Hudbay Provides Annual Reserve and Resource Update, Three-Year Production Outlook and Positive Snow Lake Exploration Results
Hudbay Minerals (TSX, NYSE: HBM) has released its annual mineral reserve update and three-year production guidance, highlighting stable operations across three long-life mines in the Americas. The company projects consolidated copper production to average 144,000 tonnes annually over the next three years, with an expected increase to 161,000 tonnes in 2027, marking a 17% growth from 2024.
Key highlights include:
- Constancia's mine life extended to 2041, maintaining stable copper production of 88,000 tonnes annually
- Snow Lake operations optimized until 2037, expecting 193,000 ounces of annual gold production
- Copper Mountain projecting 44,000 tonnes of annual copper production, rising to 60,000 tonnes in 2027
The company reported positive exploration results at Snow Lake, with significant copper-gold mineralization discovered, including intersections of 14.3% copper over 2.5 metres and 8.3 grams per tonne gold over 3.2 metres at the 1901 deposit. Additional drilling at Lalor Northwest revealed promising results with 16.4 grams per tonne gold over 3.7 metres.
Hudbay Minerals (TSX, NYSE: HBM) ha pubblicato l'aggiornamento annuale delle riserve minerali e le previsioni di produzione triennale, evidenziando operazioni stabili in tre miniere a lungo termine nelle Americhe. L'azienda prevede che la produzione di rame consolidata raggiunga in media 144.000 tonnellate all'anno nei prossimi tre anni, con un aumento previsto a 161.000 tonnellate nel 2027, segnando una crescita del 17% rispetto al 2024.
I principali punti salienti includono:
- La vita della miniera di Constancia estesa fino al 2041, mantenendo una produzione stabile di rame di 88.000 tonnellate all'anno
- Operazioni a Snow Lake ottimizzate fino al 2037, con una previsione di 193.000 once di produzione annuale di oro
- Il Copper Mountain prevede 44.000 tonnellate di produzione annuale di rame, che saliranno a 60.000 tonnellate nel 2027
L'azienda ha riportato risultati positivi di esplorazione a Snow Lake, con una significativa mineralizzazione di rame-oro scoperta, inclusi incroci del 14,3% di rame su 2,5 metri e 8,3 grammi per tonnellata di oro su 3,2 metri nel deposito 1901. Ulteriori perforazioni a Lalor Northwest hanno rivelato risultati promettenti con 16,4 grammi per tonnellata di oro su 3,7 metri.
Hudbay Minerals (TSX, NYSE: HBM) ha publicado su actualización anual de reservas minerales y orientación de producción a tres años, destacando operaciones estables en tres minas de larga duración en las Américas. La compañía proyecta que la producción consolidada de cobre promediará 144,000 toneladas anuales durante los próximos tres años, con un aumento esperado a 161,000 toneladas en 2027, marcando un crecimiento del 17% desde 2024.
Los puntos destacados incluyen:
- La vida útil de la mina Constancia extendida hasta 2041, manteniendo una producción estable de cobre de 88,000 toneladas anuales
- Operaciones en Snow Lake optimizadas hasta 2037, esperando 193,000 onzas de producción anual de oro
- Copper Mountain proyectando 44,000 toneladas de producción anual de cobre, aumentando a 60,000 toneladas en 2027
La compañía reportó resultados positivos de exploración en Snow Lake, con una significativa mineralización de cobre-oro descubierta, incluyendo intersecciones del 14.3% de cobre sobre 2.5 metros y 8.3 gramos por tonelada de oro sobre 3.2 metros en el depósito 1901. Perforaciones adicionales en Lalor Northwest revelaron resultados prometedores con 16.4 gramos por tonelada de oro sobre 3.7 metros.
Hudbay Minerals (TSX, NYSE: HBM)는 연례 광물 매장량 업데이트와 3년 생산 가이드를 발표하며 아메리카의 세 개의 장기 광산에서 안정적인 운영을 강조했습니다. 회사는 통합 구리 생산량이 향후 3년 동안 연평균 144,000톤에 이를 것으로 예상하며, 2027년에는 161,000톤으로 증가할 것으로 보이며, 이는 2024년 대비 17% 성장한 수치입니다.
주요 하이라이트는 다음과 같습니다:
- 콘스탄시아 광산의 수명이 2041년까지 연장되어 연간 88,000톤의 안정적인 구리 생산 유지
- 스노우 레이크 운영이 2037년까지 최적화되어 연간 193,000온스의 금 생산 예상
- 구리 마운틴은 연간 44,000톤의 구리 생산을 예측하며, 2027년에는 60,000톤으로 증가할 것
회사는 스노우 레이크에서 긍정적인 탐사 결과를 보고했으며, 1901 채굴지에서 2.5미터에 걸쳐 14.3%의 구리와 3.2미터에 걸쳐 톤당 8.3그램의 금이 발견되는 등 중요한 구리-금 광물화가 발견되었습니다. 라로르 노스웨스트에서의 추가 시추에서도 3.7미터에 걸쳐 톤당 16.4그램의 금이 발견되는 유망한 결과가 나왔습니다.
Hudbay Minerals (TSX, NYSE: HBM) a publié sa mise à jour annuelle des réserves minérales et ses prévisions de production sur trois ans, mettant en avant des opérations stables dans trois mines de longue durée en Amérique. La société prévoit que la production de cuivre consolidée atteindra en moyenne 144 000 tonnes par an au cours des trois prochaines années, avec une augmentation prévue à 161 000 tonnes en 2027, marquant une croissance de 17 % par rapport à 2024.
Les principaux points forts incluent:
- La durée de vie de la mine de Constancia prolongée jusqu'en 2041, maintenant une production stable de cuivre de 88 000 tonnes par an
- Les opérations de Snow Lake optimisées jusqu'en 2037, prévoyant une production annuelle de 193 000 onces d'or
- Le Copper Mountain prévoyant 44 000 tonnes de production annuelle de cuivre, augmentant à 60 000 tonnes en 2027
L'entreprise a rapporté des résultats d'exploration positifs à Snow Lake, avec une minéralisation significative de cuivre-or découverte, y compris des intersections de 14,3 % de cuivre sur 2,5 mètres et 8,3 grammes par tonne d'or sur 3,2 mètres dans le dépôt 1901. Des forages supplémentaires à Lalor Northwest ont révélé des résultats prometteurs avec 16,4 grammes par tonne d'or sur 3,7 mètres.
Hudbay Minerals (TSX, NYSE: HBM) hat sein jährliches Update zu den Mineralreserven und die Produktionsprognose für die nächsten drei Jahre veröffentlicht und dabei stabile Betriebsabläufe in drei langlebigen Minen in Amerika hervorgehoben. Das Unternehmen erwartet, dass die konsolidierte Kupferproduktion in den nächsten drei Jahren im Durchschnitt 144.000 Tonnen pro Jahr betragen wird, mit einem Anstieg auf 161.000 Tonnen im Jahr 2027, was einem Wachstum von 17 % gegenüber 2024 entspricht.
Wichtige Highlights sind:
- Lebensdauer der Mine Constancia bis 2041 verlängert, mit stabiler Kupferproduktion von 88.000 Tonnen pro Jahr
- Snow Lake-Betrieb bis 2037 optimiert, mit einer erwarteten jährlichen Goldproduktion von 193.000 Unzen
- Copper Mountain prognostiziert 44.000 Tonnen jährliche Kupferproduktion, die bis 2027 auf 60.000 Tonnen steigen wird
Das Unternehmen berichtete von positiven Explorationsresultaten in Snow Lake, wo bedeutende Kupfer-Gold-Mineralisierung entdeckt wurde, einschließlich Schnittpunkten von 14,3 % Kupfer über 2,5 Meter und 8,3 Gramm pro Tonne Gold über 3,2 Meter im Lager 1901. Weitere Bohrungen in Lalor Northwest zeigten vielversprechende Ergebnisse mit 16,4 Gramm pro Tonne Gold über 3,7 Meter.
