
1994 changed its name to Åmmeberg Mining AB.
In 1995, a wholly-owned subsidiary of North Limited of Australia, North Mining Svenska AB, purchased
Åmmeberg Mining AB and, in turn, the Zinkgruvan mine from the Belgian company Union Minière S.A.
Following the acquisition, in addition to continuation of mining, an aggressive exploration programme
was completed in the immediate and surrounding area. A major reinvestment in the mill on the
Zinkgruvan mine site was completed in 1999.
In 2000, Rio Tinto became the owner of Zinkgruvan when it acquired North Limited. In 2001 Rio Tinto
introduced paste backfill at the mine.
In June 2004, Lundin acquired North Mining Svenska AB and, in turn, Åmmeberg Mining AB and the
Zinkgruvan mine from Rio Tinto. In December 2004, Silver Wheaton (Caymans) Ltd agreed to acquire
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 30
100% of the life of mine payable silver production from the Zinkgruvan mining concessions. The mine
annually produces approximately 1.6Moz of payable silver contained in the lead and zinc concentrate.
In 2005, North Mining Svenska AB and Åmmeberg Mining AB merged to form Zinkgruvan Mining AB,
thereafter the owner and operator of the Zinkgruvan mine. Effective November 30, 2006 Lundin
Mining Corporation merged with EuroZinc, and continued as Lundin Mining Corporation.
In 2010, a surface decline was developed, and mining and processing of copper ores commenced.
6.2 Exploration History
Vieille Montagne operated Zinkgruvan mine from 1857 to 1990 before merging into Union Miniere
which operated the mine until late 1995 when it was indirectly acquired by North Limited of Australia.
During this time, a total of approximately 1,169 drill holes for 209,653m were completed.
Underground drilling focussed on Nygruvan, the upper levels of Burkland, Lindängen and Sävsjön.
Surface drilling focussed on Cecilia and down dip extensions to Cecilia.
From late 1995 until August 2000, under North Limited’s indirect ownership, the mine completed a
total of approximately 490 drill holes for 124,007m. Underground drilling focussed on Burkland, the
lower levels of Nygruvan, the lower levels of Cecilia and Borta Bakom. Underground exploration
drilling which attempted to intersect mineralisation between Sävsjön and Cecilia was also undertaken.
Surface exploration drilling attempted to identify down-dip mineralisation in what is now the Dalby
zone. In addition, North Limited undertook an aggressive regional exploration programme within an
area of 236km2 which included the mine and surrounding area. The regional exploration programme
comprised airborne and ground geophysical surveys, geochemical surveys and geological logging.
In August 2000, Rio Tinto acquired North Limited and, in turn, Zinkgruvan mine which it indirectly
owned and operated until June 2004. During this time, a total of approximately 442 drill holes for
47,625m were completed. Underground drilling focussed on the upper levels of Burkland and the
deepest levels of Nygruvan. Surface drilling focussed on the Borta Bakom deposit and attempted to
identify up-dip mineralisation in this area.
In June 2004, Lundin acquired indirect ownership of the Zinkgruvan mine. Up to June 2017, ZMAB has
completed a total of approximately 2,000 drill holes for 312,690m. Underground drilling focussed on
the deep levels of Nygruvan, Burkland (including the copper stockwork), Mellanby, Dalby and Borta
Bakom. Exploration drifts constructed by Lundin from which to gain drill position, included a 1,600m
exploration drift on the -1,130 level from Burkland to Dalby, a 250m exploration drift through the
hangingwall at Mellanby on the -650m level, a 500m exploration drift through the hangingwall at
Burkland on the -950m level and a 200m exploration drift through the hangingwall at Nygruvan on the
-1,100m level. Surface drilling focussed on identifying near surface along strike extensions of Nygruvan
and most recently on targeting down dip extensions at Dalby.
A summary of the historical exploration drilling by company is shown in Table 6.1.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 31
Table 6.1: History of Exploration Drilling by Company
Vieille Montagne
(1857–1990)
and Union
Miniere (1990-
Late 1995)
North Limited
(Late 1995-
August 2000)
Rio Tinto
(August 2000-
June 2004)
Lundin Mining
(June 2004-
2017)
Total
Drill
Holes
Length
(m)
Drill
Holes
Length
(m)
Drill
Holes
Length
(m)
Drill
Holes
Length
(m)
Drill
Holes
Length
(m)
Underground 1,108 178,486 482 117,660 413 38,130 1,905 246,661 3,908 580,938
Surface 61 31,166 8 6,347 29 9,495 95 66,029 193 113,037
Total 1,169 209,653 490 124,007 442 47,625 2,000 312,690 4,101 693,975Note: The following drill holes have been used to identify the time of ownership. All drill holes before drill hole number 1203 are assigned to Vieille Montagne and Union Miniere. Drill
hole numbers 1203 to 1759 are assigned to North Limited. Drill hole numbers 1760 to 2279 are assigned to Rio Tinto. All drill holes after drill hole number 2279 are assigned to Lundin.
6.3 Historical Mineral Resources and Mineral Reserves
The mine has typically been successful in replenishing mined out Mineral Resources by upgrading
existing Mineral Resource estimates and delineating new Mineral Resources by drilling. A summary of
the historical Mineral Resource estimates for Zinkgruvan compared with mining production rate is
shown in Figure 6.1. The conversion rate of Measured and Indicated Mineral Resources to Proven and
Probable Mineral Reserves at Zinkgruvan is typically high and for 2017 was 76.0%.
Figure 6.1: Comparison of Zinkgruvan Mineral Resources from 1982 to 2017 and Rate of Mining
Production
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 32
6.4 Production
Production of zinc-lead ore at the Zinkgruvan mine has been continuous since 1857. Production
initially focussed on the Nygruvan area of the mine before progressing to the Lindängen area of Knalla.
More recently production has come from Burkland and the western parts of Knalla including Sävsjön,
Mellanby and Cecilia. In 2010, Lundin commenced mining and processing of copper ores from the
copper stockwork mineralisation located in the structural hangingwall of Burkland. A summary of the
production at Zinkgruvan from 1994 is shown in Table 6.2.
Table 6.2: Zinkgruvan Production by Year from 1994
Zinc/Lead Ore Production Copper Ore Production
Year Ore Processed
(Kt)
Head Grade Zn
(%)
Head Grade Pb
(%)
Head Grade Ag
(g/t)
Ore Processed (Kt) Head Grade Cu
(%)
1994 649 10.4 3.0 66 - -
1995 645 11.1 3.1 71 - -
1996 644 9.5 2.6 62 - -
1997 705 10.4 3.7 83 - -
1998 695 10.8 3.8 85 - -
1999 752 9.5 3.6 78 - -
2000 732 10.9 4.0 102 - -
2001 805 8.4 3.6 84 - -
2002 733 7.2 3.8 90 - -
2003 759 9.3 4.8 103 - -
2004 735 9.1 4.9 99 - -
2005 797 9.4 5.1 95 - -
2006 788 10.3 4.6 93 - -
2007 860 8.3 4.4 85 - -
2008 900 7.9 4.3 82 - -
2009 991 7.5 4.1 82 - -
2010 991 8.0 4.4 87 34 2.2
2011 1,029 8.2 4.0 82 103 1.8
2012 954 9.1 4.4 86 157 2.3
2013 910 8.5 4.2 92 214 1.7
2014 1,063 8.2 3.7 81 167 2.3
2015 1,126 8.3 3.8 79 137 1.7
2016 1,058 8.0 3.5 68 107 2.0
Total 19,321 9.9 4.0 84 919 2.0
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 33
7 GEOLOGICAL SETTING AND MINERALISATION
7.1 Regional Geology
The Zinkgruvan deposit is located in the southern part of the Bergslagen province of south-central
Sweden. The province comprises a Proterozoic aged (~1.9 Ga) greenstone belt and hosts massive zinc-
lead, copper and silver sulphide ores and banded iron formations. The supracrustal rocks are
dominated by felsic metavolcanics successions with limestones and calcsilicates commonly found
within the metavolcanics. The province was folded and metamorphosed to upper amphibolite facies
during the Svecofennian orogeny (1.9 to 1.8 Ga).
The district comprises a series of small proximal basins in a continental rift environment. The active
extensional stage was characterised by felsic volcanism and intrusions followed by subsidence and
sedimentation in volcano-sedimentary complexes. The nature of the metasediments suggests that ore
formation took place in a subsiding marine basin at the end of a volcanic period, distal to volcanic
centres. The hydrothermal solutions were generated by convective circulation of sea water in the
volcanic rock pile. Deep fault fractures initiated the convection cell and formed, within the 1,000m
thick rock pile, numerous vent areas and mineralised zones.
The location of the Zinkgruvan deposit within the regional geology is shown in Figure 7.1.
Figure 7.1: Location of Zinkgruvan and Regional Geology
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 34
7.2 Property Geology
The Zinkgruvan deposit comprises a stratiform, massive zinc-lead deposit hosted by K-rich
metatuffites with intercalated beds of marble, dolomite and fine grained quartzite. A zone of stratified
disseminated pyrrhotite mineralisation occurs 100m stratigraphically above the zinc-lead
mineralisation while in the central part of the deposit the zinc-lead mineralisation is stratigraphically
underlain by a substratiform copper stockwork.
The deposit is situated in an east-west striking synclinal structure within the lower Proterozoic
Svecofennian supracrustal sequence (1.90 Ga to 1.88 Ga). The deposit exhibits distinctive stratification
and extends for more than 5km along strike and to depths of 1,600m. Deformation during the
Svecofennian orogeny included isoclinal folding which has resulted in the stratigraphy of the area
being overturned. The property geology is also divided into two distinct areas by the regional north-
northeast to south-southwest trending Knalla fault. These areas, which make up the Zinkgruvan
deposit, are known as Nygruvan area and Knalla area. The Nygruvan area is bounded to the east by
the Sinsberg fault beyond which felsic metavolcanics and early orogenic granites are encountered. The
Knalla area is bounded to the west by the Dalby fault beyond which post-orogenic granites are
encountered. The geology of the Zinkgruvan area along with the location of Nygruvan and Knalla areas
is shown in Figure 7.2.
Figure 7.2: Geology of the Zinkgruvan Area
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 35
Stratigraphy
The supracrustal rocks are divided into the following lithostratigraphic groups (oldest to youngest):
Metavolcanic group in the lower part of the stratigraphy;
Metavolcanic-sedimentary group;
Metasedimentary group, which occupies the highest stratigraphic position of the supracrustal
rocks in the Zinkgruvan area; and
Intrusive and contact metamorphic rocks.
An example of the stratigraphic sequence at Zinkgruvan is shown in Figure 7.3.
Figure 7.3: Stratigraphic Sequence at Zinkgruvan
7.2.1.1 Metavolcanic Group (Quartz – Microcline)
The metavolcanic group comprises mainly massive, fine-grained, red, felsic metavolcanic rocks which
are in part quartz-microcline porphyritic with a low (5%) biotite content. They occur mainly in the
northern part of the area. Some of the rocks in the metavolcanic group are assumed to have an
ignimbritic origin.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 36
7.2.1.2 Metavolcanic-Sedimentary Group (Mine Package)
The rocks of the metavolcanic-sedimentary group are composed of mixed, chemically precipitated,
and tuffaceous metasediments. The major rock type in this group is a metatuffite, which is commonly
well banded and sometimes extremely finely laminated. Calc-silicate rocks, marbles, calc-silicate-
bearing quartzites, quartzitic tuffaceous metasediments and sulphide ores are intercalated with the
metatuffites. All of these rocks are intruded by metabasic sills and dykes.
Most of the mineralisation in the district is associated with the metavolcanic-sedimentary group. At
Zinkgruvan the economically significant mineralisation comprises the main zinc-lead mineralisation,
situated in the upper part of the metavolcanic-sedimentary group and the copper (chalcopyrite)
stockwork mineralisation, situated in the middle part of the metavolcanic-sedimentary group and
hosted by dolomitic marbles. Additional mineralisation associated with the metavolcanic-sedimentary
group comprises, disseminated pyrrhotite in garnet-bearing siliceous beds of primary exhalative origin
in the uppermost part of the group and a number of small zones of zinc-lead mineralisation.
7.2.1.3 Metasedimentary Group (Metasediments)
The metasedimentary group contains mainly argillic, clastic metasediments, which have a high biotite
content (>30%). They are strongly recrystallised and transformed to veined gneisses. In upper parts of
the stratigraphy these have been migmatised and have undergone some anatexis to form grey,
medium grained, biotite-rich, massive granitoids.
7.2.1.4 Intrusive and Contact Metamorphic Rocks
During the early stages of the orogeny 1.87 to 1.85 Ga, differentiated, I-type granitoids, ranging from
gabbro to granite in composition intruded the Svecofennian sequence. From 1.84 Ga until 1.77 Ga
further intrusion occurred, forming late orogenic, undifferentiated, S-type plutons and dykes
associated with migmatites, comprising granites, aplites and a large number of pegmatites. Finally,
post-orogenic granites belonging to the north-northwest trending Transscandinavian granite-
porphyry belt created a large volume of granitic intrusion about 1.73 Ga.
Structural Geology
As a result of repeated deformation during the Svecofennian orogeny, the relatively incompetent
supracrustal rocks were isoclinally folded together with the more competent, primorogenic granitoid
massifs. The metamorphism is low-pressure, upper amphibolite facies with migmatisation and partial
melting of the biotite-rich rocks in the metasedimentary group. Sillimanite and cordierite are common
index minerals in these rocks. The low biotite rocks of the metavolcanic-sedimentary group, which
underwent the same high-temperature metamorphism exhibit well preserved, recrystallised, primary
bedding.
The deformation during the Svecofennian orogeny resulted in the stratigraphy being overturned such
that the stratigraphic footwall (oldest) now forms the structural hangingwall.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 37
Regional deformation ended before regional metamorphism, as the late orogenic granites have not
been affected by the regional deformation. The later granites of the Transscandinavian granite-
porphyry belt have deformed the country rock during their intrusion, causing a local folding parallel
to subparallel to their margins.
Brittle fracturing is marked by north-northeast trending fault systems resulting in large-scale block
movements between sections of the country rock. The Knalla fault, separating the Nygruvan and
Knalla areas of the Zinkgruvan deposit is an example of such a fault. Movements of several hundred
metres are occasionally observed along such faults. These fault systems postdate an east trending
dolerite dyke swarm, which has an age of about 1.53 Ga.
7.3 Description of Mineralised Zones
The Nygruvan and Knalla areas of the Zinkgruvan deposit are located on both flanks of a synclinal
structure and separated by the Knalla fault. The Nygruvan area is located to the east of the Knalla fault
and provided the majority of the historical production at Zinkgruvan. The Nygruvan area strikes
generally northwest to southeast and dips subvertically to the northeast. The Knalla area is located to
the west of the fault and generally strikes northeast to southwest and dips variably to the northwest.
The Knalla area is further structurally sub-divided into the following mineralised zones, from northeast
to southwest: Burkland, Sävsjön, Mellanby, Dalby, Cecilia and Borta Bakom. In addition, the Lindängen
zone occurs close to surface above Burkland and Sävsjön on the longitudinal section and was exploited
earlier in the mine’s life. The location of the mineralised zones at Zinkgruvan is shown in Figure 7.4.
Figure 7.4: Location of Mineralised Zones at Nygruvan and Knalla Areas of Zinkgruvan
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 38
Nygruvan Area
The Nygruvan area of the mine consists of a tabular zinc-lead orebody, striking northwest to southeast
and dipping 60° to 80° to the northeast and with a near-vertical plunge. The orebody persists to at
least 1,600m vertical depth and ranges in thickness from 5m to 25m. Towards the eastern part of the
Nygruvan area, the orebody splits and is present as two parallel mineralised zones separated by 3m
to 8m of metatuffite (quartz, microcline, biotite, and minor muscovite, chlorite and epidotic). The
metatuffite is a homogenous, usually massive, quartz-microcline-biotite rock of rhyolitic to dacitic
composition. It has a granoblastic texture and is often gneissic. The stratigraphy of the metavolcanic-
sedimentary group is best developed in the eastern part of the Nygruvan area where the sequence is
thickest. Metabasic sills and dykes intruding the metavolcanic and the sedimentary group are the
oldest intrusions. Dykes and irregular, massive, grey, usually coarse-grained pegmatites of granitic
composition are relatively common in the folded areas.
There is clear evidence of hydrothermal alteration in the mine sequence. Altered rocks have been
heavily depleted of Mg, Mn and Fe, although there is some disagreement regarding Mn depletion.
Sodium depletion is less evident in the mine area, although the Na/K ratio decreases upwards through
the footwall sequence of progressively more altered metatuffite. There is significant enrichment in Ba,
K, S and Ca.
Sphalerite and galena are the dominant sulphide minerals. They generally occur as massive, well
banded and stratiform layers. Chalcopyrite is present in small amounts (<0.2% Cu). Pyrrhotite, pyrite
and arsenopyrite are present although the amount of pyrrhotite and pyrite is typically low (<1% each).
Metamorphism and deformation have mobilised galena into veins and fissures sub-parallel to original
bedding in places. Native silver was even more mobile and is often found in small fissures.
Remobilisation is most commonly observed in the lead-rich western part of Nygruvan and the
Burkland zone of Knalla. In both the Nygruvan and Knalla areas there is an increase in zinc-lead grades
towards the stratigraphic hanging wall of the massive sulphide horizon. Contacts of the mineralisation
with the host stratigraphy are generally very sharp, more so on the stratigraphic hangingwall than
footwall.
A plan view showing the geology of the Nygruvan area at the -650m level is shown in Figure 7.5 and a
geological cross section through the Nygruvan area is shown in Figure 7.6.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 39
Figure 7.5: Plan View showing the Geology of Nygruvan Area
Figure 7.6: Geological Cross Section through Nygruvan Area
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 40
Knalla Area
The Knalla area comprises several tabular zones of zinc-lead mineralisation (Burkland, Sävsjön,
Mellanby, Dalby, Cecilia and Borta Bakom) which form a continuous, although highly contorted
orebody with variable thickness (3m to 40m). In addition, a copper stockwork zone is also present in
the structural hanging wall of the Burkland zone. The Knalla area generally strikes northeast to
southwest (although quite variable locally) and dips generally to the northwest. Dips are variable from
near vertical to sub-horizontal. Plunges are also variable with the Burkland zone plunging moderately
to the northeast and Cecilia and Dalby plunging to the northwest. The Burkland zone extends from
200m to 1,600m vertically and flattens considerably at depth. The overall structure of the Knalla area
is more complex than at Nygruvan and structural thickening is common. There are often two to four
parallel ore horizons separated by narrow widths of metatuffite.
The significant difference in the zinc-lead mineraliation from that found at Nygruvan is that the Knalla
area contains elevated levels of Co and Ni. These levels are sufficiently elevated as to impact on
metallurgy and concentrate quality.
The copper stockwork zone located in the structural hanging wall of the Burkland zone is best
developed at depths between 700m and 1,100m. It has a strike length of 100m to 180m while the
width varies from 5m up to 60m with an average around 20m. Between 1,100m and 1,200m depth
the thickness of the mineralisation decreases to 10m. Above the -600m level the copper stockwork
zone reduces in thickness before pinching out. The copper stockwork zone is cut off laterally to the
northeast by the Knalla fault and has been closed off by drilling to the southwest. The host rock is a
dolomitic marble with variable amounts of porphyroblastic Mg-silicates. Chalcopyrite is the main
copper mineral and occurs as fine-grained disseminations infilling between dolomite grains or massive
lumps and irregular veins up to several cm thick. Cubanite (CuFe2S3) is also present and occurs as
lamellae in chalcopyrite. Bornite is present, while tetrahedrite is rare. Minor amounts of arsenopyrite
are found locally. In its footwall plunge the copper stockwork sometimes merges with the Burkland
zinc-lead mineralisation which results in significant amounts of sphalerite and some galena at the
contact of these two zones.
A plan view showing the geology of the Burkland zone at the -800m level is shown in Figure 7.7 and a
geological cross section through the Lindängen and Sävsjön zones is shown in Figure 7.8.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 41
Figure 7.7: Plan View showing the Geology of Burkland Zone including Copper Stockwork
Figure 7.8: Geological Cross Section through Lindängen and Sävsjön Zones
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 42
8 DEPOSIT TYPES
8.1 Mineral Deposit Type
General consensus exists on a syngenetic-exhalative origin for the Zinkgruvan deposit in which lenses
of polymetallic (Zn, Pb, Ag (and Cu)) sulphides formed at or near the seafloor in submarine hot spring
environments. They formed from accumulations of the focussed discharges of metal-enriched fluids
associated with seafloor hydrothermal convection, potentially associated with areas of active
submarine volcanism including rift spreading centres.
The formation in the Zinkgruvan area of a local, relatively deep sub-basin structure, such as a half
graben coincided with the transition from active to waning volcanism and volcaniclastic sedimentation
to deposition of a post-volcanic succession of limestone, reworked volcanic ash and then deep water
sediments (Allen et al., 1996). Deposition within the basin may have promoted development of a
reduced environment and relatively starved of detrital sedimentation. Such an environment would
have been favourable for preservation of organic matter and accumulation and preservation of base
metal sulphides. Venting of metalliferous oxidised brines into the sub-basin may have triggered Cu
deposition during interaction with organic matter and/or reduced pore waters below the sea floor,
and formation of the stratiform Zn-Pb-Ag ore upon exhalation, cooling and mixing with reduced
bottom waters in a brine pool on the sea floor (Jansson et al., 2017). At Zinkgruvan, proximal volcanic
rocks are separated from the ore by an interval containing several thick former limestone horizons
indicating that considerable time passed between emplacement of the volcanic unit and ore
formation. Syn-sedimentary faults are likely to have acted as major feeders to the mineralisation.
The genetic model for the formation of the Zinkgruvan deposit is shown in Figure 8.1.
Figure 8.1: Genetic Model for the Zinkgruvan Deposit (Jansson et al., (2017))
The exact classification of the Zinkgruvan deposit is somewhat unclear due to the high-grade
metamorphism and ductile deformation overprint that occured during the Svecofennian orogeny (1.9
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 43
- 1.8Ga). As such the deposit has characteristics associated with volcanogenic massive sulphide (VMS)
deposits, sediment-hosted Zn (SEDEX) deposits, Broken Hill-type (BHT) deposits and VMS-SEDEX
hybrids. Recent work by Jansson et al., (2017) concluded that the ore fluid composition was most
similar to a McArthur-type SEDEX system, where-as the regional and local stratigraphy and
volcanotectonic setting are more similar to some BHT and VMS deposits. Regardless of the exact
classification of the Zinkgruvan deposit it is considered that an oxidised ore-forming brine at a near-
neutral pH fluid and a redox trap at the site of deposition were key components of its genesis.
8.2 Exploration Model
The nature of ore-forming fluids, trapping mechanisms and the footprint of the hydrothermal systems
differ fundamentally among SEDEX, BHT and VMS deposits with significant implications for exploration
strategies. If a VMS type volcanotectonic setting is considered for Zinkgruvan (Jansson et al., (2017))
then studies of many VMS districts worldwide and analogous studies of mineralisation on the modern
sea floor enable some criteria for targeting similar deposits.
Knowledge of the genesis, as well as, the subsequent deformation events is key in creating an
exploration model for targeting Zinkgruvan style deposits.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 44
9 EXPLORATION
9.1 Near Mine Exploration
Drilling is the principle means of near mine exploration. Three main types of drilling are carried out by
ZMAB and comprise stope definition drilling, infill drilling and exploration drilling. These are further
discussed in Section 10. Exploration drives and detailed underground geological mapping are also used
by ZMAB for near mine exploration.
9.2 Regional Exploration
Prior to the purchase of the mine by North Limited regional exploration had not been a priority. In
1995, North Limited began an aggressive regional exploration programme. A heliborne magnetic and
radiometric survey covering an area of 223km2 including the mine site and immediate area was carried
out, a GEOTEM AEM survey covering an area of 236km2 was flown, extensive ground geophysical
surveys including Mag, HLEM and IP were undertaken while geological mapping, conventional till
sampling and MMI geochemical surveying were also carried out. A number of possible targets were
identified by North Limited during the exploration programme, however none of these were tested
by drilling and no further work was undertaken on them prior to North Limited being purchased by
Rio Tinto in 2000. Since 2000, exploration has predominantly been focussed on near mine targets
rather than regional. In 2017, Lundin acquired two new exploration concessions, the Orkaren nr 2
Exploration Concession and the Hövdingamon nr 2 Exploration Concession located to the northwest
of the mine and plan to increase regional exploration in the Zinkgruvan area.
9.3 Future Exploration
In 2017 a significant increase in exploration drilling was initiated by Lundin and ZMAB. The main
targets of underground drilling in 2017 included the deep levels of Burkland and Nygruvan, Mellanby,
Borta Bakom and Dalby. The main target of surface drilling in 2017 and 2018 is Dalby which by the end
of 2017 will have six surface drilling rigs operational in this area. A summary of the budgeted
exploration meterage for drilling and exploration drives in 2017 and 2018 is shown in Table 9.1.
Table 9.1: Exploration Budget for 2017 and 2018
Forecast 2017 2018
Expensed
Diamond Drilling 51,200m 43,000m
Exploration Drives 543m 900m
Capitalised
Diamond Drilling 21,300m 28,000m
Exploration Drives 205m -
Total
Total Diamond Drilling 72,500m 71,000m
Total Exploration Drives 748m 900m
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 45
10 DRILLING
Three main types of drilling are carried out by ZMAB and comprise stope definition drilling, infill drilling
and exploration drilling. All drilling at Zinkgruvan is by diamond drill core and is undertaken using both
surface and underground drilling methods.
Underground stope definition drilling is carried out ahead of production to further delineate the
boundaries of the mineralised zone and aid stope design positioning. Drilling typically produces small
diameter AQ sized drill core. The drill core is whole core sampled and assayed at the ZMAB analytical
laboratory. Stope definition drilling is not included by ZMAB for the purposes of Mineral Resource
estimation.
Underground infill drilling is a continuous activity and carried out within existing mineralised zones to
upgrade resource classification and further define footwall/hangingwall contacts ahead of production.
Infill drilling is included by ZMAB for the purposes of Mineral Resource estimation.
Exploration drilling by underground and surface drilling is undertaken to identify extensions to existing
mineralisation and new mineralised zones. Surface drilling campaigns have been important over the
years in stepping out beyond existing development to explore extensions to mineralisation such as at
Dalby. Underground exploration drilling is aided by development drives that are constructed to
provide drill position for intersecting the orebody. Exploration drilling is included by ZMAB for the
purposes of Mineral Resource estimation.
Underground drilling is typically undertaken from fans based on 30m to 50m spacing, whereas surface
drilling is typically undertaken on 100m spacing or greater. Drill sections are orientated along profiles
which vary based on the location of the mineralisation within the overall synclinal structure of the
Zinkgruvan deposit. The profiles are generally orientated perpendicular to the general strike of the
individual zone.
Both surface an underground drilling are undertaken by contactors. Currently four underground drill
rigs are used and comprise two Sandvik rigs and two Atlas Copco rigs. The rigs are platform mounted
and can be relocated by front end loader. All underground drilling is performed by the contractor
Drillcon. Five surface drill rigs are currently being used to target the Dalby mineralisation and comprise
four Sandvik rigs and one Atlas Copco rig. Four of the surface drill rigs are operated by Drillcon while
the other is operated by the contractor Rockma. The surface drill rigs are capabale of drilling depths
of up to 1,600m.
Within the current licence areas and as of June 30, 2017, a total of 3,908 underground drill holes for
580,938m have been completed and 193 surface drill holes for 113,037m have been completed. A
summary of the surface and underground drilling completed at Zinkgruvan is shown in Table 10.1. All
drilling was conducted by diamond core drilling.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 46
Table 10.1: Summary of Drilling at Zinkgruvan
Vieille Montagne
(1857–1990)
and Union
Miniere (1990-
Late 1995)
North Limited
(Late 1995-
August 2000)
Rio Tinto
(August 2000-
June 2004)
Lundin Mining
(June 2004-
2017)
Total
Drill
Holes
Length
(m)
Drill
Holes
Length
(m)
Drill
Holes
Length
(m)
Drill
Holes
Length
(m)
Drill
Holes
Length
(m)
Underground Drilling
Nygruvan 675 87,386 98 28,553 47 10,596 386 65,791 1,206 192,327
Burkland 122 37,982 238 51,819 345 23,879 1,196 126,124 1,901 239,805
Lindängen 258 38,013 33 4,777 13 2,200 8 1,155 312 46,144
Sävsjön 53 15,104 51 18,076 - - 64 5,846 168 39,027
Mellanby - - - - - - 55 10,218 55 10,218
Cecilia - - - - - - 34 13,891 34 13,891
Borta Bakom - - 51 10,298 8 1,455 42 5,846 101 17,599
Dalby - - 11 4,136 - - 120 17,791 131 21,928
Regional - - - - - - - - - -
Total 1,108 178,486 482 117,660 413 38,130 1,905 246,661 3,908 580,938
Surface Drilling
Nygruvan 1 42 - - 4 2,264 42 10,256 47 12,562
Burkland - - - - - - - - - -
Lindängen 4 375 - - 10 552 - - 14 927
Sävsjön 2 1,288 - - - - - - 2 1,288
Mellanby 9 6,448 - - - - 9 8,430 18 14,878
Cecilia - - 4 3,908 2 2,802 26 30,816 32 37,525
Borta Bakom 36 18,118 - - - - - - 36 18,118
Dalby 8 4,336 - - 5 3,270 - - 13 7,606
Regional 1 620 4 2,439 8 608 18 16,526 31 20,194
Total 61 31,166 8 6,347 29 9,495 95 66,029 193 113,037Note: The following drill holes have been used to identify the time of ownership. All drill holes before drill hole number 1203 are assigned to Vieille Montagne and Union Miniere. Drill hole
numbers 1203 to 1759 are assigned to North Limited. Drill hole numbers 1760 to 2279 are assigned to Rio Tinto. All drill holes after drill hole number 2279 are assigned to Lundin.
