Neves Corvo - Tailings Dam

Neves-Corvo is a copper and zinc mine that is owned and operated by the Portuguese company SOMINCOR (Sociedade Mineira de Neves-Corvo S.A.), which is a subsidiary of Lundin Mining since November 2006.

In 1977, the Neves-Corvo massive sulphide deposit was discovered on the western edge of the Iberian Pyrite Belt. The deposit contains significant quantities of copper, tin and zinc.

After this discovery, SOMINCOR was formed on July 24th, 1980.

The Neves-Corvo mine consists of five massive sulphide orebodies: Neves, Corvo, Graça, Zambujal and Lombador.

Mining began in 1988, operated by a joint venture between the Portuguese State and Rio Tinto.

Copper production began in 1989 and tin production began in 1990.

In June 2004, SOMINCOR was acquired by Eurozinc Mining Corporation. Zinc production began in 2006, at the same time Lundin Mining Corporation merged with Eurozinc Mining Corporation.

SOMINCOR is now fully incorporated into the Lundin Mining Group, a Canadian group dedicated to the mining of base metals with operations in several countries (Brazil, Chile, Portugal, Sweden and USA).

Since then, management has focused on improving the mine’s operational performance and in the exploration of new resources and reserves in adjacent areas.

Currently, the Company produces copper, zinc and lead concentrates.

The concentrates are dispatched by rail (copper and zinc) and road (lead) for onward shipping to customers.

The mine site is situated approximately 220km southeast of Lisbon in Baixo Alentejo. The closest village to the mine site is Castro Verde.

Geologic and Exploration Overview

Neves-Corvo is located in the western part of the Iberian Pyrite Belt (IPB), which stretches through southern Spain into Portugal. The mineral deposits at Neves-Corvo are classified as volcano-sedimentary massive sulphide. They typically occur as lenses of polymetallic (copper, zinc, tin, lead) massive sulphides that formed at or near the seafloor in submarine volcanic environments. Seven mas- sive sulphide lenses have been defined comprising Neves, Corvo, Graça, Zambujal, Lombador, Semblana and Monte Branco. The base metal grades are segregated by the strong metal zoning into copper, tin and zinc zones, as well as barren massive pyrite. The massive sulphide deposits are typically underlain by stockwork sulphide zones, which form an important part of the copper orebodies.

Exploration surrounding the mine has focused on the search for additional blind massive sulphide deposits. Exploration techniques include soil geochemistry, geological mapping, various geophysical techniques including airborne magnetics, residual ground gravity survey, airborne gravity survey, ground electromagnetic survey and 3D seismic survey and exploration drilling. Recent exploration work has concentrated on the development of a 3D regional geological model and exploration drilling focusing on the area between Corvo, Zambujal, and Semblana deposits.