- 17% projected increase in consolidated copper production by 2027
- Constancia mine life extended by three years to 2041
- Strong exploration results with high-grade copper-gold discoveries at Snow Lake
- Stable average annual copper production of 144,000 tonnes over next three years
- High gold production outlook averaging 253,000 ounces annually for three years
- Pampacancha deposit depletion expected by late 2025
- Reduced Pampacancha production in 2025 (25% of mill feed vs. typical one-third)
Insights
Hudbay's comprehensive update delivers multiple positive catalysts that reinforce its position as a growing mid-tier copper producer with significant gold exposure. The three-year production guidance demonstrates stable copper output averaging
The company's reserve update maintains impressive mine life durations across its portfolio - Constancia until 2041, Snow Lake until 2037, and Copper Mountain until 2043. These extended mine lives provide exceptional operating visibility and support long-term cash flow generation. The company has successfully optimized its Snow Lake operations for higher mill throughput at New Britannia, which will maximize gold production.
The exploration results from Snow Lake are particularly compelling, with high-grade intercepts including
Hudbay's position across three long-life operations in tier-one jurisdictions provides operational stability while its advancing feasibility studies at the fully permitted Copper World project represent meaningful future growth potential. The diversified production profile generating substantial free cash flow should enable the company to advance its copper growth pipeline while maintaining a strengthened balance sheet.
Hudbay's operational update reveals a company effectively leveraging its diversified asset base to capitalize on strong copper and gold fundamentals. The stable copper production profile averaging
The company's strategic consolidation of Copper Mountain represents excellent timing as it increases exposure to copper production in a tier-one jurisdiction precisely when the market most values secure supply. Meanwhile, their complementary gold production averaging
The reserve updates across all operations are equally impressive. Constancia's maintenance of over
The exploration success at Snow Lake, with exceptional high-grade intercepts, reinforces the potential for organic growth beyond current production guidance. The company's threefold exploration strategy targeting near-mine extensions, regional satellite deposits, and new anchor discoveries represents a comprehensive approach to resource replenishment and growth. The advancement of permitting at Maria Reyna and Caballito further diversifies their growth options in Peru beyond the current mine plan.
TORONTO, March 27, 2025 (GLOBE NEWSWIRE) -- Hudbay Minerals Inc. (“Hudbay” or the “company”) (TSX, NYSE: HBM) today released its annual mineral reserve and resource update and issued new three-year production guidance. All amounts are in U.S. dollars, unless otherwise noted.
- Affirmed 2025 production guidance and issued new 2026 and 2027 production guidance, demonstrating strong copper and gold production from Hudbay’s stable operating platform with three long-life operations in tier-one mining jurisdictions in the Americas.
- Consolidated copper production is expected to average 144,000i tonnes per year over the next three years, maintaining stable production levels from 2024. Consolidated copper production of 161,000i tonnes is expected in 2027, representing a
17% increase from 2024 and reflects the benefits from the completion of the optimization efforts at Copper Mountain. - Strong complementary gold exposure with consolidated gold production expected to average 253,000i ounces per year over the next three years, reflecting continued strong production in Manitoba and a contribution from Pampacancha high grade gold zones in Peru in 2025.
- Constancia’s expected mine life maintained until 2041 with stable average annual copper production of over 88,000i tonnes expected over the next three years, in spite of the depletion of Pampacancha in late 2025.
- Snow Lake’s expected mine life optimized to 2037 with average annual gold production of over 193,000i ounces expected over the next three years and higher mill throughput rates at New Britannia driving higher life-of-mine gold production.
- Copper Mountain’s expected mine life maintained until 2043 with average annual copper production of 44,000i tonnes expected over the next three years, including 60,000i tonnes in 2027, a
127% increase from 2024. - Announcing accretive transaction to consolidate a
100% interest in Copper Mountain, further increasing Hudbay’s exposure to a long-life, high-quality copper asset in a tier-1 mining jurisdiction, and results in a200% increase in attributable copper production from Copper Mountain in 2027 compared to 2024. - Large exploration program in Snow Lake continues to execute threefold strategy focused on near-mine exploration to increase near-term production and mineral reserves, testing regional satellite deposits for additional ore feed to utilize available capacity at the Stall mill, and exploring the large land package for a potential new anchor deposit to meaningfully extend mine life.
- Positive initial step out drilling from the exploration drift at the 1901 deposit intersected significant copper-gold mineralization, including
14.3% copper over 2.5 metres and 8.3 grams per tonne gold over 3.2 metres. - Follow up drilling at Lalor Northwest continued to intersect copper-gold mineralization, including 16.4 grams per tonne gold over 3.7 metres and
2.6% copper over 3.5 metres.
- Positive initial step out drilling from the exploration drift at the 1901 deposit intersected significant copper-gold mineralization, including
- Exploration activities in Peru in 2025 focused on advancing drill permitting for highly prospective satellite properties near Constancia.
- Feasibility studies are underway at the fully permitted Copper World project in Arizona and minority joint venture partnership process commenced.
“Our updated mineral reserve estimates and three-year production outlook demonstrate Hudbay’s stable copper and gold production profile from our high-quality asset base of long-life mines located in attractive mining regions in the Americas,” said Peter Kukielski, Hudbay’s President and Chief Executive Officer. “This solid foundation is further enhanced by robust exploration efforts at all our assets to drive production growth and significant mine life extension. We will continue to deliver meaningful free cash flow generation from our diversified operating platform, which together with our strengthened balance sheet, will allow us to advance our unique copper growth pipeline and unlock significant value for stakeholders.”
Constancia Operations
Constancia is Hudbay’s
Hudbay continues to mine the high-grade Pampacancha satellite deposit, located approximately six kilometres from the Constancia processing plant. Mining at the Pampacancha pit commenced in 2021 and is expected to extend until early December 2025. The mine plan has smoothed Pampacancha production throughout the year, resulting in total mill ore feed for 2025 from Pampacancha to be ~
Current mineral reserves and resources (exclusive of reserves) for Constancia and Pampacancha as of January 1, 2025 are summarized below.
Constancia Operations Mineral Reserve and Resource Estimates1,2,3,4,5 | Tonnes | Cu Grade (%) | Mo Grade (g/t) | Au Grade (g/t) | Ag Grade (g/t) | |
Constancia Reserves | ||||||
Proven | 443,200,000 | 0.252 | 80 | 0.037 | 2.59 | |
Probable | 64,800,000 | 0.205 | 73 | 0.036 | 1.78 | |
Total Proven and Probable - Constancia | 508,000,000 | 0.246 | 79 | 0.037 | 2.49 | |
Pampacancha Reserves | ||||||
Proven | 8,700,000 | 0.452 | 110 | 0.272 | 5.38 | |
Probable | 200,000 | 0.284 | 117 | 0.167 | 2.81 | |
Total Proven and Probable - Pampacancha | 9,000,000 | 0.448 | 110 | 0.269 | 5.32 | |
Total Proven and Probable | 517,000,000 | 0.249 | 79 | 0.041 | 2.54 | |
Constancia Resources | ||||||
Measured | 92,700,000 | 0.211 | 57 | 0.039 | 2.24 | |
Indicated | 86,900,000 | 0.222 | 83 | 0.039 | 2.24 | |
Inferred – Open Pit | 33,700,000 | 0.247 | 69 | 0.056 | 2.75 | |
Inferred – Underground | 6,500,000 | 1.200 | 69 | 0.140 | 8.62 | |
Pampacancha Resources | ||||||
Inferred | 700,000 | 0.144 | 54 | 0.083 | 2.46 | |
Total Measured and Indicated | 179,700,000 | 0.216 | 69 | 0.039 | 2.24 | |
Total Inferred | 40,900,000 | 0.397 | 69 | 0.069 | 3.68 |
Note: totals may not add up correctly due to rounding.
1 Mineral resources are exclusive of mineral reserves and do not have demonstrated economic viability.
2 Mineral reserves are estimated using a minimum NSR cut-off of
3 Mineral resource estimates are based on resource pit design and do not include factors for mining recovery or dilution.
