1. Robert Carmichael March 7, 2011 PDAC – Toronto, Canada
The Neves-Corvo Deposit, Southern Portugal An Update on Exploration Results
Robert Carmichael
March 7, 2011
PDAC – Toronto, Canada

2. Outline History; Neves-Corvo in a Global Context;
Geology and Deposit Morphology;
Resource Growth Since 2005;
Semblana Discovery;
Exploration Potential.

3. Lisbon
Portugal
Spain
Neves Corvo
Sevilla

4. History 1977: discovery – drilling gravity anomaly;
1988: start of copper production;
1990: start of tin production;
2005: new ownership – expanded drilling – focus on zinc resource;
2009: cumulative production reaches 2 million tonnes of copper metal;
2010: discovery of 6th massive sulphide lens – Semblana deposit.

5. Global VMS Context
Neves-Corvo is the second largest VMS deposit in the world (measured by contained Cu + Zn);
Past production + current M+I+I resource is:
207 Mt at 2.3% Cu and 3.3% Zn;
Not fully delineated;
Initial resource was 34 million tonnes at 8.5% copper;
Mine operated for 5 years before the head grade dropped below 10% copper;
Mined an average of 100,000 tonnes copper metal per year for 20 years.

6. Global VMS Context – USGS Database
870 deposits

7. Global VMS Context – USGS Database
870 deposits
Las Cruces
USGS database

8. Geology and Deposit Morphology
Typical Iberian Pyrite Belt large volcanogenic massive sulphide deposit;
Atypical with respect to contained metal, particularly copper and tin;
Completely blind – no surface expression;
Late Strunian age (354 Ma);
Deposits hosted in Volcano-Sedimentary complex;
At least 6 discreet massive sulphide lenses;
Associated stockwork zones – may be displaced by thrust faulting.

9. 250 metres to top of orebodyN
250 metres to top of orebody

10. SW NE
Corvo Deposit
Graça Deposit

11. Resource Growth Since 2005
Since YE 2005, we have added 220 thousand tonnes of Cu metal and 2.9 million tonnes of Zn metal to the M+I Resource (net of production);
July 2007 – Lombador East Deposit discovery
8.0% Zn plus 3.9% Cu);
May 2009 – Lombador Mid Cu Deposit discovery
4.5% Cu);
September 2009 – Lombador Mid Zn Deposit discovery 7.3% Zn plus 7.8% Zn)
September 2010 – Semblana Deposit discovery 4.6% Cu)

12. Zinc Resource and Metres Drilled
M+I ore tonnes up
193% in 3 years
Tonnes x 1,000
Metres Drilled

13. Copper Resource and Metres Drilled
Tonnes x 1,000
Metres Drilled

14. Current Resource Estimate
COPPER
Classification
Tonnes
Copper %
Zinc %
Lead %
Silver g/t
Measured
36,995,000
3.4
1.2
0.4 50
Indicated
3,895,000
2.4
1.0
0.6 53
M+I
40,890,000
3.3
Inferred
26,319,000
1.9
0.3 41
ZINC
58,047,000
6.2
1.4 61
13,929,000
6.9
1.5
71,976,000
6.4 59
26,791,000
4.9
Cutoff Grade is 1.0% for Copper Resource and 3.0% for Zinc Resource

15. N Lombador Neves Corvo Semblana Zambujal Graça 1,000m
Plan view of deposits and underground development. White line is axis of Rosario anticline, next image is perspective view along fat arrow.
Zambujal
Graça
1,000m

16. Lombador
3 km
3.5 km
Graça
Neves
Corvo
Zambujal
Underground
Development
3D View Looking Southwest with Massive Sulphide Lenses and Underground Development
Surface
Semblana
1.2 km
General perspective of existing underground development in blue, and massive sulphide deposits in red. Note scale in yellow.

