Hudbay Minerals Inc. (“Hudbay” or the “company”)
(TSX:HBM) (NYSE:HBM) announced that it has filed an updated
National Instrument 43-101 technical report in respect of its 100%
owned Constancia mine in Peru (the “2018 Technical Report”). The
2018 Technical Report includes updates to the mineral reserves and
resources and mine plan, including anticipated throughput,
recoveries and capital and operating costs for the remaining life
of mine at Constancia. The company has also provided its annual
mineral reserve and resource update for its producing properties.
All dollar amounts are in US dollars, unless otherwise noted.
Summary:
- Twin hole drilling in the Constancia pit has confirmed the
existence of a sampling bias in the supergene mineralization, which
once corrected and combined with an update of the resource model of
the deposit can explain the persistent positive copper grade bias
that has been experienced since the commencement of mining at
Constancia and the metallurgical recoveries achieved to date
- The mine plan contemplates average annual production of 105,000
tonnes of copper in concentrate over the next five years
(2019-2023) at an average cash cost, net of by-product credits, of
$1.09 per pound of copper, and an average sustaining cash cost, net
of by-product credits, of $1.38 per pound of copper (including the
impact of capitalized stripping and the precious metal stream
agreement with Wheaton Precious Metals)1
- Compared to the company’s previous technical report on
Constancia, which was filed in 2016, anticipated copper production
will increase by 25% in years 2022 through 2025
- Forecast life-of-mine (“LOM”)2 average copper recoveries of
86%, with approximately $35 million of capital spending planned for
2019 to support enhancements in recoveries, alongside ongoing work
to optimize process recoveries
- Mining of Pampacancha is now scheduled to begin in 2019
- Permitting and community relations work is ongoing to support
exploration work on the Caballito, Maria Reyna and Kusiorcco
properties near Constancia that Hudbay announced the acquisition of
in January 2018
1 Cash cost and all-in sustaining cash cost, net
of by-product credits per pound of copper are not recognized under
IFRS. By-product credits are calculated using reserve prices of
$11.00 per pound molybdenum, $18.00 per ounce silver, $1,260 per
ounce gold and include the impact of the precious metals streams
and capitalized stripping. Sustaining cash cost excludes
Pampacancha project capital. For a detailed description of each of
these non-IFRS financial performance measures, please see the
discussion under "Non-IFRS Financial Performance Measures" on page
6 of this news release.2 Life-of-mine average calculated from
2018-2036.
Constancia Mine
A summary of the updated mine plan is shown
below.
|
Units |
2019E |
2020E |
2021E |
2022E |
2023E |
|
5 Year Average |
LOM Average1 |
Mine Plan Summary |
|
|
|
|
Ore mined |
million tonnes |
|
37.7 |
|
|
34.0 |
|
|
27.6 |
|
|
28.6 |
|
|
33.6 |
|
|
|
32.3 |
|
|
30.8 |
|
Waste mined |
million tonnes |
|
32.5 |
|
|
32.0 |
|
|
38.1 |
|
|
39.5 |
|
|
35.4 |
|
|
|
35.5 |
|
|
33.7 |
|
Strip ratio |
waste:ore |
|
0.9 |
|
|
0.9 |
|
|
1.4 |
|
|
1.4 |
|
|
1.1 |
|
|
|
1.1 |
|
|
1.1 |
|
Ore milled |
million tonnes |
|
31.3 |
|
|
31.2 |
|
|
31.1 |
|
|
31.1 |
|
|
31.2 |
|
|
|
31.2 |
|
|
31.0 |
|
Copper grade milled |
% Cu |
|