4 The open pit mineral resources are estimated using a minimum NSR cut-off of
5 Long-term metal prices of
Maria Reyna and Caballito Exploration
Hudbay controls a large, contiguous block of mineral rights with the potential to host satellite mineral deposits in close proximity to the Constancia processing facility, including the past producing Caballito property and the highly prospective Maria Reyna property. The company commenced early exploration activities at Maria Reyna and Caballito after completing a surface rights exploration agreement with the community of Uchucarcco in August 2022. As part of the drill permitting process, environmental impact assessment (EIA) applications were submitted for the Maria Reyna property in November 2023 and for the Caballito property in April 2024. The EIA for Maria Reyna was approved by the government in June 2024 and the Caballito EIA was approved in September 2024. This represents one of several steps in the drill permitting process, which is expected to be completed in 2025. Surface mapping and geochemical sampling confirm that both Caballito and Maria Reyna host sulfide and oxide rich copper mineralization in skarns, hydrothermal breccias and large porphyry intrusive bodies, as shown in Figure 1.
Snow Lake Operations
Hudbay’s
In 2024, record annual gold production of 214,225 ounces was achieved in Snow Lake through a combination of higher metallurgical recoveries at the New Britannia and Stall mills, despite processing lower gold grades year-over-year, and the strategic allocation of more gold ore feed to the New Britannia mill. Annual gold production from Snow Lake is expected to average more than 193,000i ounces over the next three years.
Infill drilling at Lalor in 2024 resulted in the successful conversion of inferred gold resources to mineral reserves, offsetting half of the 2024 mining depletion. There remains another 1.3 million ounces of gold contained in inferred resources in Snow Lake that have the potential to maintain strong annual gold production levels beyond 2030 and further extend the mine life in Snow Lake beyond 2038.
The Snow Lake mineral reserve and resource estimates include the copper-gold WIM deposit, the gold-rich 3 Zone and the zinc-rich Watts, Pen II and Talbot deposits, which have the potential to provide feed for the Stall and New Britannia processing facilities and further extend the life of the Snow Lake operations. Hudbay continues to conduct geophysical and drilling programs on the Snow Lake land package, including the Cook Lake claims and other promising regional targets, as discussed further below.
Current mineral reserves and resources (exclusive of reserves) for Lalor, 1901 and other Snow Lake satellite deposits as of January 1, 2025 are summarized below.
Lalor Mine and 1901 Deposit Mineral Reserve and Resource Estimates1,2,3,4,5,6,7 | Tonnes | Au Grade (g/t) | Zn Grade (%) | Cu Grade (%) | Ag Grade (g/t) | |
Gold Zone Reserves | ||||||
Proven – Lalor | 3,250,000 | 5.3 | 0.72 | 0.62 | 32.6 | |
Proven – 1901 | 102,000 | 2.8 | 1.33 | 1.00 | 19.2 | |
Probable – Lalor | 3,701,000 | 4.3 | 0.32 | 1.02 | 24.5 | |
Probable – 1901 | 51,000 | 1.6 | 0.45 | 1.84 | 5.2 | |
Total Proven and Probable - Gold | 7,103,000 | 4.7 | 0.52 | 0.84 | 28.0 | |
Base Metal Zone Reserves | ||||||
Proven – Lalor | 3,631,000 | 2.7 | 5.17 | 0.38 | 30.7 | |
Proven – 1901 | 1,157,000 | 2.3 | 8.31 | 0.31 | 25.4 | |
Probable – Lalor | 574,000 | 1.6 | 5.05 | 0.28 | 34.4 | |
Probable – 1901 | 274,000 | 0.8 | 11.31 | 0.30 | 28.3 | |
Total Proven and Probable – Base Metal | 5,636,000 | 2.4 | 6.10 | 0.35 | 29.9 | |
Total Gold and Base Metal Zone Reserves | ||||||
Proven and Probable – Lalor | 11,156,000 | 3.9 | 2.26 | 0.66 | 29.4 | |
Proven and Probable – 1901 | 1,584,000 | 2.1 | 8.13 | 0.40 | 24.8 | |
Total Proven and Probable (Gold and Base Metal) | 12,740,000 | 3.7 | 2.99 | 0.62 | 28.8 | |
Gold Zone Resources | ||||||
Inferred – Lalor | 1,953,000 | 4.3 | 0.26 | 2.36 | 14.8 | |
Inferred – 1901 | 1,587,000 | 5.5 | 0.30 | 0.85 | 16.6 | |
Total Inferred - Gold | 3,540,000 | 4.8 | 0.28 | 1.68 | 15.6 | |
Base Metal Zone Resources | ||||||
Inferred – Lalor | 560,000 | 1.7 | 5.45 | 0.39 | 31.7 | |
Inferred – 1901 | 312,000 | 1.6 | 5.87 | 0.19 | 32.2 | |
Total Inferred – Base Metal | 873,000 | 1.7 | 5.60 | 0.32 | 31.9 | |
Total Gold and Base Metal Zone Resources | ||||||
Inferred – Lalor | 2,513,000 | 3.7 | 1.42 | 1.92 | 18.6 | |
Inferred – 1901 | 1,900,000 | 4.8 | 1.22 | 0.74 | 19.1 | |
Total Inferred (Gold and Base Metal) | 4,413,000 | 4.2 | 1.33 | 1.41 | 18.8 |
Note: totals may not add up correctly due to rounding.
1 Mineral resources are exclusive of mineral reserves and do not have demonstrated economic viability.
2 Lalor mineral reserves and resources are estimated using a NSR cut-off ranging from C
3 Individual stope gold grades at Lalor and 1901 were capped at 10 grams per tonne. This capping method resulted in an approximate
4 1901 mineral reserves and resources are estimated using a minimum NSR cut-off of C
5 Mineral resources do not include factors for mining recovery or dilution.
6 Base metal mineral resources are estimated based on the assumption that they would be processed at the Stall concentrator while gold mineral resources are estimated based on the assumption that they would be processed at the New Britannia concentrator.
7 Long-term metal prices of
Snow Lake Regional Deposits - Gold Mineral Reserve and Resource Estimates1,2,3,4,5,6,7 | Tonnes | Au Grade (g/t) | Zn Grade (%) | Cu Grade (%) | Ag Grade (g/t) | |
Probable Reserves | ||||||
WIM | 2,450,000 | 1.6 | 0.25 | 1.63 | 6.3 | |
3 Zone | 660,000 | 4.2 | - | - | - | |
Total Probable (Gold) | 3,110,000 | 2.2 | 0.20 | 1.28 | 5.0 | |
Inferred Resources | ||||||
New Britannia | 2,750,000 | 4.5 | - | - | - | |
Birch | 570,000 | 4.4 | - | - | - | |
Total Inferred (Gold) | 3,320,000 | 4.5 | - | - | - |
Note: totals may not add up correctly due to rounding.
1 Mineral resources are exclusive of mineral reserves and do not have demonstrated economic viability.
2 WIM mineral reserves assume processing recoveries of
3 3 Zone mineral reserves assume processing recoveries of
4 Long-term metal prices of
4 Mineral resources do not include factors for mining recovery or dilution.
6 Gold mineral resources are estimated based on the assumption that they would be processed at the New Britannia concentrator.
7 New Britannia mineral resource estimates have been reported at a minimum true width of 1.5 metres and with a cut-off grade varying from 2 grams per tonne (at the lower part of New Britannia) to 3.5 grams per tonne (at the upper part of New Britannia).
