Name: Galmoy mine.

Location: The Galmoy mine is situated in County Kilkenny, 110 km south-west of Dublin, Ireland.

Controlling Company: Lundin Mining Corporation (100%).

Brief History: The discovery of significant soil geochemical anomalies in the 1960s, led to geophysical surveys in the 1980s and the first mineralised diamond-drill intersection at Galmoy in 1986. Planning permission was granted in 1994 and Arcon, as sole owner and operator, brought the mine into production in 1997. It was Ireland's first new underground mine in 20 years. Subsequent exploration drilling led to the discovery of the G satellite orebodies and the K and CW South orebodies. Approval was granted to mine these additional reserves in 2002. The R zone was discovered in the second half of 2002 and a third planning application and mine licence submission to mine the R zone was made in 2003. The Galmoy mine was consolidated into Lundin Mining, following the formal merger with Arcon in May 2005. Galmoy mine ceased production in 2009, but reopened shortly after to permit the removal of some remaining high-grade ore. Treatment of the stockpiled Galmoy ore at the adjacent mine is expected to be completed by the end of 2013.

Brief Description: Galmoy is an underground mine with most of the workings between 100 m and 160 m below surface.

Mining Method: Underground.

Products: Lead and zinc.

Major Infrastructure and Equipment: Primary access at the Galmoy mine is through a decline and mine production is carried out by room-and-pillar and bench-and-fill methods. The Galmoy flow sheet employs a conventional semiautogenous-ball mill grinding circuit, with differential flotation for the production of lead and zinc concentrates. Tailings are placed in a fully lined, multiphase impoundment at the mine site.

Geology: The Galmoy deposits lie in a north-east striking belt of Lower Carboniferous carbonates, mainly limestones. The form of the mineralisation is essentially a strata-bound zinc/lead replacement, which is hosted by a grey rock matrix breccia at the base of the Waulsortian limestone Formation, which is dolomitised in the mine area. The major structure is the G-fault, which is a normal fault that bounds the G orebody to the south. This fault is likely to have been the conduit for the mineralising hydrothermal fluids. The zinc and lead mineralisation occurs principally as the sulphides sphalerite and galena in several textural varieties. Pyrite and dolomite are the main gangue minerals.

Reserves: Total proven and probable reserves as at June 30, 2012, were 41 000 t, with a grading of 11.6% zinc, 1.8% lead and 12 g/t silver.

Resources: Total measured resources as at June 30, 2012, were 520 000 t, with a grading of 14.2% zinc, 1.5 g/t silver and 11 g/t silver. Indicated resources were 130 000 t, with a grading of 10.5% zinc, 0.8 lead and 7 g/t silver. Indicated resources were 7 000 t, with a grading of 9.2% zinc, 0.4 % lead and 8 g/t silver.

Prospects: Execution of the approved mine closure plan is currently underway. Milling ceased in May 2009 and the mill has been sold. Mining of remnant high-grade ore continued until October 2012. All mined ore has been transported to an adjacent mine and stockpiled for treatment during 2013.

Contact person: Senior business analyst, John Miniotis.

Contact details:
Lundin Mining Corporation
Tel +1 416 342 5560
Fax +1 416 348 0303
Email info@lundinmining.com
Website: www.lundinmining.com