Goiás State, Brazil
Lundin Mining Corp.
Copper Stream Agreement (Rate & Structure)
- Base Rate: 3.7% of payable copper production from the Chapada mine
- Expansion Incentive Rate: Rate decreases to 2.65% in the event of a Chapada mine expansion
- Rate reduces to 1.5% for remaining life of mine after 75 million pounds delivered
|2019 Annual Stream Revenue||C$17.6 million|
|Annual Production Capacity||24.0 million tonnes per annum ore|
|Estimated Mine Life Remaining||28 years|
The Chapada mine, located in the Brazilian state of Goias, is a copper‐gold mine that began production in 2007. Previously owned and operated by Yamana Gold, the project was sold to Lundin Mining in July 2019. Under the ownership of Lundin Mining, copper production for the second half of 2019 was 67.3 million pounds at a cash cost of $0.58 per pound of copper on a co‐product basis. Significant mine life and throughput expansion potential exists at Chapada through resource conversion to reserves as well as through ongoing near mine exploration. Lundin Mining has undertaken studies for optimization and expansion at the mine, which are ongoing.
Lawrence Winter, P.Geo., Vice President Exploration, is the qualified person as defined by NI 43-101 guidelines responsible for the technical data presented herein.