Snow Lake Regional Deposits – Base Metal Mineral Reserve and Resource Estimates1,2,3,4,5,6,7 | Tonnes | Au Grade (g/t) | Zn Grade (%) | Cu Grade (%) | Ag Grade (g/t) | |
Indicated Resources | ||||||
Pen II | 470,000 | 0.3 | 8.89 | 0.49 | 6.8 | |
Talbot | 2,190,000 | 2.1 | 1.79 | 2.33 | 36.0 | |
Total Indicated (Base Metals) | 2,660,000 | 1.8 | 3.04 | 2.01 | 30.9 | |
Inferred Resources | ||||||
Watts | 3,150,000 | 1.0 | 2.58 | 2.34 | 31.0 | |
Pen II | 130,000 | 0.3 | 9.81 | 0.37 | 6.8 | |
Talbot | 2,450,000 | 1.9 | 1.74 | 1.13 | 25.8 | |
Total Inferred (Base Metals) | 5,730,000 | 1.3 | 2.39 | 1.78 | 28.3 |
Note: totals may not add up correctly due to rounding.
1 Mineral resources are exclusive of mineral reserves and do not have demonstrated economic viability.
2 Mineral resources do not include factors for mining recovery or dilution.
3 Base metal mineral resources are estimated based on the assumption that they would be processed at the Stall concentrator.
4 Watts and Pen II mineral resources were initially estimated using metal price assumptions that vary marginally over the assumptions used to estimate mineral resources at Lalor. In the Qualified Person’s opinion, the combined impact of these small variations does not have any impact on the mineral resource estimates.
5 Watts mineral resources are estimated using a minimum NSR cut-off of C
6 Pen II mineral resources are estimated using a minimum NSR cut-off of C
7 The above resource estimates table includes
Snow Lake Exploration Program – Executing Threefold Strategy
Hudbay continues to execute the largest exploration program in Snow Lake in the company’s history through extensive geophysical surveying and multi-phased drilling campaigns as part of its threefold exploration strategy.
1) Near-Mine Exploration to Further Increase Near-term Production and Extend Mine Life
The company is testing mineralized extensions of the Lalor and 1901 deposits to increase mineral reserves and resources, providing near-term production growth and long-term mine life extension potential.
1901 Deposit Step-out Drilling Confirms Down Plunge Copper-Gold Extensions
The 2024 drilling activities at the 1901 deposit targeted down plunge extensions of the ore body with five step-out holes drilled beyond the known extent of the mineralization, as shown in the images provided in Figure 2. All five of the step-out holes intersected copper-gold mineralization, including:
- Hole NUX0006 intersected 8.6 metres at 2.6 grams per tonne gold and
1.5% copper - Hole NUX0007 intersected 3.2 metres at 8.3 grams per tonne gold and
1.8% copper - Hole NUX0008 intersected 2.5 metres at 4.4 grams per tonne gold and
14.3% copper
In addition to the copper-gold extensions, a recent drill hole on the face of the 1901 exploration drift, directed towards the planned drift extension, intersected zinc-rich massive sulphides 20 metres earlier than expected. This positive outcome further reinforces the company’s target of achieving first ore from the 1901 deposit in the second quarter of 2025.
Additional exploration drilling is planned for 2025 targeting additional step-out drill holes to potentially extend the ore body and infill drilling to convert inferred mineral resources in the gold lenses to mineral reserves.
Lalor Northwest Drilling Confirms Copper-Gold Mineralized Zones
At Lalor Northwest, follow-up drilling in the second half of 2024 confirmed the potential for a new gold-copper discovery located approximately 400 metres from the existing Lalor underground infrastructure. Several 2024 intersections have helped establish the geometry of this new discovery, including:
- Hole CH2406 intersected 9.3 metres at
3.0% copper and 6.2 grams per tonne gold - Hole CH2408 intersected 3.5 metres at
2.6% copper and 3.8 grams per tonne gold - Hole CH2410 intersected 9.9 metres at
1.4% copper and 1.4 grams per tonne gold - Hole CH2411 intersected 3.7 metres at
1.3% copper and 16.4 grams per tonne gold
The company plans to continue to drill Lalor Northwest in 2025 through a surface drill program that is focused on testing the extent of the mineralization, as shown in Figure 3.
2) Testing Regional Satellite Deposits to Utilize Available Processing Capacity and Increase Production
Hudbay increased its land package by more than
- Talbot – Consolidated
100% ownership of this copper-zinc-gold rich deposit through the Rockcliff acquisition. Rockcliff estimated indicated mineral resources of 2.2 million tonnes at2.3% copper,1.8% zinc and 2.1 grams per tonne gold. - Rail – Acquired through Rockcliff, Hudbay’s 2024 drill program yielded new intersections of high-grade copper-gold mineralization. These results will be combined with historical drilling results on the property to update the geological model and assess its economic potential.
- Pen II – Hudbay consolidated land adjacent to this low tonnage, near surface, high-grade zinc deposit through the Rockcliff acquisition. Rockcliff intersected mineralization down-dip from Hudbay’s deposit and identified a deep geophysical conductive plate.
- Watts – A copper-zinc-rich deposit located near existing powerlines and 100 kilometres by road from the Stall mill. Drilling by Hudbay in 2019 successfully extended the known high-grade copper mineralization.
- 3 Zone – Acquired by Hudbay in 2015, this gold-rich deposit is located three kilometres from the New Britannia mill and is expected come into production after the Lalor deposit is depleted.
- WIM – Acquired by Hudbay in 2018, this copper-gold deposit is located 15 kilometres from the New Britannia mill and is expected to come into production after the Lalor deposit is depleted.
With the recent strong performance from the New Britannia mill operating at above 2,000 tonnes per day, the company has been increasing the amount of Lalor ore sent to New Britannia which has freed up processing capacity at the Stall mill. There is approximately 1,500 tonnes per day of available capacity at the Stall mill which can be utilized by the regional satellite deposits to increase production. The regional satellite deposits also have the potential to extend the life of the Snow Lake operations beyond 2038.
3) Exploring Large Land Package for New Anchor Deposit to Significantly Extend Mine Life
Large Modern Geophysics Program
A majority of the newly acquired Cook Lake and former Rockcliff claims have been untested by modern deep geophysics, which was the discovery method for the Lalor deposit. A large geophysics program is currently underway consisting of surface electromagnetic surveys using cutting-edge techniques that enable the team to detect targets at depths of almost 1,000 metres below surface. Figure 4 outlines the regional geophysics that have been completed to date. The planned geophysics program in 2025 is the largest geophysics program in Hudbay’s history and includes 800 kilometres of ground electromagnetic surveys and an extensive airborne geophysics survey.
Copper Mountain Mine
Hudbay’s
Current mineral reserve estimates at Copper Mountain total 346 million tonnes at
Since acquiring Copper Mountain in June 2023, Hudbay has been focused on advancing operational stabilization and optimization plans, including opening up the mine by re-activating the full mining fleet, adding additional haul trucks, adding additional mining faces, optimizing the ore feed to the plant and implementing plant improvement initiatives that mirror Hudbay's successful processes at Constancia. These investments have successfully increased the total tonnes moved and resulted in stronger mill performance as demonstrated by high mill availability of
In 2025, the planned conversion of the third ball mill to a second SAG mill is anticipated to result in the ramp-up of mill throughput in the second half of the year. The mill throughput is anticipated to ramp up towards 50,000 tonnes per day in 2026. Annual production at the British Columbia operations is expected to average approximately 44,000i tonnes of copper and 28,600i ounces of gold over the next three years.
Current mineral reserves and resources (exclusive of reserves) for Copper Mountain as of January 1, 2025 are summarized below.
Copper Mountain Mine Mineral Reserve and Resource Estimates1,2,3,4,5,6 | Tonnes | Cu Grade (%) | Au Grade (g/t) | Ag Grade (g/t) | |
Reserves | |||||
Proven | 172,900,000 | 0.269 | 0.124 | 0.72 | |
Probable | 173,100,000 | 0.222 | 0.109 | 0.62 | |
Total proven and probable | 346,000,000 | 0.245 | 0.116 | 0.67 | |
Resources | |||||
Measured | 31,900,000 | 0.213 | 0.092 | 0.72 | |
Indicated | 92,800,000 | 0.209 | 0.109 | 0.66 | |
Total measured and indicated | 124,700,000 | 0.210 | 0.105 | 0.68 | |
Inferred | 372,200,000 | 0.250 | 0.128 | 0.60 |
Note: totals may not add up correctly due to rounding.