17. Lombador
3 km
3.5 km
Graça
Neves
Corvo
Zambujal
Underground
Development
3D View Looking Southwest with Massive Sulphide Lenses and Underground Development
Surface
Semblana
1.2 km
Lombador East
Cu/Zn Deposit
Lombador South
General perspective of existing underground development in blue, and massive sulphide deposits in red. Note scale in yellow.

18. Lombador South deposit intersected by a few holes prior to 2005, goal was to convert to indicated resource. NF34 discovered LE deposit, based on NF32A, we were expecting sulphide lens to pinch out. Note zinc zones within massive sulphide envelope, underlying copper stockwork zones.
Zinc zones have good internal continuity, but terminate very quickly laterally into barren pyrite; grade boundaries must (in places) be perpendicular to lithological contacts.

19. Semblana Deposit Discovery
Semblana story, three holes drilled to test gravity feature. BHEM traces from two holes indicated strong offhole anomaly. Interestingly, we drilled 68 metres of massive sulphide (pyrite) between the two most easterly holes – easy to miss without BHEM.

20. Semblana Deposit Discovery
1,700m h
0m v
1,300m h
-400m v
Follow up drilling discovered Semblana, pink outline so far but open in several directions. Blue arrows show horizontal and vertical distances from Lower Corvo development (south) and planned Lombador 360 level development (north). Maybe need a new shaft halfway along northern blue line??

21. N 200 m Semblana Discovery Plan View Open Open Open Open
PSI50 N
PSJ48-1
PSK50B
200 m
4.5% Zn, 124 gpt Ag
2 + 40
PSJ50
0 + 63
PSK50-2
PSK50A
2.6% Cu
18 + 9
3000
PSJ46
PSK50-1
PSK50A-1
4.1% Cu
10 + 4
Open
PSK48
4.2% Cu
PSK48-1
3.5% Cu
Open
PSL48A-1
PSM52
PSL48
8 + 75
4.6% Cu
2.6% Cu;
Incl 7.0% Cu
5 + 65
1.4% Cu
SO48-1
PSM44
SO48
2600
5 + 55
SO48-4
- Massive sulphide + stockwork; assays pending
Massive sulphide + stockwork;
with assays
- Weak stockwork
Massive sulphide + Stockwork Thickness (metres)
PSN44
Close up of Semblana in plan view. Deposit is almost horizontal as far as we can tell.
55 + 0
PSO44-1
Open
PSQ46
2400
2.2% Zn
1 + 0
Open
PSO42
Semblana Discovery
Plan View
6200
6600
6400
7000
6800

22. 200 m 800m below surface Semblana Discovery Vertical Section Open
Assays pending
2.6% Cu;
Incl 7.0% Cu
3.5% Cu
4.2% Cu
800m below surface
1.4% Cu
Massive sulphide
4.1% Cu
Stockwork
200 m
Semblana Discovery
Vertical Section

23. 11.0 metres @ 7.0% Cu Within 38.5 metres @ 2.6% Cu
Open
% Cu
Within % Cu

24. 35 m Stockwork up to 0.8% Cu, 1.5% Zn 6.8m massive sulphide @ 6.0% Zn
Exploration Potential
See gap in drill pattern corresponding to gravity anomaly – also note Monte Branco hole (stockwork) and massive pyrite intersection. Assays from massive pyrite intersection not in database, trying to get them from Nelson, may have some zinc. Potential to add one or two new sulphide lenses yet.
1000 m
35 m Stockwork up to 0.8% Cu, 1.5% Zn
6.8m massive 6.0% Zn

25. Exploration Potential
Ground gravity – note anomaly to the south of Semblana – undrilled.
1000 m

26. Conclusions
Neves-Corvo deposit is a globally significant deposit of both copper and zinc;
Zinc potential has been largely unappreciated until recently;
Increase in exploration activity has produced a dramatic addition to the resource base;
Indications that resource will continue to grow with additional drilling – lots of exploration potential left;
Development of Neves-Corvo into a major zinc mine with production targeted for 2011, expanded for 2013;
80,000 metres drilling planned for 2011 – more to come!