Lundin Minings (LUN-T, LMC-N, LUMI-O) late summer acquisition of Rio Narcea and its Aguablanca project in southern Spain is looking better with every assay.
Drilling by Lundin at the project has extended the strike length of the high grade deep body sulphide mineralization by 75 metres and now says a significant increase in the mine’s resource base and an expansion of its open pit production could be in the works.
Both step-out and infill drilling is being done at the site. Highlights from step-out holes include:
- Hole AGU-1098 — 17.95 metres at 1.04% nickel and 0.72% copper.
- Hole AGU-1095 — 7.85 metres at 1.21% nickel and 0.65% copper.
- Hole AGU-1083 — 7 metres at 1.76% nickel and 0.72% copper.
Infill drilling hit some of the best intersects ever drilled at Aguablanca. Highlights included:
- Hole 1078 — 57.3 metres at 0.91% nickel and 0.84% copper.
- Hole 1087 — 45.8 metres at 1.23% nickel and 0.95% copper.
The deep body is an east-west trending, steeply dipping zone of sulphide mineralization that Lundin interprets as a down-plunge extension of the main orebody. Three rigs are drilling in the eastern part of the body to define the limits of mineralization.
The main orebody at Aguablanca is currently being mined as an open pit.
Lundin has five operating mines in its portfolio which produce copper, zinc, lead, nickel and silver.
Its Aljustrel mine in Portugal is slated to go into production in the fourth quarter 2007.
The company also holds a stake in the massive Tenke Fungurume copper/cobalt project in the Democratic Republic of Congo.
In Toronto on Nov. 19 a day when the overall market was down Lundin shares fell nearly 6% or 59 to $9.58 on 4.4 million shares traded.
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