0.41 |
% |
|
0.39 |
% |
|
0.39 |
% |
|
0.39 |
% |
|
0.39 |
% |
|
|
0.40 |
% |
|
0.32 |
% |
Copper recovery |
% Cu |
|
84.6 |
% |
|
85.9 |
% |
|
86.0 |
% |
|
86.1 |
% |
|
85.7 |
% |
|
|
85.7 |
% |
|
86.0 |
% |
Copper concentrate produced |
thousand dry metric tonnes |
|
433 |
|
|
408 |
|
|
390 |
|
|
393 |
|
|
401 |
|
|
|
405 |
|
|
338 |
|
Molybdenum concentrate produced |
thousand dry metric tonnes |
|
1.4 |
|
|
4.5 |
|
|
5.3 |
|
|
2.8 |
|
|
3.3 |
|
|
|
3.5 |
|
|
2.2 |
|
Copper production2 |
thousand tonnes |
|
109 |
|
|
106 |
|
|
105 |
|
|
105 |
|
|
103 |
|
|
|
105 |
|
|
84 |
|
Molybdenum production2 |
thousand tonnes |
|
0.7 |
|
|
2.2 |
|
|
2.7 |
|
|
1.4 |
|
|
1.6 |
|
|
|
1.7 |
|
|
1.1 |
|
Gold production2 |
thousand oz |
|
39 |
|
|
78 |
|
|
84 |
|
|
91 |
|
|
57 |
|
|
|
70 |
|
|
34 |
|
Silver production2 |
thousand oz |
|
2,492 |
|
|
2,074 |
|
|
2,483 |
|
|
2,500 |
|
|
2,663 |
|
|
|
2,442 |
|
|
2,102 |
|
Total on-site costs (excluding impact of capitalized
stripping)3 |
$/t milled |
$ |
8.67 |
|
$ |
8.82 |
|
$ |
8.78 |
|
$ |
8.68 |
|
$ |
8.70 |
|
|
$ |
8.73 |
|
$ |
8.48 |
|
Total on-site costs (including impact of capitalized
stripping)3 |
$/t milled |
$ |
8.41 |
|
$ |
8.34 |
|
$ |
8.11 |
|
$ |
8.34 |
|
$ |
7.98 |
|
|
$ |
8.24 |
|
$ |
7.96 |
|
Cash Cost4 |
|
|
|
|
Cash cost |
$/lb Cu |
$ |
1.29 |
|
$ |
1.05 |
|
$ |
0.94 |
|
$ |
1.06 |
|
$ |
1.12 |
|
|
$ |
1.09 |
|
$ |
1.44 |
|
Sustaining cash cost |
$/lb Cu |
$ |
1.66 |
|
$ |
1.44 |
|
$ |
1.11 |
|
$ |
1.22 |
|
$ |
1.45 |
|
|
$ |
1.38 |
|
$ |
1.75 |
|
Capital Expenditures |
|
|
|
|
Sustaining capital |
$ million |
$ |
80 |
|
$ |
75 |
|
$ |
15 |
|
$ |
25 |
|
$ |
52 |
|
|
$ |
49 |
|
$ |
41 |
|
Capitalized stripping |
$ million |
$ |
8 |
|
$ |
15 |
|
$ |
21 |
|
$ |
10 |
|
$ |
22 |
|
|
$ |
15 |
|
$ |
16 |
|
Total sustaining capital (including capitalized stripping) |
$ million |
$ |
88 |
|
$ |
90 |
|
$ |
36 |
|
$ |
35 |
|
$ |
74 |
|
|
$ |
65 |
|
$ |
57 |
|
Pampacancha capital |
$ million |
$ |
42 |
|
$ |
1 |
|
$ |
1 |
|
$ |
0 |
|
$ |
0 |
|
|
$ |
9 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals may not add up correctly due to
rounding.1 Life-of-mine average calculated from 2018-2036.2
Production refers to contained metal in concentrate.3 On-site costs
include mining, milling and G&A costs.4 Cash cost and
sustaining cash cost are reported net of by-product credits, are
calculated at reserve prices ($3.00 per pound copper, $11.00 per
pound molybdenum, $18.00 per ounce silver, $1,260 per ounce gold)
and include the impact of the precious metals stream and
capitalized stripping. Cash cost includes on-site and off-site
costs, and sustaining cash cost includes the addition of royalties
and sustaining capital, but excludes Pampacancha project
capital.
A comparison of anticipated copper production
between the 2018 Technical Report and the previous 2016 technical
report for years 2018 through 2025 and LOM average is below.
Copper production1 (thousand tonnes) |
2018E |
2019E |
2020E |
2021E |
2022E |
2023E |
2024E |
2025E |
LOM Average2 |
2016 Technical Report |
104 |
118 |
107 |
113 |
74 |
81 |
77 |
73 |
81 |
2018 Technical Report |
108 |
109 |
106 |
105 |
105 |
103 |
85 |
89 |
84 |
|
|
|
|
|
|
|
|
|
|
1 Production refers to contained metal in
concentrate.2 Life-of-mine average calculated from 2018-2035 for
the 2016 technical report and from 2018-2036 for the 2018 Technical
Report.
