The increased investments in exploration in recent years have had a positive impact on the Boliden Group's mineral resources and mineral reserves. The biggest increase in 2011 occurred in the Boliden Area, where mineral resources and mineral reserves increased by 28 per cent and 10 per cent, respectively.
"It's been a good year, not least for the Boliden Area, where the Renström and Kristineberg mines have generated the biggest increase in mineral resources, but the Aitik copper mine and the Garpenberg zinc mine have also made a good contribution to overall mineral resources. At the Tara mine in Ireland, we have managed to more or less maintain the mineral reserve," says Jan Moström, President of Boliden's Business Area Mines.
The primary focus of Boliden's exploration work is on zinc-, copper-, and precious metal-bearing ores. Boliden's mineral resources and mineral reserves* generally continued to show positive development in 2011 as a result both of exploration successes and of high metal prices.
Boliden currently has over 50 active projects, and in 2011 the Group invested SEK 282 million in exploration work. 2011 saw targeted exploration activities carried out in Sweden in the Skellefte field (the Boliden Area), Bergslagen, Norrbotten, Västernorrland and along the edge of the western mountain range, over and above the mine-site exploration that is carried out in all mining areas. Field exploration work in Ireland is mainly being carried out in Limerick and Tullamore.
Results for 2011
The Boliden Area
Mineral resources and mineral reserves in the Boliden Area totalled 21.1 Mtonnes (16.5 Mtonnes) and 12.1 Mtonnes (11.0 Mtonnes), respectively. The Renström mine has reported the biggest exploration successes within the Boliden Group as a whole, adding 3.6 million tonnes to the mineral resources. Significant increases have also been noted at the Kristineberg mine, and at currently planned levels, production in the Boliden Area will continue until 2021, inclusive.
Aitik
Mineral resources and mineral reserves at Aitik totalled 1,760 (1,720) Mtonnes and 710 Mtonnes (733 Mtonnes), respectively. The development has been good from Aitik Östra, a deposit located a mere 300 m to the north east of Aitik's open pit mine. At currently planned levels, production at Aitik will continue up until 2030, inclusive.
Garpenberg
Mineral resources and mineral reserves at Garpenberg totalled 41.0 Mtonnes (39.3 Mtonnes) and 23.6 Mtonnes (25.1 Mtonnes), respectively. Garpenberg's production capacity is currently being expanded and at planned levels, including the expansion, production at Garpenberg is expected to continue until 2031.
Tara
Mineral resources and mineral reserves at Tara totalled 10.5 Mtonnes (11.9 Mtonnes) and 15.7 Mtonnes (16 Mtonnes), respectively. Production at Tara is expected to continue until 2019.
- Calculations of mineral resources and mineral reserves, 2011
Boliden reports mineral reserves and mineral resources separately, which means that reported mineral reserves are not included in the mineral resources.
A mineral resource is a concentration of minerals in the bedrock that may become commercially extractable.
Mineral reserves are those parts of a mineral resource that can be mined and processed in accordance with the company's demands on profitability.
Factors such as waste rock dilution, pillar offset and process yields, etc., are taken into account in these calculations.
Boliden's mineral resources and mineral reserves have been compiled under the supervision of Gunnar Agmalm, who is registered as a "Qualified Person" by SveMin. Gunnar Agmalm, Mineral Reserves and Project Evaluation Manager, is a member of AusIMM and has over 20 years' experience in the mining and minerals industry. The calculations for Tara have been carried out under the supervision of John Ashton, Chief Mine Geologist, Tara Mines Ltd. John Ashton is a "Qualified Person" and a member of the Institute of Materials, Minerals and Mining and of the Institute of Geologists of Ireland, and has more than 25 years' experience in the mining and minerals industry.
The prices employed when calculating mineral reserves are, in the main, planning prices, which are an anticipated average price for metals or exchange rate for currencies over the coming business cycle. Boliden currently employs the following planning prices:
Copper: USD 5,500/tonne
Zinc: USD 2,100/tonne
Lead: USD 2,000/tonne
Gold: USD 1,100/tr.oz.
Silver: USD 20/tr.oz.
