Candelaria Plant

Lundin Mining Corp. reduced its 2021 production guidance for its Candelaria Copper Mining Complex in Chile to 150,000 metric tons (mt) to 155,000 mt of copper and 85,000 ounces (oz) to 90,000 oz of gold on a 100% basis.

Candelaria has operated in line with forecasts to-date during the second quarter of 2021. However, the company will be adjusting the near-term mining sequence in Phase 10 of the Candelaria open pit for the second half of the year, which will impact the amount of direct ore mined and available for processing.

The open pit contains known fault zones and Lundin continuously monitors these areas in the normal course of operations. The company is implementing measures needed to manage the production risks in a localized area of Phase 10 that, while nominal in volume, has the potential to impact activities on lower levels and the main ramp. To reduce these risks, it has determined that various precautionary steps are appropriate, including a wider step out in the area, mining smaller benches, with smaller blasts and delaying mining immediately below the fault zones to later phases. This additional caution while mining in the Phase 10 fault zone areas will remove ore from this phase of mining, impact productivity and result in less ore production from the area over the remainder of this year, according to the company.

Average copper mill feed grades for the Candelaria Copper Mining Complex in the second half of 2021, incorporating a greater portion of feed to be sourced from low-grade stockpiled ores, is expected to average 0.64% copper, resulting in the expected feed grade for the year to average 0.59% copper. This compares to the 2018 Technical Report forecast grade of 0.65% copper in 2021. Mill throughput for the complex is expected to average approximately 76,800 mt/d this year incorporating the expected mix in ore types and remaining planned maintenance stops on the Candelaria mill in July and September.

Lundin said it is reviewing the impacts of the change in mine sequence on the life-of-mine plan and will update the outlook for future years, if needed, pending the outcome of that review.