10.1 Drilling by Vieille Montagne (1857-1990) and Union Miniere (1990-Late 1995)
From 1857 to 1990, Vieille Montagne operated Zinkgruvan mine before merging into Union Miniere
group of Belgium, who continued operating until late 1995. The oldest drill hole contained in the
current drill hole database is DDH 3 and was drilled by Vieille Montagne in 1937. Since this time a total
of approximately 1,108 underground drill holes for 178,486m and a total of approximately 61 surface
drill holes for 31,166m were completed by Vieille Montagne and Union Miniere. Underground drilling
focussed on Nygruvan, the upper levels of Burkland, Lindängen and Sävsjön. Surface drilling focussed
on Cecilia and down dip extensions to Cecilia.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 47
10.2 Drilling by North Limited (Late 1995-August 2000)
From late 1995 until August 2000, North Limited undertook an aggressive underground exploration
drilling programme and completed a total of approximately 482 underground drill holes for 117,660m.
In addition, a total of approximately 8 surface drill holes for 6,347m were also completed.
Underground drilling focussed on Burkland, the lower levels of Nygruvan, the lower levels of Cecilia
and Borta Bakom. Underground exploration drilling also attempted to intersect any mineralisation
found between Sävsjön and Cecilia. Surface exploration drilling attempted to identify down-dip
mineralisation in what is now the Dalby zone.
10.3 Drilling by Rio Tinto (August 2000-June 2004)
In 2000, Rio Tinto became the owner of Zinkgruvan when it acquired North Limited. During this time,
a total of approximately 413 underground drill holes for 38,130m were completed and a total of
approximately 29 surface drill holes for 9,495m were completed. Underground drilling focussed on
the upper levels of Burkland and the deepest levels of Nygruvan. Surface drilling focussed on the Borta
Bakom zone and attempted to identify up-dip mineralisation in this area. A systematic QA/QC
programme was implemented by Rio Tinto during 2001 for all future geological samples. This QA/QC
programme was fully operational during 2002.
10.4 Drilling by Lundin Mining (June 2004-2017)
In June 2004, Lundin acquired North Mining Svenska AB and, in turn Zinkgruvan. In 2005, North Mining
Svenska AB and Åmmeberg Mining AB merged to form Zinkgruvan Mining AB, thereafter the owner
and operator of the Zinkgruvan mine. Effective November 30, 2006 Lundin Mining Corporation
merged with EuroZinc, and continued as Lundin Mining Corporation. Since operating the Zinkgruvan
mine, Lundin have completed a total of approximately 1,905 underground drill holes for 246,661m
and a total of approximately 95 surface drill holes for 66,029m. Underground drilling focussed on the
deep levels of Nygruvan, Burkland (including the copper stockwork), Mellanby, Dalby and Borta
Bakom. Surface drilling focussed on identifying near surface along strike extensions of Nygruvan and
most recently on targeting deep down dip extensions at Dalby. Drilling under Lundin is still ongoing to
date.
10.5 Drill Core Diameter
Currently underground and surface drill core is typically of 56mm diameter (NTW). Historically drill
core sizes of 28-36mm for underground drilling and 28-39mm for surface drilling were also used.
10.6 Drill Core Recovery
Host lithologys and sulphide mineralisation at Zinkgruvan are generally very competent and as such
drill core recovery is not systematically recorded during drill hole logging as core recoveries
encountered are consistently around 100%. Inspection of drill core by WAI confirmed that there are
no material issues resulting from the drill core recovery.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 48
10.7 Extent of Drilling
To date drilling has defined nine mineralised zones and comprise Nygruvan, Burkland, Burkland
Copper Zone, Lindängen (now predominantly mined out), Sävsjön, Mellanby, Dalby, Cecilia and Borta
Bakom with a combined total strike length of over 5,000m and to depths of up to 1,600m from surface.
10.8 Drill Hole Collar Surveys
Surveying of drill hole collar locations, surface and underground, is done by the mine survey team
using Leica system equipment. The instruments used are TS15, TS16 and MS50.
10.9 Downhole Surveys
Drill holes over 100m in length are surveyed by the mine survey team using a Relex Maxibor or Reflex
Gyro instrument with readings taken every 3m.
10.10 Drill Sections
Relevant drill sections showing the geological interpretation of the Zinkgruvan deposit is contained in
Section 7.3. The location of the surface and underground drill holes within the different licence areas
are shown in Figure 10.1. The Marketop Mining Concession is not shown as no drilling within this
licence is contained within the current drill hole database.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 49
a) Location of Drill Holes within Licence Areas (Marketop Mining Concession not shown)
b) Inset of a) and Showing Location of Drill Holes within near mine Licence Areas
Figure 10.1: Plan Views Showing Location of Drill Holes and a) Mining and Exploration Concessions
and b) Inset of a) Showing Near Mine Area Only
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 50
11 SAMPLE PREPARATION, ANALYSES, AND SECURITY
All samples are collected by ZMAB geological staff and all sample preparation is undertaken at the
Zinkgruvan mine site facility. From 1979 to 2001 all geological samples were assayed at the Zinkgruvan
laboratory by atomic absorption spectroscopy (“AAS”). In April 2001, ACME Analytical Laboratories
(“ACME”), Vancouver, Canada began to be used for assaying whereby pulp samples were sent for
analysis by ICP-ES with Ag samples above 300ppm assayed by fire assay. Initially ACME were only used
to assay samples from new drilling projects, however by 2002 all geological samples were
subsequently being submitted to ACME for analysis. A systematic QA/QC programme was also
implemented during 2001 for all future geological samples and was fully operational during 2002. The
same drilling, sampling and assaying procedures have been in place at Zinkgruvan since this time.
11.1 Core Sampling
Sampling procedures are the same for both underground and surface drill core. Drill core is removed
from the core barrel and placed into core boxes. Sample intervals are recorded on the core box and
on separators used to define the sample interval. Core boxes are then transported from the drill sites
to the on-site logging facilities at Zinkgruvan mine. The drill core is wetted with water and
photographed. Core recovery is noted if areas of poor core recovery are encountered. Geotechnical
measurements including Q and RMR are taken. The core is geologically logged for lithology, structural
unit, colour, grain size, texture, mineralisation and type (massive, banded and disseminated), habit,
likely anticipated zinc grade (trace (<2%), weak (2-10%), good (10-25%) and very good (>25%)) and
any additional comments also entered. The logging is undertaken using Prorok® software data entry
module and uploaded to an Oracle® database. Hard copies of the drill hole logs are also kept along
with the drill hole collar locations, down hole survey data and assay results. A summary of the lithology
codes and the stratigraphic sequence at Zinkgruvan are shown in Table 11.1.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 51
Table 11.1: Summary of Stratigraphic Sequence and Lithology Codes
Formation Code Sub-Formation Code Lithology Member Code Lithology
Viksjön Formation
(Metasediments)
V Biotite leptite unit Vb Biotite leptite,
migmatite
a Va Garnet biotite
quartzite
Pyrrhotite-leptite
Garnet biotite
quartzite unit
Vab Garnet biotite quartzite
Pyrrhotite leptit unit Vaa Pyrrhotite leptit
Zinkgruvan
Formation
(Mine Package)
Z Upper leptite Ze Leptite, marble,
calc silicate and
skarn
d Zed Layered leptite
Workshop marble ZeV Marble, skarn and
intercalated leptite
Quartzite unit Zec Quartzite
b Zeb Layered leptite
Marble-skarn
layered leptite unit
Zea Marble-skarn layered leptite
with intercalated marble and
leptite
Footwall skarn ZeL Diopside skarn, marble PbS-
ZnS-FeS impregnation
Zinc ore unit Zd Zinc ore zone Main ore ZdH Zinc ore (primary)
a Zda Leptite between the main ore
and the parallel ore zone
Parallel ore ZdP Zinc ore released to leptite
with zinc impregnation
Middle leptite Zc Leptite
intercalated with
marble and skarn
b Zcb Leptite, gneissic-veiny
a Zca Leptite intercalated with
marble skarn
Carbonate rock unit Zb Marble,
dolostone
Marble unit Zbc Carbonate rock in some places
with strong magnetite
impregnation
b Zbb Carbonate rock, often
phlogopite speckled with
intercalated leptite
Dolostone unit Zba Dolostone in some places with
chalcopyrite
Lower leptite Za Intercalated
leptite, marble
and skarn
Isåsen Formation
(Quartz-
Microcline)
L Upper quartz
feldspar leptite unit
lb Grey, quartz
feldspar leptite
Lower quartz
feldspar leptite unit
la Red, quartz
feldspar leptite
A geologist is responsible for determining and marking the intervals to be sampled, selecting them
based on lithology, sulphide content, mineralisation or structural logging. Sample intervals are marked
on the boxes and core using a lumber crayon. Sampling is undertaken from top to bottom of the drill
hole. Currently a maximum sample length of 2m is used while historically sample lengths of up to 3.5m
were allowed.
Core sample intervals selected for analyses are halved with splitting performed by an Almonte® core
saw in such a way that two equal halves of core are produced. The half core sample is then placed in
a heavy-duty sample bag with identifying sample tags. Samples are then dispatched for sample
preparation. Remaining half drill core is returned to the core box for archive and storage in the on-site
warehouse located adjacent to the core logging facility.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 52
11.2 Bulk Density Determination
Specific gravity (SG) is measured systematically over the full sample intervals. For each sample interval,
all core fragments larger than 5cm in length are collected and used to measure specific gravity using
a weight in air and weight in water method using a dedicated electronic balance.
11.3 Sample Preparation
Sample preparation is carried out on-site at the Zinkgruvan. Jaw crushing is undertaken in a facility
located adjacent to the core loging facility while all further stages of sample preparation are
undertaken within a section of the Zinkgruvan analytical laboratory.
The core is first dried and then crushed to <5mm using a jaw crusher. Following crushing, the sample
is split using a Jones Riffle splitter to produce a 100-150g sample. Prior to 2002 a Tema mill was
employed for grinding and produced samples of <38 micron. From 2002 onwards, an automated
Herzog pulveriser has been employed and produces samples of <36 microns. Cleaning of the pulveriser
is automatically carried out after each sample run using compressed air and water. The sample is then
split to provide a 40g pulp sample (10g prior to 2008) which is placed in labelled paper bags and packed
into cardboard boxes prior to shipping to the analytical laboratory.
11.4 Analysis
From 1979 to 2001 all geological samples were assayed at the Zinkgruvan analytical laboratory using
AAS. In April 2001, ACME began to be used for assaying whereby pulp samples were sent for analysis
by ICP-ES. All samples with Ag values above 300ppm were subsequently assayed by fire assay. By 2002
all geological samples were subsequently being sent to ACME for analysis.
Zinkgruvan Analytical Laboratory (1979-2002)
From 1979 to 2002, all geological samples were assayed at the Zinkgruvan analytical laboratory by AAS
(with the exception of any samples submitted by Rio Tinto for new projects from April 2001 to 2002
which were assayed at ACME).
Samples were analysed at the Zinkgruvan analytical laboratory for Pb, Zn, Ag, Cu, Fe, Co, and Ni, with
samples subjected to two separate digestions:
250mg of pulp was boiled in 10ml of HNO3. HF was added and boiled off the sublimate
being re-dissolved in HCL; the sample was then diluted to 250ml in H2O and analysed
for Zn, Pb, Ag, Cu, and Fe by AAS; and
500mg of pulp was boiled in 15ml of aqua regia; the solution was reduced before
being dissolved in H2O to analyse for Co and Ni by AAS.
The Zinkgruvan analytical laboratory detection limits for AAS analysis are shown in Table 11.2.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 53
Table 11.2: Zinkgruvan Analytical Laboratory - AAS Detection Limits For Geological Samples
Element Detection Limit
Zn 0.05 %
Pb 0.05 %
Ag 5 g/t
Cu 5 ppm
Fe 0.02 %
Co 5 ppm
Ni 5 ppm
Analytical results were collected manually and entered by hand, first on the original request for
analysis, and then entered manually into Excel® spreadsheets with the same format as the request for
analysis. Data were entry checked by the laboratory personnel before release to the project geologists.
The project geologist then checked the correspondence between the assay results and the geological
logging before the data were approved for incorporation in the drillhole database.
ACME Analytical Laboratories (2002-2017)
Since 2002, all geological samples have been assayed at ACME where approximately 40g of pulp
sample (10g prior to 2008) are shipped. The laboratory run assays using ICP-ES where 1g of pulp is
diluted in 100ml of aqua regia which is then submitted for ICP-ES to analyse for 23 elements: Zn, Pb,
Ag, Cu, Co, Ni, Al, As, Bi, Ca, Cd, Cr, Fe, Hg, K, Mg, Mn, Mo, Na, P, Sb, Sr, and W. ACME detection limits
for ICP-ES analysis for the main elements are shown in Table 11.3. Ag assays reporting over 300ppm
are submitted for fire assay analysis using a 30g charge.
Table 11.3: ACME ICP-ES Method Detection Limits
Element Detection Limit
Ag 2 g/t
Co 0.001 %
Cu 0.001 %
Fe 0.01 %
Ni 0.001 %
Pb 0.01 %
Zn 0.01 %
11.5 Sample Security and Chain of Custody
Sample collection and transportation of drill core is undertaken by ZMAB geology department staff.
Exploration core boxes are transported to the core logging facilities located at the Zinkgruvan mine
site where there is sufficient room to layout and examine several drill holes at a time. Once logging
and sampling have been performed, the core is transferred to the permanent storage facility located
adjacent to the core logging facility. The drill core boxes are covered. The on-site storage facility is dry
with internal lighting and metal shelving for core storage. Pulp duplicate material is stored in a
separate building located adjacent to the jaw crushing facility.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 54
11.6 Quality Assurance and Quality Control Programmes
The implementation of a quality assurance / quality control (QA/QC) programme is current industry
best practice and involves establishing appropriate procedures and the routine insertion of certified
reference material, blanks and duplicates to monitor the sampling, sample preparation and analytical
process. Analysis of QA/QC data is made to assess the reliability of sample assay data and the
confidence in the data used for the estimation.
From 1979 to 2001 all geological samples were assayed at the Zinkgruvan analytical laboratory. No
systematic QA/QC programme was in place during this time. In April 2001, ACME were used as the
primary assay laboratory. Initially ACME were used to assay only samples from new drilling projects,
however by September 2002 all geological samples were subsequently being sent to ACME for
analysis. A systematic QA/QC programme was also implemented during 2001 and was fully
operational during 2002. The same QA/QC procedures have been in place at Zinkgruvan since 2001
and includes insertion of duplicates, standards and blanks into the sample stream prior to shipment
to ACME. External assay checks are carried out by ALS Chemex, Vancouver. The results of the assaying
are continually reviewed by Zinkgruvan geological staff. Where any failed values are detected the
three primary samples either side of this sample are re-submitted for analysis.
QA/QC performance is continually monitored by the ZMAB geological department. To ascertain levels
of precision and accuracy and to identify if there are any sampling errors the geological department
undertakes the following statistical analysis:
Thompson and Howarth Plot (Precision Pairs), showing the mean relative percentage
error of grouped assay pairs across the entire grade range, used to visualise precision
levels by comparing against given control lines;
Rank HARD Plot, which ranks all assay pairs in terms of precision levels measured as
half of the absolute relative difference from the mean of the assay pairs (HARD). Used
to visualise relative precision levels to determine the percentage of the assay pairs
population occurring at a certain precision level;
Relative Difference Plots, allows negative or positive differences to be calculated. This
plot gives an overall impression of precision and also shows whether or not there is
significant bias between the assay pairs by illustrating the mean percentage half
relative difference between the assay pairs (mean HRD); and
Correlation Plots, plot of the value of the primary assay against the duplicate assay.
This plot allows an overall visualisation of precision and bias over selected grade
ranges. Correlation coefficients are also used;
QQ Plots and PP Plots, plot comparing quantiles of the primary assay against the
duplicate assay to determine the populations have a common distribution (QQ plot),
plot of empirical cumulative distribution function and theoretical cumulative
distribution function (PP plot); and
Shewhart X Charts, control charts used to monitor SRM performance in comparison
to the upper and lower standard deviation boundaries and the mean of the data set.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 55
The following sections provide a summary of the QA/QC analysis for samples submitted by ZMAB from
2013 to 2017.
Internal Duplicates
Pulp duplicate analysis results are compared to the primary assays to monitor analytical precision as
well as any potential bias in the process caused by improper cutting of the sample in the case of core,
homogeneity, washing during the cutting or loss of fines during preparation. Pulp duplicate samples
are inserted into the sample stream at a frequency varying from between every 21st and every 25th
sample for analysis by ACME.
Summary plots of the primary and duplicate analysis for zinc from 266 pulp samples analysed at ACME
are shown in Figure 11.1.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 56
a) Correlation Plot – Zn (ACME) vs Zn (ACME) b) Relative Difference Plot - Zn (ACME) vs Zn (ACME)
c) QQ Plot - Zn (ACME) vs Zn (ACME) d) PP Plot - Zn (ACME) vs Zn (ACME)
e) Precision Pairs Plot - Zn (ACME) vs Zn (ACME) f) Rank HARD Plot - Zn (ACME) vs Zn (ACME)
Figure 11.1: Internal Pulp Duplicate Analysis Plots for Zinc
Summary plots of the primary and duplicate analysis for lead from 232 pulp samples analysed at ACME
are shown in Figure 11.2.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 57
a) Correlation Plot – Pb (ACME) vs Pb (ACME) b) Relative Difference Plot - Pb (ACME) vs Pb (ACME)
c) QQ Plot - Pb (ACME) vs Pb (ACME) d) PP Plot - Pb (ACME) vs Pb (ACME)
e) Precision Pairs Plot - Pb (ACME) vs Pb (ACME) f) Rank HARD Plot - Pb (ACME) vs Pb (ACME)
Figure 11.2: Internal Pulp Duplicate Analysis Plots for Lead
Summary plots of the primary and duplicate analysis for silver from 238 pulp samples analysed at
ACME are shown in Figure 11.3.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 58
a) Correlation Plot – Ag (ACME) vs Ag (ACME) b) Relative Difference Plot - Ag (ACME) vs Ag (ACME)
c) QQ Plot - Ag (ACME) vs Ag (ACME) d) PP Plot - Ag (ACME) vs Ag (ACME)
e) Precision Pairs Plot - Ag (ACME) vs Ag (ACME) f) Rank HARD Plot - Ag (ACME) vs Ag (ACME)
Figure 11.3: Internal Pulp Duplicate Analysis Plots for Silver
Summary plots of the primary and duplicate analysis for copper from 257 pulp samples analysed at
ACME are shown in Figure 11.4.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 59
a) Correlation Plot – Cu (ACME) vs Cu (ACME) b) Relative Difference Plot - Cu (ACME) vs Cu (ACME)
c) QQ Plot - Cu (ACME) vs Cu (ACME) d) PP Plot - Cu (ACME) vs Cu (ACME)
e) Precision Pairs Plot - Cu (ACME) vs Cu (ACME) f) Rank HARD Plot - Cu (ACME) vs Cu (ACME)
Figure 11.4: Internal Pulp Duplicate Analysis Plots for Copper
Blanks
Diabase blanks are inserted at a frequency of between every 21st and 23rd sample to monitor
contamination in the sample preparation and analysis. Summary plots of the blank sample analysis for
320 blank samples by ACME is shown in Figure 11.5.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 60
a) Blank Analysis for Zn (ACME)
b) Blank Analysis for Pb (ACME)
b) Blank Analysis for Ag (ACME)
b) Blank Analysis for Cu (ACME)
Figure 11.5: Blank Sample Analysis for Zinc, Lead, Silver and Copper
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 61
Standard Reference Material
Four standard reference materials (“SRM’s”) are currently used and are sourced from GeoStats Pty
Ltd. The SRM’s used by ZMAB are shown in Table 11.4 and are inserted into the sample stream
between every 19th and 21st sample.
Table 11.4: GeoStats Standard Reference Materials and Reference Values
Zinc Lead Silver Copper
StandardName
Zn (%)Standard
NamePb (%)
StandardName
Ag (%)Standard
NameCu (%)
915-16 1.955 915-16 0.969 915-16 51.2 915-16 2.296
910-12 4.491 910-12 2.159 910-12 23.5 910-12 0.139
309-16 10.533 309-16 1.476 309-16 225.2 309-16 5.23
310-16 17.02 310-16 11.26 310-16 314.3 310-16 0.345
Summary plots of the SRM analysis for zinc, lead, silver and copper from 191 pulp samples analysed
at ACME are shown in Figure 11.6.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 62
a) SRM Analysis for Zn (SRM 309-16)
b) SRM Analysis for Pb (SRM 309-16)
c) SRM Analysis for Ag (SRM 309-16)
c) SRM Analysis for Cu (SRM 309-16)
Figure 11.6: SRM Sample Analysis for Zinc, Lead, Silver and Copper for 309-16
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 63
External Duplicate Analysis
External check samples are selected for every 23rd and 27th sample and pulp duplicate samples are
submitted for analysis by ICP at ALS Chemex, Vancouver.
Summary plots of the primary and duplicate analysis for zinc from 117 pulp samples analysed at ACME
and ALS Chemex are shown in Figure 11.7.
a) Correlation Plot – Zn (ACME) vs Zn (ALS Chemex) b) Relative Difference Plot - Zn (ACME) vs Zn (ALS Chemex)
c) QQ Plot - Zn (ACME) vs Zn (ALS Chemex) d) PP Plot - Zn (ACME) vs Zn (ALS Chemex)
e) Precision Pairs Plot - Zn (ACME) vs Zn (ALS Chemex) f) Rank HARD Plot - Zn (ACME) vs Zn (ALS Chemex)
Figure 11.7: External Pulp Duplicate Analysis Plots for Zinc – ACME vs ALS CHEMEX
Summary plots of the primary and duplicate analysis for lead from 99 pulp samples analysed at ACME
and ALS Chemex are shown in Figure 11.8.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 64
a) Correlation Plot – Pb (ACME) vs Pb (ALS Chemex) b) Relative Difference Plot - Pb (ACME) vs Pb (ALS Chemex)
c) QQ Plot - Pb (ACME) vs Pb (ALS Chemex) d) PP Plot - Pb (ACME) vs Pb (ALS Chemex)
e) Precision Pairs Plot - Pb (ACME) vs Pb (ALS Chemex) f) Rank HARD Plot - Pb (ACME) vs Pb (ALS Chemex)
Figure 11.8: External Pulp Duplicate Analysis Plots for Lead – ACME vs ALS CHEMEX
Summary plots of the primary and duplicate analysis for silver from 107 pulp samples analysed at
ACME and ALS Chemex are shown in Figure 11.9.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 65
a) Correlation Plot – Ag (ACME) vs Ag (ALS Chemex) b) Relative Difference Plot - Ag (ACME) vs Ag (ALS Chemex)
c) QQ Plot - Ag (ACME) vs Ag (ALS Chemex) d) PP Plot - Ag (ACME) vs Ag (ALS Chemex)
e) Precision Pairs Plot - Ag (ACME) vs Ag (ALS Chemex) f) Rank HARD Plot - Pb (ACME) vs Pb (ALS Chemex)
Figure 11.9: External Pulp Duplicate Analysis Plots for Silver – ACME vs ALS CHEMEX
Summary plots of the primary and duplicate analysis for copper from 117 pulp samples analysed at
ACME and ALS Chemex are shown in Figure 11.10.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 66
a) Correlation Plot – Cu (ACME) vs Cu (ALS Chemex) b) Relative Difference Plot - Cu (ACME) vs Cu (ALS Chemex)
c) QQ Plot - Cu (ACME) vs Cu (ALS Chemex) d) PP Plot - Cu (ACME) vs Cu (ALS Chemex)
e) Precision Pairs Plot - Cu (ACME) vs Cu (ALS Chemex) f) Rank HARD Plot - Cu (ACME) vs Cu (ALS Chemex)
Figure 11.10: External Pulp Duplicate Analysis Plots for Silver – ACME vs ALS CHEMEX
11.7 Adequacy of Procedures
A systematic QA/QC programme was implemented for all geological samples at Zinkgruvan at the
beginning of 2002. WAI considers that the sample preparation, security and analytical procedures for
all samples sent to both the ACME and ALS Chemex laboratories since this time have been conducted
in accordance with acceptable industry standards and the assay results generated following these
procedures are suitable for use in Mineral Resource estimation. Pior to 2002, no systematic QA/QC
programme was implemented for geological samples. The primary assay laboratory for the majority
of these samples was the Zinkgruvan analytical laboratory. These samples are included in the Mineral
Resource estimate by ZMAB and verification of this methodology is discussed in Section 12.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 67
12 DATA VERIFICATION
Data entry, validation, storage and database maintenance is carried out by ZMAB geological staff using
established procedures. The data used for Mineral Resource estimation is based on only diamond core
produced from either surface or underground drilling of generally 56mm diameter (NTW) core size.
Grade control drilling based on small diameter drill core is not used in the Mineral Resource estimate.
All data are stored in a central Oracle database located at the ZMAB mine offices. Assay values are
uploaded into the database from Excel worksheets that have been sent from ACME. Prior to uploading
of the assay data, a statistical check of the data is undertaken by ZMAB geological staff. In addition,
the Oracle database has a series of automated validation tools during import and export for error
identification. The database is kept on a server which provides access to the database from both
surface and underground offices. The database also links directly into the mine planning software
(Microstation). The geological database is well structured and is well maintained.
Cut-off dates for the databases used in the Mineral Resource estimate were variable depending on
the deposit and the amount of data available and the time required to update. Generally, the Mineral
Resource estimates were based on the latest possible drill hole data up until June 30, 2017. The
databases were received by WAI in Microsoft® Access format for review.
A summary of the data verification procedures carried out by WAI during the review are detailed
below:
Review of the geological and geographical setting of the Zinkgruvan deposits;
Review of the extent of the exploration work completed to date;
Review of the sampling and sample preparation procedures;
Inspection of the core logging, sampling and storage facilities;
Inspection of selected drill core to assess the nature of the mineralisation and to
confirm geological descriptions;
Inspection of geology and mineralisation in underground workings at Burkland (-
1,300m level), Borta Bakom and Dalby deposits;
Verification that collar coordinates coincide with underground workings or
topographical surfaces;
Verification that downhole survey azimuth and inclination values display consistency;
Evaluation of minimum and maximum grade values;
Evaluation of minimum and maximum sample lengths;
Assessing for inconsistencies in spelling or coding (typographic and case sensitive
errors); and
Ensuring full data entry and that a specific data type (collar, survey, lithology and
assay) is not missing and assessing for sample gaps or overlaps.
The majority of the verification procedures carried out by WAI on the electronic databases confirmed
the integrity of the data in these databases used for the purposes of deriving the Mineral Resource
estimate presented in this document. Minor validation errors were discovered in terms of drill hole
collar locations; however, these are not significant. Due to the current structure of the geology
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 68
database overlapping intervals are present when importing the database into software such as
Vulcan® or Datamine®. It is recommended that the structure of the geology database be reviewed.
WAI considers the drill hole database used in the Mineral Resource estimate to be complete and is
supported by the available information.
Given the operating history of Zinkgruvan and the on-going reconciliation studies, WAI has not
undertaken any independent check analysis of any drill core. WAI have reviewed the current chain of
custody procedures in place and conclude that there are no issues in terms of security of samples.
Limited QA/QC data exists for the historical assaying carried out at the Zinkgruvan analytical laboratory
which was used for the assaying of geological samples prior to 2002 (up to drill hole number 1760).
The impact of these historical samples on the Mineral Resource estimate was assessed by selecting
samples with assay data located within the mineralised zone wireframes. The mineralised zone
wireframes comprised predominantly areas in which unmined Mineral Resources are currently
located. A summary of the drill hole data contained within the mineralised zone wireframes by deposit
and ownership is shown in Table 12.1.
