Drill Tracker Weekly: Lundin Discovers New High-grade Nickel-Copper Zone 2 Kilometers East Of Eagle Mine


Drill Tracker Weekly is not exclusive to Resource Investing News and is published with permission from Mackie Research Capital Corporation. It highlights drilling results in context with our database of over 10,000 drilling and trenching results. The purpose of this report is to highlight drilling and trenching results that stand out from the pack and compare them to their peer group. This report does not constitute initiation of coverage or a recommendation.

Lundin Mining (TSX:LUN)

Price: $5.89

Market cap: $4,100 million

Cash estimate: $900 million

Project: Eagle

Country: Michigan, US

Ownership: 100 percent

Resources: Probable: 5.1 million tonnes st 3.1 percent nickel, 2.6 percent copper

Project status: Brownfields exploration

lundin Lundin Mining announced the discovery of a new high-grade nickel-copper zone two kilometres east of its 100% owned Eagle Mine in Michigan. Lundin acquired the partially constructed Eagle Mine from Kennecott in June 2013 for $325 million. The Company is using directional drilling providing a number of holes off a "mother hole" to access the deep targets with multiple holes. Highlights from the new discovery include 30.85 metres grading 5.23% Ni, 8.74% Cu, 3.96 g/t Pt, 3.93 g/t Pd, 1.59 g/t Au and 33.57 g/t Ag starting at a depth of 1,139 metres. As the mineralized zone is believed to be a feeder dyke system, it may be assumed that the true width of the mineralized zone is less that the drilling interval. While higher-grade breccia material was first reported in July 2014 (34 metres @ 1.33 % Ni and 1.02% Cu) indicating a possible nearby feeder dyke, the first indication of high-grade massive sulphides was intersected in drill hole 14EQ331B with a 0.74 metre interval of 7.24% Ni, 5.71% Cu, 1.17 g/t Pt, 0.26 g/t Pd, 0.12 g/t Au and 16.0 g/t Ag. The Drill Tracker Chart shows the initial lower-grade holes (2001 and 2014) connected with a dashed line to the subsequent high-grade discoveries. The current exploration program was designed to test for a possible feeder dyke to the disseminated, lower grade East Eagle zone hosted in a peridotite intrusion that outcrops on surface one kilometre to the east of the Eagle Mine. The drilling has now traced the new zone 350 metres with thirteen of the twenty holes intersecting semi-massive to massive (pentlandite/pyrrhotite /chalcopyrite) mineralization with grades increasing towards the east away from the disseminated mineralization in the Eagle East zone. The Eagle Mine has a current reserve of 5.16 million tonnes grading 2.6% Ni and 3.1% Cu with significant PGE credits. The current resource has an expected 8 year mine life. The mine has an expected life of mine cash cost in the lower quartile of producers of $2.55 per pound nickel.


Discovery history (Kennecott): 30 meters at 1.03 percent nickel, 0.75 percent copper (July 2001) and 84 meters at 6.3 percent nickel, 4.0 percent copper (2002)

Current holes: 30.85 meters at 5.23 percent nickel, 8.74 percent copper, 3.96 g/t Pt, 3.93 g/t Pd, 1.59 g/t gold, 33.57 g/t silver

23.85 meters at 5.34 percent nickel, 4.41 percent copper, 2.56 g/t Pt, 1.46 g/t Pd, 0.34 g/t gold, 18.07 g/t silver