Hudbay completed a twin hole drill program in
the fourth quarter of 2017 that confirmed the extent of the
positive grade bias that has existed since the commencement of
production at Constancia. The company also constructed a new
resource model that formed the basis for a new mine plan and
technical report for Constancia. The 2018 Technical Report includes
an updated mine plan showing an increase to the total metal
contained in the estimated mineral reserves. The new mine plan also
reflects updated throughput, recoveries and capital and operating
cost assumptions for the remaining life of mine at Constancia.
The 2018 Technical Report assumes that mining of
the high-grade Pampacancha satellite deposit will commence in 2019,
which is one year later than contemplated by the previous technical
report. Although negotiations to secure surface rights over the
Pampacancha deposit continue to progress and Hudbay has been
granted access to the land to carry out early-works activities, the
company anticipates a one year delay to mining at Pampacancha. In
the interim, the company will continue to mine higher-grade ore
from the main Constancia pit.
Current mineral reserves and resources for
Constancia as of January 1, 2018 are summarized below.
Constancia Mine Mineral Reserve and Resource
Estimates |
Tonnes |
Cu Grade (%) |
Mo Grade (g/t) |
Au Grade (g/t) |
Ag Grade (g/t) |
Constancia Reserves1 |
|
|
Proven |
|
455,900,000 |
0.30 |
96 |
0.035 |
2.93 |
Probable |
|
72,800,000 |
0.23 |
72 |
0.035 |
3.09 |
Total proven and probable - Constancia |
|
528,700,000 |
0.29 |
93 |
0.035 |
2.95 |
Pampacancha Reserves1 |
|
|
Proven |
|
32,400,000 |
0.59 |
178 |
0.368 |
4.48 |
Probable |
|
7,500,000 |
0.62 |
173 |
0.325 |
5.75 |
Total proven and probable - Pampacancha |
|
39,900,000 |
0.60 |
177 |
0.360 |
4.72 |
Total proven and probable |
|
568,600,000 |
0.32 |
99 |
0.058 |
3.07 |
Constancia Resources2 |
|
|
Measured |
|
175,000,000 |
0.20 |
51 |
0.028 |
2.19 |
Indicated |
|
180,900,000 |
0.20 |
56 |
0.033 |
2.09 |
Inferred |
|
54,100,000 |
0.24 |
43 |
0.018 |
1.71 |
Pampacancha Resources2 |
|
|
Measured |
|
11,400,000 |
0.41 |
101 |
0.245 |
4.95 |
Indicated |
|
6,000,000 |
0.35 |
84 |
0.285 |
5.16 |
Inferred |
|
10,100,000 |
0.14 |
143 |
0.233 |
3.86 |
Total measured and indicated |
|
373,300,000 |
0.21 |
56 |
0.041 |
2.28 |
Total inferred |
|
64,100,000 |
0.22 |
59 |
0.052 |
2.05 |
|
|
|
|
|
|
|
Note: totals may not add up correctly due to
rounding.1 Mineral reserves calculated using metal prices of $3.00
per pound copper, $11.00 per pound molybdenum, $18.00 per ounce
silver, and $1,260 per ounce gold.2 Mineral resources are exclusive
of mineral reserves. Mineral resources calculated using metal
prices of $3.00 per pound copper, $11.00 per pound molybdenum,
$18.00 per ounce silver, and $1,260 per ounce gold.
In January 2018, Hudbay announced the entering
into of the following agreements to acquire mining properties in
southern Peru near its Constancia mine: (i) an option agreement
with a private Peruvian consortium to earn a 100% interest in the
Caballito (formerly Katanga) and Maria Reyna mining properties; and
(ii) an agreement to acquire from Panoro Minerals Ltd. 100% of the
Kusiorcco mining properties.
The Caballito property, located approximately
three kilometers northwest of Constancia, is a 120-hectare
(297-acre) concession block and is the site of the former Katanga
mine, which was operated by Mitsui Mining & Smelting Co., Ltd.
and Minera Katanga at different times between the late 1970s and
early 1990s. The deposit at Caballito consists of narrow skarn
bodies developed in the contact between limestone and monzonite
porphyries with copper, silver and gold mineralization in hypogene
sulfides. Reliable available data over this area is limited to
aeromagnetic and radiometric maps.