Table 12.1: Summary of Drill Holes within Mineralised Zone Wireframes
Vieille Montagne
(1857–1990)
and Union
Miniere (1990-
Late 1995)
North Limited
(Late 1995-
August 2000)
Rio Tinto
(August 2000-
June 2004)
Lundin Mining
(June 2004-
2017)
Total
Drill
Holes
Length
(m)
Drill
Holes
Length
(m)
Drill
Holes
Length
(m)
Drill
Holes
Length
(m)
Drill
Holes
Length
(m)
Nygruvan 37 342 44 675 23 167 265 3,148 369 4,332
Burkland 57 665 105 1,689 231 2,994 943 13,046 1,336 18,394
Burkland
(Copper
Zone)
1 8 33 279 - - 129 1,183 163 1,470
Lindängen - - - - - - - - - -
Sävsjön 39 312 23 226 3 18 42 347 107 903
Mellanby - - 3 56 - - 55 627 58 683
Cecilia 13 54 22 98 7 36 27 222 69 409
Borta Bakom - - 6 73 1 3 91 665 98 741
Dalby - - - - - - 28 280 28 280
Total 147 1,381 236 3,096 265 3,218 1,580 19,518 2,228 27,212Note: The following drill holes have been used to identify the time of ownership. All drill holes before drill hole number 1203 are assigned to Vieille Montagne and Union Miniere. Drill hole
numbers 1203 to 1759 are assigned to North Limited. Drill hole numbers 1760 to 2279 are assigned to Rio Tinto. All drill holes after drill hole number 2279 are assigned to Lundin.
Drilling data from Vieille Montagne, Union Miniere and North Limited are considered as historical
drilling undertaken before the introduction of a systematic QA/QC programme in 2002. The location
of these data generally corresponds to operational production areas of the mine. Zones containing
low percentages of remaining historical drilling comprise: Nygruvan, Burkland, Burkland Copper Zone,
Mellanby, Borta Bakom and Dalby. Zones containing a higher percentage of remaining historical
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 69
drilling comprise Cecilia and Sävsjön. However, the historical drilling data located in Cecilia and the
eastern part of Sävsjön zone (“Sävsjön East”), are located predominantly in areas which have been
mined out while the western part of Sävsjön deposit (“Sävsjön West”) is classified as predominantly
Inferred Mineral Resources.
Overall, the historical drilling data accounts for only 16% of the total drilling by meterage within the
remaining mineralised zone wireframes and is not considered to significantly impact the Mineral
Resource estimate. This is supported by the operating history of Zinkgruvan and the on-going
operational reconciliation studies. All drilling undertaken since 2002, is considered by WAI to be
sufficiently supported by by QA/QC data.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 70
13 MINERAL PROCESSING AND METALLURGICAL TESTING
The metallurgical response of the orebodies having historically contributed to the plant feed is well
understood. These sources of ore, namely Nygruvan and Burkland, have been gradually
complemented by other sources from the Knalla district (western areas), located around the
Knallagruvan shaft. These include the Cecilia and Borta Bakom orebodies. In the future, resouces from
Sävsjön and Mellanby are also to be incorporated in the plant feed stream.
In general, it appears that the ores to the west of the areas currently being mined are more difficult
to process, in part due to the sphalerite containing higher levels of iron which results in lower zinc
concentrate grades, and higher amounts of pyrrhotite. Testwork undertaken as part of a MSc. thesis
in 2015 at Lulea University (Kol, 2015) indicated that the iron rich sphalerite in the Knalla area ores
may be more difficult to activate during rougher flotation and also could result in lower zinc
concentrate recoveries. However, the issue of sphalerite activation could be overcome through the
addition of copper sulphate. The mineralogical studies completed to date indicate that there is no
significant difference in the liberation size of the lead and zinc minerals.
In keeping with many other operations, the amount of laboratory testwork that has been undertaken
to date on these complementary and future ore sources is sparse due to the limited availability of the
local metallurgical staff and deficient testing infrastructure. ZMAB plans to develop a more extensive
metallurgical testing facility on site to carry out regular testwork campaigns.
in the meantime, ZMAB have recently commissioned a study with XPS consulting and Testwork
Services (XPS) to investigate the geometallurgical properties of the future ore types utilising existing
drill core samples obtained from the exploration drilling programmes.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 71
14 MINERAL RESOURCE ESTIMATES
14.1 Introduction
The Mineral Resource estimates discussed in this Technical Report relate to Nygruvan, Burkland,
Burkland Copper Zone, Sävsjön, Mellanby, Dalby, Cecilia and Borta Bakom. The following sections
describe in detail the methodology used to produce these Mineral Resource estimates. All Mineral
Resource estimates were produced by ZMAB and subsequently reviewed by WAI.
14.2 Mineral Resource Estimate Data
Data used by ZMAB for Mineral Resource estimation included underground and surface diamond core
drilling only (exploration and infill). Grade control drilling data was not included for the purposes of
Mineral Resource estimation. Cut-off dates for the databases used in the Mineral Resource estimate
were variable depending on the deposit and the amount of data available and the time required to
update. Generally, the Mineral Resource estimates were based on the latest possible drill hole data
up until June 30, 2017. The databases were received by WAI in Microsoft® Access format for review.
Data Transformations
A local grid system is used by ZMAB that is based on the Swedish Reference Frame Coordinate System
1999, 1500 (SWEREF 99 1500) and is referred to as the mines new local (MNL) system. The SWEREF
99 1500 system is converted to the MNL system by a translation of -152,189.815m to the easting and
a translation of -6,515,043.085m to the northing. An anticlockwise rotation of 54.314° around the
vertical axis about a reference point (“Point 235”) of easting 2,078.062m easting, 6,455.519m northing
and -6.744m elevation is then carried out. The equivalent coordinates of Point 235 in the the SWEREF
99 1500 system are: 154,267.877m easting, 65,267.877m northing and 170.446m elevation. Elevation
in the MNL system is quoted relative to the collar of the P1 shaft which is defined as zero. All elevations
below the P1 shaft collar are therefore quoted as negative. The elevation difference between the
SWEREF 99 1500 system and the MNL system is -177.190m. All drill hole collars, topographic surveys
and mine surveys are stored by ZMAB in the MNL system.
Software
Database import and preparation, wireframing, and compositing were undertaken by ZMAB staff
using Microstation® software. Statistical and variographic analysis were undertaken using Supervisor®
software. Block modelling and grade estimation were undertaken using Prorok® software (a module
of Microstation®). Data used in the Mineral Resource estimates were reviewed by WAI using
Datamine® and Supervisor® software.
Data Valiation
The database was reviewed by WAI and included the following checks. An evaluation of minimum and
maximum grade values and sample lengths, assessing for inconsistencies in spelling or coding
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 72
(typographic or case sensitive errors), ensuring full data entry and that a specific data type (collar,
survey and assay) is not missing, assessing for sample gaps and overlaps and a review of assay
detection limits and identification of problematic assay records. A spatial on-screen review of the
grade and lithology distributions of drill holes was undertaken to identify any exhibiting data reliability
issues. Due to the current structure of the geology database overlapping intervals are present when
importing the database into software such as Vulcan® or Datamine®. It is recommended that the
structure of the geology database be reviewed. Overall, however the database was considered by WAI
to be robust with no significant errors identified. A check on collar locations relative to underground
workings and topography found only minor errors.
Problematic assay values were reviewed and updated by ZMAB prior to resource modelling. Assay
values below the limit of detection were replaced with the detection limit value.
Historical drilling data (produced prior to the introduction of a systematic QA/QC programme in 2002)
are contained in the drill hole database. However, the location of these data generally corresponds to
operational production areas of the mine and account for only 16% of the total drilling by meterage
within the remaining mineralised zone wireframes. These data are not considered to significantly
impact the Mineral Resource estimate as discussed in Section 12. This is supported by the operating
history of Zinkgruvan and the on-going operational reconciliation studies. All drilling undertaken since
2002, is considered by WAI to be sufficiently supported by by QA/QC data. A summary of the overall
drill hole database is shown in Table 14.1.
Table 14.1: Drill Hole Data used for Mineral Resource Estimation
Mineralised Zone TypeNumber ofDrill Holes
Length(m)
Number ofZn Assays
Number ofPb Assays
Number ofAg Assays
Number ofCu Assays
Nygruvan
Underground Drill Holes 1,206 192,327 1,004 1,004 1,004 1,004
Surface Drill Holes 47 12,562 40 40 40 40
Sub Total 1,253 204,889 1,044 1,044 1,044 1,044
Burkland
Underground Drill Holes 1,901 239,805 1,811 1,811 1,811 1,811
Surface Drill Holes - - - - - -
Sub Total 1,901 239,805 1,811 1,811 1,811 1,811
Lindängen
Underground Drill Holes 312 46,144 231 231 231 231
Surface Drill Holes 14 927 5 5 5 5
Sub Total 326 47,071 236 236 236 236
Sävsjön
Underground Drill Holes 53 15,104 47 47 47 47
Surface Drill Holes 2 1,228 2 2 2 2
Sub Total 55 16,332 49 49 49 49
Mellanby
Underground Drill Holes 55 10,218 55 55 55 55
Surface Drill Holes 18 14,878 16 16 16 16
Sub Total 73 25,096 71 71 71 71
Cecilia
Underground Drill Holes 34 13,891 24 24 24 24
Surface Drill Holes 32 37,525 24 24 24 24
Sub Total 66 51,416 48 48 48 48
Borta Bakom
Underground Drill Holes 101 17,599 86 86 86 86
Surface Drill Holes 36 18,118 30 30 30 30
Sub Total 137 35,717 116 116 116 116
Dalby
Underground Drill Holes 131 21,928 120 120 120 120
Surface Drill Holes 13 7,606 11 11 11 11
Sub Total 144 29,534 131 131 131 131
Regional
Underground Drill Holes - - - - - -
Surface Drill Holes 31 20,194 15 15 15 15
Sub Total 31 20,194 15 15 15 15
Grand Total 3,986 670,054 3,521 3,521 3,521 3,521
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 73
The location of drill holes contained in the ZMAB drill hole database are shown in Figure 14.1.
a) Plan View Showing Location of Drill Holes (note – grid system based on the mines new local system)
b) Isometric View Showing Location of Drill Holes
Figure 14.1: Location of Drill Holes in the ZMAB Drill Hole Database
14.1 Geological Interpretation and Domaining
The Zinkgruvan deposit comprises a stratiform, massive zinc-lead deposit hosted by K-rich
metatuffites with intercalated beds of marble, dolomite and fine grained quartzite. In the Burkland
zone of the deposit the zinc-lead mineralisation is stratigraphically underlain by a substratiform copper
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 74
stockwork. The deposit is situated in an east-west striking synclinal structure within the lower
Proterozoic Svecofennian supracrustal sequence (1.90 Ga to 1.88 Ga). The deposit exhibits distinctive
stratification and extends for more than 5km along strike and to depths of 1,600m. Deformation
during the Svecofennian orogeny included isoclinal folding which has resulted in the stratigraphy of
the area being overturned such that the stratigraphic footwall (oldest) now forms the structural
hangingwall. The property geology is also divided into two distinct areas by the regional north-
northeast to south-southwest trending Knalla fault. The Nygruvan area is bounded to the east by the
Sinsberg fault while the Knalla area is bounded to the west by the Dalby fault. The Nygruvan area
strikes generally northwest to southeast and dips subvertically to the northeast. The Knalla area is
located to the west of the fault and generally strikes northeast to southwest and dips variably to the
northwest.
Eight mineralised zones have been identified by ZMAB and comprise Nygruvan, Burkland, Burkland
Copper Zone, Sävsjön, Mellanby, Dalby, Cecilia and Borta Bakom. The Lindängen zone occurs close to
surface above Burkland and Sävsjön and is considered to be predominantly mined out and is therefore
not domained by ZMAB. The location of the mineralised zones at Zinkgruvan constrained by major
mined out areas is shown in Figure 14.2.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 75
a) Plan View Showing Location of Mineralised Zones (Constrained by Major Mined Out Areas)
b) Isometric View Showing Location of Mineralised Zones (Constrained by Major Mined Out Areas)
Figure 14.2: Mineralised Zones at Zinkgruvan
The geological interpretation used by the ZMAB geological department in the Mineral Resource
estimate was guided by drill hole and geological mapping data where available. The zinc-lead
mineralisation and the copper stockwork mineralisation comprised the principal domains. The zinc-
lead mineralised zones were defined based on a cut-off grade of 3.68% Zn equivalent (based on an
average Net Smelter Return (NSR) value for the mine of 335 SEK Swedish Krona (SEK)/t). Details of the
NSR calculation are given in Section 14.13. The footwall and hangingwall contacts within the zinc-lead
mineralisation are geologically well defined and the cut-off grade therefore generally reflects the
geological contact. A cut-off grade of 1.0% Cu was used to define the copper zone mineralisation. A
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 76
minimum mining width of between 3m and 5m was incorporated into the mineralised zone
wireframes by ZMAB. Given the large difference in density between the zinc-lead mineralisation and
the surrounding waste rock it is recommended that the practice of incorporating a minimum mining
width within the mineralised zone wireframes be reviewed.
Wireframe solids for each mineralised zone and their structural sub-domains were constructed in
Microstation® software. Mineralised zone wireframes were constructed of the full mineralised zone
(inclusive of mined out areas) and were used as the basis of the Mineral Resource estimate. A sub-set
of these wireframes, constrained by major mined out areas, was then used to select the remaining
resource areas for resource classification and more detailed mining depletion.
14.2 Drill Hole Data Processing
The domain wireframes for each mineralised zone were then used to select drill hole samples for
further data processing. The samples were then coded by the principal domains and formed the basis
of the Mineral Resource estimate.
14.3 Grade Capping
Grade capping was only applied to Ag values in the Sävsjön West Viktor (400g/t) and East Wilhem
(340g/t) zones by ZMAB. The presence for any outlier assays was reviewed by WAI using log probability
plots for each mineralised zone and constrained by major mined out areas. Log probability plots for
zinc, lead, silver and copper within the the zinc-lead mineralised zones are shown in Figure 14.3. Log
probability plots for zinc, lead, silver and copper within the copper stockwork mineralised zone are
shown in Figure 14.4. WAI considers that very few significant outlier values are present within the
zinc-lead mineralised domains and as such is reflective of the style of this mineralisation. Potential
minor outlier values for lead and silver are present within the copper stockwork mineralisation,
however do not significantly impact the Mineral Resource estimate.
WAI considers that the absence of grade capping does not represent a risk to the Mineral Resource
estimate.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 77
a) b)
c) d)
Figure 14.3: Log Probability Plots of Zinc-Lead Mineralisation for Selected Samples for a) Zinc, b)
Lead, c) Silver and d) Copper
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 78
a) b)
c) d)
Figure 14.4: Log Probability Plots of Burkland Zone Copper Stockwork Mineralisation for Selected
Samples for a) Zinc, b) Lead, c) Silver and d) Copper
14.4 Compositing
A 2m composite interval was applied by ZMAB to standardise the sample lengths for both the lead-
zinc mineralisation and the stockwork copper zone. Histograms showing drill hole sample lengths for
the lead-zinc mineralisation and the copper stockwork mineralisation prior to compositing and
constrained by major mined out areas, are shown in Figure 14.5. A maximum sample interval of 2m is
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 79
currently used by ZMAB for sampling for assaying. Historically, however a maximum sample interval
of 3.5m was allowed and is reflected in the minor populations shown above 2m. Going forward, WAI
considers the use of a 2m composite length to be acceptable given that the majority of the drill holes
used in the Mineral Resource estimate are from more recent drilling. De-compositing associated with
the minor populations above 2m that result from historical drilling is considered less significant.
a) b)
Figure 14.5: Histogram showing Sample Lengths for a) Zinc-Lead Mineralisation and b) Copper
Stockwork Mineralisation
14.5 Continuity Analysis
Continuity analysis was undertaken by ZMAB prior to variography and was based on untransformed
2m composite data. Continuity analysis refers to the analysis of the spatial correlation between sample
pairs to determine the major axis of spatial continuity. Horizontal, across strike and down dip
continuity maps were examined (and their underlying variograms) to determine the direction of
greatest and least continuity. Continuity analysis was undertaken for all domains and elements
including Zn, Pb, Ag, Cu, Ni, Fe and Co where sufficient sample pairs were available. An example
continuity analysis for zinc in the Burkland zone is shown in Figure 14.6.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 80
Figure 14.6: Example Continuity Map of Zinc Grades at Burkland
14.6 Variography
Based on the continuity analysis variogram modelling was subsequently undertaken by ZMAB.
Directional and down hole variograms were calculated for the 2m composites. In keeping with the
general trend of mineralisation, the variograms were created in the orientation of the defined
mineralisation as described by the continuity analysis. Variography was undertaken for all deposits
except for Cecilia, Borta Bakom and Dalby where insufficient sample pairs were available. Variography
was undertaken for each domain and each element (Zn, Pb, Ag, Cu, Ni, Fe and Co) where sufficient
sample pairs were available. Major axis were defined based on the orientation of greatest continuity.
Minor axis were defined based on the orientation of next greatest continuity and orientated
perpendicular to the major axis. The remaining orthogonal direction, orientated perpendicularly to
the major and minor axis, was then defined. The nugget variances were modelled from the down hole
variograms. Variograms were modelled using 2 structure spherical models. An example of the
modelled variograms for zinc in the Burkland zone are shown in Figure 14.7.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 81
Figure 14.7: Example of Modelled Variograms for Zinc Grades at Burkland
WAI consider that the overall quality of the experimental variograms generated for the mineralised
zones at Zinkgruvan are acceptable and are generally based on a significant number of sample pairs
which have been sufficiently domained. Confidence in the modelled variograms is therefore high as a
result of the clearly defined continuity displayed by the experimental variograms. No variography
could be defined for Mellanby, Cecilia, Borta Bakom or Dalby mineralised zones due to the limited
number of sample pairs. Mellanby, Cecilia and Borta Bakom, however are being actively mined while
Dalby is classified as a wholly Inferred Mineral Resource.
14.7 Volumetric Modelling
The majority of the Zinkgruvan mineralised zones were modelled using 3d block modelling. The
polygonal method of estimation is also used by ZMAB but is restricted to a few minor historical sub-
domains and sub-domains at early stages of resource evaluation which are classified as Inferred
Mineral Resources only.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 82
Block Modelling
Block models defining the mineralised zones were constructed by ZMAB in Prorok® block modelling
software using the domain wireframes which were used to code the principal domains. The system is
designed as a block modelling module to run on Microstation® software. Prorok® allows the creation
of a volumetric block model with sub-cell subdivision up to 1/16 of the master block. The location of
each master block is stored as indices (I,J,K) that refer to row, column and level positions. Four
additional fields in the volumetric block model table indicate the level of sub-blocking and sub-cell
position (octant) in the master block.
The Nygruvan block model was based on a parent cell size of 5m x 10m x 5m (x,y,z). Block models
within the Knalla area were based on a parent cell size of 10m x 5m x 10m (x,y,z). A minimum of two
sub-cell splits to the parent cell were allowed where additional cell resolution was required. The block
models were not rotated. Block models are stored in the Oracle® database which links directly into
Microstation®.
14.8 Density
Density measurements are not contained in the drill hole database but are contained in separate
Excel® spreadsheets stored at the mine site. The spreadsheets contain density measurements from
drill core samples and contain drill hole number, sample from and to interval, density measurements
and assay values and as such could be incorporated into the drill hole database.
Zinc-Lead Mineralisation
Density measurements are taken from all areas of the mine and no significant variation in density
between the different mineralised zones is evident. Density for the zinc-lead mineralised zones was
calculated using zinc and lead grades estimated into the block model based on the following formula:
5.7
15.1%
0.4
49.1%
7.2
15.1%49.1%100
100
PbZnPbZnSG
In the calculation, a density of 2.7t/m3 is used for the host rocks while the theoretical densities of
sphalerite and galena are also used. Apart from sphalerite and galena, the Zinkgruvan zinc-lead
mineralisation contains very few other sulphides. To identify density samples reflective of the
mineralised zone, density measurements with corresponding zinc and lead assays were filtered based
on the NSR cut-off value detailed in Section 14.13. Density was then calculated based on the zinc and
lead assays using the formula above. A total of 1,172 measured density values and 1,172 calculated
density values were returned. A summary of the measured density values and their corresponding
calculated density values based on the zinc and lead assays is shown in Figure 14.8 . Overall there is a
general tendancy for the calculated density values to understate the measured densities as illustrated
in the QQ plot. On average, the calculated density values are approximately 6% lower than the
measured densities resulting in a potentially conservative estimate of tonnage. WAI recommend that
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 83
the method of density estimation be further reviewed and include the possibility of estimating density
directly into the resource block model.
a) b)
c)
Figure 14.8: Plots of Density for Zinc-Lead Mineralisation a) Histogram of Density Measurements,
b) Histogram of Calculated Density Values Calculated from Zn, Pb and Ag Grades, and c) Q-Q Plot
of Measured Density against Calculated Density
Copper Stockwork Mineralisation
A constant density of 2.86t/m3 is used by ZMAB for the copper stockwork mineralisation. To evaluate
the appropriateness of the density applied by ZMAB the density database was filtered by WAI based
on a cut-off grade of 1.0% Cu to identify density samples reflective of the mineralised zone. A total of
128 density values were returned. A histogram of the copper stockwork density values is shown in
Figure 14.9 with a mean density of 2.89t/m3. WAI considers the density of 2.86t/m3 used by ZMAB in
the Mineral Resource estimate for the copper stockwork mineralisation to be generally appropriate.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 84
Figure 14.9: Histogram of Density Measurements for Burkland Copper Stockwork Zone
14.9 Grade Estimation
Block Model Grade Estimation
Grade estimation for Zn, Pb, Cu, Ag, Co, Fe and Ni was performed for the zinc-lead mineralised zones.
Grade estimation for Cu, Zn, Pb, Fe, Ag, As, Sb, Bi and Hg was performed for the copper zone
mineralised zone. Grade estimation was undertaken only for mineralised material defined within each
domain. The domains were treated as hard boundaries and as such composites from an adjacent
domain could not be used in the grade estimation of another domain. Grade interpolation was carried
out using Prorok® software. Ordinary Kriging was used as the principle grade interpolation method for
zones in which suitable variography could be defined. Inverse distance weighting squared (IDW) was
used as the principle interpolation method for all remaining zones. Grade interpolation was carried
out using a single pass method where the search parameters used were approximate to the ranges
for each direction. A minimum of 2 composites and a maximum of 10 composites were required during
the grade estimation. Estimated grades were stored in a separate table and linked to the volumetric
model via a key field. A summary of the grade estimation parameters used by ZMAB are shown in
Table 14.2.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 85
Table 14.2: Summary of Zinkgruvan Search Parameters
Mineralised Zone ElementSearch Radius
Along Strike (m) Down Dip (m) Across Strike (m)
Burkland
Zn 80 38 20.5Pb 108.5 40.5 5.5Cu 90 39.5 27Ag 124.5 40.5 36Co 63 32 10.5Fe 70 39.5 10Ni 99 38 17
Nygruvan
Zn 103 80 4.5Pb 101 91.5 10Cu 101 78 8Ag 136 78 6Co 120.5 85.5 7Fe 110.5 67 6Ni 68.5 58.5 11
Cecilia
Zn 90 60.3 8.01Pb 90 60.3 8.01Cu 90 60.3 8.01Ag 90 60.3 8.01Co 90 60.3 8.01Fe 90 60.3 8.01Ni 90 60.3 8.01
Borta-Bakom
Zn 100 100 40Pb 100 100 40Cu 100 100 40Ag 100 100 40Co 100 100 40Fe 100 100 40Ni 100 100 40
Sävsjön East(Zeta area / Wilhelm area)
Zn 61 / 46 61 / 46 61 / 46Pb 61 / 36 61 / 36 61 / 36Cu 61 / 67 61 / 67 61 / 67Ag 58 / 25 58 / 25 58 / 26Co 61 / 99 61 / 99 61 / 99Fe 61 / 71 61 / 71 61 / 71Ni 52 / 20 52 / 20 52 / 20
Sävsjön West(Yngve area / Viktor area)
Zn 28 / 50 28 / 50 28 / 50Pb 51 / 26 51 / 26 51 / 26Cu 68 / 67 68 / 67 68 / 67Ag 40 / 46 40 / 46 40 / 46Co 47 / 44 47 / 44 47 / 44Fe 84 / 71 84 / 71 84 / 71Ni 52 / 40 52 / 40 52 / 40
Mellanby
Zn 80 80 11Pb 80 80 11Cu 80 80 11Ag 80 80 11Co 80 80 11Fe 80 80 11Ni 80 80 11
Dalby
Zn 90 80 18Pb 90 80 18Cu 90 80 18Ag 90 80 18Co 90 80 18Fe 90 80 18Ni 90 80 18
Copper Zone
Cu 60 30 14Zn 95 51 36Pb 100 30 30Fe 90 48 13Ag 84 44 35As 102 57 50Sb 80 50 42Bi 70 42 27Hg 95 80 53
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 86
Industry best practice would typically involve a 2 or 3 pass grade estimation using incrementally
increasing search radii based on the variography for each metal and a requirement for composites
from 2 or more drillholes to estimate blocks during at least the first and second searches. However,
given the density of the drillhole data, and given the composite sample requirement in relation to
orebody thickness, WAI considers that the number of blocks (particularly within the Measured and
Indicated Mineral Resource categories) that could have been estimated from only one drillhole to be
insignificant. WAI considers that the block model grade estimation interpolation carried out by ZMAB
to be generally robust.
Polygonal Estimation
Polygonal estimation was carried out in MS Excel® spreadsheets in conjunction with Microstation®
software. Drillhole intersection centres were composited over their entire mineralised thickness and
were plotted on a vertical longitudinal projection. Density was used as a weighting factor in the
intersection average grade calculation. The horizontal thickness was calculated using the angle
between the intersection angle and the local orebody orientation. Irregular polygons were drawn
around each drill hole intersection on the vertical projection. The polygon areas were calculated using
Microstation® software. The volume and tonnage of each polygon was then calculated. The tonnage
of the mineralised zone is calculated as a sum of the tonnage of each polygon, whereas grade is
estimated as a weighted average. Polygonal estimation was carried out only for minor sub-domains
and included Nygruvan mining areas 96-97 and 950 and Borta Bakom mining areas I, U and 150.
14.10 Grade Estimation Validation
Following grade estimation, a statistical and visual assessment of the block model was undertaken to
1) assess successful application of the estimation passes 2) to ensure that as far as the data allowed,
all blocks within mineralisation domains were estimated and 3) the model estimates performed as
expected. The model validation methods carried out by ZMAB included an on-screen visual
assessment of composite and block model grades, a statistical grade comparison and SWATH Analysis
as shown in Figure 14.10. WAI considers that globally no indications of significant over or under
estimation were apparent in the model nor were any obvious interpolation issues identified. From the
perspective of conformance of the average model grade to the input data, WAI considers the grade
estimation by ZMAB to adequately represent the sample data used.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 87
BURKLAND – Zinc-Lead Mineralisation
-1,125m to -960m level
SWATH ANALYSIS for Zn
a) EASTING – 5m PANELS
b) NORTHING – 10m PANELS
c) RL – 10m PANELS
a)
b) c)
Figure 14.10: Example SWATH Analysis for Zn in Burkland Zinc-Lead Mineralisation -1125m to -
960m Levels
14.11 Mineral Resource Reconciliation
Reconciliation comparing the block models used in the Mineral Resource estimates against planned
and actual production data is undertaken by ZMAB as a means of validation. Reconciliation is
undertaken by the ZMAB geological department on a monthly basis and includes the following:
Mineral Resource Model – an evaluation of Mineral Resource estimates contained
within the mined-out stopes using the Cavity Monitoring System (CMS) survey over
the reconciliation period;
Planned Production – planned stope production based on the annual mine design.
The resource model contained within the planned stopes is evaluated and factors
applied for unplanned dilution and mining recovery; and
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 88
Plant Production – plant reported production figures based on tonnes processed and
back calculated grade.
A summary of the annual reconciliation for the zinc-lead mineralisation and the copper stockwork
mineralisation from July 2016 to June 2017 is shown in Table 14.3 while the monthly reconciliations
for the zinc-lead mineralisation is charted in Figure 14.11.
Table 14.3: Summary of Annual Reconciliation (July 2016 to June 2017)
Zinc-Lead Mineralisation
Source Ore Tonnes (t) Zn Grade (%) Zn Metal (t) Pb Grade (%) Pb Metal (t)
Resource Model 1,053,442 7.42 78,115 3.01 31,704
Plant Production 1,081,462 7.83 84,643 3.19 34,540
Planned Production 1,114,761 7.59 84,627 3.00 33,398
Copper Stockwork Mineralisation
Source Ore Tonnes (t) Cu Grade (%) Cu Metal (t)
Resource Model 94,026 2.12 1,992
Plant Production 99,226 2.05 2,033
Planned Production 90,384 1.55 1,399Note: Copper stockwork production only during July and August in 2016 and February, March, May and June in 2017
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 89
a) Zinc-Lead Mineralisation Tonnes Reconciliation
b) Zinc-Lead Mineralisation – Zinc Grade Reconciliation c) Zinc-Lead Mineralisation – Lead Grade Reconciliation
d) Zinc-Lead Mineralisation – Zinc Metal Reconciliation e) Zinc-Lead Mineralisation – Lead Metal Reconciliation
Figure 14.11: Zinc-Lead Mineralisation Reconciliation for July 2016 to June 2017
Annual ore tonnes for zinc-lead production from the Mineral Resource model and plant production
are comparable and report within 2.6% of each other. Planned annual ore tonnes report slightly higher
tonnages compared to plant production (3.0% higher) and the Mineral Resource model (5.5% higher)
while zinc and lead grades reporting from the resource model and planned production tend to
understate grades plant production. Overall, the Mineral Resource model reports 7.7% less contained
zinc metal and 8.2% less contained lead metal compared to plant production data while the planned
production reports very similar contained zinc metal and 3.4% less contained lead metal compared to
plant production data.