1 Mineral resource estimates are exclusive of mineral reserves. Mineral resources are not mineral reserves as they do not have demonstrated economic viability.
2 Mineral reserves are estimated using a
3 Long term metal prices of
4 Mineral resource estimate tonnes and grades constrained to a Lerch Grossman revenue factor 1 pit shell.
5 Mineral resources are estimated using
6 Mineral reserve and resource estimates presented on a
3-Year Production Outlook
Hudbay has affirmed its 2025 production guidance as issued on February 19, 2025, and has issued new 2026 and 2027 production guidance in connection with updated life-of-mine models to support annual reserves and resource estimates. Consolidated copper production over the next three years is expected to average 144,000i tonnes, representing an increase of
Peru’s three-year production guidance reflects stable copper production of approximately 88,000i tonnes per year, as the depletion of higher copper grades from Pampacancha in 2025 is offset by higher expected throughput levels in 2026 and 2027 with mill improvement projects, including the installation of a pebble crusher. Total mill ore feed from Pampacancha is expected to be approximately
Manitoba’s three-year production guidance reflects continued strong gold production levels averaging 193,000i ounces per year. The impressive operating performance has resulted in 2025 gold production guidance being
British Columbia’s three-year production guidance reflects sequentially higher annual copper production averaging 44,000i tonnes per year, a
3-Year Production Outlook Contained Metal in Concentrate and Doré1 | 2025 Guidance | 2026 Guidance | 2027 Guidance | |
Peru | ||||
Copper | tonnes | 80,000 - 97,000 | 76,000 - 100,000 | 76,000 - 100,000 |
Gold | ounces | 49,000 - 60,000 | 16,000 - 21,000 | 17,000 - 23,000 |
Silver | ounces | 2,475,000 - 3,025,000 | 1,610,000 - 2,070,000 | 1,415,000 - 1,915,000 |
Molybdenum | tonnes | 1,300 - 1,500 | 1,300 - 1,500 | 1,400 - 1,800 |
Manitoba | ||||
Gold | ounces | 180,000 - 220,000 | 170,000 - 210,000 | 170,000 - 210,000 |
Zinc | tonnes | 21,000 - 27,000 | 21,000 - 25,000 | 21,000 - 27,500 |
Copper | tonnes | 9,000 - 11,000 | 11,000 - 13,000 | 12,000 - 14,000 |
Silver | ounces | 800,000 - 1,000,000 | 750,000 - 950,000 | 1,000,000 - 1,200,000 |
British Columbia2 | ||||
Copper | tonnes | 28,000 - 41,000 | 30,000 - 45,000 | 50,000 - 70,000 |
Gold | ounces | 18,500 - 28,000 | 20,000 - 30,000 | 30,000 - 45,000 |
Silver | ounces | 245,000 - 365,000 | 230,000 - 345,000 | 455,000 - 680,000 |
Total | ||||
Copper | tonnes | 117,000 - 149,000 | 117,000 - 158,000 | 138,000 - 184,000 |
Gold | ounces | 247,500 - 308,000 | 206,000 - 261,000 | 217,000 - 278,000 |
Zinc | tonnes | 21,000 - 27,000 | 21,000 - 25,000 | 21,000 - 27,500 |
Silver | ounces | 3,520,000 - 4,390,000 | 2,590,000 - 3,365,000 | 2,870,000 - 3,795,000 |
Molybdenum | tonnes | 1,300 - 1,500 | 1,300 - 1,500 | 1,400 - 1,800 |
1 Metal reported in concentrate and doré is prior to smelting and refining losses or deductions associated with smelter terms. 2 Represents |
Copper World Project
The
In September 2023, Hudbay released its enhanced pre-feasibility study (“PFS”) for Copper World reflecting the results of further technical work on Phase I of the project. Phase I has a mine life of 20 years, which is four years longer than the Phase I mine life that was presented in the PEA, largely due to an increase in the capacity for tailings and waste deposition as a result of optimizing the site layout. Phase II is expected to involve an expansion on to federal lands with a significantly longer mine life and enhanced project economics. Phase II would be subject to the federal permitting process and was not included in the PFS results.
Hudbay has received all three key state permits required for Copper World development and operation:
- Mined Land Reclamation Plan – Completed – the Mined Land Reclamation Plan was initially approved by the Arizona State Mine Inspector in October 2021 and was subsequently amended and approved to reflect a larger private land project footprint. This approval was challenged in state court, but the challenge was dismissed in May 2023.
- Aquifer Protection Permit – Completed – the Aquifer Protection Permit was received on August 29, 2024 from the ADEQ following a robust process that included detailed analysis by the agency and Hudbay, along with a public comment period that was completed in the second quarter of 2024.
- Air Quality Permit – Completed – the Air Quality Permit was received on January 2, 2025 from the ADEQ following a similarly robust process, including a public comment period that concluded in the third quarter of 2024. An administrative appeal was filed by certain opponents in late January, as expected, and the company is confident the permit will be upheld, similar to the project’s other state-level permits.
Based on the PFS, Phase I contemplates average annual copper production of 85,000 tonnes over a 20-year mine life, at average cash costsii and sustaining cash costsii of
At a copper price of
Copper World is one of the highest-grade open pit copper projects in the Americas with proven and probable mineral reserves of 385 million tonnes at
Current mineral reserves and resources (exclusive of reserves) for the Copper World project as of January 1, 2025 are summarized below.
Copper World Project Mineral Reserve and Resource Estimates1,2,3,4,5,6,7 | Tonnes | Cu Grade (%) | Soluble Cu Grade (%) | Mo Grade (g/t) | Au Grade (g/t) | Ag Grade (g/t) |
Reserves | ||||||
Proven | 319,400,000 | 0.54 | 0.11 | 110 | 0.03 | 5.7 |
Probable | 65,700,000 | 0.52 | 0.14 | 96 | 0.02 | 4.3 |
Total Proven and Probable Reserves | 385,100,000 | 0.54 | 0.12 | 108 | 0.02 | 5.4 |
Resources – Flotation | ||||||
Measured | 424,000,000 | 0.39 | 0.04 | 150 | 0.02 | 4.1 |
Indicated | 191,000,000 | 0.36 | 0.06 | 125 | 0.02 | 3.5 |
Total Measured and Indicated (Flotation) | 615,000,000 | 0.38 | 0.05 | 142 | 0.02 | 3.9 |
Inferred | 192,000,000 | 0.35 | 0.07 | 117 | 0.01 | 3.1 |
Resources – Leach | ||||||
Measured | 159,000,000 | 0.28 | 0.20 | - | - | - |
Indicated | 70,000,000 | 0.26 | 0.20 | - | - | - |
Total Measured and Indicated (Leach) | 229,000,000 | 0.27 | 0.20 | - | - | - |
Inferred | 83,000,000 | 0.26 | 0.19 | - | - | - |
Total Measured and Indicated | 844,000,000 | 0.35 | 0.09 | 104 | 0.01 | 2.9 |
Total Inferred | 275,000,000 | 0.32 | 0.11 | 82 | 0.01 | 2.2 |
Note: totals may not add up correctly due to rounding.
1 Mineral resource estimates are exclusive of mineral reserves. CIM definitions were followed for the estimation of mineral resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
2 Long term metal prices of
3 Mineral reserve estimates are limited to the portion of the measured and indicated resource estimates scheduled for milling and included in the financial model of the Copper World PFS.
4 Long-term metals prices of
5 Mineral resources are constrained within a computer-generated pit using the Lerchs-Grossman algorithm.
6 Mineral resource estimates were reported using a
7 Estimate of the mineral reserve does not account for marginal amounts of historical small-scale operations in the area that occurred between 1870 and 1970 and is estimated to have extracted approximately 200,000 tonnes, which is within rounding approximations of the current reserve estimates.
