Boliden Capital Markets Day 5 April 2005 1 Exploration- the true R&D of Mining Svante Nilsson, President Mining Operation Mining Smelting and Refining Zinc Copper
Boliden Capital Markets Day 5 April 2005 2 Agenda Some basics about exploration and ore reserves. Goal and strategy Present status of reserves and resources. Case study Garpenberg / lappberget Case study Kristineberg / J-zone
Boliden Capital Markets Day 5 April 2005 3 Boliden s Value Chain Copper Exploration Mining Smelting & Refining Recycling Zinc Precious metals
Boliden Capital Markets Day 5 April 2005 4 Strategy to increase Ore Reserves Balanced portfolio of Mine-site Exploration -Close to all existing mines -Infrastructure in place -Shorter lead times Field Exploration -Field Exploration Boliden -Joint Ventures -Juniors Business Development -Joint Ventures -Partnership -M&A
Boliden Capital Markets Day 5 April 2005 5 Ore reserve v.s. Mineral Resource The Jorc Code An Ore Reserve is the economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined. Appropriate assessments and studies have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified.
Boliden Capital Markets Day 5 April 2005 6 Ore Reserves and Mineral Resources EXPLORATION INFORMATION MINERAL RESOURCES Good historical track record MINERAL RESERVES INFERRED Increasing level of geological knowledge INDICATED PROBABLE and confidence MEASURED PROVEN Consideration of mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors The "modifying factors"
Boliden Capital Markets Day 5 April 2005 7 Relation between tonnage ore value metal price production new technique Increasing metal price / Decreasing production cost / New technique 900 m level Infrastructure Decreasing metal price / Increasing production cost
Exploration goals Skellefte-field > 20 Mton reserves /resources 2005-2008 two additional discoveries within 4 years > 5-10 Mton by mine site exploration Aitik Mine site exploration to increase production Garpenperg > 10 Mton reserves and > 25 resources 2005-2008 Additional discoveries within 4 years Tara > 15 Mton resources 2005-2008 Boliden Capital Markets Day 5 April 2005 8
Boliden Capital Markets Day 5 April 2005 9 Exploration strategy 2005 Focus mine-site exploration Field exploration in the Skellefteå-field for base metals and gold JV with Inmet Mining in the Bergslagen district Feasibility study: increased Copper exploration in Norrbotten
Boliden Capital Markets Day 5 April 2005 10 Exploration expenses MSEK 250 200 150 100 50 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Boliden Capital Markets Day 5 April 2005 11 Tara Resource & Reserve Development 20000 18000 16000 14000 Ktonnas 12000 10000 8000 Inferred Measured&Indicated Proven&Probable Production 6000 4000 2000 0 1998 1999 2000 2001 2002 2003 2004 2005 Year
Boliden Capital Markets Day 5 April 2005 12 Aitik Resource & Reserve Development 1000000 900000 800000 700000 Ktonnes 600000 500000 400000 300000 200000 100000 Inferred Measured&Indicated Proven&Probable Production 0 1998 1999 2000 2001 2002 2003 2004 2005 Year
Boliden Capital Markets Day 5 April 2005 13 Garpenberg Resource & Reserve Development 18000 16000 14000 12000 Ktonnes 10000 8000 6000 Inferred Measured&Indicated Proven&Probable Production Ktonnes 4000 2000 0 1998 1999 2000 2001 2002 2003 2004 2005 Year
Boliden Capital Markets Day 5 April 2005 14 Boliden Area Resource & Reserve Development 10000 9000 8000 7000 Ktonnes 6000 5000 4000 3000 2000 1000 Inferred Measured&Indicated Proven&Probable Production Production includes Storliden and smelter slagg 0 1998 1999 2000 2001 2002 2003 2004 2005 Year