The reconciliation is generally considered acceptable particularly for the planned production
compared to plant production in terms of overall contained metal. It is recommended that a study to
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 90
identify the reasons for the lower grades reporting from the Mineral Resource model and the higher
tonnes reporting from the planned production be considered.
Reconciliation of the copper stockwork zone is complicated by the relatively low tonnage mined and
the intermitent production of this ore type during 2016 and 2017.
14.12 Mineral Resource Depletion and Non-Recoverable Mineral Resources
All underground development and stopes are regularly surveyed using Total Station and CMS survey
methods. The information is imported by ZMAB into Microstation® and used to build up 3D
triangulations of the mined-out regions. These areas are then used to deplete the Mineral Resources.
A limitiation of the current Microstation® system is that depleted resources can not be coded into the
block model and depletion is therefore undertaken as a separate evaluation stage.
Non-recoverable Mineral Resources include areas which will never be exploited for reasons such as
proximity to mine infrastructure and are removed from the Mineral Resource estimate by ZMAB.
14.13 Cut-Off Grades for Evaluation
A Net Smelter Return (NSR) cut-off of 335 Swedish Krona (SEK)/t is used for the purposes of Mineral
Resource evaluation of the zinc-lead mineralisation and is the average NSR for the mine and equivalent
to a cut-off grade of 3.68% Zn equivalent (ZnEq). The NSR uses the following metal prices: 1.00 USD/lb
for zinc, 1.00 USD/lb for lead and 15.0 USD/oz for silver. In the NSR calculation the silver price was
subsequently reduced to 4.11 USD/oz and reflects the remaining value of silver after royalty payment
to Silver Wheaton. Based on an exchange rate of 7.0 SEK/USD, the following NSR factors are used:
1%(Zn)/t = 90.7 SEK, 1%(Pb)/t = 103.6 SEK and 1/t(Ag) = 0.98 SEK. The NSR cut-off is then calculated
using the equation: NSR=(Zn(%)*90.7)+(Pb(%)*103.6)+(Ag(g/t)*0.98).
A cut-off grade of 1.0% Cu is used for the purposes of Mineral Resource evaluation of the copper
stockwork zone and is based on an economic cut-off grade.
The same cut-off grades are used by ZMAB for geological domaining of the mineralised zones, Mineral
Resource evaluation and Mineral Reserve evaluation.
14.14 Mineral Resource Classification
Mineral Resource estimate classification was undertaken by ZMAB on the basis of the drill hole
spacing, geological continuity, data density and orientation, spatial grade continuity, presence of
underground development and soundness of structural interpretation. Measured Mineral Resources
were classified based on a 20m to 50m drill hole spacing and good exposure of the mineralisation in
development. Indicated Mineral Resources were classified based on a 50m x 50m drill hole spacing
with some mineralisation exposed by underground development. Inferred Mineral Resources were
classified based on a 100m × 100m drill hole spacing. Resource classification is stored in the Oracle®
database which links directly into Microstation®.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 91
The Mineral Resource estimate classification for the Zinkgruvan deposit is illustrated in Figure 14.12.
WAI consider the Mineral Resource classification methodology employed by ZMAB to be generally
acceptable. Going forward it is recommended that the Mineral Resource classification methodology
also consider the confidence in the drill hole data quality with respect to the proportion of historical
or recent drilling and their spatial distribution within the mineralised zone.
Figure 14.12: Long Section through Zinkgruvan showing Resource Classification (ZMAB, 2017)
14.15 Mineral Resource Statement
The Mineral Resource estimate for the Zinkgruvan deposit is classified in accordance with the CIM
Standards. The stated Mineral Resources are not materially affected by any known environmental,
permitting, legal, title, taxation, socio-economic, marketing, political or other relevant issues, to the
best knowledge of the author. There are no known mining, metallurgical, infrastructure, or other
factors that materially affect this Mineral Resource estimate, at this time.
The effective date of the Mineral Resource estimate is June 30, 2017. A summary of the Mineral
Resource statement is shown in Table 14.4 and Table 14.5. The cut-off grades used in the evaluation
are detailed in Section 14.13.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 92
Table 14.4: Total Mineral Resources for Zinc-Lead Zones at Zinkgruvan
(Average Cut-Off Grade of 3.68% Zn Equivalent)
ResourceClassification
Tonnage(Kt)
Grade Metal
Zn(%)
Pb(%)
Ag(g/t)
Zn(Kt)
Pb(Kt)
Ag(Moz)
Measured 7,269 10.0 3.8 86 727 276 20
Indicated 8,399 8.7 3.7 82 731 311 22
Measured +Indicated
15,668 9.3 3.7 84 1,458 587 42
Inferred 9,431 8.5 3.5 81 802 330 25Notes:
1. Mineral Resources are reported in accordance with the guidelines of the CIM Definition Standards for Mineral Resources and Mineral Reserves (2014);
2. Mineral Resources are reported using a zinc equivalent cut-off grade based on a NSR breakeven price;
3. Metal prices used in the NSR evaluation are US$2.75/lb for copper, US$1.00/lb for zinc, US$1.00/lb for lead, and US$15.0/oz for silver. A silver price of $4.11/oz is used in the
calculation of NSR to reflect the royalty payment to Silver Wheaton;
4. Mineral Resources are not Mineral Reserves until they have demonstrated economic viability based on a feasibility study or pre-feasibility study;
5. Mineral Resources are reported inclusive of any Mineral Reserves;
6. Grade represents estimated contained metal in the ground and has not been adjusted for metallurgical recovery and;
7. Numbers may not add due to rounding.
Table 14.5: Total Mineral Resources for Copper Zones at Zinkgruvan
(Cut-Off Grade of 1.0% Cu)
ResourceClassification
Tonnage(Kt)
Grade Metal
Cu(%)
Zn(%)
Ag(g/t)
Cu(Kt)
Zn(Kt)
Ag(Moz)
Measured 4,357 2.3 0.3 32 100 13 4
Indicated 619 2.1 0.4 36 13 2 1
Measured +Indicated
4,976 2.3 0.3 32 113 16 5
Inferred 193 2.3 0.3 25 4 1 0.2Notes:
1. Mineral Resources are reported in accordance with the guidelines of the CIM Definition Standards for Mineral Resources and Mineral Reserves (2014);
2. Mineral Resources are not Mineral Reserves until they have demonstrated economic viability based on a feasibility study or pre-feasibility study;
3. Mineral Resources are reported inclusive of any Mineral Reserves;
4. Grade represents estimated contained metal in the ground and has not been adjusted for metallurgical recovery and;
5. Numbers may not add due to rounding.
14.16 Comparison to Previous Estimates
In January 2013, an NI 43-101 compliant Technical Report was filed summarising a Mineral Resource
and Mineral Reserve estimate prepared by WAI. The effective date of the Mineral Resource and
Mineral Reserve estimates was June 30, 2012 and were prepared in accordance with the CIM
Standards. Cut-off grades used for reporting of the Mineral Resource estimate in the January 2013, NI
43-101 were 3.80% Zn equivalent for the zinc-lead zones and 1.0% Cu for the copper stockwork zone.
The main differences between the Mineral Resource estimate reported in the January 2013, NI 43-
101 and the current Mineral Resource estimate are:
Zinc-Lead Zones, Measured and Indicated Resources - Increase in resource tonnes
from 14,558Kt to 15,668Kt. Reduction in zinc grade from 10.2% Zn to 9.3% Zn.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 93
Reduction in lead grade from 5.0% Pb to 3.7% Pb. Reduction in silver grade from
105g/t Ag to 84g/t Ag;
Zinc-Lead Zones, Inferred Resources – Increase in resource tonnes from 4,553Kt to
9,431Kt. Reduction in zinc grade from 8.9% Zn to 8.5% Zn. Increase in lead grade from
3.3% Pb to 3.5% Pb. Increase in silver grade from 78g/t Ag to 81g/t Ag;
Copper Stockwork Zone, Measured and Indicated Resources - Decrease in resource
tonnes from 5,879Kt to 4,976Kt. Copper grade consistent at 2.3% Cu.
Copper Stockwork Zone, Inferred Resources – Reduction in resource tonnes from
622Kt to 193Kt. Increase in copper grade from 1.7% Cu to 2.3% Cu.
The differences between the Mineral Resource estimates are attributed to additional drilling and
offset by depletion from mining over this period.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 94
15 MINERAL RESERVE ESTIMATES
Mineral Reserve estimates are prepared by ZMAB in accordance with CIM Standards. WAI has
reviewed the Mineral Reserve estimation methodology undertaken by ZMAB, including mine design
and operational factors and a check on the enterprise cash flow model which includes all operating
expenses and forecast sustainable capital expenditure.
The majority of the Mineral Reserves at Zinkgruvan are hosted by the Burkland zone, with a smaller
portion remaining in the Nygruvan zone. Smaller tonnages are hosted by the Sävsjön, Mellanby,
Cecilia, and Borta Bakom zones, all of which lie to the southwest of Burkland (collectively known as
Västra Fältet or “the western areas”).
15.1 Methodology
Site Assumptions
The ZMAB methodology to determine the value of each individual stope or stope block utilises a NSR
calculation, by determining the average value per unit of zinc contained in ore.
The NSR is calculated on a metal recovered and metal payable basis taking into account zinc, lead,
copper grades and silver content, metallurgical recoveries based on actual mineral process plant
performance, metal commodity prices and realisation costs related to shipment of concentrates to
the appropriate smelter and associated commercial smelter terms and conditions.
The site defines a Cut-off-Value (“COV”) based on enterprise marginal costs, which for 2017 equates
to SEK 335/t. The current (2017 Mineral Reserve Estimate) average COV is 3.68% ZnEq and is detailed
in Section 14.13.
The mining average COV is based on an analysis of the variable operating cost of the mining, mineral
processing, general and administration, and development access costs (capital and operational),
depreciation costs; and sustaining capital based on the ZMAB five-year budget.
Reserve Estimation Process
The zinc-lead mineralization wireframes used in the definition of the hangingwall and footwall
contacts for the Mineral Resource block model are adjusted to suit minimum mining shapes, e.g.
minimum horizontal thickness of 5.5m at the sills and 3.5m in between sills; the wireframe is adjusted
every 10 to 20m along strike to represent a suitable mining geometry.
Mineable stopes imply that the planned excavation meets geotechnical design requirements and can
be drilled and extracted using existing mine equipment.
Inferred Mineral Resources contained within the wireframe are excluded from the Mineral Reserve
Report.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 95
The mineable shapes are modified by dilution and recovery factors as determined by actual mining
practice. The recovery factor comprises of an excavation (mucking) factor of 95%, applied to all areas
of the mine.
The following dilution factors are applied by weight are as follows:
25% waste rock dilution (at zero grade) in the Nygruvan and Västra Fältet areas;
12% waste rock dilution (at zero grade) in the Burkland area; and
12% host rock dilution in the copper areas. The host rock in the copper mining areas
is assumed to contain the average of the equal to or greater than 1% copper grade
shell on the footwall side and zero grade on the hangingwall side.
The sharp grade drop-off at both the hangingwall and footwall contacts of the zinc-lead mineralisation
means that small to moderate changes in the cut-off grade have a minimal impact on the Mineral
Reserves.
The primary computerised software tools used for Mineral Reserve estimation are Microstation® and
Prorok®. Mineral Reserve estimation is integrated with Mineral Resource estimation (modelling and
classification).
The stoping and development plans are constructed using Microstation®. The footwall and
hangingwall wireframes produced are then superimposed over the plans.
Manual adjustments to the wireframes are made to reflect new geological interpretations derived
from mapping and drilling data and current economic conditions. The stope volume is calculated from
the hangingwall and footwall wireframes and the resultant model is evaluated against the block model
to calculate the grade and tonnage of each stope.
The stope shapes are sequenced in Datamine Studio® 5D Planner to produce a Life of Mine (“LOM”)
plan.
Modifying Factors Overview
To determine access to the planned stope blocks, development drives which are located 30m from
the orebody footwall are driven into a stoping area in advance of production. Infill Mineral Resource
delineation drilling from the footwall is used to define the footwall and hangingwall stope boundaries
based on a mining cut-off grade.
Mined-out areas are routinely surveyed using a Cavity Monitoring System (“CMS”) prior to backfilling.
The CMS produces a wireframe of the stope void which is then imported into Microstation®. A single
wireframe of the mined-out stopes is produced and this is also evaluated against the block model in
order to calculate the grade and tonnage of the mined material.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 96
The resultant Mineral Reserve estimate has demonstrated economic viability, that is the recoverable
and payable metal value contained in the stope is greater than the cost of development and
production expenses.
15.2 Mineral Reserve Statement
The Mineral Reserve estimate for the Zinkgruvan deposit is classified in accordance with the CIM
Definition Standards for Mineral Resources and Mineral Reserves (2014). The effective date of the
Mineral Reserve estimate is June 30, 2017. A summary of the Mineral Reserve statement is shown in
Table 15.1 and Table 15.2. The cut-off grades used in the evaluation are detailed in Section 14.13.
Table 15.1: Total Mineral Reserves for Zinc Zones at Zinkgruvan
(Average Cut-Off Grade of 3.68% Zn Equivalent)
ResourceClassification
Tonnage(Kt)
Grade Metal
Zn(%)
Pb(%)
Ag(g/t)
Zn(Kt)
Pb(Kt)
Ag(Moz)
Proven 8,100 7.4 3.0 68 602 241 18
Probable 3,801 6.7 2.7 51 253 101 6
Proven +Probable
11,901 7.2 2.9 63 855 342 24
Notes:
1. Mineral Reserves are as defined by CIM Definition Standards for Mineral Resources and Mineral Reserves (2014);
2. Mineral Reserves are reported using a zinc equivalent cut-off grade based on a NSR breakeven price;
3. Metal prices used in the NSR evaluation are US$2.75/lb for copper, US$1.00/lb for zinc, US$1.00/lb for lead, and US$15.0/oz for silver. A silver price of $4.11/oz is used in the
calculation of NSR to reflect the royalty payment to Silver Wheaton;
4. Modifying factors used include the use of NSR and mining cut-off values in defining the extraction (stope) shapes, along with dilution and recovery in the mining process;
5. The NSR is calculated on a recovered payable basis taking in to account copper, lead, zinc and silver grades, metallurgical recoveries, prices and realisation costs;
6. Mining, processing and administrative costs were estimated based on actual costs; and
7. Numbers may not add due to rounding.
Table 15.2: Total Mineral Reserves for Copper Zones at Zinkgruvan
(Cut-Off Grade of 1.5% Cu)
ResourceClassification
Tonnage(Kt)
Grade Metal
Cu(%)
Zn(%)
Ag(g/t)
Cu(Kt)
Zn(Kt)
Ag(Moz)
Proven 4,375 1.8 0.2 25 78 9 4
Probable 877 2.0 0.2 29 18 2 1
Proven +Probable
5,252 1.8 0.2 26 96 11 4
Notes:
1. Mineral Reserves are as defined by CIM Definition Standards for Mineral Resources and Mineral Reserves (2014);
2. Modifying factors used include the use of mining cut-off values in defining the extraction (stope) shapes, along with dilution and recovery in the mining process;
3. Mining, processing and administrative costs were estimated based on actual costs; and
4. Numbers may not add due to rounding.
The location of the Proven and Probable Mineral Reserves are presented on a long-section of
Nygruvan and Knalla areas in Figure 15.1 and Figure 15.2 and for the copper area in Figure 15.3.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 97
Figure 15.1: Long Section Through Nygruvan Area Showing Mineral Reserve Classification
Figure 15.2: Long Section Through Knalla Area Showing Mineral Reserve Classification
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 98
Figure 15.3: Long Section Through Copper Area Showing Mineral Reserve Classification
15.3 Mining Modifying Factors
The modifying factors applicable to mining derived from operational experience in 2016 and 2017
(YTD) for dilution, recovery, and backfill dilution are applied to the stopes for the conversion of Mineral
Resource estimates to Mineral Reserves. A detailed account of the reconciliation is set out in Section
14.11 of this report. The planned mining factors for 2017 applied to the various mining areas are
summarised in Table 15.3.
Table 15.3: Mining Factors 2017
Mine Area
Burkland1125and over
Burkland1300 andunder Cecilia
Nygruvan240
Nygruvan CF,205 Mellanby Sävsjön
BortaBakom Copper
Dilution (%) 12 15 20 20 15 15 10-12 20 20
Miningrecovery (%) 95 95 95 95 95 95 95 95 95
Backfilldilution (%) 3 3 3 3 3 3 3 3 3
The methodology employed for defining Mineral Reserves used by ZMAB takes into account both the
economic and practical operational constraints of mining the orebodies. The mine Mineral Reserves
are supported by detailed mine plans, mine engineering analysis and appropriate, operationally
derived, dilution and recovery factors applied to the Mineral Resource.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 99
15.4 Reconciliation
Detailed stope reconciliation exercises are undertaken by the staff at Zinkgruvan. The actual tonnage
and grade of ore processed in the mill is compared against the tonnage and grades of the short term
mine designs and plans.
Stope solids derived from the CMS surveys are loaded into Prorok®. The mined-out stopes are
compared with the original planned stopes and the amount of dilution and any ore losses are
calculated.
This reconciliation process determined the average annual performance against the short term mine
designs presented in Table 15.4.
Table 15.4: Reconciliation: Average 2017 Stope Mining Factors (%)
Dilution 11.6
Ore addition 0.4
Past fill dilution 0.3
Ore losses 10.0
15.5 WAI Review
Review Mine Design & Scheduling Verification
15.5.1.1 Overview
WAI has carried out a review of the mine design for the project as part of the verification of Mineral
Resources to Mineral Reserves conversion. The data reviewed includes:
Studio 5DP Planner project files, including the life of mine design stopes and
development;
EPS project files, including the sequencing and scheduling data for the mine design
stopes and development;
DXF files of the existing/as-built stopes and development infrastructure;
Schematic of ventilation designs; and
Mineral Resource block model.
15.5.1.2 Verification of Stope Block Construction Relative to the Mineral Resource
WAI has reviewed the designed stoping blocks within the LOM plan and considered the design stopes
relative to the Mineral Resource block models. To validate the location of the stopes, WAI filtered the
block model by grade; and conducted a visual inspection of the stoping blocks to verify that stope
construction has been carried out in areas achieving the cut-off-grade for the various stoping blocks.
Additionally, WAI utilised the stope grade data within EPS (which considers dilution and recovery
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 100
within the calculated grade) to identify any stopes which have an average block grade below the mine
COGs of:
3.68% ZnEq for zinc-lead blocks; and
1.5% Cu for copper blocks
Stope dimensions were reviewed in order to confirm compliance with the limits on stope size set out
in the geotechnical design for the operation.
WAI considers that the stope designs are appropriate and the design methodology conforms to
international best practice.
15.5.1.3 Development Design
WAI has reviewed the development design in order to confirm appropriate access is provided to the
working areas and is suitable for mine ventilation and underground infrastructure access.
The development review comprised a visual inspection of the general layout, confirming all
development headings are connected to either existing access or can be constructed sequentially from
design excavations. Additionally, WAI carried out spot checking of the development wireframes to
verify that cross section designs are compliant with the design criteria set out by the mine.
WAI considers that the development designs are appropriate and the design methodology conforms
to international best practice.
15.5.1.4 Mine Sequencing and Scheduling
Development and stope sequencing has been carried out in Studio 5D Planner using a combination of
automatically generated and user defined constraints (sequence links). The sequence links have been
produced in order that the mine is developed following a logical sequence, ensuring that the various
aspects of the mine design are constructed sequentially (i.e., a stope cannot be constructed until the
assess, ventilation and infrastructure required for that stope are also complete).
These logic sequence links have then been exported, in conjunction with the mine design, into EPS
scheduler; where production rate constraints, and equipment/manpower resourcing has been
applied.
EPS allow the user to view an animation of the mine construction by period (year, quarter, etc) and
WAI has conducted a visual inspection of this animation to verify that the mining sequence occurs in
a logical and viable way.
Within EPS, each of the mining activities has associated values for mineable tonnage, grade, resourcing
and mining factors; which are calculated based upon values derived by evaluating the mine design
wireframes against the block model.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 101
In order to verify the process, WAI has carried out spot checks on mining activities throughout the
mine and across the LOM schedule; reviewing initial input parameters and applied factors used to
derive the final schedule outputs.
WAI considers that the mine sequence and schedule to be appropriate and the methodology conformsto international best practice.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 102
16 MINING METHODS
The Zinkgruvan mine was developed in 1857 as an underground mine with the orebody at that time
outcropping at at surface. It is currently known to extend to the -1,600m level and is open at depth
(underground elevations in this report are relative to a surface datum). Mine access is currently via
three shafts, with the principal P2 shaft providing ore and waste rock hoisting as well as labour access
to the -800m and -850m levels. The “daylight” ramp connects the surface and the underground
working the “western areas”, providing direct vehicle access from surface to the mine. A system of
further ramps is employed to access and hence exploit mineral reserve below the shaft. The mine is
highly mechanised, utilising the best available technologies to control operations. Longhole panel and
sub level bench stoping are emloyed throughout the mine. All stopes are backfilled with either
cemented paste tailings or waste rock. Mining has currently reached the -1,250m level.
ZMAB has made significant investment in technology, machinery and equipment as well as efficient
work systems used to mine and process the ores in recent history. A new shaft and mineral processing
facility was built in 1977. As the mining of the polymetallic ores has deepened, additional
infrastructure has been built to enable safe access and adequate airflow to the underground workings.
In the mid-1990s, increasing production rates, the commensurate size of the underground mined out
areas, coupled with the high horizontal ground stress led to increasing difficulty maintaining the
stability of stope hangingwalls. As a result, the mining methods and extraction sequences were
modified and a cemented paste backfill system was installed in 2001.
A schematic three-dimensional view of Zinkgruvan mine showing the present operational mining areas
is presented in Figure 16.1. The current maximum depth below surface of the Mineral Reserves is
approximately 1,300m in both the Nygruvan and Burkland zones.
Figure 16.1: Location of Current Mining Areas
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 103
16.1 Access and Infrastructure
The Zinkgruvan underground mine has three main operating shafts. Shafts P1 (732m deep, 3m
diameter, rectangular furniture) and P2 (904m deep, 5.5m diameter, round based furniture) are both
situated at Nygruvan, Shaft P1 is used for ancillary hoisting of personnel throughout the working shift
and P2 is used for ore and waste rock hoisting, materials and for the bulk of personnel transport at
the beginning and end of the work shift. Shaft P3 (350m deep, n.d., rectangular furniture) at
Knallagruvan is not a significant part of the current or future operating plan and serves only as an
emergency egress and to support mine ventilation.
In 2010, a ramp from surface down to a depth of 350m was completed, connecting to the existing
internal ramp infrastructure in the mine and many mine materials are now transported via this route.
16.2 Rock Mass Characterisation
Geotechnical
16.2.1.1 Rock Types
The principal minerals in the ore zone are sphalerite and galena. The ore is metamorphosed tuffs with
intercalated beds of marble, dolomite and fine grained quartzite. These beds give the orebody a
distinctive stratification and significantly reduce the rockmass strength where they are abundant.
The footwall rocks are generally competent and massive siliceous meta tuffites (leptites). On the
immediate footwall of the Nygruvan orebody there is a weak skarn deposit that forms a natural plane
to which the orebody breaks.
The rock in the immediate hangingwall of the ore zone (10m to 20m) consists mainly of calc-silicate
bedded metatuffite. This is alternating 0.5cm to 1cm thick layers of quartzite, quartzitic metatuffite
and other metamorphosed rocks, which tend to accentuate the bedding and create a need for ground
control.
16.2.1.2 Geological Structures
The major geological structure is the subvertical north to northeast trending Knalla fault that divides
the orebody. Between -700m and -800m levels the Nygruvan zone is mined adjacent to this structure.
Mine development from the Nygruvan to the Burkland zones passes through the fault on the -450m,
-650m, and -800m levels. Dolerite dykes cut perpendicularly across the ore and then later run parallel
to the ore as sills in the hangingwall.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 104
16.2.1.3 Hydrogeological
Weak inflows have been associated with faulting and shear zones, but cover drilling to check for water
has not been necessary. Water ingress into the mine comprises both groundwater, exhaust fan
condensation and production and development drill water.
16.2.1.4 Rock Stress Environment
The rock stress regime at Zinkgruvan has remained fairly stable since 2005, despite an increase in
depth of mining by 300m. There has been no additional impact on mining activities due to the rock
stress environment, and all mining induced stress is handled by the robust rock reinforcement systems
in place.
The virgin (undisturbed) principal stresses are orientated approximately in the horizontal-vertical
planes. The maximum horizontal stress is orientated east-west, roughly parallel to the Nygruvan zone,
and roughly perpendicular to the Burkland zone. A stress rotation is evident over the Knalla fault,
implying that the fault zone is well healed and interlocked with the surrounding rock mass. The
average stress at 960m in the Burkland zone is ϬH=64MPa, Ϭh=45MPa and Ϭv=28MPa.
The following stress profile represents the stress environment at Zinkgruvan mine. Note: ϬH=Ϭ1,
Ϭh=Ϭ2, Ϭv=Ϭ3.
ϬH=0.068z;
Ϭh=0.047z; and
Ϭv=0.028z.
Stress measurements undertaken at Zinkgruvan are presented in Table 16.1.
Table 16.1: In Situ Stress MeasurementsϬ1 Ϭ2 Ϭ3
Site &Year
Depth(m)
No oftests
Magnitude(MPa)
Orientation(°)
Magnitude(MPa)
Orientation(°)
Magnitude(MPa)
Orientation(°)
Nygruvan(1983)
790 7 45.6 300/03 31.8 032/33 25.9 206/57
Nygruvan(1983)
825 1 40.1 073/10 25.9 337/28 12.6 181/60
Burkland(1988)
350 1 17.1 067/04 5.5 158/11 1.7 317/78
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 105
16.2.1.5 Rock Mass Properties
Geological strength index (GSI) is used to describe the rock mass as shown in Table 16.2.
Table 16.2: Geological Strength Index (GSI)Rock Type
Biotite Relatively competent rock, with GSI typically ranging between 50 and 60 based onestimations and previous experience.
Leptite and or Skarn-Leptite Fairly competent rock with GSI in the range of 50 to 65, although zones with qualityrock occur intermittently.
Zinc-lead ore Competent rock with relatively consistent GSI-rating between 60 and 70, locally upto 80 in areas with very high strength rock with few structures.
Limestone/marble Relatively good rock with GSI in the range of 60 to 65, locally as high as 80.
Copper Ore Relatively good rock with GSI varying between 55 and 65, locally as high as 80 withfew fractures
Quartz feldspar Leptite Very good rock with GSI ratings in the range of 70 to 82, with little variation in theexposed areas.
16.2.1.6 Rock Mass Strength
A summary of estimated rock strengths following the Hoek and Brown Criterion and Geological
Strength Index rock mass classifications, are presented in Table 16.3.
Table 16.3: Rock Strengths
Rock Type Strength miσc
(MPa)GSI
c(MPa)
φ(°)
σtm (MPa)
Biotite leptite (Zn-Pbfootwall)
Low 20 100 50 5.3 38.4 0.1
Typical 20 175 55 6.8 44.6 0.3
High 20 275 60 8.8 49.6 0.7
Zinc-Lead ore
Low 25 225 60 8.5 49.9 0.4
Typical 25 225 65 9.3 51.2 0.6
High 25 225 79 12.8 54.6 1.8
Leptite and/or Skarn-leptite (Zn-Pbhangingwall)
Low 20 100 35 4.2 33.8 0.04
Typical 20 175 55 6.8 44.6 0.3
High 20 250 65 9.4 50.2 0.9
Limestone/Marble(Cu footwall)
Low 12 100 60 5.4 37.0 0.4
Typical 12 100 65 5.9 38.4 0.6
High 12 100 79 8.1 42.2 1.7
Copper Ore
Low 20 165 55 6.7 44.1 0.3
Typical 20 165 60 7.3 45.5 0.4
High 20 165 79 10.8 50.6 1.7
Quartz-feldsparleptite (Cuhangingwall)
Low 25 300 70 11.7 54.6 1.3
Typical 25 300 75 13.3 55.7 1.8
High 25 300 82 16.6 57.1 3.1
mi = m-value for intact rock (in the Hoek-Brown failure criterion)
σc = uniaxial compressive strength of intact rock
GSI = Geological Strength Index
c = cohesion of the rock mass (Mohr-Coulomb failure criterion)
φ = friction angle of the rock mass (Mohr-Coulomb failure criterion)
σtm = uniaxial tensile strength of the rock mass
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 106
Geotechnical Implications for Mine Layout and Rock Excavation Design
16.2.2.1 Ground Control Hazards Associated with Rock Types
The footwall leptites (siliceous tuffs) are generally massive and competent with no associated ground
control problems except where fault zones are intersected (discussed in detail in the next section).