Mason Project
The Mason project is a
The Mason PEA was completed in April 2021 and contemplates a 27-year mine life with average annual copper production of approximately 140,000 tonnes over the first ten years of full production. At a copper price of
Since 2021, the company has completed exploration activities at Mason, while continuing to focus on local stakeholder engagement. The company is advancing additional metallurgical studies with the objective of further enhancing the project economics.
Current mineral resource estimates for Mason as of January 1, 2025 are summarized below.
Mason Project Mineral Resource Estimates1,2,3,4,5 | Tonnes | Cu Grade (%) | Mo Grade (g/t) | Au Grade (g/t) | Ag Grade (g/t) | |
Measured | 1,417,000,000 | 0.29 | 59 | 0.031 | 0.66 | |
Indicated | 801,000,000 | 0.30 | 80 | 0.025 | 0.57 | |
Total Measured and Indicated | 2,219,000,000 | 0.29 | 67 | 0.029 | 0.63 | |
Inferred | 237,000,000 | 0.24 | 78 | 0.033 | 0.73 |
Note: totals may not add up correctly due to rounding.
1 Mineral resource estimates that are not mineral reserves do not have demonstrated economic viability.
2 Mineral resource estimates do not include factors for mining recovery or dilution.
3 Metal prices of
4 Mineral resources are estimated using a minimum NSR cut-off of
5 Mineral resources are based on resource pit designs containing measured, indicated, and inferred mineral resources.
Llaguen Project
The Llaguen project is a
After completing an initial mineral resource estimate in November 2022, Hudbay initiated preliminary technical studies, including metallurgical test work as well as geotechnical and hydrogeological studies, which are expected to be incorporated into a preliminary economic assessment for the Llaguen project. Additional exploration drilling is warranted on the Llaguen property to test the areas of the deposit that remain open and the several untested geophysical targets in the area to fully define the regional extent of the mineralization. The current mineral resource is also surrounded by a large halo of low grade hypogene copper mineralization, not currently included in the mineral resource estimate, but for which metallurgical test work could assess the potential for economic sulfide heap leaching via commercially available technologies.
Current mineral resource estimates for Llaguen as of January 1, 2025 are summarized below.
Llaguen Mineral Resource Estimates1,2,3,4,5,6 | Metric Tonnes | Cu (%) | Mo (g/t) | Au (g/t) | Ag (g/t) | CuEq (%) |
Indicated Global (>= | 271,000,000 | 0.33 | 218 | 0.033 | 2.04 | 0.42 |
Including Indicated High-grade (>= | 113,000,000 | 0.49 | 261 | 0.046 | 2.73 | 0.60 |
Inferred Global (>= | 83,000,000 | 0.24 | 127 | 0.024 | 1.47 | 0.30 |
Including Inferred High-grade (>= | 16,000,000 | 0.45 | 141 | 0.038 | 2.60 | 0.52 |
Note: totals may not add up correctly due to rounding.
1 CIM definitions were followed for the estimation of mineral resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
2 Mineral resources are reported within an economic envelope defined by a pit shell optimization algorithm. This pit shell is defined by a revenue factor of 0.33 assuming operating costs adjusted from Hudbay’s Constancia open pit operation.
3 Long-term metal prices of
4 Metal recovery estimates assume that this mineralization would be processed at a combination of facilities, including copper and molybdenum flotation.
5 Copper-equivalent (“CuEq”) grade is calculated assuming
6 Specific gravity measurements were estimated by industry standard laboratory measurements.
Flin Flon Opportunities
Unlocking Value Through Tailings Reprocessing
Hudbay is advancing studies to evaluate the opportunity to reprocess Flin Flon tailings where more than 100 million tonnes of tailings have been deposited for over 90 years from the mill and the zinc plant. The studies are evaluating the potential to use the existing Flin Flon concentrator, which is currently on care and maintenance after the closure of the 777 mine in 2022, with flow sheet modifications to reprocess tailings to recover critical minerals and precious metals while creating environmental and social benefits for the region. The company is completing metallurgical test work and an early economic study to evaluate the tailings reprocessing opportunity.
- Zinc plant tailings – Hudbay operated a hydrometallurgical zinc facility where high grade critical minerals and precious metals were deposited for more than 25 years. Metallurgical test work continues following positive results from the initial confirmatory drill program completed in 2024. The results confirmed the grades of precious metals and critical minerals previously estimated from historical zinc plant records. An early economic study to evaluate the opportunity to reprocess the zinc plant tailings has confirmed the potential for a technically viable reprocessing alternative, and further engineering work is underway.
- Mill tailings – Initial confirmatory drilling completed in 2022 indicated higher zinc, copper and silver grades than predicted from historical mill records while confirming the historical gold grade. The tailings reprocessing opportunity is expected to reduce acid-generating properties of the tailings, which would improve the environmental impacts through higher quality water in the tailings facility and reduce the need for long-term water treatment. In 2023, Hudbay advanced metallurgical test work and evaluated metallurgical technologies, including the signing of a test work co-operation agreement with Cobalt Blue Holdings (“COB”) examining the use of COB technology to treat Flin Flon mill tailings. Initial results from preliminary roasting test work were encouraging in converting more than
90% of pyrite into pyrrhotite and low-carbon sulphur, and the project has been advanced to the next stage of testing.
Marubeni Flin Flon Exploration Partnership
In March 2024, Hudbay entered into an option agreement with Marubeni Corporation (“Marubeni”), pursuant to which Hudbay granted Marubeni an option to acquire a
Qualified Person and NI 43-101
The technical and scientific information in this news release related to the Constancia mine, Snow Lake operations and Copper World project has been approved by Olivier Tavchandjian, P. Geo., Senior Vice President, Exploration and Technical Services. The technical and scientific information in this news release related to the Copper Mountain mine has been approved by Marc-Andre Brulotte, P. Geo., Director, Global Exploration and Resource Evaluation. Messrs. Tavchandjian and Brulotte are qualified persons pursuant to NI 43‑101 (as defined below). Additional details on the company’s material mineral properties, including a year-over-year reconciliation of reserves and resources, are included in Hudbay's Annual Information Form for the year ended December 31, 2024 (the “AIF”), which will be filed today on SEDAR+ at www.sedarplus.ca.
The Mason PEA is preliminary in nature, includes inferred resources that are considered too speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty the preliminary economic assessments will be realized.
Supplemental Information for 1901 Drill Holes
1901 Deposit 2024 Drill Hole ID1,2 | From (m) | To (m) | Intercept (m) | Estimated true width (m) | Cu (%) | Au (g/t) | Ag (g/t) |
NX0004 | 196.0 | 206.0 | 10.0 | 9.7 | 1.76 | 0.67 | 5.49 |
NX0005 | 211.3 | 217.0 | 5.7 | 5.1 | 1.82 | 1.38 | 6.37 |
NX0006_top | 213.5 | 217.0 | 3.5 | 2.8 | nil | 11.26 | 3.74 |
NX0006_bottom | 241.0 | 251.8 | 10.8 | 8.6 | 1.45 | 2.57 | 5.17 |
NX0007 | 218.0 | 221.4 | 3.4 | 3.2 | 1.75 | 8.33 | 7.75 |
NX0008 | 215.2 | 217.7 | 2.5 | 2.5 | 14.29 | 4.39 | 48.12 |
Notes:
