neves
Operator: Lundin
Location: Portugal
Term of Stream: 50 years
Stream Parameters: 100% of silver production
Upfront Consideration: US$35M
Cost Quartile: 3rd
Primary Metal: Copper

Project Overview

The Neves-Corvo copper-zinc-silver mine is situated approximately 220 kilometres southeast of Lisbon in the Alentejo district of southern Portugal.

The mine's active underground mining occurs on five major orebodies. The principle means of mine access are provided by one vertical five metre diameter shaft and a ramp from surface. The mine is highly mechanized and a number of different stoping methods are employed but the most significant are bench-and-fill and drift-and-fill. The treatment facility at Neves-Corvo comprises of two processing plants. The copper plant treats copper ores and has a maximum capacity of approximately 2.6 Mtpa and the zinc plant (former tin plant), which treats zinc or copper ores at a current capacity of 1.0 Mtpa.

As part of the Zinc Expansion Project ("ZEP"), production is to be maximized from the existing zinc Mineral Reserves and the development of a deeper higher zinc grade area known as Lombador Phase 2. ZEP comprises the installation of a new underground crusher and conveyor system to handle ore from the Lombador orebody, upgrades to the existing hoisting shaft, expansion of the zinc processing plant to a 2.5 Mtpa (from 1.0 Mtpa) and expansions to the Tailings Management Facility. ZEP ramp up is scheduled for the second half of 2019.

Base metal grades are segregated by the strong metal zoning into copper, tin and zinc zones. The massive sulphide deposits are typically underlain by stockwork sulphide zones which form an important part of the copper orebodies. Neves Corvo has demonstrated significant exploration upside, with discoveries such as the Lombador zinc-lead-silver deposit which lies immediately north of the existing Neves-Corvo deposits. Recent underground exploration drilling has mainly resulted in forming deeper extensions to the known mineralization.

Precious Metal Purchase Agreement

Wheaton Precious Metals acquired Silverstone Resources Corp. in May 2009, giving Wheaton Precious Metals the right to purchase 100% of the life of mine silver production from the Neves-Corvo mine site for the lesser of US$3.90 per ounce of silver (subject to an annual inflationary adjustment) or the prevailing market price per ounce of silver delivered.

More Information

For more information about the Neves-Corvo mine, please visit Lundin Mining’s website at www.lundinmining.com. Cost quartile information is sourced from Wood Mackenzie byproduct cost curves for gold, zinc/lead, copper, nickel, and silver mines.

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