The orebody is generally competent, but the presence of limestone bands significantly reduces the
rockmass strength. Ground control standards include pattern cable bolting in areas with spans
exceeding 7m. In the Longitudinal Bench and Fill stopes, stable spans of up to 11m are achieved with
6m long cable bolts.
In the Nygruvan zone, hangingwall dilution is more significant in areas with higher concentrations of
limestone bands. Meanwhile, in the Burkland zone hangingwall dilution is more significant in areas
that are more jointed and weathered and with more chlorite and talc minerals, significantly reducing
rockmass strength. These areas may have Q values less than 1 and are classed as poor. As a result,
cableboting of the hangingwalls is standard practice at Zinkgruvan, this is discussed in more detail in
Section 16.2.2.5.
16.2.2.2 Ground Control Hazards Associated with Geological Structures
Poor ground conditions are associated with the shear zones of minor faults in the footwall that do not
have significant throw.
The main dolerite dyke that crosscuts the orebody creates significant ground control challenges where
it is highly weathered. Geological and geotechnical mapping is continuously employed to identify
important faults and other structure in terms of ground control. The larger geological features are to
be included in the geological model in the seismic location system to see if slip on any of the structures
results in increased seismicity.
16.2.2.3 Ground Control Hazards Associated with Seismicity
The seismic monitoring indicates that the microseismicity is generally closely associated with the
current mining with the larger events located in the hangingwall. The highest concentration of seismic
energy has been on the east and west abutments to the lower mining levels. No particular stage in the
mining has so far been identified with a recognisable increase in seismicity; monitoring of the
seismicity is an ongoing part of the ground control programme.
16.2.2.4 Ground Control Associated with Deepening of the Mine
Ground conditions in the Nygruvan zone are generally better than those encountered in the Burkland
zone. In both zones, the footwall rocks are of higher quality than the hangingwall rocks, and the
principal stress is sub-horizontal and trending east-west. In some areas, such as the -965m level in
Burkland (stope 845), sliding along the foliation in the footwall has occurred. Stress induced instability
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 107
is expected to increase as the mining depths increase. The mine’s technical services continuously
monitor ground conditions and carry out geotechnical modelling in order to consider, where this is
anticipated, any increased increase in ground support or a reduction in stoping dimensions and level
spacing will be required.
Stope dimensions have been determined using the Matthews-Potvin N’stability estimation method
(Hutchinson & Diederichs, 1995). Including the Q’ rockmass classification, a stress factor, joint
orientation factor and gravity adjustment, the N’ stability number is graphically plotted against
hydraulic radii to determine the maximum ‘stable’span. Stope bolting recommendations are made
using the same graph and the application of empirical cable bolt designs as recommended in the
Internationally recognised “Cablebolting in Underground Mines” handbook, ISBN 0 921095 37 6.
The varying stope dimensions for the main mining regions and the changes due to depth of excavation
are shown in Table 16.4.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 108
Table 16.4: Stope Dimensions for the 5-year Mine Plan
Elevation Zone NameMining
MethodUnit 2018 2019 2020 2021 2022 High Length
-630 Bu650 T Stope Bu650 T Overhand T 26,463 49,187 43,839 24,763 - 8-10m 25m
-965 Bu965 T Stope Bu965 T “ T 47,248 69,477 69,096 72,087 69,985 25m 20m
-1125 Bu1125 T Stope Bu1125 T “ T 181,749 159,878 161,647 160,479 100,435 15-25m 20m
-1286 BU1300 Stope Bu1300 T Underhand T 109,439 135,315 121,589 161,394 145,190 15m 15m
-663 Borta Bakon Stope Bob T Overhand T 39,054 55,426 54,155 79,738 82,307 10-12m 25-35m
-640 Cecilia Stope Cecilia T “ T 118,566 108,193 94,447 106,416 79,719 13-20m 25-35m
-1135 NY1125 Stope Ny1125 T “ T 111,466 95,089 59,501 - - 12-18m 25-40m
-1296 NY1300 Stope Ny1300 T Underhand T 99,432 143,757 136,242 157,618 134,042 15m 20m
-1148 NY CDF Stope Ny CDF T Overhand T 113,222 107,554 110,917 109,986 117,111 17m 20m
-920 NY 205 Stope Ny205 T “ T 29,196 55,642 59,671 59,188 83,663 13m 30-40m
-633 Sav West Stope Sav West T “ T - - 39,609 59,683 71,016 11m 30-40m
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 109
16.2.2.5 Development and Stoping Support
Cable bolts are installed in the hangingwall of stopes from the sill in a fan pattern starting at 0.5m
above the floor, then at 1m intervals to the roof line, for a total of five cable boltsper row. The first
cable bolt is angled slightly down to facilitate drilling and also the second bolt so that the spacing at
the toe of the longest bolt (12m long) is 3m. The third bolt is approximately horizontal so that the
spacing at the toe of the longest bolt is again 3m. The remaining two bolts are angled up keeping the
toe spacing of the longest bolt at 3m.
This design is necessary to match rock drilling machinery requirements. The position and direction of
the cable bolt installation remains constant for all rock types, with the length and the row spacing
changing as required.
The mine currently also operates an underhand zone with a 20m (vertical) level spacing, stope span
of 15m in transverse and 6m in longitudinal stopes. Stope dimensions are locally adjusted according
to geological conditions.
Mine development ground support is installed to derived design standards, although the miners have
the discretion to increase support levels as required on a daily basis. The basis of ground support
design is ground stress conditions and dead-weight calculations for differing zones of rock mass
classification. Support elements include resin-grouted rebar, end-anchored rock bolts, cable bolts
mesh, structural shotcrete and fibrecrete.
16.2.2.6 Application of Shotcrete
The application of shotcrete is ubiquitous throughout the deeper operating sections of the mine.
Concrete and shotcrete are purchased from a local vendor and a contractor is employed to apply the
shotcrete to a minimum thickness of 35mm. The contractor adds steel fibre (35mm length) to the
shotcrete. Approximately 12,000m3 of shotcrete is applied annually.
16.2.2.7 Backfill Design
Backfilling now utilises cemented paste fill, but previously hydraulic sandfill was used. The flow sheet
showing the paste plant layout is shown in Figure 16.2.
Cemented backfill and mine waste rock is placed within voids to manage closure, stabilise stope spans,
and minimise waste haulage to surface. At present, backfill comprises between 2% to 8% cement,
depending on exposure requirements. Approximately 60% of the void volume is paste-filled and the
remaining 40% is filled with waste rock or left open. Backfill stability is calculated using Mitchell’s
formula (Mitchell, 1991), a factor of safety of 1.2 is applied to paste columns.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 110
Figure 16.2: Schematic Flow Sheet of the Paste Plant
The design of the plug to contain paste is a cement rich plug (5 to 7% cement) to a height of 2m above
the drawpoint level. Simple wooden barricades on top of a waste pile are found to be sufficient to
hold this paste plug. The minimum cement content described above is sufficient to minimise any risk
of liquefaction, however, the rate of pour needs to be balanced against the rate of curing to limit this
risk when the paste is freshly poured.
Underground Distribution System
The paste distribution system comprises of cascading boreholes and pipelines in the Burkland zone on
levels -350m, -450m, -650m and -800m. On the Nygruvan side, the levels with paste are -350m, -500m,
-650m, -800m and -900m. The system involves surface boreholes, some steel cased, ranging in
diameter from 165 to 300mm. The underground internal boreholes were reported to be 200mm in
diameter and uncased. The piping system underground is comprised of 150mm Schedule 40 or 80
piping and final pipe runs to stoping areas utilise PN16 HDPE pipe. A schematic of the paste
distribution system is shown in Figure 16.3.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 111
Figure 16.3: Schematic Paste Distribution System
Figure 16.4 shows the paste fill distribution from the operators control panel for Burkland and
Nygruvan zones. The display provides the status of each paste-fill line and various pressure and
throughput measurements.
Figure 16.4: Control Panel View of Paste Distribution System Control
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 112
16.3 Underground Mine Layout
Mine Infrastructure
From the shaft which goes down to -800m level, main levels are mined off at approximately 150m
vertical intervals. The level development is kept in the footwall of the orebody and has spiral ramps
connecting the main levels 400m to 500m long on strike. The access to the orebody is by means of
these trackless footwall ramps. Ore is loaded into ore passes that feed to the main haulage level on -
800m level where it is hauled to the shaft for hoisting. Ore from below the -800m level is trucked via
the main ramps to the crushers.
Ramp Development
Internal ramps are 4.5m high by 5m wide which are rectangular with curved shoulder profiles. The
main ramp is 5m high by 5.4m wide tunnel which is also rectangular with curved shoulder profiles. At
main footwall positions the ramp flattens for approximately 10m either side of the accesses. The Main
access crosscuts mined off the Ramp to the orebody are mined at 5.0m high by 4.5m wide.
Footwall and Hangingwall Haulages
Footwall haulages are standard 5.0m high by 4.5m wide tunnels with arched shoulder profiles. The
footwall or hangingwall haulages are mined at 1.0% to the rise to allow drainage back to the ramp
cross cut position.
Sub Level Development
Sub level development is 5.3m high by 5 to 8m wide. These ore drives are mined under geological
control and will accurately follow the structure of the orebody. Ore drives are predominantly
developed on the hangingwall of the orebody and may be allowed to follow the more distinguishable
footwall contact at Nygruvan where the orebody is of sufficient width.
When ore width is greater than the standard 5.3m development width, but less than 8m, the sub level
is initially mined to the full width.
Raise Construction
There is a significant requirement for raise construction during the mine life. Raising is carried out by
raisebore machinery for the longer raises, such as ore passes and ventilation raises. Slot raises in the
ore zones are mined using raiseborers or long hole drilling by drop raising. In the stopes, the size of
the drop raises is 1.04m diameter. Ventilation raises are traditionally developed to either 2.7m
diameter, when raisebored, or 3m x 3m section, when drop-raised.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 113
16.4 Mining Methodologies
There are four excavation or stoping methods utilised at the Zinkgruvan mine, transverse bench and
fill, sub level open stoping (“SLOS”) mining, a modified Avoca mining method and underhand bench
and fill (in this case the term underhand refers to the mining sequence not stope drilling orientation).
Transverse Bench and Fill (Panel Mining)
In the Burkland zone, long hole transverse bench and fill stoping (locally known as panel mining) is
used with a sequence of primary and secondary stopes. Stope dimensions are nominally 20m high by
30m wide for the primary stopes and 20m wide for the secondary stopes. Stope access is typically
developed in the footwall from the ramp system with this development at 5m x 5m size. Stope
accesses are developed on the upper horizon for drilling and on the lower level for mucking with
remote control Load Haul Dump machines (“LHDs”).
On completion of mining, the stopes are backfilled with cemented paste fill. The paste plant can
deliver 120t/hr of paste fill to a stope. Where possible, waste rock is disposed in secondary stopes
rather than being hoisted to surface.
Sill pillars at the -965m, -800m, -650m, and -450m levels have been left to separate mining areas and
provide ground support between active mining areas and previously mined and backfilled areas.
Sub-Level Open Stope (“SLOS”) Mining
In the Nygruvan zone, long hole transverse bench and fill stoping is also used with a sequence of
primary and secondary stopes. Previously rib pillars left between stopes for ground support have
become unnecessary and stoping is carried out with 15m sublevels and stope lengths of 30m.
Modified Avoca Mining
In the Cecilia zone where the orebody is thinner a modified Avoca Mining method is utilised where
rock fill is placed in the stope against the retreating blasting face. Following blasting the stope rock is
removed with constant monitoring to avoid unplanned dilution.
Underhand Bench and Fill
The lower levels of Nygruvan and Burkland are mined by a top down mining sequence rather than the
previous bottom up sequence of extraction. This reduces the quantum of up front access development
required before extraction is undertaken, reduces the effect of ground stresses, and eliminates the
need for new sill pillars, however, this method requires working higher binder content in all filled
stopes as well as working below cement fill.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 114
16.5 Drill and Blast, Design and Operations
The development drilling is based on twin boom Atlas Copco units, based on a 25m2 face area, using
a nominal 40mm drill bit diameter, a drill hole length of 4.2m and use of conventional emulsion
explosives and detonators.
The production drilling utilises four drill units, Table 16.5 summarises the drill design for the various
mining methods employed.
Table 16.5: Production Drilling Design
Drill unit AC Simba M4 AC Simba M7 AC Simba E7C AC Simba E&C-ITH
Hole diameter (mm) 89 76 89 95
Max. distance between
lines (m)
2.5 2.0 2.5 2.7
Max tip distance (m) 3.0 2.5 3.0 3.5
Max tip distance in the slot
area (m)
2.3 2.1 2.3 2.6
All worn drill bits are recycled between the face and the Atlas Copco -800m level workshop and an
efficient system of drill bit usage control and replacement is practised.
The Zinkgruvan mine has well established procedures for storage and transport of explosives which
complies fully with government mining regulations. The main explosive is site sensitised emulsion,
supplied in bulk from the vendor. The vendor supplies the product in a tank atop a road truck. The
truck enters the mine via the “daylight ramp”” and delivers the material directly the main -650m level
logistics hub which includes a main explosives storage facility. The supplier has fitted two large storage
tanks providing adequate operational storage.
The detonators and primers are delivered from surface by the mine logistics team and stored in a
magazine also located in the main -650m level logistics hub. The mine utilises the EU “Track and Trace”
system and deliveries of explosive productsares recorded into the system; as well as daily usage. Daily
quantities of explosives are delivered to the mine work area depot’s which are equipped with secure
storage boxes for the charging crews. Only licenced operators have access to the depots.
Standard development rounds for the development and ore faces is under the control of the blasting
engineer. The newer drilling jumbos have the rounds installed in the on-board computer, but earlier
models have laminated sheets showing the rounds. The layout of stope production holes is also the
responsibility of the blasting engineer. A continuous process of blast design is required for the
longhole stopes. The ground control officer will monitor the effectiveness of blasts in terms of wall
damage and, where necessary, liase with the blasting engineer to incorporate changes into
subsequent blasts.
A standard form for monitoring the blast was designed by the ground control officer. As well as
describing fragmentation of the ore, the form monitors backbreak, the condition of the brow and
visual damage to the stope walls. The results from the monitoring are used to create a database that
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 115
is used to design modifications to the blast design or compare new blasting products. Blast monitoring
equipment is used to identify any problems relating to detonator sequencing.
16.6 Ore and Waste Handling
Ore excavated from the stopes from Burkland and Nygruvan is fed through an ore pass system to the
-800m and -900m levels respectively, where it is transported by truck to the central dual crusher
system at the P2 shaft. Burkland and Nygruvan ore mined from levels below -800m is loaded directly
into trucks from footwall drawpoints for ramp haulage to the crusher.
Ore extracted from the “western areas” stopes is hauled by truck to the central crusher system. The
dual crusher system incorporates hydraulic rock breakers, sizing bars, jaw crusher and rock hewn
storage bins. The bins feed a conveyor which leads to a conventional shaft loading flask for batch filling
of the skip. The P2 shaft hoisting capacity is nominally 2Mtpa of rock, sufficient for ore and waste
planned production.
16.7 Production Schedule
The mine is currently targeting a production level of 1.17Mtpa zinc-lead ore, 0.18Mtpa copper ore and
the requisite waste. The next five years planned production is presented in Table 16.6, while the
forecast life of mine continues until 2032.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 116
Table 16.6: Five Years Planned Production
2018 2019 2020 2021 2022
Mine
Total Zn Ore Production (tonnes) 1,170,000 1,200,000 1,200,000 1,200,000 1,200,000
Zn Grade % 7.8 7.7 7.7 7.1 6.9
Pb Grade% 2.6 3.0 3.0 2.9 2.8
Ag Grade g/t 61 68 69 60 70
Total Cu Ore Production (tonnes) 180,000 150,000 200,000 200,000 200,000
Cu Grade % 1.7 1.7 1.6 1.6 1.7
Ag Grade g/t 27 20 19 24 22
Total Ore Production (tonnes) 1,350,000 1,350,000 1,400,000 1,400,000 1,400,000
Total Waste Development (tonnes) 348,246 385,584 387,934 362,157 306,004
Total Development (metres) 4,371 5,187 4,823 4,555 4,317
Plant
Recoveries Zn Ore
% Zn 89% 90% 91% 91% 91%
% Pb 81% 83% 83% 83% 83%
% Ag 65% 65% 65% 65% 65%
Recoveries Cu Ore
% Cu 89% 91% 91% 91% 91%
% Ag 65% 65% 65% 65% 65%
Zn Concentrate Production (tonnes) 150,745 156,769 157,715 145,199 141,141
Zn % 53% 53% 53% 53% 53%
Pb Concentrate Production (tonnes) 34,481 41,281 41,151 39,883 39,090
Pb (%) 72% 72% 72% 72% 72%
Ag g/t 1,377 1,281 1,289 1,292 1,298
Cu Concentrate Production (tonnes) 10,680 9,046 11,705 11,134 11,991
Cu (%) 26% 26% 26% 26% 26%
Ag g/t 296 216 211 280 239
Total Contained Metal
Zn t 80,347 83,558 84,062 77,391 75,228
Pb t 24,826 29,722 29,629 28,716 28,145
Cu t 2,723 2,307 2,985 2,839 3,058
Ag koz 1,628 1,763 1,785 1,757 1,723
The location of the next five-years of production is presented as long-sections of the three main
stoping areas in Figure 16.5, Figure 16.6, Figure 16.7, Figure 16.8 and Figure 16.9.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 117
Figure 16.5: Long-Section Through Nygruvan Zone Showing Mining Plan for 2018 - 2022
Figure 16.6: Long-Section Through Sävsjön Zone Showing Mining Plan for 2018 - 2022
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 118
Figure 16.7: Long-Section Through Western Areas Showing Mining Plan for 2018 – 2022
Figure 16.8: Long-Section Through Burkland Zone Showing Mining Plan for 2018 - 2022
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 119
Figure 16.9: Long-Section Through Burkland Copper Stockwork Zone Showing Mining Areas for
2018 - 2022
16.8 Mine Infrastructure
Operational Control
An advanced system of operational communication and control is reticulated throughout the mine.
This includes copper wire telephones, Leaky Feeder radios, RFID personnel tags combined with
proximity zone readers, Fibre Optic cables for Wi-Fi to underground offices and workshops, PED cap
lamp system all integrated into a system that monitors for abnormal tasks as well as the presence of
contract workers in unplanned work areas. A comprehensive ABB system for the control of ventilation
fans, water pumps, shaft hoisting, first responder co-ordination is in place.
A mine control room denoted as “Drift Central Control” is situated at the surface between the P1 and
P2 shafts, and co-located near the mine technical services offices.
Electrical Reticulation
The site is fed on surface from 2 x 10kVA and 2 x 20kVA overhead and ground cables. The ground
cables were installed in 2016-2017 as part of a system upgrade to enable security of supply and
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 120
underpin the planned increase in production. These cables are routed to the onsite main switchgear
house which feeds the cabling to the mineral process plant, hoist motor switchgear and the
underground mine.
The mine cables are affixed to the P1 and P2 shaft furniture, at both 10kVA and 20kVA. These cables
are routed to the main crushers on the -800m level and then via transformers to mine wide switchgear.
There are approximately fifty (50) switchgear panels throughout the mine which feed ventilation fans,
pump stations and drill machines.
Mine Environment - Ventilation
Zinkgruvan mine effectively comprises two ventilation districts; The first encompasses Nygruvan and
part of the Burkland zone and the second encompasses the western areas, centred around Knalla and
Cecilia zones as well as the remaining areas of Burkland.
The ventilation network comprises main fans at the:
P2 shaft, 355kW inlet fan, downcast, 2.4m diameter, rope guides at a flow rate of nominally
100m3/sec. A heat exchanger is installed to maintain inflow air temperatures above +2
Celsius;
The Thorax Shaft, 320kW (4x80kW coupled in series), 5m diameter, upcast;
The Kristina (Burkland zone) S1 shaft 500kW inlet, downcast, 150m3/sec, with heat
exchanger installed to maintain air at above +3 Celsius, S2 shaft. 500kW outlet, upcast,
150m3/sec, reverse heat exchanger installed to capture heat from S1;
The Knalla, Lindängen and Dalby shafts, S1, 45kW upcast, 45kW downcast, fans are located
underground with small buildings on surface, heat control is by oil fired burner located in
the buildings;
The Cecilia shafts, S1 shaft 355kW located on surface, providing 100m3 downcast, S2 shaft
355kW located UG, providing 100m3 upcast; both S1 and S2 have heat exchangers capturing
exhaust air heat for use in incoming air; this heat exchanger is supported by an oil and
electric heater used as required; and
The UG fans provide secondary ventilation and are both 37kW and 90kW; variable flexible
ducting is used to control air direction and the air volumes moved range between 15m3 and
20m3. The underground secondary fan motors are controlled by frequency devices and
adjusted from surface by telemetry, at the discretion of the underground operational staff.
The mine environment is surveyed daily with checks on flow rate and air volume movement,
temperature and humidity. The control network is by use of barricades, doors and secondary control
by way of the ventilation fans. All underground personal are provided with either CO monitors and
some have NO2 dosimetry devices.
The ventilation networks are modelled in Mine Ventilation Service Inc., VnetPC software. A schematic
of the ventilation system is shown in Figure 16.10.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 121
Figure 16.10: Schematic Ventilation system
16.9 Mine Services
The mine services department controls paste distribution, mine construction, road maintenance,
logistics planning with procurement, and shotcrete contractor activities.
Materials Handling
Materials handling from surface to the underground warehouse and distribution is controlled by the
logistics department. Material is transported by road going truck (8-10t capacity) from surface down
the “daylight” ramp to the -800m level logistics hub and -965m level hub.
The logistics fleet operates on day shift only. The logistics warehouse for operational consumables,
maintenance items, critical spares is located next to the -800m level workshops.
The logistics vehicles return to surface with sewage containers and waste from the workshops.
Diesel fuel is stored on surface in a nominal 30,000 tank. A steel line (22mm diameter) runs down P1
to a buffer tank of 1,000l that includes spillage protection with pressure control valves. The fuel is
piped to the -650m level workshop / service bays and stored in a 5,000l tank, and to the -800 level
workshop / service bays and stored in a 10,000l tank. From these locations 1,000l International Bulk
Container (“IBC”) with Fork Lift Truck (“FLT”) pallet base are filled and distributed to mine service areas
for slow moving vehicles.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 122
Compressed Air
The compressed air system is reticulated throughout the mine for use by the production drilling and
explosive charging equipment. The system also provides air for activation of the ore pass chute doors.
The pipework underground is 76mm and 102mm. On surface there are three Atlas Copco compressor
units, GA-250W-FF, GA-365-WSD and GA-315-VSD-FF which supply both the mine and the mineral
processing plant.
Water management
The mine hydrogeological environment is stratified and water entering into the mine is limited to areas
above the -150m level. All ground water ingress and water from the exhaust ventilation shafts is
captured, controlled and reticulated throughout the mine for drilling machinery and general mining
and maintenance activities.
A sophisticated system of basins, distribution pipework and pump stations connect all areas of the
mine for water, with surplus dewatered from the mine to the TSF. The quantity of water discharged
from the mine averages 43m3 per day (2017 YTD), and averaged 71m3 in 2016. The advanced control
of water enables dry working conditions throughout the mine.
16.9.3.1 Development and Production Drill Machine Water
A schematic showing drill machine water supply for development and production drilling is shown in
Figure 16.11.
Figure 16.11: Schematic Drill Water (2017)
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 123
16.9.3.2 Dewatering Basins and Pipework
Dewatering basins and pipework are shown in Figure 16.12.
Figure 16.12: Schematic Mine Water Management (2017)
16.10 Equipment
The underground mining equipment is predominantly owned and operated by ZMAB. Some
contractor owned and operated equipment includes ore haulage fleet and associated road
maintenance, and shotcrete fleet. The equipment owned by ZMAB is shown in Table 16.7.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 124
Table 16.7: Underground Equipment List (Owned)
Type Manufacturer Number Notes
Drilling rig Atlas Copco 10 -
Drilling rig Volvo 1 -
Boltec Atlas Copco 6 2 Cable Bolt, 4 RockBolt
Various vehicles Brokk 1 -
Various vehicles Carl Ström 2 -
Various vehicles JAMA 1 -
Various vehicles Manitou 1 -
Various vehicles Mercedes 1 -
Various vehicles Normet 1 -
Various vehicles Weekmas 1 Road Grader
Forklift EP 2 -
Forklift Intra 1 -
Forklift Linde 1 -
Forklift Lundberg 2 -
Excavator Caterpillar 3 -
Excavator Mini maskiner 1 -
Excavator Volvo 1 -
Charging truck Atlas Copco 2 -
Charging truck Bolidens mekaniska verkstad 1 -
Charging truck GIA 2 -
Charging truck Volvo 1 -
Loader Caterpillar 4 LHD, 2900, 1700 units
Loader Sandvik 4 LHD, 3 x 517, 1 ancillary
Loader Volvo 13 FEL
Lifting table Carl Ström 1 -
Lifting table GIA 7 -
Lifting table Normet 3 -
Lifting table Volvo 2 -
Personel vehicles Ford 47 -
Personel vehicles Nissan 6 -
Personel vehicles VW 7 -
Personel vehicles Mercedes 1 -
Scaler Atlas Copco 1 -
Scaler JAMA 3 -
Heavy truck Volvo 3 -
Total units 144
The equipment operated by the contractors is shown in Table 16.8.
Table 16.8: Underground Equipment List (Contractor)
Type Manufacturer Number Notes
Forklift Jungheinrich 1 -
Loader Caterpillar 3 CAT FEL 980 type
Personel vehicles Dacia 2 -
Personel vehicles Ford 4 -
Personel vehicles Nissan 6 -
Personel vehicles Toyota 7 -
Heavy truck Volvo 21 10 Ore haulage, 2 Shotcrete, 3
Concrete Tumbler, 2 Water
Trucks, 4 ancilliary
Total 44
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 125
Machinery Maintenance
The main underground workshops for mobile equipment maintenance are located on the -800m level,
close to the P2 shaft. The workshop is equipped with all necessary cranage, tools, and equipment to
maintain mining machinery such as LHD, roof/rock scaling, explosive charging trucks, working
platforms, service loaders and grader. The workshop team carry out engine and gearbox rebuilds as
well as all hydraulic cylinder and hose repairs. The workshop has sufficient warehouse storage for
operational requirements.
The drilling fleet (Development and Production) machinery is supplied by Atlas Copco and a
maintenance contract is in place for the maintenance of this equipment by Atlas Copco. Separate
workshops are in place for Atlas Copco personnel.
The haulage truck fleet and other contractor provided equipment is maintained by the contractor.
16.11 Human Resource Arrangements
The mine manager controls the technical services department, of approximately 12 persons including
strategic planning; along with the supervisory staff who control the operational staff. This team is
assisted by the geology department with specialist geo-technical mapping aiding the rock mechanic
monitoring.
The mine operates 365 days a year, 24 hours a day with five major shift patterns, based on 5d
afternoon, 2d off, 7d mornings, 1 week off. The night shift has two teams and patterns, Monday to
Thursday, followed by Friday to Sunday off; the weekend night team works Friday to Sunday with
Monday to Thursday off. Each shift overlaps for communication and planning. The evening shifts are
ore mucking, haulage contractors, paste back-fill and skip control. The manpower split is nominally
100 persons on day shift, 70 on afternoon shift and 45 on night shift.
There are approximately 200 operational and 40 technical and supervisory persons. The contractor
teams are nominally 20 persons covering truck haulage, and “shotcreting”.
16.12 Health and Safety Management
The mine operations have a dedicated Health and Safety Department with mine rescue, fire and safety
specialists, nurse, and regular visits by a doctor.
The mine regularly undertakes emergency and incident simulation exercises, as well as evacuation of
the underground workings.
There are approximately 34 UG mobile refuge chambers located throughout the mine, these are
equipped with compressed air, telephone, oxygen tanks and first aid kits. There are several permanent
refuge chambers, which are situated with the main crib rooms. These permanent chambers have
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 126
substantial first aid facilities. The mine has an underground ambulance and mine rescue vehicle, AED
devices and a main first aid station at the -800m level.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 127
17 RECOVERY METHODS
The current ZMAB zinc-lead plant commenced production in 1977 and uses the conventional
processing technologies of crushing, milling, flotation and concentrate dewatering to produce zinc and
lead concentrates. The plant also produces paste for underground backfill.
In 2010, the copper circuit was commissioned to produce copper concentrates using a separate
grinding, flotation and dewatering circuit. In May 2017, the “1350 Project” was completed and a
second Autogenous Grinding (“AG”) mill was commissioned to be used in parallel with the existing
grinding circuit for both zinc and copper ores. This new AG mill, along with an existing ball mill, can
also be used for increasing the lead-zinc ore processing capacity of the plant, outside of the copper
ore processing campaigns.