Boliden Capital Markets Day 5 April 2005 Production history from 29 mines in the Skellefte District 1925-2003 Tonnes /year 2 500 000 Production: In total 99 million tonnes of ore 2 000 000 1 500 000 1 000 000 500 000 0 1924 1926 1928 1930 1932 1934 1936 1938 1940 1942 1944 1946 1948 1950 1952 1954 1956 1958 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 Adak Lindsköld Brännmyran Rudtjebäcken Lainijaur Boliden Långsele Långdal Kankberg Åkulla V Åkulla Ö Åkerberg Bjurfors Högkulla Ö Holmtjärn Kristineberg Rävlidmyran Rävliden Kimheden Hornträsk Näsliden Rakkejaur Renström Petiknäs S Udden Åsen Kedträsk Maurliden Storliden
Ore Reserves & Mineral Resources Aitik Ore Reseves > 12 years Excellent Mineral Resources Potential for production increse in a 10-year perspective Boliden Limited Ore Reserves Improving resources Potential to maintain current production level in a 10-year perspective Garpenberg Tara Improving Ore Reserve Excellent Mineral Resource position Potential for production increase in a 10-year perspective Ore Reserves > 6 years Good Mineral Resource inventory Potential to maintain current production level in a 10 year perspective Boliden Capital Markets Day 5 April 2005 16
Boliden Capital Markets Day 5 April 2005 17 Field exploration 2005 Sweden - 25 drilling targets mainly in the Skellefte Field Exploration Permits covering 100 000 hectares Joint Venture with Inmet in Bergslagen Ireland- 18 drilling targets around Tara mine, South-eastern and South-western part of Ireland Exploration Permits covering 140 000hectares
Boliden Capital Markets Day 5 April 2005 18 Garpenberg: Successful mine-site exploration 0 Z Garpenberg Lina shaft Gruvsjö shaft Capacity: 450 000 tpa Garpenberg Norra Shaft Capacity: 850 000 tpa 400 Z Lappberget 800 Z
Boliden Capital Markets Day 5 April 2005 19 Lappberget Front view Lappberget Left view 500 Z 500 Z Potential 800 Z Reserve C Potential B A 800 Z 800 Z Reserve B C A 800 Z Ore Reserve Inferred resource Indicated resource 1041 Z Ore Reserve Inferred resource Indicated resource 1041 Z 1113 Z Potential Measured resource 1113 Z 1213 Z 1113 Z Potential Measured resource 1113 Z 1213 Z Lappberget Ore Reserve 2005-01-01
Boliden Capital Markets Day 5 April 2005 20 Lappberget - ore reserve 2005-01 500 Z New drilling position Potential 800 Z Reserve Potential B C A 800 Z Inferred resource Indicated resource 1041 Z 1113 Z Measured resource 1113 Z Potential 1213 Z
Kristineberg / J-zon Boliden Capital Markets Day 5 April 2005 21
Boliden Capital Markets Day 5 April 2005 22 Kristinebergsgruvan: Profil 1025 BORRHÅL PROFIL FRÅN TILL LÄNGD AU AG CU ZN PB S 2666 1025 Svag mineralisering, geofysisk övre kant 2670 1025 111.50 113.05 1.55 0.43 57 3.51 1.11 0.03 35.6 2678 1025 123.85 128.50 4.65 2.06 64 2.20 9.99 0.15 45.0 2673 1025 141.65 147.20 5.55 2.37 57 1.68 9.33 0.19 41.9 2679 1025 257.90 262.20 4.30 0.50 85 0.22 18.30 0.72 28.8 2682 1025 157.25 160.10 2.85 16.51 157 6.07 2.73 0.04 22.2 2682 1025 171.25 176.15 4.90 0.73 68 2.71 2.16 0.10 39.0 2688 1025 280.70 289.30 8.60 0.55 129 0.09 34.85 1.35 31.3 2695 1025 241.60 246.05 4.45 0.03 3 0.04 14.70 0.00 14.9
Boliden Capital Markets Day 5 April 2005 23 Kristinebergsgruvan: Profil 850 BORRHÅL FRÅN TILL LÄNGD AU AG CU ZN PB S 2850 Svag mineralisering. 2854 161.20 164.15 2.95 0.60 35 0.78 15.40 0.13 42.70 2863 68.80 76.90 8.10 0.14 359 0.11 5.02 1.66 10.21 2863 242.55 253.95 11.40 1.87 80 1.58 11.13 0.29 40.86 2863 319.25 323.90 4.65 1.75 76 0.95 11.30 0.11 35.72 2876 71.15 77.75 6.60 0.17 391 0.03 3.57 1.98 8.82
Boliden Capital Markets Day 5 April 2005 24 Kristinebergsgruvan: Profil 700 BORRHÅL FRÅN TILL LÄNGD AU AG CU ZN PB S 2873 242.90 245.60 2.70 0.80 155 0.02 27.00 2.46 19.10 2873 261.80 282.25 20.45 0.56 83 0.66 12.16 1.38 28.34 2882 Svag mineralisering 2889 Svag mineralisering