1. True widths are estimated based on drill angle and intercept geometry of mineralization.
2. All copper, gold and silver values are uncut.
1901 Deposit 2024 Drill Hole ID | From | To | Azimuth at Intercept | Dip at Intercept | ||||
Easting | Northing | Elevation | Easting | Northing | Elevation | |||
NX0004 | 427,579 | 6,079,305 | -480 | 427,576 | 6,079,304 | -490 | 244.5 | -75.5 |
NX0005 | 427,523 | 6,079,319 | -478 | 427,520 | 6,079,319 | -483 | 266.7 | -64.2 |
NX0006_top | 427,504 | 6,079,381 | -463 | 427,503 | 6,079,382 | -466 | 295.1 | -53.1 |
NX0006_bottom | 427,489 | 6,079,388 | -485 | 427,484 | 6,079,391 | -494 | 295.1 | -53.0 |
NX0007 | 427,557 | 6,079,366 | -496 | 427,556 | 6,079,366 | -499 | 289.6 | -70.5 |
NX0008 | 427,609 | 6,079,335 | -505 | 427,609 | 6,079,335 | -508 | 265.3 | -86.0 |
Supplemental Information for Lalor Northwest Drill Holes
Lalor Northwest 2024 Drill Hole ID1,2 | From (m) | To (m) | Intercept (m) | Estimated True Width (m) | Cu (%) | Au (g/t) | Ag (g/t) |
CH2406 Top | 1115.5 | 1124.8 | 9.3 | 9.3 | 2.96 | 6.2 | 88.5 |
CH2407 Top | 1090.6 | 1095.0 | 4.4 | 4.3 | 1.26 | 0.9 | 17.1 |
CH2408 Top | 1132.5 | 1134.5 | 2.0 | 1.9 | 1.72 | 1.2 | 16.1 |
CH2410 Top | 1214.9 | 1224.8 | 10.0 | 9.9 | 1.41 | 1.4 | 16.4 |
CH2411 Top | 1209.3 | 1213.0 | 3.8 | 3.7 | 1.34 | 16.4 | 13.9 |
CH2416 Top | 1129.9 | 1137.8 | 7.9 | 7.6 | assays pending | ||
CH2406 Bottom | 1165.0 | 1168.0 | 3.0 | 3.0 | 1.21 | 0.93 | 5.8 |
CH2407 Bottom | 1133.2 | 1139.9 | 6.8 | 6.6 | 0.04 | 0.03 | 7.3 |
CH2408 Bottom | 1190.7 | 1194.1 | 3.5 | 3.5 | 2.57 | 3.75 | 29.2 |
CH2410 Bottom | 1267.4 | 1267.6 | 0.2 | 0.2 | 1.34 | 16.40 | 13.9 |
CH2411 Bottom | 1256.6 | 1258.2 | 1.6 | 1.5 | 0.55 | 1.80 | 4.1 |
CH2416 Bottom | 1176.8 | 1179.5 | 2.7 | 2.6 | assays pending |
Notes:
1. True widths are estimated based on drill angle and intercept geometry of mineralization.
2. All copper, gold and silver values are uncut.
Lalor Northwest 2024 Drill Hole ID | From | To | Azimuth at Intercept | Dip at Intercept | ||||
Easting | Northing | Elevation | Easting | Northing | Elevation | |||
CH2406 Top | 426,467 | 6,082,069 | -802 | 426,467 | 6,082,069 | -811 | 347.1 | -85.0 |
CH2407 Top | 426,421 | 6,082,005 | -762 | 426,420 | 6,082,005 | -767 | 265.3 | -79.1 |
CH2408 Top | 426,500 | 6,082,114 | -824 | 426,500 | 6,082,114 | -826 | 267.9 | -86.8 |
CH2410 Top | 426,578 | 6,082,213 | -893 | 426,577 | 6,082,213 | -902 | 265.4 | -86.5 |
CH2411 Top | 426,567 | 6,082,215 | -895 | 426,567 | 6,082,215 | -898 | 280.5 | -88.4 |
CH2416 Top | 426,460 | 6,082,076 | -806 | 426,458 | 6,082,076 | -814 | 256.0 | -75.8 |
CH2406 Bottom | 426,466 | 6,082,073 | -851 | 426,466 | 6,082,073 | -854 | 343.0 | -85.5 |
CH2407 Bottom | 426,413 | 6,082,005 | -804 | 426,412 | 6,082,004 | -811 | 261.6 | -78.9 |
CH2408 Bottom | 426,497 | 6,082,113 | -882 | 426,497 | 6,082,113 | -885 | 228.9 | -86.5 |
CH2410 Bottom | 426,575 | 6,082,213 | -945 | 426,575 | 6,082,213 | -945 | 250.1 | -86.6 |
CH2411 Bottom | 426,566 | 6,082,214 | -942 | 426,566 | 6,082,214 | -944 | 230.6 | -88.1 |
CH2416 Bottom | 426,448 | 6,082,073 | -852 | 426,448 | 6,082,073 | -854 | 253.4 | -75.6 |
Note to United States Investors
This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of United States securities laws. Canadian reporting requirements for disclosure of mineral properties are governed by the Canadian Securities Administrators’ National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”).
For this reason, information contained in this news release containing descriptions of the company’s mineral deposits may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder. For further information on the differences between the disclosure requirements for mineral properties under the United States federal securities laws and NI 43-101, please refer to the company’s AIF, a copy of which will be filed under Hudbay’s profile on SEDAR+ at www.sedarplus.ca and the company’s Form 40-F, a copy of which will be filed under Hudbay’s profile on EDGAR at www.edgar.com.
Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian and United States securities legislation. All information contained in this news release, other than statements of current and historical fact, is forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “budget”, “guidance”, “scheduled”, “estimates”, “forecasts”, “strategy”, “target”, “intends”, “objective”, “goal”, “understands”, “anticipates” and “believes” (and variations of these or similar words) and statements that certain actions, events or results “may”, “could”, “would”, “should”, “might” “occur” or “be achieved” or “will be taken” (and variations of these or similar expressions). All of the forward-looking information in this news release is qualified by this cautionary note.
Forward-looking information includes, but is not limited to, statements with respect to the company’s production, cost and capital and exploration expenditure guidance, expectations regarding reductions in discretionary spending and capital expenditures, Hudbay’s ability to stabilize and optimize the Copper Mountain mine operation, the implementation of stripping strategies and the expected benefits therefrom, the estimated timelines and pre-requisites for sanctioning the Copper World project and the pursuit of a potential minority joint venture partner, the possibility of and expectations regarding the results of any challenges to the permits for the Copper World project, the expected benefits of the sanctioning of Copper World project, the expected benefits of Manitoba growth initiatives, including the use of the exploration drift at the 1901 deposit, the potential utilization of excess capacity at the Stall mill, and the advancement of Hudbay’s exploration partnership with Marubeni, the anticipated use of proceeds from financing transactions, the company’s future deleveraging strategies and its ability to deleverage and repay debt as needed, expectations with respect to the consummation and timing of the MMC Transaction, expectations regarding the company’s cash balance and liquidity, expectations regarding the ability to conduct exploration work and execute on exploration programs on its properties and to advance related drill plans, including the advancement of the exploration program at Maria Reyna and Caballito and the status of the related drill permit application process, the ability to continue mining higher-grade ore in the Pampacancha pit and the company’s expectations resulting therefrom, expectations regarding the company’s ability to further reduce greenhouse gas emissions, Hudbay’s evaluation and assessment of opportunities to reprocess tailings using various metallurgical technologies, expectations regarding the prospective nature of the Maria Reyna and Caballito properties, the anticipated impact of brownfield and greenfield growth projects on the company’s performance, anticipated expansion opportunities and extension of mine life in Snow Lake and the company’s ability to find a new anchor deposit near its Snow Lake operations, anticipated future drill programs and exploration activities and any results expected therefrom, anticipated mine plans, anticipated metals prices and the anticipated sensitivity of the company’s financial performance to metals prices, events that may affect the company’s operations and development projects, anticipated cash flows from operations and related liquidity requirements, the anticipated effect of external factors on revenue, such as commodity prices, estimation of mineral reserves and resources, mine life projections, reclamation costs, economic outlook, government regulation of mining operations, and business and acquisition strategies. Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by the company at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information.