The zinc and copper ores and waste rock are hoisted to surface and are fed through a common
screening and crushing plant.
17.1 Flowsheet Description
Stockpile and Crushing Circuit
In 2009, Metso Minerals (Metso) installed the crushing plant with the objective of increasing the
throughput of the AG mill. The circuit was later adapted in 2010 so that copper ore could be crushed
on a campaign basis and stockpiled separately from the zinc-lead ore. Recently the crushing circuit
has been simplified and in 2014 the practice of feeding all the ROM to the AG was initiated, without
the need for pre-screening.
A simplified flowsheet for the crushing circuit is shown in Figure 17.1
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 128
Figure 17.1: Crushing Flowsheet
Three material types are brought to surface in campaigns via the mine hoist. These include zinc-lead
ore, copper ore and waste rock. Once treated through the crushing plant, seven products are
produced:
• Copper ore, unsorted;
• Copper ore grinding rocks;
• Zinc ore, unsorted;
• Zinc ore grinding rocks
• Zinc ore, -15mm;
• Zinc ore, -250mm +90mm; and
• Waste, -250mm.
The ore (crushed underground to minus 250mm) is hoisted from the P2 shaft and discharged over a
vibrating grizzly where the oversize rocks (+250mm) are scalped and reduced in size using a rock
breaker. The undersize of the grizzly can go one of two ways – either to a coarse ore stockpile in the
crushing plant yard from where a front-end loader can take the material for stockpiling or directly to
the vibrating mill feeders of the zinc-lead AG mill.
If fine crushed zinc-lead ore is needed, either to feed the ball mill or to improve the mill throughput
capability, the undersize of the grizzly is conveyed to a double deck screen fitted with 90mm and
15mm screen decks. The +90mm and – 15mm fractions are metered in required proportions, of 30%
lump ore (+90mm) and 70% finely crushed ore (-15mm), and conveyed to the primary AG mill feeders.
The -90 +15mm zinc-lead ore is conveyed to a double deck screen where the coarse fractions report
to a Metso HP4 cone crusher. The product from the cone-crusher reports back to the screen while the
screen undersize (-15mm) is conveyed to either of two fine ore stockpiles (one located outside and
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 129
the other located inside a shed). Ore from the outside fine ore stockpile can later be reclaimed by
front-end loader and placed into the shed.
A Metso GP3005 cone crusher can be used to take ore from the stockpile and produce fine crushed
ore from the same screen used with the HP4 crusher circuit.
Autogenous Grinding
The majority of the zinc-lead ore is ground in a single Morgardshammar AG mill to 80% passing 105μm.
The mill is 6.5m in diameter, 8.0m long and powered by two variable speed 1,600kW motors.
The mill product is classified by a bank of Warman Cavex 250CVX10 cyclones with the underflows
returning to the mill and the overflows passing to the bulk zinc-lead flotation circuit. The critical size
material is screened from the mill discharge and conveyed back to the mill feed chute. The capacity of
the mill is between 100 tph and 110 tph.
A recently installed FAG mill, referred to as the “1350 Mill” is used to process zinc-lead ore outside of
copper campaigns. The mill shell is from a Metso/SALA AG mill reconditioned with Outotec bearings
and trunnion. The mill is 5.1m in diameter, 7.0m long and powered by two variable speed 900kW
motors.
The mill product is classified by a bank of Warman Cavex 250CVX10 cyclones with the underflows
returning to the mill and the cyclone overflows (P80 of 105µm) passing to the bulk zinc-lead flotation
circuit. The critical size material is screened from the mill discharge and conveyed back to the mill feed
chute.
A primary ball mill, known as the copper ball mill due to its use primarily to process copper ore, can
also be used to grind the zinc-lead fine crushed ore. The (-15mm) ore is conveyed to this 3.3m
diameter, 6.6m long Metso ball mill, fitted with a 1,250kW variable-speed motor. The ball mill is
operated in closed circuit with a cluster of three Krebs gMax cyclones of 381mm (15 inch) in diameter,
with a target product size of 80% passing (P80) 110μm. The capacity of this ball mill is 40tph.
The grinding circuit flowsheet is shown in Figure 17.2.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 130
Figure 17.2: Grinding Circuit
Flotation
The copper and zinc-lead ores are treated using conventional flotation technology in separate
flotation circuits. The flowsheets are shown in Figure 17.3.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 131
Figure 17.3: Zinc-Lead and Copper Flotation Flowsheets
17.1.3.1 Zinc-Lead Ore Flotation
The zinc-lead ore flotation circuit is unusual as it involves the bulk flotation of zinc and lead minerals
rather than the usual sequential flotation route. The cleaned bulk concentrate is then subjected to a
separation stage where zinc minerals are depressed and lead minerals floated.
The grinding circuit cyclone overflow is conditioned with sulphuric acid to reduce the pH to 8, for
sphalerite activation, followed by the addition of sodium isopropyl xanthate (“SIPX”) which is used as
the collector. The pulp is pumped to two 38m3 Outotec flotation machines and the concentrate from
these cells passes to the zinc-lead second bulk cleaning stage. The tailings pass through six 40m3 Metso
cells and the tailings from these cells are the final plant tailings. A glycol-based frother, NasFroth, is
stage-added at specific locations throughout all of the flotation stages.
The concentrates from the first two cells pass to the zinc-lead first bulk cleaning stage and the
concentrates from cells five to eight, used on a scavenging duty, are pumped to a 3.5m in diameter,
3.8m long Morgårdshammar regrind mill, powered by a 330kW variable-speed motor. The mill is
operated in an open circuit with Sala cyclones yielding a product P80 of about 50 µm.
The reground product is pumped back to the head of the bulk rougher circuit.
A total of four bulk concentrate cleaning stages are used, three equipped with a pair of 15m3 Metso
cells and one comprising two 16m3 Outotec cells. Each stage is operated along the conventional
arrangement where the concentrate of one stage proceeds to the following one while the tailings goes
back as part of the feed to the previous one. Exceptions to this scenario are found with the tails from
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 132
the first and second cleaning stages with both streams are combined with the scavenger concentrate
and brought to the bulk circuit regrind mill.
The bulk zinc-lead concentrate produced from the fourth bulk cleaning stage is reground in a 2.4m in
diameter by 3.6m long Morgårdshammar mill, powered by a 330kW variable-speed motor, to 80%
passing 25μm. The mill is operated in an open circuit with a single Krebs cyclone. The zinc minerals are
depressed by the addition of sodium bisulphite before entering the separation circuit, with lead
minerals being concentrated. The separation circuit begins with a two-cell lead roughing stage
followed by a four-cell scavenging stage, all cells provided as 15m3 Metso cells. The scavenger tails are
the zinc concentrate. The rougher concentrate proceeds to the cleaning stage whereas the scavenger
concentrate is returned to the bulk concentrate regrinding stage.
Cleaning of the lead rougher concentrate cleaning is achieved in three stages consisting, respectively,
of 6 x 15m3 and 4 x 15m3 Metso cells and a third, locally designed and constructed, “JELE” flotation
cell.
Concentrate Dewatering
The lead concentrate passes to a 7m diameter Sala thickener and the zinc concentrate is dewatered
in a 15m diameter Sala thickener.
The concentrates are filtered using Svedala VPA vertical plate pressure filters, with one fitted with 40-
1.5m2 plates for the zinc concentrate and one of 32-1m2 plates used for the lead concentrate.
The filtered concentrates are discharged onto dedicated conveyors, transferring the products onto
stockpiles kept within an enclosed shed. From there, a front-end loader is used to load the
concentrates into trucks, for delivery to the port site.
Paste Fill
The processing plant staff are responsible for operating a paste backfill plant which consists of a 10.5m
diameter Baker Hughes thickener, a Dorr Oliver disc filter fitted with 11 discs of 3.25m diameter and
mixer tanks.
Cement is typically added at a rate of 1.5-2.0% for Secondary stopes, 4-6% for Primary stopes and up
to 8% for underhand stopes. The paste is pumped underground at 78% solids. Paste production in
2016 was 228,343 m3.
Copper Flotation
The copper circuit was commissioned in June 2010. From 2010 to 2016, a primary ball mill was used
to mill finely crushed ore. In 2017 the 1350 AG-Mill was commissioned and took over copper milling
duty during the 2017 copper campaign. The circuit has a design capacity of 300ktpa and the use of the
AG mill should effectively double this.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 133
The 1350 Mill is used to process copper ore during copper campaigns and is fed with the same
approximate proportions of 30% lump ore (+90mm) and 70% finely crushed ore (-15mm) that are used
for feeding the AG mill used exclusively on lead-zinc ore duty. The mill product is classified by a bank
of Warman Cavex 250CVX10 cyclones, with the underflows returning to the mill and the cyclone
overflows, featuring a P80 of 105 µm, passing to either the copper rougher or the bulk zinc-lead
flotation circuit.
All of the copper flotation stages comprise 15m3 Metso flotation cells. Rougher flotation takes place
in four 15m3 Metso flotation cells, followed by four scavenging cells. The rougher concentrates (first
four cells) are cleaned three times to produce a final copper concentrate assaying 25% Cu, with 90%
copper recovery. The first cleaner tailings and scavenger concentrate are re-ground in a 1.8m
diameter by 3.6m long ball mill fitted with a 132kW motor. The mill is operated in an open circuit with
15-inch diameter Krebs gMax cyclone, to provide a targeted product P80 of 30 µm.
The copper concentrate is dewatered using a 10m diameter Sala unit. The thickened concentrate is
filtered using a Metso VPA pressure filter with vertical plates.
17.2 Process Plant Consumables
The major process plant consumables, totalled for the two plants, are shown in Table 17.1.
Table 17.1: Plant Consumables 2016
Item Units Consumption
Steel media g/t 360
Xanthate g/t 62
Frother g/t 71
Flocculant g/t 6
Cement g/t 19,690
Sodium hydroxide g/t 194
Sulphuric acid g/t 1,146
Sodium bisulphite g/t 2,354
Electricity kWh/t 20
Power costs in recent years have been highly variable. Electricity is currently bought on the spot
market and the budgeted figure for 2017 was 0.375 SEK/kWhr. The plant consumables are typical for
the treatment of a moderately soft copper and zinc-lead ores.
17.3 Plant Sampling
The flotation plant is monitored using an Outotec Courier 6 on-stream analyser (OSA). Process control
analyses are undertaken for the critical process streams within the flotation circuits and are updated
every 10 minutes to give feedback to the operators on the plant performance. Daily (24hr) composite
samples are collected by the Courier system and samples of the filtered concentrates are also taken
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 134
for metallurgical accounting purposes. Samples of the cyclone overflows are taken manually to
confirm attainment of the targeted P80s. A total of 10 zinc-lead and 4 copper samples are thus taken
each day.
The composite samples are delivered to the laboratory for filtering, drying, sample preparation and
analysis by the assay-laboratory XRF apparatus. The flotation feed, bulk concentrate and tailings
particle size is analysed daily in order to track changes in grinding.
Daily metallurgical balances are performed every day and monthly balance are also carried out, the
latter using accumulated cumulative metal amounts reported from the daily balances. The
concentrate stockpile tonnages are estimated by qualified personnel and reconciled with tonnages
from the balance, truck transport and shipping tonnes. A monthly composite sample is also used to
compare with the accumulated numbers. This sample is sent to an external lab with an accredited
method in order to check for bias.
17.4 Mill Labour
The Mill Manager is responsible for both the operation and maintenance of the copper and zinc-lead
processing circuits, the paste backfill plant, the tailings treatment facility and industrial service. The
concentrator is operated with five shift crews with a total complement of 60 personnel. The manning
levels are summarised in Table 17.2.
Table 17.2: Mill Labour 2017
Position No
Mill manager 1
HOD’s 7
Metallurgical staff 5
Production 25
Maintenance - Mechanical 15
Maintenance - Electrical 12
Laboratory 5
Safety 2
Tailings facility 4
Industrial service 7
Total 83
Day crews carry out routine tasks such as reagent mixing, ball loading, general clean-up etc. The plant
is scheduled to operate 24 hours per day, seven days per week.
17.5 Assay Laboratory
The ZMAB analytical laboratory only undertakes analysis of samples generated from the processing
plant. A Panalytical Axios-Max pressed pellet X-ray fluorescence (XRF) spectrometer was
commissioned and calibrated in 2015 to analyse the samples for the daily production balance.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 135
The laboratory receives 10 process samples each day (14 during copper campaigns). Pulp samples are
filtered, dried and representatively split to produce sub-samples (20-30g) for chemical analysis. The
flotation feed and tailings are pulverised prior to undertaking chemical analysis, as these samples
contain relatively coarse material. The sub samples are combined with binding agent and a hydraulic
press used to prepare a pressed pellet suitable for XRF analysis.
A representative proportion of the daily samples are sub-sampled to form a monthly composite. The
monthly composite samples are analysed using a longer method on the lab XRF before being sent to
ALS laboratories in Piteå which uses an accredited method and ICP-MS analysis. A comparison of XRF
and ALS values is undertaken as a form of QA/QC. The ZMAB analytical laboratory is not accredited.
17.6 Historic Production Data
Zinc-Lead Ore
The ZMAB zinc-lead ore plant annual throughput and head grades are shown in Figure 17.4.
Figure 17.4: Zinc-Lead Ore Plant Throughput and Head Grade
The plant throughput has increased over the period, reaching a maximum of 1.096Mtpa in 2015. In
2017 the plant had processed 0.807Mt by September (1.076 Mtpa equivalent). Zinc and lead head
grades have generally fallen in recent years and were 7.48% Zn and 3.16% Pb in 2017. The recoveries
of zinc and lead to their respective concentrates are shown in Figure 17.5.
0.0
2.0
4.0
6.0
8.0
10.0
12.0
0
0.2
0.4
0.6
0.8
1
1.2
1998 2003 2008 2013 2018
Hea
dG
rad
e%
Pb
,%Zn
Thro
ugh
pu
tM
tpa
Tonnes % Pb % Zn
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 136
Figure 17.5: Zinc-Lead Ore Recoveries of Zinc and Lead
Zinc recoveries have remained consistent in recent years and in 2016 the recovery of zinc to zinc
concentrate was 90.0%. Lead recoveries have ranged from 82-83% for the last five years. The grades
of lead and zinc in their respective concentrates are shown in Figure 17.6.
Figure 17.6: Zinc and Lead Concentrate Grades
The lead concentrate grade is very high at 71.1% Pb (2017) although there has been a downward trend
in recent years, possibly reflecting the lower plant feed grade. The zinc concentrate grade has been
consistent in recent years, ranging between 52-54% Zn although the 2017 YTD figure is only 50.4% Zn
which may reflect the treatment of a more iron rich sphalerite, and cleaning circuit capacity limitations
under high metal throughput conditions.
50.0
55.0
60.0
65.0
70.0
75.0
80.0
85.0
90.0
95.0
100.0
Rec
ove
ry%
% Pb % Zn
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
Co
nce
ntr
ate
Gra
de
%
% Pb % Zn
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 137
Copper Plant
The copper plant historic data is shown in Table 17.3, Figure 17.7 and Figure 17.8.
Table 17.3: Copper Plant Historic Data
Throughput Head Grade Recovery Conc. Grade
Year (tonnes) (Cu %) (%) (Cu %)
2010 27,296 2.20 90.0 24.1
2011 109,666 1.77 90.5 25.1
2012 144,988 2.30 91.8 25.1
2013 222,157 1.73 89.8 25.4
2014 167,289 2.28 90.7 25.0
2015 138,731 1.67 88.1 25.5
2016 106,027 1.97 91.8 26.0
2017* 75,590 1.46 88.3 25.5
* Year to Date September
Figure 17.7: Copper Plant Throughput and Head Grade
0.00
0.50
1.00
1.50
2.00
2.50
0
50,000
100,000
150,000
200,000
250,000
2010 2011 2012 2013 2014 2015 2016 2017
He
adG
rad
eC
u%
Thro
ugh
pu
ttp
a
Throughput Head Grade
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 138
Figure 17.8: Copper Plant Recovery and Concentrate Grade
The copper plant throughput has varied since the start up, from 27,296t in 2010 to a maximum of
222,157t in 2013. Copper head grades have also varied significantly, from 1.46% Cu (2017) to 2.30%
Cu in 2012.
Copper recoveries have been fairly constant at between 88.1% and 90.8% as have the concentrate
grades which have ranged between 24.1% and 26.0% Cu.
Detailed Concentrate Analysis
The typical analyses of the zinc, lead and copper concentrates is shown in Table 17.4.
23.0
23.5
24.0
24.5
25.0
25.5
26.0
26.5
70.0
75.0
80.0
85.0
90.0
95.0
100.0
2010 2011 2012 2013 2014 2015 2016 2017
Co
nc
Gra
de
Cu
%
Cu
Re
cove
ry%
Recovery Conc. Grade
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 139
Table 17.4: Concentrate Analyses
Element units Pb Conc Zn Conc Cu ConcPb % 70.8 2.5 1.25
Zn % 5.6 51.8 4.67
SiO2 % 0.8 4.5 1.35
Al % 0.1 0.5 0.11
S % 14.4 27.9 28.38
K % 0.0 0.3 0.07
Ca % 0.1 0.7 1.27
Mn ppm 336 2,332 590
Fe % 2.8 6.0 27.1
Co ppm 83.5 188 1011
Ni ppm 33.5 18.1 1312
Cu % 1.83 0.083 26.6
As ppm 72.6 177.9 866
Se ppm 11.0 37.7 10.0
Rb ppm 1.0 14.0 2.00
Y ppm 2.2 7.6 5.00
Zr ppm 6.9 34.2 8.00
Mo ppm 21.7 14.1 13.8
Ag ppm 1328 77.6 258.0
Cd ppm 161.5 1242 125.3
Sn ppm 11.6 2.2 4.1
Sb ppm 673 58.9 988
Te ppm 2.0 5.0 0.50
Ce ppm 8.0 25.2 0.00
Tl ppm 5.0 1.0 0.38
Bi ppm 48.6 2.3 43.96
The concentrates are of good quality and do not contain significant levels of penalty elements.
17.7 Concentrate Storage and Transport
Concentrate storage capacity at the mine is around 4,000 wmt for zinc concentrates, 2,000 wmt for
lead concentrates and 1,500 wmt for copper concentrates. The concentrates are weighed as the trucks
leave the warehouse at the mill on their way to the port of Otterbäcken. The concentrates are trucked
for five days per week with three turnarounds per truck per day (12 hours shifts/24 hours per day). At
Otterbäcken the concentrates are stored in a warehouse owned by the port operator, Vänerhamn AB,
and leased by ZMAB.
The storage capacity at Otterbäcken is around 30,000 wmt, divided into four storage bins with the
respective capacity of 10,000 wmt for zinc concentrates, 8,000 wmt for lead concentrates, 8,000 wmt
for copper concentrates and 4,000 wmt used for storage of a small quantity of mixed concentrates
coming from the cleaning of the port and warehouse after loading. This material is sporadically
trucked back to the mine for reprocessing.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 140
Stevedoring is performed by Vänerhamn AB under contract. Loading is performed by two front end
loaders filling an open top container inside the warehouse and then transporting the container from
the warehouse to the quay where a mobile crane is used for loading the vessel. The load rate is
approximately 500wmt/h.
Until June 2014, the side of the warehouse facing the lake was open. In June 2014, a joint project
between ZMAB and Vänerhamn AB was completed and since then the warehouse is fully enclosed. At
the same time, sampling and moisture determination facilities were put in place to serve all outgoing
cargoes of concentrate in compliance with moisture and transportable moisture limit (TML) control
procedures.
The warehouse is exclusively used for ZMAB concentrates. Vänerhamn AB also owns the terminal at
the port and have given the right to use the same to ZMAB. The terminal is fully International Ship and
Port Facility Security Code (“ISPS”) compliant.
The 2017 weighted average moisture content of concentrates, loaded at Otterbacken (October, 2017
to Ocober 23, 2017) are:
Copper Concentrate – 6.16%;
Zinc Concentrate – 9.12%; and
Lead Concentrate – 5.54%.
The concentrates are shipped from Otterbäcken by bulk vessels. Since Otterbäcken is located on Lake
Vänern and the vessels have to pass locks and a canal to reach the ocean, there are only a few ship
owners having suitable (shallow and narrow) vessels. ZMAB employs Thun, a Swedish shipowner, with
whom they have a long-term contract of affreightment.
Official weighing and sampling is normally done at the discharge port under the supervision of an
internationally recognized company.
All concentrates are predominantly sold under long term contracts directly to mainly European
smelters. However, some 10% to 15% of the zinc concentrate production is sold to trading companies
on a spot basis by tenders. The quality of all concentrates is typically high with few penalty elements
and there are no issues in selling the products. The commercial terms under the long-term contracts
are negotiated on an annual basis and the concentrates are sold at the respective benchmark smelting
terms or better.
All silver contained in the concentrates belongs to Wheaton Precious Metals under a silver streaming
agreement and is invoiced separately when the silver content reaches payable levels.
No major changes in the commercial terms other than treatment and refining charges which follows
the market are expected for the coming years.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 141
18 PROJECT INFRASTRUCTURE
Infrastructure associated with the operations includes the Zinkgruvan underground mine, mineral
processing plant and associated infrastructure and tailings storage facility (“TSF”). In addition, all ore
is trucked by road to a facility leased by ZMAB and located at the inland port of Otterbäcken, on the
eastern shore of Lake Vänern, where it is loaded on to sea going ships for transport to smelters.
As with virtually all of southern Sweden there is an extensive network of paved highways, rail service,
excellent telecommunications facilities, national grid electricity, an ample supply of water and a highly
educated work force. The mine site is well served by telecommunications with excellent mobile phone
coverage.
18.1 Energy
Electricity is obtained from the National Grid. The majority of electricity generation in the area is via
hydro-electric schemes. Annual energy consumption at the mine is approximately 110GWh (both
electric and fossil fuel energy).
The operation is fed from the Dalby Substation, which is controlled by the Utility provider Sweco. The
feed consists of two x 10KVA and two 20KVA power line / power cables. The electrical feed to the
mine was upgraded during 2016 and 2017 to enable spare capacity to be installed for future enterprise
requirements, along with separate and direct reticulation to the site, increasing the security of supply.
The recent upgrade also separated the power feed cables of the local village from those of ZMAB.
There is an emergency stand-by generator located at the P1 shaft to enable evacuation of personnel
through the hoist and some mine ventilation to be maintained in case of power supply interruption.
18.2 Water
The operation has an efficient water management system which maximises recycling of water and
transfer between the mining and mineral processing operations and TSF. Where necessary, the site
draws water from Lake Trysjon and Lake Åmmelångenn. The mine pumps approximately 600,000m3
of water per year from underground workings. Water removed from the underground workings,
together with all site drainage water, is sent to the TSF along with the tailings/mineral process plant
water. Approximately 60% of the water sent to the TSF is returned to the mineral processing plant;
when combined with the recirculation of water within the mineral process and paste plants, results in
a highly efficient water management system.
18.3 Tailings Storage Facility
Tailings are currently stored in the newly constructed and fully permitted Enemossen East TSF.
Enemossen East TSF comprises an expansion located to the eastern side of the existing Enemossen
TSF. A further expansion is also planned to the north of the existing Enemossen TSF and is termed as
Enemossen North TSF. Tailings are still being deposited in the existing Enemossen TSF to adjust the
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 142
surfaces for reclamation purposes. The existing Enemossen TSF is also being used as a water
management area for the new East Enemossen TSF.
Existing Enemossen TSF
The annual production of tailings is approximately 1.1Mtpa, with 35% used as mine backfill and 65%
co-disposed at the Enemossen TSF and Enemossen East TSF, located about 4km south from the
processing plant, and shown in Figure 18.1.
Figure 18.1: Location of Enemossen TSF
The TSF is accessed from the north by the main pipeline route from the process plant to the disposal
facility. This route passes through the east edge of the Klarningsmagasin Water Storage Facility (WSF)
and close to Lakes Hemsjön and Viksjön. Tailings are pumped to the facility via twin 273mm ID HDPE
pipelines at a pulp density of 20 to 30% and are deposited by spigotting. The existing Enemossen TSF
covers an area of approximately 240,000m2 and is confined by two main embankments referred to as
the X-Y Dam and the E-F Dam, which were constructed on natural ground in the headwaters of three
streams. The dams were designed as water-retaining structures, and impounded the valleys draining
to the south into the Bjornbäcken River (X-Y Dam) and to the east directly into Lake Hemsjön (E-F
Dam).
Five saddle dams have been constructed to confine tailings deposition along the northern and western
perimeters of the facility.
The two main dams were raised over the lifetime of the TSF, both as centreline and downstream raises
and, from 2013, with upstream raises utilizing re-compacted tailings material. The original capacity of
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 143
the Enemossen TSF was 12 Mm3 which equates to approximately 16.8 Mt of tailings. In December
2017, the reported deposited volume of tailings was 12 Mm3. The projected life of the facility was
planned until December 2017 but, due to better than expected deposition densities, ZMAB considers
that the Enemossen TSF has approximately another 18 months of capacity from October 2017.
WAI understand that the existing Enemossen TSF tailings permit expires in December 2017, however
due to better than expected tailings densification, ZMAB are in the process of extending this licence.
As part of the ongoing management of the TSF, a programme of monitoring and instrumentation has
been implemented comprising a combination of standpipe piezometers, BAT piezometers and
dewatering wells with flow meters in order to reduce the stability risk of the structures.
Two seepage collection trenches and a pump station are located at the downstream toe of the X-Y
Dam and one seepage collection pond and pump station is located at the downstream toe of the E-F
Dam.
All excess supernatant and flood water has historically been discharged under gravity via a series of
vertical concrete decant towers constructed adjacent to the E-F Dam and through the F-F1 Dam. The
construction of the current decant was completed around 2011. This decant tower is located in the
extreme north-east corner of the facility and is connected to the return pump station via a concrete
pipeline. An emergency spillway pipe is also located in the vicinity of this decant tower.
Enemossen East TSF
A new TSF has been constructed directly east of the existing Enemossen TSF and is termed Enemossen
East TSF, which was designed and constructed under the supervision of Knight Piésold Ltd. The first
stage of the TSF has been constructed with a minimum crest elevation of 175 m and consists of two
zoned embankments which are situated along the eastern side of the existing Enemossen TSF. The
facility utilises natural hillsides along the southern, eastern and northern ends as well as the existing
Enemossen TSF XY dam to create a confined storage area for tailings solids and supernatant water.
The total capacity of Enemossen East to its currently permitted height of 195.5 m is 5.0 Mm3 and this
will provide tailing storage until 2024. The design will allow further raises to the 204.0 m level and this
would provide a further 7.0 Mm3 of capacity.
The TSF Stage 1 embankments have been constructed as zoned structures consisting of the following:
A low permeability zone on the upstream;
A two-metre- wide fine filter located directly upstream of the crest centreline;
A two-metre- wide transition filter zone, located directly downstream of the crest
centreline and;
A rock buttress (Zone S) located downstream of the transition zone.
The Enemossen East TSF has two reclaim towers located in topographical low points within the basin
adjacent to the downstream toe of the existing Enemossen X-Y embankment. The towers are founded
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 144
on bedrock and built to a minimum elevation higher than that of the operating elevation in the facility
during Stage 1 (175 m).
The towers will subsequently be raised in stages, based on the level of tailings in the facility and the
embankment crest elevation. Support rockfill around the towers will provide lateral support and help
mitigate the migration of fine tailings into the towers. Access to the towers is via an access road along
the existing bench on the downstream slope of the existing Enemossen X-Y dam.
Stage 1 had been completed and signed off at the time of the site visit by WAI, however tailings
deposition had not started.
Enemossen North TSF
A further expansion is planned with subsequent centre line raises proposed to the north. This
expansion TSF is termed as Enemossen North TSF. This will also be a staged TSF with Stage 1 covering
30 hectares with a capacity of 3.3 Mm3.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 145
19 MARKET STUDIES AND CONTRACTS
All concentrates, zinc, lead and copper, are predominantly sold under long term contracts directly to
European smelters. However, some 10 to 15% of the zinc concentrate production is sold to trading
companies on a spot basis through a tender process. The concentrates are all considered quite
marketable with few deleterious elements and there are no issues in selling the products. The
commercial terms applicable to the long-term contracts are negotiated on an annual basis in line with
the long-term market.
All silver contained in the concentrates belongs to Wheaton Precious Metals (formerly Silver
Wheaton) under a silver streaming agreement and is invoiced separately when the silver content
reaches payable levels.
No major changes in the commercial terms other than treatment and refining charges which follows
the market are expected for the coming years.
Credit risks are managed under a strict credit management programme which was implemented in
2011 and which monitors the clients’payment performance as well as restricts the credit exposure.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 146
20 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT
20.1 Environmental & Social Setting and Context
The Zinkgruvan mine and associated facilities are located adjacent to Zinkgruvan village in Askersund
Municipality, Örebro County. Zinkgruvan village has around 290 inhabitants. Other nearby towns
include Åmmeberg and Askersund, located around 10km and 15km from the mine, respectively.