USD/SEK: 7.00
EUR/SEK: 9.00
For further information, please contact:
Marcela Sylvander, Director Group Communications, Tel: +46 8 610 1630, +46 733 244 551
Frans Benson, Director Investor Relations, Tel:+46 8 610 1523
Boliden is a metals company with a commitment to sustainable development. Our roots are Nordic, but our business is global. The company's core competence is within the fields of exploration, mining, smelting and metals recycling. Boliden has a total of approximately 4,400 employees and an annual turnover of approximately SEK 40 billion. Its shares are listed on NASDAQ OMX Stockholm, segment Large Cap, and on the Toronto Stock Exchange in Canada.
MINERAL RESERVES ON 31ST DECEMBER 2011
Quantity Quantity Au Ag Cu Zn Pb Mo Te
2011, 2010, g/t g/t % % % g/t g/t
ktonnes ktonnes
The Boliden Area Polymetallic mineralisations Kristineberg Proven 1,020 1,340 1.2 24 1.3 1.9 0.1 Probable 3,800 2,800 0.5 41 0.4 6.8 0.4
Renström Proven 140 170 3.3 150 0.7 8.0 1.6 Probable 2,180 1,590 2.1 152 0.9 5.6 1.3
Maurliden Proven 1,300 1,300 1.3 51 0.2 3.6 0.4
Probable
Maurliden Östra Proven
Probable 520 1,060 0.5 14 1.0 0.2
Total Proven 2,480 2,820 1.4 45 0.7 3.2 0.3 Polymetallic Probable 6,500 5,400 1.0 76 0.6 5.9 0.6 mineralisations
Gold
mineralisations
Kankberg Proven 500 120 3.1 9 159
Probable 2,600 2,660 3.7 14 166
Aitik Proven 486,000 504,000 0.15 1.6 0.25 28 Probable 224,000 229,000 0.13 1.6 0.24 31
Garpenberg Proven 17,400 18,800 0.3 119 0.06 5.6 2.2 Probable 6,200 6,300 0.2 216 0.04 3.6 1.4
Tara Proven 3,300 3,500 7.8 1.9
Probable 12,400 12,500 6.9 1.8
Figures may be rounded up or down.
MINERAL RESOURCES ON 31ST DECEMBER 2011
Quantity Quantity Au Ag Cu Zn Pb Mo Te
2011, 2010, g/t g/t % % % g/t g/t
ktonnes ktonnes
The Boliden
Area
Polymetallic
mineralisations
Kristineberg Measured 50 50
Indicated 3,760 1,660 0.7 31 0.7 5.0 0.3
Inferred 2,600 2,300 0.5 29 0.5 3.0 0.2
Petiknäs N Measured 310 310 8.1 73 1.8 3.1 0.3 Indicated 1,200 1,200 2.7 52 0.6 1.8 0.3 Inferred 720 720 3.3 33 0.5 1.2 0.2
Renström Measured 10 10 2.8 135 1.2 6.8 1.1 Indicated 2,170 1,510 2.2 95 0.6 6.1 0.9 Inferred 3,960 1,890 2.4 158 0.4 7.5 1.6
Maurliden Measured 1,050 1,050 1.3 40 0.4 3.3 0.2 Indicated 360 360 0.9 45 0.7 2.9 0.2 Inferred
Maurliden Östra Measured
Indicated 360 410 0.4 11 0.4 0.2
Inferred
Total Measured 1,400 1,400 2.5 47 0.7 3.3 0.2 Polymetallic Indicated 7,900 5,100 1.4 52 0.6 4.5 0.4 mineralisations Inferred 7,300 4,900 1.8 100 0.5 5.3 1.0
Gold
mineralisations
Kankberg Measured 38 59 0.5 2 80
Indicated 200 610 2.8 9 82
Inferred 140 120 4.4 6 78
Älgträsk Measured
Indicated 2,930 2,930 2.6 3
Inferred 1,270 1,270 1.8 3
Total Measured 40 60 0.5 2
Gold Indicated 3,100 3,500 2.6 3
mineralisations
Inferred 1,400 1,400 2.0 3
Aitik Measured 704,000 708,000 0.12 1.0 0.19 24 Indicated 966,000 845,000 0.11 1.0 0.18 24 Inferred 94,000 164,000 0.10 0.9 0.16 24
Garpenberg Measured 2,900 2,600 0.3 101 0.07 3.8 1.7 Indicated 14,300 9,900 0.4 153 0.06 4.7 2.1 Inferred 23,800 26,800 0.6 132 0.07 4.5 2.3
Tara Measured 300 300 6.0 1.7
Indicated 4,200 4,600 6.5 2.1
Inferred 6,000 7,000 6.9 1.7
Figures may be rounded up or down.