Lundin Mining has completed a feasibility study for the Lombador Phase I project near Neves-Corvo mine located in Portugal.

According to the feasibility study, the total initial capital cost of the project is estimated to be €164m, of which about 50% is underground expenditure, while average operating costs for the incremental Lombador production are estimated to be €34/t mined.

The project extends the mine life to at least 2026 and provides a platform for further extensions.

The Lombador Phase I underground ore production is expected to commence in late 2014 and continues until 2026, a total of 12 years.

Lundin Mining CEO Paul Conibear said that the study confirms the firm’s view that the Lombador Phase I project can be developed into a successful and profitable expansion to the existing operations.

“The initial phase of Lombador development enables zinc production to ramp up, taking advantage of the expected strong zinc markets evolving over the next few years,” Conibear said.