The Enemossen TSF is located 4km to the south of the mine’s industrial area. A summer house
community can be found in Larstorp, roughly 100m south of the TSF. The nearest permanent residents
to the mine are in Kristineberg, around 1km to the east of the TSF.
There has been a history of mining at Zinkgruvan dating back over 150 years and most the operations
workforce lives locally. Forestry and agriculture complement mining as a main source of income in the
area; ZMAB is the municipality’s largest private employer.
20.2 Method of study and information sources
The documents reviewed and considered relevant for ZMAB are:
Waste Management Plan (“Avfallsplan”) for 2018-2020, published 2017, Zinkgruvan
Mining AB;
LMC Health and Safety Report for the period ending 30 September 2017, Lundin
Mining Corporation;
Zinkgruvan TSF: Enemossen East Design Memo, 25 September 2017, Knight Piésold
Limited;
Zinkgruvan TSF: Enemossen North Conceptual Design Memo, 25 September 2017,
Knight Piésold Limited;
Safety Statistics, September 2017, Zinkgruvan Mining AB;
Zinkgruvan Safety Action Plan, 2017, Zinkgruvan Mining AB;
Responsible Mining Management System Standard, March 2017, Lundin Mining
Corporation;
Five-Year Social Performance Strategy, 2017 (draft), Zinkgruvan Mining AB;
Independent Third-Party Geotechnical Tailings Review Programme, January 2017,
carried out by BGC Engineering Inc. and commissioned by Lundin Mining
Corporation;
Environmental, Health & Safety and Product Stewardship Audit 2016, April 2017,
carried out by ERM and commissioned by Lundin annually;
Traffic Noise Baseline and Impact Assessment (“Trafikbullerutredning”, Swedish),
2017, carried out by ÅF-Infrastructure AB and commissioned by Zinkgruvan Mining
AB;
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 147
Environmental Noise Baseline and Impact Assessment (“Externbullerkartläggning”,
Swedish), 2017, carried out by ÅF-Infrastructure AB and commissioned by
Zinkgruvan Mining AB;
Community Survey (“Invånarundersökning”, Swedish), 2017, carried out by
Marknadskraft AB and commissioned by Zinkgruvan Mining AB;
Crisis Management Plan for Zinkgruvan (“Krisplanen 3.2”, Swedish), May 2017,
Lundin Mining Corporation;
Environmental Competence Plan (“Personalens Kompetens & Miljöutbildning”),
2017, carried out by YMK and commissioned by Zinkgruvan Mining AB;
Environmental Report v1.0, Zinkgruvan Mining AB;
Sustainability Report, 2016, Lundin Mining Corporation;
Partial Ruling on Mining License Application, Case M 2927-12/M 1421-11 (“Tillstånd
till fortsatt gruvverksamhet mm i Zinkgruvan samt tillstånd att anlägga och nyttja
nytt magasin för anrikningsand”), 30/01/2015, produced by Alrutz’Advokatbyrå AB
for Zinkgruvan Mining AB (updates regarding environmental conditions 17/02/2017
and 29/09/2017);
Group Procedures for Biodiversity Management (2015), Mine Closure Planning
(2015), Water Management (2014), Air Quality/GHG Management (2014), Lundin
Mining Corporation;
Air Quality Management Plan for Zinkgruvan, 2015, Zinkgruvan Mining AB;
Water Management Plan for Zinkgruvan, 2015, Zinkgruvan Mining AB;
Biodiversity Management Plan for Zinkgruvan (“Plan för biologisk mångfald”,
Swedish), 2015 - Second Revision, Lundin Mining Corporation;
Mine Closure and Rehabilitation Plan (“Efterbehandlingsplan”), 2015, carried out by
Nils Eriksson for Zinkgruvan Mining AB;
Complementary Environmental Impact Assessment (“Kompletterande
miljökonsekvensbeskrivning gällande justerat förslag till nytt sandmagasin vid
Zinkgruvan”), December 2013, carried out by Svensk MKB on behalf of Zinkgruvan
Mining AB;
Energy Efficiency Plan, Appendix 2: Transportation (“Energieffektiviseringsplan”,
Swedish), 2011-2016, Zinkgruvan Mining AB; and
Environmental Impact Analysis – App. C (“Miljökonsekvensbeskrivning gällande
fortsatt verksamhet och nytt sandmagasin vid Zinkgruvan”), 2012, carried out by
Svensk MKB on behalf of Zinkgruvan Mining AB;
The term “international best practice standards”refers to the sustainability standards of International
Financial Institutions (“IFIs”), including the IFC Sustainability Framework and EBRD Environmental &
Social Management Framework, as well as guidance offered by sector-specific institutions, such as the
International Council on Mining & Metals (“ICMM”).
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 148
20.3 Access to the Site
The mine has good local road access and is close to the main E18 highway linking Stockholm and Oslo.
National Road 50, which runs northward to Örebro and southward to Motala, is the main access road
to Askersund District. The mine can be accessed from Askersund settlement (15km) by district road
592 and subsequently roads 586 and 590.
Rail and air links are available at the town of Örebro (35km away). Lake Vänern, the largest lake in
Sweden, is around 50km away and provides access to coastal shipping via a series of inland canals and
the port of Göteborg.
20.4 Water Resources
ZMAB has a Water Management Plan, which covers water baseline aspects, site water management
planning, water use efficiency and impacts of the mine (environmental and social) on surface water
and groundwater environments. The Plan has been developed in line with Lundin’s corporate-wide
HSEC Standard GSPE.002 (Water Management) and is to best practice standards.
Surface waters
The Zinkgruvan mine is located close to northern Lake Vättern in an area with numerous,
natural small lakes and streams/rivers, all of which flow/discharge to Lake Vättern.
Of significance are the surface water bodies of the Enemossen TSF, an area of former boggy terrain
that now forms the principal tailings disposal facility for the mine, a small natural lake called Hemsjön,
situated immediately to the south of the current TSF, and a Clarification Pond (“Klarningssjö”),
artificially created by as decant water from the TSF, flowing by gravity to a holding lake to settle any
solids prior to pumping water back to the plant for use in the process. Excess water is discharged to
the Creek Ekershyttebäcken. Water in the clearing pond has an average residence time of around 7
days.
Groundwater
Groundwater, where not disturbed by abstraction or discharge, typically follows topography and is
usually present at shallow depths in the valleys. Groundwater flow is through fractured bedrock on
the hills at depth under the valleys and is also modified by fracture and fault zones.
The underground works are dewatered and water pumped to the surface at the rate of 600,000m3/y.
All water pumped from the mine workings is used in mineral processing. Two water catchments are
covered by the footprint of the TSF: the west-flowing Ekershyttebäcken-Dalby valleys, and the east-
flowing Björnbäcken-Höksjön valley. There is a hydrogeological programme underway to confirm
regional and local hydrogeological regimes. This programme will be conducted over the course of the
next year.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 149
Water supply
The mineral process plant makes extensive use of water recycling, with 50% of the water sent to the
TSF returned to the mineral processing plant. Water removed from the underground workings,
together with all parts of the site drainage water, is sent to the TSF with the tailings/process water.
The underground operations are able to abstract water from Lake Åmmelången for use in the mineral
process plant and in the mine. The current permit allows pumping of up to 50 l/s as an annual average,
currently 35 l/s water is abstracted. Water is pumped via a pipeline running along the track bed of the
disused railway that took ore from the mine to the former processing plant at Åmmeberg, situated on
a bay in Lake Vättern. The water is pumped to a freshwater lake situated immediately adjacent to the
mine site approximately 10km from where it is extracted. There are two public water abstraction
zones nearby: one is 1km west of Enemossen, the other 3km to the east.
ZMAB maintains a risk and incident register for water-related aspects. This register is in line with
international best practice standards and, along with the Water Management Plan, is updated and
reported regularly to appropriate company officers on site and at the corporate level.
20.5 Infrastructure and Communications
The current mining operation is characterised by the presence of a small set of ancillary buildings and
offices centred around a mineral process plant (with attached chemical reagent store and lined
contingency ponds), mine shaft headgear, crushing facilities, mined ore stockpiles, stores and
maintenance buildings, fuel and waste storage areas.
In the Zinkgruvan village, community infrastructure is densest to the east of Trysjön lake but also exists
north and south of the Nygruvan area. The distance between the mineral process plant and the
nearest inhabited house is around 50m, though more densely inhabited parts of the settlement start
around 200 to 300m from the mine site.
20.6 Project Status, Activities, Effects, Releases and Controls
Current operations
Compared with previous reporting, the principal difference with this review, from an environmental
perspective, is the use of Enemossen East as a suplimentary TSF from 2017 onwards.
Current operations at Zinkgruvan comprise the underground mining of sulphidic zinc, lead and copper
ores, autogenous grinding, production of concentrates by flotation for sale and disposal of tailings at
a purpose-engineered TSF at Enemossen.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 150
Licences and Permits
The mine is currently operated under an Environmental Licence granted by the Swedish authorities
for mine life extension and a new tailings management facility. The application was submitted to
authorities in August 2012 (2015-01-30, case M 2927-12 and case 1421-11) and approved in January
2015 for the extraction and processing of 1.5Mtpa of ore, including a maximum of 1.2Mtpa of zinc and
lead ore and 0.3Mtpa of copper ore.
The licence was granted provisionally based on conditions relating to dust emissions from the
industrial area and new TSF, discharge to the aquatic environment (including choice of discharge point
for processed sewage water) as well as for noise and vibrations. Currently, the remaining item for
ZMAB to fully comply with relates to discharge to the aquatic environment, in line with the Swedish
Environment Agency’s standards (Handbook 2010:3). According to the most recent documentation,
the anticipated date for completion of these works is 14/12/2018.
Other relevant active permitting at Zinkgruvan includes:
28/01/2016: Transfer of water from Viksjön to Björnbäcken, Askersund and Motala
Districts to counterbalance water extraction for the mine’s operation;
12/08/2010: Discharge of copper, chromium, sulphate and phosphorus to the aquatic
environment, initially on probationary terms;
31/08/1990, Water Court case VA 52/1989: Zinkgruvan Mining owns the right to
extract and divert water for the mine and processing facility in accordance with the
verdicts from 08/12/1976 and 30/10/1986 on case VA/521975 and the verdict of
31/08/1990 on case VA 52/1989; and
The TSF permit at Enemossen currently expires 01/12/17, however, the new
Enemossen East can be used for tailings deposition while ZMAB extend this permit.
Land Ownership
The mine owns sufficient freehold surface land to accommodate the existing and planned mine
infrastructure. The mine’s current operations sit within the following properties owned by ZMAB, as
designated by the Swedish Planning Authorities:
Isåsen 1:35 (head office and old workshop);
Övre Knalla 1:20 (workshop and storeroom; and
Kristineberg 1:8 (waste and processing facilities).
Several other properties in the area are on land designated for mining by Swedish Mineral Laws,
including Kristineberg 1:16 and 1:36, and Nedre Knalla 1:2, 1:6 and 1:16 (TSF and Clarification Pond).
Of these, Kristineberg 1:16 is owned by ZMAB.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 151
20.7 Energy Consumption and Source
Energy for the mine is mainly sourced from electricity (~67%) as well as diesel (~28%) and some fuel
oil (~5%). In 2016, the total annual energy consumption and cost were:
47,911 MWh for above-ground processes (cost of 20,094,000 SEK); and
48,171 MWh for below-ground processes (cost of 19,777,000 SEK).
Lundin is committed to reducing energy consumption and Greenhouse Gas (GHG) emissions at its
global operational sites through corporate-level efficiency initiatives with a corporate commitment to
reduce GHG by 1% across the company., for 2017, at ZMAB these included:
Early-stage energy/GHG emission reduction assessment projects initiated, including
changes to lighting above and below ground, installation of lighting timers/movement
detectors, and regulation of heating;
Implementation of four energy-saving projects completed in 2016, including
enhancement of the switch made in 2015 from gas oil heating to renewable energy by
adding a bio-pellet burner for use in conjunction with the bio-oil burner, further
insulation of building roofs, recycling of process heat, and changes to light fittings
above ground; and
Data available for three of the four fully implemented initiatives indicate an estimated
annual saving of 6,800 GJ of energy with a resulting annual GHG emissions saving of
16 tonnes CO2.
ZMAB commissioned comprehensive energy surveys for site buildings in 2015 and mining activities in
2016.
20.8 Mine Waste
Tailings sand is the only type of mine waste generated at Zinkgruvan, classified as emanating from
either zinc, lead or copper ore.
Tailings Properties & Treatment
Current operations at Zinkgruvan comprise the underground mining of sulphidic zinc, lead and copper
ores, autogenous grinding, production of concentrates by flotation for sale and disposal of tailings at
a purpose engineered TSF at Enemossen. Some tailings are thickened to paste, mixed with cement
and used to backfill active mine stopes.
Since 2016, Lundin has conducted third-party geotechnical tailings reviews of ZMAB’s Tailings
Management System. All operational sites were auditied in compliance with the Lundin commissioned
Tailings Stewardship Review Programme. This programme was introduced at all Lundin mine
operations in 2016 to reduce or mitigate significant geotechnical risks associated with tailings
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 152
management facilities, identify opportunities to implement best management practices, and to
provide consistency between sites.
As the Enemossen TSF neared full capacity, ZMAB applied to develop and manage a new tailings
facility. through a stepwise expansion of the existing Enemossen facility to the east and north (creating
the additional TSF facilities named “Enemossen Östra” and “Enemossen Norra”, respectively). The
new facilities will be delimited by Enemossen’s current dams, by natural partitions and by two new
dams (the East “Östra” and North “Norra” dams).
Non-Mining Waste
ZMAB has a site-specific Waste Management Plan (“WMP” for the years 2018-2020), developed as an
update to the previous Plan (2015-2017) to comply with the conditions of the current Mining License
application dated 30/01/2015. The WMP covers all waste originating from the mine, except for tailings
and overburden used for backfilling the mine and in the construction of dams for the tailings facility.
20.9 Water Management and Effluents
The decant water from the tailings dam flows by gravity in an underground pipe line to the clarification
pond. Pumps transfer recirculation water back to the concentrator to be used as process water. The
rest of the water from the pumphouse flows by gravity in an underground pipe line to a discharge
tunnel at the Ekershyttebäcken Creek.
Most of the site drainage and any arisings from sensitive areas around the site are collected in sumps
and then pumped to one of two emergency storage ponds. These ponds clarify the liquid, allow solids
to settle and the clear water pumped to the TSF with the tailings. Apart from the excess water
discharged from the tailings facility, there are no aqueous effluents discharged from the site. The site
drainage not directly collected, will report to the Lake Trysjön from which fresh water is collected for
use in the process. Water management is conducted so that no water is discharged from the lake into
the natural waterways.
20.10 Air Quality
Continuous dust monitoring around the site has been established since August 2012. A total of 3
monitoring locations are inside the mine site and one is located outside the boundary of the site.
ZMAB’s 2015 Mine Permit sets out terms for air quality emissions to air in the surrounding
environment from ventilation plants or extraction from crushing plants shall be cleaned or treated so
that the emission of dust from each point source does not exceed 10 mg/Nm3. Function control and
measurements take place to such an extent that compliance with the terms can be adequately
followed up.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 153
ZMAB has developed an Air Quality Management Plan (“AQMP”) relating to particulate matters and
Greenhouse Gases (GHG), written to comply with Swedish environmental standards and Lundin’s
corporate Air Quality and Greenhouse Gas standards.
20.11 Noise and Vibration
ZMAB commissioned ÅF-Infrastructure AB to conduct an environmental noise and vibration survey in
June 2017, including noise baselines and proposed mitigation measures to reduce noise and vibration
levels at selected receptor points in line with Nordic industrial standards. The survey showed that
temporary (maximum, short-term) noise levels exceed standards at three of the six receptor points
measured. Whereas average daytime noise levels are within standards, average night-time noise
emissions fall above the 40 A-weighted decibels (“dBA”) guidance by 1-3 dBA at four of six receptor
points. The survey showed that site aspects emitting the highest noise levels are ore processing
machinery and vehicles.
Noise monitoring has demonstrated that noise levels are not a problem during the day. However,
monitoring at the closest residential properties had demonstrated that night time limits of 45dB(A)
can be exceeded. To mitigate this, a ~16m high bund has been constructed around the site, adjacent
to residential properties in Zinkgruvan.
ZMAB also commissioned ÅF-Infrastructure AB to conduct a traffic noise survey in 2017 using selected
receptor points located near road 592, where the majority of the mines traffic passes. The land around
six dwellings located directly adjacent to the road exceeded standards set by the Swedish
Environmental Protection Agency (“Swedish EPA” or “Naturvårdsverket”) by 1-3 dB, based on an
estimated volume of traffic comprising 14 heavy vehicles per hour to the mine, which has been
estimated to make up around 60% of heavy vehicle traffic on road 592 (westwards). To Swedish EPA
standards, mitigation measures are not necessary for reducing the noise emissions to the general
environment as measured in the study.
20.12 Hazardous Materials Storage and Handling
Hazardous waste storage and handling is the same above and below ground and carried out in line
with Swedish legislation. The principal varieties of hazardous waste produced at the site are oils and
hydrocarbons, batteries, lower energy light sources containing mercury, industrial chemicals, paints,
electronic waste and pressure-treated wood.
Waste oils are collected and removed from the site by an appropriately licensed operative. Solid
hazardous wastes (e.g. batteries) are collected and stored in separate containers in the area used to
store other waste streams for off-site disposal.
20.13 Biodiversity and Ecosystem Services
ZMAB has developed species inventories for areas adjacent to operations for classification in terms of
natural values and biodiversity. It has also put in place mitigation measures to protect flora species in
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 154
an area of high natural value adjacent to the footprint of the new tailings facility, including relocation
of a Swedish protected orchid (Dactylorhiza incarnata) to a nearby sheltered area, with proposed
management and monitoring from 2017 to 2019.
ZMAB maintains the transfer of water from Lake Viksjön to maintain the flow rate in a creek
(Björnbacken) that flows through a valley of high natural value and is at risk of reduced flow rate due
to the expansion of the tailings facility. ZMAB considers that nearby lakes are of high cultural value
and, as such, the operation considers it to be a key priority to ensure these lakes are not adversely
impacted.
ZMAB has developed a Biodiversity Management Plan (“BMP”) in accordance with the Lundin
Standard. It was initially produced in 2013 and revised in 2015.
20.14 Fire Safety
The mine has several trained fire safety specialists (15 people are trained as fire officers) and
extinguishers are located in the offices/surface buildings. There is a trained fire officer present as part
of each shift. The mine manager is responsible ultimately for fire safety. In the event of a major
incident, on-site staff would be supported by professional fire fighters from Askersund and/or
Mariedam (approximately 10km away).
20.15 Environmental and Social Impact Assessment
An Environmental Impact Assessment (“EIA”) to Swedish, European and International standards was
commissioned in 2012 to assess the environmental consequences of continued mining operations at
Zinkgruvan, including the development of a TSF, an expansion of Enemossen towards the north and
east. The 2012 EIA set out a number of key areas for management control which are encapsulated in
the site operating procedures and environmental management plan.
Mitigation measures for all potentially significant negative aspects are also set out in the 2012 EIA,
including social aspects. The report also states that the Project’s continued development is vital for
the economy of local settlements and that, in this context, potential negative environmental impacts
are relatively small.
20.16 Environmental Management
Lundin does not operate a formally accredited Environmental Management System, such as ISO
14001, however the mine operates in accordance with international best practice standards and new
Lundin Mining Corporate Responsible Mining Management Standards. ZMAB has a designated EHS
Manager who reports directly to the General Manager of the mine and subsequently with regular
reports to corporate directors at Lundin.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 155
Environmental policy and company approach
Since 2015, Lundin’s company policies around health, safety, environment and community aspects are
set out in a Responsible Mining (“RM”) Policy.
Lundin’s Responsible Mining Framework (“RMF”) outlines the Company’s overall approach to mining
responsibly in the context of Health and Safety, Social, Economic, Environmental Stewardship and
Guidance elements. The implementation of the RMF and the commitments outlined within the RM
policy are supported by and delivered through a Responsible Mining Management System (“RMMS”),
which intends to reduce the potential for occupational injuries and illnesses, and to support in the
prevention of health, safety, environment and community incidents. The RMMS comprises of 16
requirements which describe mandatory criteria that apply to all Lundin operations. These criteria
reflect international best practice and the company’s different sites are encouraged to develop the
application of these requirements in a site-specific manner.
Environmental Management Staff & Resources
ZMAB has had a staff Environmental Competence Plan (“ECP”) in place since 2005, setting out
expectations for competency around environmental aspects amongst staff and contractors. The plan
includes the definition of minimum required relevant qualifications, training requirements and
methods for communicating competence on the environment, primarily through the company’s
internal computer database (“AGDA”).
The HSE department at the mine comprises 10 people including 3 dedicated, specialist environmental
engineers who are responsible for sampling, and environmental monitoring around the site. Currently
all environmental samples are analysed off-site.
Environmental Systems and Work Procedures
Lundin has developed several company-wide environmental management planning procedures,
including for air quality and GHGs, water management, mine closure planning and biodiversity
management (Environmental Programmes). These group procedures are written in support of the
Responsible Mining Framework, developed to ensure that all Lundin’s operations implement effective
management of environmental aspects during exploration, mine planning, development, operations,
mine closure and aftercare.
Environmental monitoring, compliance & reporting
ZMAB continues to monitor relevant environmental aspects in line with Lundin reporting standards.
On behalf of Lundin, ERM carried out an Environmental Audit in 2016, some of the outstanding audit
findings, have been carried forward into the following years RMMS Implementation action plan.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 156
Emergency preparedness and response
Emergency preparedness and response for personnel is formalised on the corporate level within
Lundin’s RMMS Requirement 11 entitled ‘Crisis & Emergency Response’. The standard aims to ensure
that processes are established to protect personnel, to minimise business disruption, and to mitigate
negative impact to the community, the environment and assets in the event of an emergency.
Lundin has developed a comprehensive site-specific Crisis Management Plan for the Project. The plan,
which is continuously revised and was most recently updated in May 2017 (v3.2), includes general
company policy, guidance for its activation and application in a step-by-step manner, and appendices
featuring contact details of key staff members, details about emergency shelter room locations and
crisis communications information.
The site-specific 2017 Safety Action Plan includes a schedule for drills relating to emergency response
and evacuation, consists five evacuation drills in the underground mine and mineral process plant (1
of which will be conducted with the community fire brigade) and one evacuation drill at all offices.
Training
The HSE manager is responsible for training at the mine. Training for personnel is formalised on the
corporate level within Lundin’s RMMS Requirement 8 entitled ‘Awareness, Competency & Training’.
The requirement aims to ensure that the workforce is hazard aware, trained and competent to safely
and effectively carry out assigned work in accordance with the RMMS and applicable internal and
external HSEC requirements.
The site’s 2017 Safety Action Plan consists of several statutory trainings, including Blasting for miners,
High pressure water flushing, Material handling of hazardous goods, Requirements for electrical
installations, Safe lighting and rigging, Hot working, Hazardous chemicals and Operation of trucks.
20.17 Social and Community Management
ZMAB is developing a comprehensive Five-Year Social Performance Strategy, (“Strategy”) which is
currently in draft stage, and will be completed in January 2018. The strategy is aligned with ZMAB’s
operational plans, reflects the socioeconomic context and provides best practice guidance for
strategic and proactive stakeholder engagement, community investment, and communications.
Stakeholder Dialogue and Grievance Mechanisms
Stakeholder engagement is formalised on the corporate level within Lundin’s RMMS Requirement 9
entitled ‘Communications & Stakeholder Engagement’. The requirement aims to ensure that
processes are established to effectively communicate, consult and engage with internal and external
stakeholders on all matters related to HSEC. The formal standard includes general communications
procedures, internal communications, stakeholder engagement and customer engagement.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 157
ZMAB maintains a grievance register, which tracks complaints as well as responses and mitigation
measures, where relevant. Three grievances were received in 2016 and five in 2017 (until October).
Most recent grievances pertain to vibration damage and traffic (excessive noise and speed). The most
common method for submitting grievances is by telephone. In 2018, a corporate grievance
management standard and guidance note will be developed to ensure all operations are following
best practice and meeting international standards in grievance management.
A comprehensive account of ZMAB’s stakeholder engagement strategy and plan can be found in
Strategy.
Social Initiatives and Community Development
Overall, ZMAB are viewed positively by local communities. In February and March 2017, ZMAB
commissioned Marknadskraft AB to conduct a survey of residents of Zinkgruvan and Åmmeberg to
better understand public opinion around the mine’s development. Of 702 households queried, 305
(43%) provided responses either on a dedicated webpage or by letter. Questions were answered on a
scale of 1 to 5, signifying negative to positive opinions, respectively. Nearly all respondents (97%)
suggested that they consider ZMAB to be an important aspect of their local community. The least
positive score was given to respondents’views on ZMAB’s information dissemination policy, judged
to be positive by 64% of overall respondents and just 43% of residents of Åmmeberg. ZMAB’s company
magazine ‘Zinktrycket’was seen as respondents’favourite method of receiving information about the
mine. A majority of respondents (86%) report that they consider it easy to contact ZMAB and that they
receive replies to their queries (76%). Overall, 87% of respondents believe that ZMAB is a good
employer.
A comprehensive account of ZMAB’s community investment strategy and plan can be found in the
Strategy. To date ZMAB has contributed to several community initiatives including the Knalla mine
museum which is intended to bolster tourism in the local region. The museum is located near the
current mine and recently integrated the Knalla underground shaft (operational 1857-2004). This
tourism project was developed by ZMAB in collaboration with Atlas Copco, the municipality of
Askersund and the Countryside Society. Visitors can participate in an underground mine tour since the
summer of 2016. The museum has attracted over 2,000 visitors.
Community investment initiatives planned for 2018 include the Komtek programme,
training/apprenticeship programme for a womens entrepreneurs network and an expansion of Knalla
mine museum to incorporate modern mining innovation and other programmes to attract women to
the mining industry. Beginning in 2018, ZMAB will work in partnership with the Lundin Foundation to
develop and implement programmes for small business incubators to advance local entrepreneurs
and promote economic diversification. The Strategy also includes potential community investment
activities for 2019-2022 which will be developed based on the evolving socioeconomic challenges and
opportunities in the local region. ZMAB continues to develop social media to better communicate with
members of local communities, including via Facebook (page has currently around 800 followers) and
LinkedIn.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 158
20.18 Health & Safety
Health & Safety (“H&S”) is a key driver of Lundin’s RMMS. The corporate strategy states that each
operation must establish and maintain a health and safety management programme that includes
formal procedures and processes that address a comprehensive set of key H&S factors. Lundin
develops regular Health & Safety Reports encompassing all its sites and including a summary of safety
statistics, safety initiatives, incidents resulting in lost time, significant/high-potential incidents and
personal medical incidents.
ZMAB has developed a site-specific Safety Action Plan, which aligns the site’s safety culture with
Lundin’s corporate-level objectives as outlined within the RMMS. Specific aims of the 2017 Plan
include emphasis on fatality prevention, elimination and treatment of high potential hazards,
employee and supervisor hazard recognition skills, housekeeping improvement and the prevention of
injuries. The Safety Action Plan includes site-specific operational objectives as well as a summary of
planned H&S activities or initiatives for the year.
Environmental Resources Management (“ERM”) was appointed by Lundin to undertake a 2016
Environment and Health & Safety Audit of its global mine site portfolio, including ZMAB. The Audit
identified strengths, best practices and potential risks. The Audit reports that ZMAB has adopted a
strategy called ‘8 Rules to Prevent Accidents’, which is not currently fully aligned with Lundin’s
corporate protocols. Closure of Audit findings is listed as a key operational objective within ZMAB’s
2017 Safety Action Plan.
ZMAB maintains comprehensive Health & Safety records and historical statistics. Over the past
decade, the general trend is towards lower incidence of accidents, including those leading to a leave
of absence and those also requiring medical treatment. ZMAB also encourages its staff to report near
misses, that is, the occurrence of situations that could potentially lead to accidents.
ZMAB participates in several mining H&S associations and initiatives. A new H&S Coordinator will be
appointed in January 2018. ZMAB’s HR Department is also tasked with wellness and health
programmes, including subsidies for health activities, coaching and leisure activity groups. On the site
level, internal H&S audits are carried out biannually in Q2 and Q4. No external audits were planned
for 2017.
The local community health care office Askersundshälsan delivers the site’s occupational health
monitoring, Statutory health controls for silica, lead and vibrations, blood lead testing; chest X-rays;
and drugs testing.
20.19 Mine closure plans
A comprehensive conceptual Mine Closure Plan (“MCP”, 2015) developed to Swedish standards is in
place, covering the general area, mine and tailings facility. The current closure costs are estimated at
SEK195M. This plan will be reviewed and assessed against Lundin standards in 2018.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 159
21 CAPITAL AND OPERATING COSTS
21.1 Mining Costs
The mining operating cost forecast for 2018 to 2022 is shown in Table 21.1.
