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Tel: +1 604 689 78 42 Tel: +46 8 545 074 70
Fax: +1 604 689 42 50 Fax: +46 8 545 074 71
NEWS RELEASE
Lundin Mining Signs Strategic Alliance and Financing
Arrangement with Sunridge Gold Corp.
January 16, 2006 (TSX: LUN; O-List Stockholmsbörsen: LUMI) … Lundin Mining Corporation
(“Lundin Mining” or the “Company”) is pleased to announce that its wholly owned subsidiary, Lundin
Mining AB, has entered into a strategic alliance and financing arrangement with Sunridge Gold Corp.
(“Sunridge”), a publicly traded mining company listed on the TSXV under the symbol “SGC”.
Sunridge is currently drilling several advanced exploration projects in Eritrea in northeastern Africa including
the high-grade Adi Nefas Gossan zinc/gold/copper volcanogenic massive sulphide (VMS) project, the highgrade
copper/gold Debarwa VMS deposit, the Gupo gold deposit and several other high priority targets.
These projects form part of the Asmara Joint Venture Project in which Sunridge currently holds a 40%
interest and has an option to earn a 70% interest. The remaining interest is held by Sub Sahara Resources
(Eritrea) Ltd., a subsidiary of Sub-Sahara Resources NL, an Australian public company.
The Asmara Project encompasses over 1,100 square kilometers and is located immediately to the north,
south and west of Eritrea’s capital city of Asmara. The infrastructure is excellent with roads, power, water
and airports servicing the project area. The licensed area covers rocks of the Nubian-Arabian shield which is
a large Pre-Cambrian shield covering much of Northeast Africa. Eritrea is a country with immense geological
potential yet still relatively unexplored by modern mining methods. The main discoveries to date are
Nevsun’s large, high-grade Bisha VMS Project and Sunridge’s high-grade Debarwa and Adi Nefas VMS
Projects.
Sunridge currently has a 25,000 metre diamond and reverse circulation drilling program underway on several
of its key projects. From the Adi Nefas high-grade zinc/gold/copper project, Sunridge recently reported
excellent results. Highlights include:
NG-024-D - 7.85 metres grading 3.9 g/t Au, 147.52 g/t Ag, 5.5% Cu and 10.05% Zn
NG-025-D - 10.6 metres grading 3.16g/t Au, 96.08 g/t Ag, 2.23% Cu and 10.68% Zn
NG-026-D - 9.0 metres grading 11.91 g/t Au, 285 g/t Ag, 3.18% Cu and 11.05% Zn
NG-043-D - 5.25 metres grading 10.81 g/t Au, 239.8 g/t Ag, 6.77% Cu and 6.77% Zn
NG-046-D - 7.80 metres grading 4.0 g/t Au, 135.44 g/t Ag, 1.12% Cu and 5.62% Zn
Another key project is the Debarwa copper/gold project. Debarawa is at an advanced stage and Sunridge
has now commissioned conceptual mine planning studies which will eva luate a potential fast-track
development of this high-grade deposit.
Over the coming months, an aggressive drilling program will continue utilizing 4 rigs. Lundin Mining will bring
to the strategic alliance technical and financial expertise and assist Sunridge Gold to rapidly advance its
projects to the production stage.
Karl-Axel Waplan, President of Lundin Mining, commented, “The Asmara projects represent an excellent,
low -risk opportunity to participate in the exploration and advancement of some of the most exciting VMS
prospects I’ve seen in some time – not since our own Storliden high-grade VMS project. The grades seen at
the Sunridge projects are highly impressive. We look forward to working with Sunridge and being with them
as they enjoy continued success.”
Pursuant to the agreement with Sunridge, Lundin Mining will subscribe for 3,150,000 units of Sunridge by
way of a non-brokered, private placement at a price of Cdn $1.66 per unit for an investment of Cdn
$5,229,000. Each unit will consist of one common share of Sunridge and one common share purchase