Svante Nilsson, President Mining Operation · Production includes Storliden and smelter slagg. Boliden – Capital Markets Day 5 April 2005 Production history from 29 mines in the

1Boliden – Capital Markets Day 5 April 2005

Exploration- the true R&D of Mining

Svante Nilsson, President Mining Operation

Mining Smeltingand

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

3Boliden – Capital Markets Day 5 April 2005

Boliden´s Value Chain

Exploration

Recycling

Mining Smelting & Refining

Copper

Zinc

Precious metals


Strategy to increase Ore Reserves

Balanced portfolio of

Field Exploration-Field Exploration Boliden

-Joint Ventures

-Juniors

Business Development-Joint Ventures

-Partnership

-M&A

Mine-site Exploration-Close to all existing mines

-Infrastructure in place

-Shorter lead times


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.”


Ore Reserves and Mineral Resources

EXPLORATIONINFORMATION

MINERAL MINERAL RESOURCES RESERVES

INFERREDIncreasing

level ofgeologicalknowledge INDICATED PROBABLE

andconfidence

MEASURED PROVEN

Consideration of mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors

The "modifying factors"

Good historical track record


Increasing metal price / Decreasing production cost / New technique

Relation between tonnage – ore value – metal price – production –new technique

Decreasing metal price / Increasing production cost

900 m level

Infrastructure


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


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


Exploration expenses

0

50

100

150

200

250

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

MSEK


TaraResource & Reserve Development

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

1998 1999 2000 2001 2002 2003 2004 2005

Year

Kto

nnas

InferredMeasured&IndicatedProven&ProbableProduction


AitikResource & Reserve Development

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

1000000

1998 1999 2000 2001 2002 2003 2004 2005Year

Kto

nnes



GarpenbergResource & Reserve Development

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

1998 1999 2000 2001 2002 2003 2004 2005Year

Kto

nnes

InferredMeasured&IndicatedProven&ProbableProduction Ktonnes


Boliden AreaResource & Reserve Development

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

1998 1999 2000 2001 2002 2003 2004 2005Year

Kto

nnes


Production includes Storliden and smelter slagg

Boliden – Capital Markets Day 5 April 2005

Production history from 29 mines in the Skellefte District 1925-2003

0

500 000

1 000 000

1 500 000

2 000 000

2 500 000

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

Tonnes/year

Adak Lindsköld Brännmyran Rudtjebäcken Lainijaur BolidenLångsele Långdal Kankberg Åkulla V Åkulla Ö ÅkerbergBjurfors Högkulla Ö Holmtjärn Kristineberg Rävlidmyran RävlidenKimheden Hornträsk Näsliden Rakkejaur Renström Petiknäs SUdden Åsen Kedträsk Maurliden Storliden

Production: In total 99 million tonnes of ore


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 – Improving Ore Reserve– Excellent Mineral Resource position– Potential for production increase in a 10-year perspective

• Tara – Ore Reserves > 6 years – Good Mineral Resource inventory– Potential to maintain current production level in a 10 year perspective


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-easternand South-western part of Ireland

Exploration Permits covering 140 000hectares


Garpenberg: Successful mine-site explorationGarpenberg: Successful mine-site exploration

Lina shaft

Gruvsjö shaftCapacity: 450 000 tpa

ShaftCapacity: 850 000 tpa

Garpenberg Garpenberg Norra

Lappberget

800 Z

400 Z

0 Z


Lappberget Front view

B

500 Z

AC

Measured resource

Reserve

800 Z

1041 Z

1113 Z

1213 Z

Indicated resourceInferredresource

Potential

Potential

1113 Z

800 Z

OreReserve

B

500 Z

AC

Measured resource

Reserve

800 Z

1041 Z

1113 Z

1213 Z

Indicatedresource

Inferredresource

Potential

Potential

1113 Z

800 Z

OreReserve

LappbergetLeft view

Lappberget – Ore Reserve 2005-01-01


B

500 Z

AC

Measured resource

Reserve

800 Z

1041 Z

1113 Z

1213 Z

Indicatedresource

Inferredresource

Potential

Potential

Potential

1113 Z

800 Z

Lappberget - ore reserve 2005-01

New drilling position


Kristineberg / J-zon


Kristinebergsgruvan: Profil 1025

BORRHÅL PROFIL FRÅN TILL LÄNGD AU AG CU ZN PB S2666 1025 Svag mineralisering, geofysisk övre kant2670 1025 111.50 113.05 1.55 0.43 57 3.51 1.11 0.03 35.62678 1025 123.85 128.50 4.65 2.06 64 2.20 9.99 0.15 45.02673 1025 141.65 147.20 5.55 2.37 57 1.68 9.33 0.19 41.92679 1025 257.90 262.20 4.30 0.50 85 0.22 18.30 0.72 28.82682 1025 157.25 160.10 2.85 16.51 157 6.07 2.73 0.04 22.22682 1025 171.25 176.15 4.90 0.73 68 2.71 2.16 0.10 39.02688 1025 280.70 289.30 8.60 0.55 129 0.09 34.85 1.35 31.32695 1025 241.60 246.05 4.45 0.03 3 0.04 14.70 0.00 14.9


BORRHÅL FRÅN TILL LÄNGD AU AG CU ZN PB S2850 Svag mineralisering.2854 161.20 164.15 2.95 0.60 35 0.78 15.40 0.13 42.702863 68.80 76.90 8.10 0.14 359 0.11 5.02 1.66 10.212863 242.55 253.95 11.40 1.87 80 1.58 11.13 0.29 40.862863 319.25 323.90 4.65 1.75 76 0.95 11.30 0.11 35.722876 71.15 77.75 6.60 0.17 391 0.03 3.57 1.98 8.82



BORRHÅL FRÅN TILL LÄNGD AU AG CU ZN PB S2873 242.90 245.60 2.70 0.80 155 0.02 27.00 2.46 19.102873 261.80 282.25 20.45 0.56 83 0.66 12.16 1.38 28.342882 Svag mineralisering2889 Svag mineralisering


Svante Nilsson, President Mining Operation · Production includes Storliden and smelter slagg. Boliden – Capital Markets Day 5 April 2005 Production history from 29 mines in the

Documents