Table 21.1: ZMAB Mining Operating Cost - Forecast 2018 to 2022
Item Unit 2018Forecast
2019Forecast
2020Forecast
2021Forecast
2022Forecast
Labour MSEK 198.2 200.1 202.1 204.2 206.2
Contractors MSEK 193.0 194.9 196.9 198.9 200.9
Energy MSEK 22.5 22.7 23.5 23.2 22.6
Explosives and Detonators MSEK 20.4 20.6 21.3 21.1 20.5
Filling and Reinforcement MSEK 70.6 69.7 72.3 71.4 69.3
Maintenance MSEK 58.7 59.3 59.3 59.3 59.3
Other MSEK 54.2 52.2 52.2 54.0 54.0
Total Mining Cost MSEK 617.7 619.6 627.7 632.0 632.8
Less CapitalizedDevelopment
MSEK -122.7 -154.8 -159.5 -143.3 -118.8
Less CapitalizedExploration
MSEK -16.8 -15.0 -15.0 -15.0 -15.0
Less Exploration Expense MSEK -102.7 -83.6 -83.6 -87.7 -87.7
Total Operating Cost MSEK 375.4 366.2 369.6 386.0 411.3
Unit Cost SEK SEK/t 278.1 271.2 264.0 275.7 293.8
Exchange Rate SEK/US$ 0.125 0.125 0.133 0.133 0.133
Unit Cost US$ US$/t 34.8 33.9 35.2 36.8 39.2
The operating cost forecast for 2018 for the mine is 278.1 SEK/t (tonne of ore mined), which is US$
34.8/t at an exchange rate of US$0.125 per 1SEK. The annual cost per tonne of ore in SEK is forecast
to decrease through to 2020 as a result of increasing ore tonnage as well as a higher portion of costs
directed at development, which is capitalized. The increase in the cost per tonne in US dollars in 2020
is due to the higher SEK/US$ exchange rate forecast, while from 2021 unit costs start increasing
because of less tonnage and respective lower development cost allocation.
21.2 Mineral Process Plant Operating Costs
ZMAB do not separate the operating cost between the copper and zinc-lead mineral process plant
circuits, but instead report an overall operating cost for the entire mineral processing plant. The
process operating cost forecast for 2018 to 2022 is presented in Table 21.2.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 160
Table 21.2: ZMAB Process Operating Cost – Plan/Forecast 2018 to 2022
Item Unit 2018Forecast
2019Forecast
2020Forecast
2021Forecast
2022Forecast
Labour MSEK 59.5 60.1 60.7 61.3 62.0
Contractors MSEK 40.0 40.2 40.4 40.6 40.8
Energy MSEK 19.3 20.0 20.8 20.8 20.8
Rods/Balls MSEK 2.3 2.4 2.5 2.5 2.5
Reagents MSEK 11.0 11.4 11.8 11.8 11.8
Maintenance MSEK 26.0 26.0 26.0 26.0 26.0
Other MSEK 21.4 21.4 21.4 21.4 21.4
Total Operating Cost MSEK 179.6 181.6 183.7 184.5 185.3
Unit Cost SEK SEK/t 132.9 134.5 131.2 131.8 132.4
Exchange Rate SEK/US$ 0.125 0.125 0.133 0.133 0.133
Unit Cost US$ US$/t 16.6 16.8 17.5 17.6 17.6
The operating cost forecast for 2018 for the process plant is 132.9 SEK/t (tonne of ore milled), which
converts to US$ 16.6/t. The cost per tonne is expected to slightly increase in 2019 driven by a rise in
energy costs, and from 2020 the cost per tonne stabilizes as the mill throughput reaches 1.40mtpa.
21.3 Total Operating Costs
The total operating cost forecast for 2018 to 2022 is shown in Table 21.3.
Table 21.3: ZMAB Total Operating Cost – Forecast 2018 to 2022
Item Unit 2018Forecast
2019Forecast
2020Forecast
2021Forecast
2022Forecast
Mining MSEK 375.4 366.2 369.6 386.0 411.3
Processing MSEK 179.6 181.6 183.7 184.5 185.3
Inventory Movement MSEK 0.4 - - - -
G&A MSEK 129.3 129.2 129.9 130.6 131.3
Total Operating Cost MSEK 684.7 677.0 683.2 701.1 727.9
Unit Cost SEK SEK/t 506.8 501.5 488.0 500.8 519.9
Exchange Rate SEK/US$ 0.125 0.125 0.133 0.133 0.133
Unit Cost US$ US$/t 63.4 62.7 65.1 66.8 69.3
The overall operating cost forecast for 2018 is 506.8 SEK/t (tonne of ore milled), which gradually
decreases to 488.0 SEK/t in 2020 as a result of increasing tonnage when mill throughput is forecast to
reach 1.40mtpa. From 2021 the total cost per tonne is forecast to increase mainly as a result of higher
mining costs.
The total cost per tonne in US$ is forecast to range between a minimum of US$62.7/t in 2019 and a
maximum of US$69.3/t in 2022.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 161
21.4 Mining Capital Costs
The estimated mining sustaining capital expenditures between 2018 and 2022 are summarised in
Table 21.4.
Table 21.4: Summary of Mine Sustaining Capital Plan from 2018 to 2022
ItemUnit Capital Cost
2018 2019 2020 2021 2022 Total
MineEquipment/Services
KSEK 99,225 98,420 75,115 64,505 67,125 404,390
CapitalizedDevelopment
KSEK 122,742 154,846 159,463 143,342 118,796 699,189
CapitalizedExploration
KSEK 16,800 15,000 15,000 15,000 15,000 76,800
Total KSEK 238,767 268,266 249,578 222,847 200,921 1,180,379
Exchange Rate SEK/US$ 0.125 0.125 0.133 0.133 0.133
Total US$m 29.8 33.5 33.3 29.7 26.8 153.2
Sustaining capital in the mine includes on-going horizontal and vertical development necessary to
achieve the mine schedule, infill diamond drilling, together with mobile and other equipment
replacement programmes. A total of 1,180,379 KSEK (US$ 153.2 million) is forecast to be spent over
the next 5 years. This is an increase from the previous 5 years, reflecting both increased renewal of
mine equipment and the expansion of mine operations in the western areas of the underground
operations.
21.5 Mineral Process Plant Capital Costs
A summary of the estimated mineral process plant sustaining capital expenditures budgeted between
2018 and 2022 is shown in Table 21.5.
Table 21.5: Summary of Mineral Processing Plant Sustaining Capital Plan from 2018 to 2022
ItemUnit Capital Cost
2018 2019 2020 2021 2022 Total
Total KSEK 54,600 62,060 49,105 56,955 32,355 255,075
ExchangeRate
SEK/US$ 0.125 0.125 0.133 0.133 0.133
Total US$m 6.8 7.8 6.5 7.6 4.3 33.0
As part of maintaining an efficient and effective operating plant, ZMAB have allocated a sustaining
capital forecast of 255,075KSEK (US$ 33.0 million) between 2018 and 2022. The estimate is to an
accuracy of +/- 25% and is based on ZMAB in-house experience. The sustaining capital forecast
includes a provision for an upgrade to the back fill paste plant and distribution lines, ongoing raises of
the Enemossen TSF, upgrades to the concentrate handing facilities and continued noise reduction
programmes.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 162
The budgeted new mineral process capital expenditure between 2013 and 2016, as set out in the
previous Technical Report, that included the installation of a second-hand FAG grinding mill, has been
successfully installed. The construction of a new TSF, Enemossen East, has also been completed.
21.6 Total Capital Costs
Total forecast sustaining capital expenditures between 2018 and 2022 are summarized in Table 21.6.
Table 21.6: Summary of Sustaining Capital Plan from 2018 to 2022
ItemUnit Capital Cost
2018 2019 2020 2021 2022 Total
Mine KSEK 238,767 268,266 249,578 222,847 200,921 1,180,379
Plant KSEK 54,600 62,060 49,105 56,955 32,355 255,075
Administrative KSEK 29,471 8,465 12,765 8,965 5,415 65,081
Total KSEK 322,838 338,791 311,448 288,767 238,691 1,500,535
Exchange Rate SEK/US$ 0.125 0.125 0.133 0.133 0.133
Total US$m 40.4 42.3 41.5 38.5 31.8 194.6
Total forecast capital expenditures between 2018 and 2022 amount to 1,500,535 KSEK, which
converts to US$194.6 million.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 163
22 ECONOMIC ANALYSIS
Companies which are active and current producers of saleable product issuing a NI 43-101 Technical
Report may exclude the information required under Section 22 for Technical Reports on properties
unless the Technical Report includes a material expansion of current production.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 164
23 ADJACENT PROPERTIES
There is no information regarding adjacent properties applicable to the Zinkgruvan Property for
disclosure in this report.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 165
24 OTHER RELEVANT DATA AND INFORMATION
There are no other relevant data or information to report.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 166
25 INTERPRETATION AND CONCLUSIONS
An updated Mineral Resources and Mineral Reserves estimate has been prepared for the Zinkgruvan
polymetallic base metal mine. All Mineral Resources and Mineral Reserves estimates were produced
by ZMAB and reviewed by WAI.
Mineral Resource estimation involved the use of drill hole and geological mapping data to construct
three dimensional wireframes that define mineralised domains. Grades were estimated into a
geological block model representing each mineralised domain. Grade estimation was carried out
predominantly by ordinary kriging and inverse distance weighting. Estimated grades were validated
globally, locally, and visually prior to tabulation of the Mineral Resources. Reconciliation indicates that
the resource models generally perform well when compared to plant production data.
As of June 30, 2017 and at an average cut-off grade of 3.68% Zn equivalent the total Measured and
Indicated Mineral Resources for the zinc-lead zones within the Zinkgruvan licence areas are 15,668Kt,
with an average grade of 9.3% Zn, 3.7% Pb and 84g/t Ag. Total Inferred Mineral Resources are 9,431Kt
with an average grade of 8.5% Zn, 3.5% Pb and 81g/t Ag.
As of June 30, 2017 and at a cut-off grade of 1.0% Cu the total Measured and Indicated Mineral
Resources for the copper stockwork zone within the Zinkgruvan licence areas are 4,976Kt, with an
average grade of 2.3% Cu, 0.3% Zn and 32g/t Ag. Total Inferred Mineral Resources are 193Kt with an
average grade of 2.3% Cu, 0.3% Zn and 25g/t Ag.
Mineral Reserve estimation methodology includes determining the value of each individual stope or
stope block by utilising an NSR calculation. The NSR is calculated on a metal recovered and metal
payable basis taking into account zinc, lead, copper grades and silver content, metallurgical recoveries
based on actual mineral process plant performance, metal commodity prices and realisation costs
related to shipment of concentrates to the appropriate smelter and associated commercial smelter
terms and conditions. The mining cut-off value is based on an analysis of the variable operating cost
of the mining, mineral processing, general and administration, and stope development cost multiplied
by a ratio of the future waste/ore production; and sustaining capital based on the five-year budget.
As of June 30, 2017 and at an average cut-off grade of 3.68% Zn equivalent the total Proven and
Probable Mineral Reserves for the zinc-lead zones within the Zinkgruvan licence areas are 11,901Kt
with an average grade of 7.2% Zn, 2.9% Pb and 63g/t Ag.
As of June 30, 2017 and at a cut-off grade of 1.5% Cu the total Proven and Probable Mineral Reserves
for the copper stockwork zone within the Zinkgruvan licence areas are 5,252Kt with an average grade
of 1.8% Cu, 0.2% Zn and 26g/t Ag.
Underground mining operations commenced at Zinkgruvan mine in 1857. The orebody is known to
extend to 1,600m below surface and is open at depth. Mine access is currently via three shafts, with
the principal P2 shaft providing ore and waste rock hoisting and labour access to the -800m and -850m
levels. The “daylight”ramp connects the surface and the underground workings throughthe “western
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 167
areas”, providing direct vehicle access to the mine. A system of internal ramps is employed to access
and hence exploit Mineral Reserves below the shaft. The mine is highly mechanised, uses the best
available technologies to control operations and uses longhole panel and sub level bench stoping
throughout the mine. All stopes are backfilled with either cemented paste tailings or waste rock.
Mining has reached the -1,250m level.
The zinc-lead and copper ore processing plants are operated efficiently to produce readily saleable
concentrates with good levels of recovery of the metals to their respective concentrates. There is little
variation in run-of-mine ore over time and recoveries and concentrate grades are generally stable and
predictable.
In 2016, 1,119,276t of ore were processed at Zinkgruvan, of which 1,093,249t were zinc-lead ore and
106,027t were copper ore. The average ore grades for 2016 were 7.98% zinc, 3.3% lead, 68g/t silver
and 2.0% copper. In 2016, a total of 148,938t of zinc concentrate, 44,139t of lead concentrate and
7,366t of copper concentrate were produced.
The zinc ore throughput has increased since 1977, reaching a maximum of 1.096 Mtpa in 2015. In 2017
the plant had processed 0.807Mt by September (1.076 Mtpa equivalent).
Significant improvements have been made to the crushing plant in recent years by simplifying the
circuit and de-coupling the plant from the mine hoist system. A significant proportion of the zinc-lead
ore is now fed directly to the AG mill without the need for pre-screening and pebble crushing.
All concentrates, zinc, lead and copper, are predominantly sold under long term contracts directly to
mainly European smelters. However, some 10 to 15% of the zinc concentrate production is sold to
trading companies on a spot basis by tenders. The quality of all concentrates is high with few penalty
elements and there are no issues selling the products.
ZMAB has established plans for the continuous monitoring and management of water, waste, air
quality, biodiversity, health and safety and stakeholder engagement. These plans are updated to
reflect changes to business needs and Lundin corporate-level standards for environmental and social
management, which are commensurate with international best practice standards.
The operations infrastructure, including access roads and energy sources, meets best practice
requirements and general housekeeping, safety and security standards at the mine are compliant with
international best practice. ZMAB maintain positive relations with local communities through informal
and formal stakeholder engagement activities, including through community initiatives and
continuous interaction via social media.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 168
26 RECOMMENDATIONS
26.1 Geology and Mineral Resources
Update the drill hole database with all available information, including year of drilling,
core diameter and density. The structure of the geological logging database should be
reviewed to prevent overlapping samples;
Given the large difference in density between the zinc-lead mineralisation and the
surrounding waste rock it is recommended that the current practice of incorporating
a minimum mining width within the mineralised zone wireframes be reviewed;
The method of density estimation of the zinc-lead mineralised zones should be
reviewed. The potential for estimating density from drill hole density measurements
or calculating density from regression of grades estimated into the block model (lead,
iron or sulphur), should be assessed;
The Mineral Resource classification methodology should also consider the confidence
in the drill hole data quality, with respect to the proportion of historical or recent
drilling, and their spatial distribution within the mineralised zone; and
The planned implementation of Vulcan and Leapfrog be completed in time to be fully
tested before next year’s Mineral Resource estimation and reporting.
26.2 Mining and Mineral Reserves
As recommended in Section 26.1 the practice of incorporating a minimum mining
width within the mineralised zone wireframes should be reviewed. Defining the
Mineral Resource model using geological contacts only would allow for planned
dilution to be separately defined; and
Diagrams that reflect the interaction of the Mineral Resource model, lithological
boundaries, rock strata control and planned and unplanned dilution to be drafted to
assist in the communication of conversion of Mineral Resources to Mineral Reserves.
26.3 Mineral Processing
More pro-active testing of new ore sources and at an earlier stage of exploration;
Development of an on-site metallurgical laboratory; and
Flotation modelling of existing circuit to evaluate flotation expansion requirements.
26.4 Environmental Studies, Permitting and Social or Community Impact
Continue the current project to understand the hydrogeological regime in the area
underlying and around the Industrial Area and the TSF. Determine the extent to which
contaminant impact is occurring and the consequences of this impact on receptors of
concern down the hydraulic gradient;
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 169
Continue to look at the feasibility and options for the improvement of surface run-off
water collection for all areas of the site;
Improve material storage practices (e.g. oils) above ground and in underground areas;
Review chemicals present on site to ensure that all of them are captured in the
chemicals management system, including those regulated by REACH legislation;
Continue programmes that have been initiated to assess and resolve the legacy issues
at Åmmeberg;
Consider completion of a legal review of port sediment data for internal risk
management purposes;
Develop a Permit and Obligations Management Plan to include the overview of the
permitting workflow; legal risk assessment and review procedure; responsible people;
the process for alerts to changes in permits, tracking and management of permit
obligations, communications plans, management of change plans;
Conduct a formal risk assessment of the TSF access road and implement barriers to
vehicle access, where appropriate;
The mining licence has recently been extended for the extraction and processing of
1.5Mtpa. The extension was granted on a provisional basis and contingent on the
completion of studies related to dust, hydrology, noise and vibrations. Of these, only
hydrology works are pending, with an anticipated completion date of Q4 2018;
ZMAB has developed site-specific plans for the continuous monitoring and
management of water, waste, air quality, biodiversity, H&S and stakeholder
engagement. These plans are comprehensive and comply with best practice, and
ZMAB remains committed to continuously updating their content to reflect changes
in project design, including when the new Enemossen TSF’s come into operation, as
well as per Lundin’s extensive corporate-level guidance on environmental and social
aspects; and
ZMAB continues to embed its environmental and social management systems within
the company’s digital intranet facilities, including by making the incident and risk
register more readily available to employees. Stakeholder engagement by ZMAB is
also increasingly digital and the company is developing social media channels to faster
and more easily understand community concerns and grievances. WA recommends
that ZMAB continues to explore ways of improving two-way communication channels
with local communities whilst maintaining more conventional methods of registering
grievances, such as by telephone.
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 170
27 REFERENCES
Air Quality Management Plan for Zinkgruvan, 2015, Zinkgruvan Mining AB;
Allen, R.L., Lundström, I., Ripa, M., Simeonov, A., Christofferson, H., 1996. Facies
analysis of a 1.9 Ga, continental margin, back-arc, felsic caldera province with
diverse Zn–Pb–Ag–(Cu–Au) sulfide and Fe oxide deposits, Bergslagen Region,
Sweden. Econ. Geol. 91, 979–1008;
Biodiversity Management Plan for Zinkgruvan (“Plan för biologisk mångfald”,
Swedish), 2015 - Second Revision, Lundin Mining Corporation;
Community Survey (“Invånarundersökning”, Swedish), 2017, carried out by
Marknadskraft AB and commissioned by Zinkgruvan Mining AB;
Complementary Environmental Impact Assessment (“Kompletterande
miljökonsekvensbeskrivning gällande justerat förslag till nytt sandmagasin vid
Zinkgruvan”), December 2013, carried out by Svensk MKB on behalf of Zinkgruvan
Mining AB;
Crisis Management Plan for Zinkgruvan (“Krisplanen 3.2”, Swedish), May 2017,
Lundin Mining Corporation;
Energy Efficiency Plan, Appendix 2: Transportation (“Energieffektiviseringsplan”,
Swedish), 2011-2016, Zinkgruvan Mining AB;
Environmental, Health & Safety and Product Stewardship Audit 2016, April 2017,
carried out by ERM and commissioned by Lundin;
Environmental Impact Analysis – App. C (“Miljökonsekvensbeskrivning gällande
fortsatt verksamhet och nytt sandmagasin vid Zinkgruvan”), 2012, carried out by
Svensk MKB on behalf of Zinkgruvan Mining AB;
Environmental Noise Baseline and Impact Assessment (“Externbullerkartläggning”,
Swedish), 2017, carried out by ÅF-Infrastructure AB and commissioned by
Zinkgruvan Mining AB;
Environmental Competence Plan (“Personalens Kompetens & Miljöutbildning”),
2017, carried out by YMK and commissioned by Zinkgruvan Mining AB;
Environmental Report v1.0, Zinkgruvan Mining AB;
Five-Year Social Performance Strategy, 2017 (draft), Zinkgruvan Mining AB;
Gibson, HL., Allen, RL., Riverin, G., and Lane, TE., 2007. The VMS Model: Advances
and Application to Exploration Targeting. Proceedings of Exploration 07: Fifth
Decennial International Conference on Mineral Exploration, pp 713-730;
Group Procedures for Biodiversity Management (2015), Mine Closure Planning
(2015), Water Management (2014), Air Quality/GHG Management (2014), Lundin
Mining Corporation;
Independent Third-Party Geotechnical Tailings Review Programme, January 2017,
carried out by BGC Engineering Inc. and commissioned by Lundin Mining
Corporation;
Jansson, NF., Zetterqvist, A., Allen, R.L., Billström, K., and Malmström, L., 2017.
Genesis of the Zinkgruvan stratiform Zn-Pb-Ag deposit and associated dolomite-
hosted Cu ore, Bergslagen, Sweden. Ore Geology Reviews 82 (2017), pp 285-308;
LUNDIN MINING
NI 43-101 TECHNICAL REPORT FOR THE ZINKGRUVAN MINE, SWEDEN
ZT61-1659/MM1185
November 2017
Final V2.0 Page 171
LMC Health and Safety Report for the period ending 30 September 2017, Lundin
Mining Corporation;
LOM2018 5 years.xlsx - MS XLS worksheet defining the mining operational activity
for the period 2018 to 2022;
LOM2018, Enhanced Production Scheduler Software (“EPS”) schedule - Detailed
historical and future mine plans in 3D format; EPS part of Studio 5, Datamine;
Lundin Mining, 2017 Mineral Resource and Mineral Reserve Estimates;
Mine Closure and Rehabilitation Plan (“Efterbehandlingsplan”), 2015, carried out by
Nils Eriksson for Zinkgruvan Mining AB;
NI 43-101 Zinkgruvan Final (V3.0) Report (WAI), January 2013;
Partial Ruling on Mining License Application, Case M 2927-12/M 1421-11 (“Tillstånd
till fortsatt gruvverksamhet mm i Zinkgruvan samt tillstånd att anlägga och nyttja
nytt magasin för anrikningsand”), 30/01/2015, produced by Alrutz’Advokatbyrå AB
for Zinkgruvan Mining AB (updates regarding environmental conditions 17/02/2017
and 29/09/2017);
Responsible Mining Management System Standard, March 2017, Lundin Mining
Corporation;
Safety Statistics, September 2017, Zinkgruvan Mining AB;
Sustainability Report, 2016, Lundin Mining Corporation;
Traffic Noise Baseline and Impact Assessment (“Trafikbullerutredning”, Swedish),
2017, carried out by ÅF-Infrastructure AB and commissioned by Zinkgruvan Mining
AB;
Waste Management Plan (“Avfallsplan”) for 2018-2020, published 2017, Zinkgruvan
Mining AB;
Water Management Plan for Zinkgruvan, 2015, Zinkgruvan Mining AB;
Zinkgruvan_LOM_model_20171114_WAI - MS XLS worksheet defining the
enterprise revenue, expenses and resultant cash flow;
Zinkgruvan Mine, Ground Control Management Plan, 2008;
Zinkgruvan TSF: Enemossen East Design Memo, 25 September 2017, Knight Piésold
Limited;
Zinkgruvan TSF: Enemossen North Conceptual Design Memo, 25 September 2017,
Knight Piésold Limited; and
Zinkgruvan Safety Action Plan, 2017, Zinkgruvan Mining AB.
DATE AND SIGNATURES
The effective date of this Technical Report, entitled “NI 43-101 Technical Report for the Zinkgruvan
Mine, Sweden” is 30 November 2017.
Richard Ellis
Date: 30 November 2017
Phillip King
Date: 30 November 2017
Timothy Daffern
Date: 30 November 2017
"Richard Ellis"
"Philip King"
"Timothy Daffern"
CERTIFICATE OF AUTHOR
I, Richard John Ellis, BSc, MSc, MCSM, FGS, CGeol, EurGeol, do hereby certify that:
• I am a Principle Resource Geologist of: Wardell Armstrong International Ltd Wheal Jane,
Baldhu, Truro, TR3 6EH, United Kingdom;
• I graduated with a Bachelor of Science Degree in Geology from the University of Bristol (UK) in
2001 and a Master of Science Degree in Mining Geology from the Camborne School of Mines
(UK) in 2003;
• I am a Fellow and Chartered Geologist of the Geological Society of London (Membership No.
1013201) and member of the European Federation of Geologists;
• I have practiced my profession continuously for the last 13 years in a variety of countries and
geological environments and have prepared Mineral Resource estimates for volcanogenic
massive sulphide deposits and sedimentary exhalative deposits for more than 5 years;
• I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI 43-
101”) and certify that I am a “qualified person” for the purposes of NI 43-101;
• I last visited the property from October 10 to October 11, 2017;
• I am responsible for the preparation of sections 1. Summary; 2. Introduction; 3. Reliance on
Other Experts; 4. Property Description and Location; 5. Accessibility, Climate, Local Resources,
Infrastructure and Physiography; 6. History; 7. Geological Setting and Mineralisation; 8.
Deposit Type; 9. Exploration; 10. Drilling; 11. Sample Preparation, Analyses and Security; 12.
Data Verification; 14. Mineral Resource Estimates; 23. Adjacent Properties; 24. Other Relevant
Data and Information; 25. Interpretation and Conclusions; 26. Recommendations; 27.
References;
• I am independent of the issuer, Lundin Mining Corporation as defined by NI 43-101;
• I have read the Instrument NI 43-101 and the Technical Report has been prepared in
compliance with NI 43-101 and;
• As of the date of this certificate and to the best of my knowledge, information and belief, the
Technical Report contains all scientific and technical information that is required to be
disclosed to make the Technical Report not misleading.
Dated this 30th day of November, 2017
Name: R J Ellis BSc, MSc, MCSM, FGS, CGeol, EurGeol
(signed) "Richard Ellis"
CERTIFICATE OF AUTHOR
I, Phillip King, BSc, ARSM, CEng, FIMMM do hereby certify that:
• I am a Technical Director of: Wardell Armstrong International Ltd Wheal Jane, Baldhu, Truro,
TR3 6EH, United Kingdom;
• I graduated with a Bachelor of Science Degree in Mineral Technology from Imperial College,
London (UK) in 1980,
• I am a Fellow of the Institution of Mining, Metallurgy and Materials (IMMM) and a Chartered
Engineer (CEng),
• I have practiced my profession continuously for the last 37 years in a variety of countries and
in a range of commodities and have been involved with the minerals processing of massive
sulphide deposits for more than 30 years;
• I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI 43-
101”) and certify that I am a “qualified person” for the purposes of NI 43-101;
• I last visited the property from October 10 to October 11, 2017;
• I am responsible for the preparation of sections 1. Summary; 13. Mineral Processing and
Metallurgical Testing; 17 Recovery Methods; 18. Project Infrastructure; 19. Market Studies
and Contracts; 24. Other Relevant Data and Information; 25. Interpretations and Conclusions;
26. Recommendations; 27. References;
• I am independent of the issuer, Lundin Mining Corporation as defined by NI 43-101;
• I have read the Instrument NI 43-101 and the Technical Report has been prepared in
compliance with NI 43-101 and;
• As of the date of this certificate and to the best of my knowledge, information and belief, the
Technical Report contains all scientific and technical information that is required to be
disclosed to make the Technical Report not misleading.
Dated this 30th day of November, 2017
Name: P. A. King BSc, ARSM, C.Eng. FIMM (signed) "Philip King"
CERTIFICATE OF AUTHOR
I, Timothy Daffern, BEng, MBA, CEng, FIMMM, FAusIMM, MCIM, MSME, do hereby certify that:
• I am a Consulting Mining Engineer of: Wardell Armstrong International Ltd Baldhu House,
Wheal Jane Earth Science Park, Baldhu, Truro, Cornwall, United Kingdom TR3 6EH;
• I graduated with a Bachelor Degree in Mining Engineering from The University of New South
Wales, Sydney, Australia in 1990 and with a Master Degree in Business Administration from
The Open University Business School (UK) in 2000;
• I am a Fellow and Chartered Engineer of the Institution of Materials, Minerals & Mining
(Membership No. 48479);
• I have practiced my profession continuously for the past 30 years in areas of gold and base
metals evaluation in a number of countries around the world, and have prepared Mineral
Reserve estimates for more than 5 years;
• I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI
43-101”) and certify that I am a “qualified person” for the purposes of NI 43-101;
• I last visited the property from October 10 to October 11, 2017;
• I am responsible for the preparation of sections 1. Summary; 15. Mineral Reserve Estimates;
16. Mining Methods; 18. Project Infrastructure; 19. Market Studies and Contracts; 20.
Environmental Studies, Permitting and Social or Community Impact; 21. Capital and
Operating Costs; 22. Economic Analysis; 24. Other Relevant Data and Information; 25.
Interpretation and Conclusions; 26. Recommendations; 27. References;
• I am independent of the issuer, Lundin Mining Corporation as defined by NI 43-101;
• I have read the Instrument NI 43-101 and the Technical Report has been prepared in
compliance with NI 43-101 and;
• As of the date of this certificate and to the best of my knowledge, information and belief,
the Technical Report contains all scientific and technical information that is required to be
disclosed to make the Technical Report not misleading.
Dated this 30th day of November, 2017
Name: T Daffern, BEng, MBA, CEng, FIMMM, FAusIMM, MCIM, MSME
(signed) "Timothy Daffern"