The material factors or assumptions that Hudbay has identified and were applied in drawing conclusions or making forecasts or projections set out in the forward-looking information include, but are not limited to:
- the ability to achieve production, cost and capital and exploration expenditure guidance;
- no significant interruptions to Hudbay’s operations due to social or political unrest in the regions the company operates, including the navigation of the complex political and social environment in Peru;
- no interruptions to the company’s plans for advancing the Copper World project, including with respect to any challenges to the Copper World permits and/or the pursuit of a potential minority joint venture partner;
- the company’s ability to successfully complete the stabilization and optimization of the Copper Mountain operations, obtain required permits and develop and maintain good relations with key stakeholders;
- the ability to satisfy the conditions to close the MMC Transaction;
- the ability to execute on the company’s exploration plans and to advance related drill plans;
- the ability to advance the exploration program at the Maria Reyna and Caballito properties;
- the success of mining, processing, exploration and development activities;
- the scheduled maintenance and availability of the company’s processing facilities;
- the accuracy of geological, mining and metallurgical estimates;
- anticipated metals prices and the costs of production;
- the supply and demand for metals the company produce;
- the supply and availability of all forms of energy and fuels at reasonable prices;
- no significant unanticipated operational or technical difficulties;
- the execution of the company’s business and growth strategies, including the success of its strategic investments and initiatives;
- the availability of additional financing, if needed;
- the ability to deleverage and repay debt, as needed;
- the ability to complete project targets on time and on budget and other events that may affect the company’s ability to develop its projects;
- the timing and receipt of various regulatory and governmental approvals;
- the availability of personnel for the company’s exploration, development and operational projects and ongoing employee relations;
- maintaining good relations with the employees at the company’s operations;
- maintaining good relations with the labour unions that represent certain of the company’s employees in Manitoba and Peru;
- maintaining good relations with the communities in which the company operates, including the neighbouring Indigenous communities and local governments;
- no significant unanticipated challenges with stakeholders at the company’s various projects;
- no significant unanticipated events or changes relating to regulatory, environmental, health and safety matters;
- no contests over title to the company’s properties, including as a result of rights or claimed rights of Indigenous peoples or challenges to the validity of the company’s unpatented mining claims;
- the timing and possible outcome of pending litigation and no significant unanticipated litigation;
- certain tax matters, including, but not limited to current tax laws and regulations, changes in taxation policies and the refund of certain value added taxes from the Canadian and Peruvian governments; and
- no significant and continuing adverse changes in general economic conditions or conditions in the financial markets (including commodity prices and foreign exchange rates).
The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information may include, but are not limited to, risks related to the failure to effectively complete the stabilization, optimization and expansion of the Copper Mountain mine operations, political and social risks in the regions the company operates, including the navigation of the complex political and social environment in Peru, risks generally associated with the mining industry and the current geopolitical environment, including future commodity prices, the potential implementation or expansion of tariffs, currency and interest rate fluctuations, energy and consumable prices, supply chain constraints and general cost escalation in the current inflationary environment, uncertainties related to the development and operation of the company’s projects, the risk of an indicator of impairment or impairment reversal relating to a material mineral property, risks related to the Copper World project, including in relation to project delivery and financing risks, risks related to the Lalor mine plan, including the ability to convert inferred mineral resource estimates to higher confidence categories, dependence on key personnel and employee and union relations, risks related to political or social instability, unrest or change, risks in respect of Indigenous and community relations, rights and title claims, operational risks and hazards, including the cost of maintaining and upgrading the company’s tailings management facilities and any unanticipated environmental, industrial and geological events and developments and the inability to insure against all risks, failure of plant, equipment, processes, transportation and other infrastructure to operate as anticipated, compliance with government and environmental regulations, including permitting requirements and anti-bribery legislation, depletion of the company’s reserves, volatile financial markets and interest rates that may affect the company’s ability to obtain additional financing on acceptable terms, the failure to obtain required approvals or clearances from government authorities on a timely basis, uncertainties related to the geology, continuity, grade and estimates of mineral reserves and resources, and the potential for variations in grade and recovery rates, uncertain costs of reclamation activities, the company’s ability to comply with its pension and other post-retirement obligations, the company’s ability to abide by the covenants in its debt instruments and other material contracts, tax refunds, hedging transactions, as well as the risks discussed under the heading “Risk Factors” in the company’s most recent Annual Information Form and under the heading “Financial Risk Management” in the company’s management’s discussion and analysis for the year ended December 31, 2024.
Should one or more risk, uncertainty, contingency or other factor materialize or should any factor or assumption prove incorrect, actual results could vary materially from those expressed or implied in the forward-looking information. Accordingly, you should not place undue reliance on forward-looking information. Hudbay does not assume any obligation to update or revise any forward-looking information after the date of this news release or to explain any material difference between subsequent actual events and any forward-looking information, except as required by applicable law.
About Hudbay
Hudbay (TSX, NYSE: HBM) is a copper-focused critical minerals company with three long-life operations and a world-class pipeline of copper growth projects in tier-one mining jurisdictions of Canada, Peru and the United States.
Hudbay’s operating portfolio includes the Constancia mine in Cusco (Peru), the Snow Lake operations in Manitoba (Canada) and the Copper Mountain mine in British Columbia (Canada). Copper is the primary metal produced by the company, which is complemented by meaningful gold production and by-product zinc, silver and molybdenum. Hudbay’s growth pipeline includes the Copper World project in Arizona (United States), the Mason project in Nevada (United States), the Llaguen project in La Libertad (Peru) and several expansion and exploration opportunities near its existing operations.
The value Hudbay creates and the impact it has is embodied in its purpose statement: “We care about our people, our communities and our planet. Hudbay provides the metals the world needs. We work sustainably, transform lives and create better futures for communities.” Hudbay’s mission is to create sustainable value and strong returns by leveraging its core strengths in community relations, focused exploration, mine development and efficient operations.
For further information, please contact:
Candace Brûlé
Vice President, Investor Relations, Financial Analysis and External Communications
(416) 814-4387
investor.relations@hudbay.com
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i Calculated using the mid-point of the annual guidance range. All production estimates reflect the Copper Mountain mine on a
ii Cash costs and sustaining cash costs are non-GAAP financial performance measures with no standardized definition under IFRS. For further details on why Hudbay believes cash costs are a useful performance indicator, please refer to the company's most recent management's discussion and analysis for the period ended December 31, 2024.
Figure 1: Hudbay’s Satellite Properties Near Constancia in Peru
The highly prospective Maria Reyna property and the past producing Caballito property are located within trucking distance of the Constancia processing infrastructure and have the potential to host satellite mineral deposits. Surface mapping and geochemical sampling confirm that both Caballito and Maria Reyna host sulfide and oxide rich copper mineralization in skarns, hydrothermal breccias and large porphyry intrusive bodies. Drill permitting was initiated after a surface rights exploration agreement was signed in 2022, and Hudbay expects the drill permitting process to be completed in 2025.
Figure 2: 1901 Step-out Drilling from Exploration Drift Intersected Copper-gold Mineralization
The 1901 deposit is located within 1,000 metres of the existing underground ramp at the Lalor mine in Snow Lake. The deposit consists of a series of zinc and gold-rich lenses that were defined by drilling and pre-feasibility studies conducted over the 2019 to 2021 period. In early 2024, the company commenced the development of an access drift from the existing Lalor ramp and completed step-out drilling in the second half of 2024. All five step-out holes intersected copper-gold mineralization and follow-up drilling is underway in 2025. Infill drilling is also planned for 2025 to convert the gold inferred mineral resources to mineral reserves.
Figure 3: Lalor Northwest Drilling Continued to Intersect Copper-Gold Mineralization
Following up on promising results from 2023 and early 2024, additional drilling at the Lalor Northwest zone was completed in the second half of 2024 and continued to intersect copper-gold mineralization. A winter surface drill program is planned for 2025 with five holes testing the extent of the mineralization.
Figure 4: Regional Snow Lake Satellite Deposits
Hudbay increased its land package in Snow Lake by
Figures accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/93b604b5-7dfd-40e2-9ce0-6b6cfa2abbd2
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https://www.globenewswire.com/NewsRoom/AttachmentNg/0efdff1c-b0b1-4e81-a85d-a977ba41db82