The Maria Reyna property, located within ten
kilometers of Constancia, is a 5,850-hectare (14,456-acre)
concession block. In 2010, diamond drilling by a previous optionee
of the Maria Reyna property, intersected copper skarn, breccias and
porphyry mineralization. Geophysical surveys and geological mapping
have also been conducted on the property and Hudbay believes that
the area remains very prospective for additional discoveries.
A summary of the historic drill results from
Maria Reyna is contained in the table below, however a qualified
person has not independently verified this historical data or the
quality assurance and quality control program that was applied
during the execution of this drill program for Hudbay and, as such,
Hudbay cautions that this information should not be relied upon by
investors.
Vale Drill Intersections at 0.2% CuEq1
Cut-off |
Hole ID |
From (m) |
To (m) |
Ag (ppm) |
Cu (%) |
Mo (ppm) |
CuEq % |
Interval (m) |
DH-001 |
206 |
256 |
1.5 |
0.20 |
113 |
0.27 |
50 |
DH-002 |
0 |
136 |
4.1 |
0.52 |
78 |
0.61 |
136 |
DH-003 |
226 |
256 |
1.7 |
0.24 |
122 |
0.31 |
30 |
460 |
480 |
0.3 |
0.19 |
62 |
0.22 |
20 |
DH-004 |
10 |
240 |
3.0 |
0.26 |
124 |
0.35 |
230 |
336 |
486 |
1.5 |
0.18 |
147 |
0.27 |
150 |
502 |
522 |
0.8 |
0.19 |
87 |
0.24 |
20 |
DH-005 |
10 |
76 |
4.8 |
0.63 |
122 |
0.74 |
66 |
DH-006 |
0 |
114 |
4.0 |
0.32 |
112 |
0.41 |
114 |
DH-007 |
0 |
106 |
2.5 |
0.39 |
267 |
0.55 |
106 |
176 |
216 |
1.7 |
0.25 |
280 |
0.41 |
40 |
232 |
310 |
1.0 |
0.17 |
272 |
0.31 |
78 |
DH-008 |
256 |
394 |
1.4 |
0.28 |
130 |
0.36 |
138 |
432 |
519.85 |
1.7 |
0.23 |
209 |
0.36 |
87.85 |
DH-009 |
18 |
90 |
1.7 |
0.28 |
335 |
0.47 |
72 |
110 |
172 |
0.7 |
0.14 |
184 |
0.24 |
62 |
196 |
256 |
0.9 |
0.18 |
106 |
0.24 |
60 |
DH-010 |
262 |
314 |
1.7 |
0.30 |
204 |
0.42 |
52 |
344 |
406 |
2.1 |
0.34 |
641 |
0.68 |
62 |
DH-011 |
18 |
178 |
2.9 |
0.50 |
998 |
1.03 |
160 |
374 |
406 |
1.1 |
0.14 |
175 |
0.24 |
32 |
|
|
|
|
|
|
|
|
Note: The intersections represent core length and are not
representative of the width of the possible mineralised zone. Note:
For additional information, including drill hole locations and the
data verification and quality assurance / quality control carried
out by the prior owner, please refer to Management’s Discussion and
Analysis for Indico Resources Ltd. (“Indico”) for the year ended
May 31, 2014, as filed by Indico on SEDAR on September 29, 2014.1
Intervals were calculated with maximum of 10m of 0.1% CuEq internal
dilution, 0.2% CuEq edge grade, minimum length of 15m. For CuEq
calculations the following variables were used: $3.00/lb Cu,
$15.00/lb Mo, $21.00/oz Ag; no allowances for metallurgical
recoveries were made.
The Kusiorcco property, located within seven
kilometers of Constancia, is a 3,962-hectare (9,790-acre)
concession block nearby the Caballito and Maria Reyna
properties.
Permitting and community relations work is
ongoing to support exploration work on the Caballito, Maria Reyna
and Kusiorcco properties.
Lalor Mine
A decline to access the copper-gold zone at
Lalor commenced in January 2018 and additional detailed technical
work is underway to optimize the mine plan. Test mining of the gold
zone began in February 2018, which will enable a better
understanding of the gold zone characteristics and better inform
the evaluation of options for processing Lalor gold in the future.
The gold ore is currently being shipped to Flin Flon for
processing.
Current mineral reserves and resources,
exclusive of reserves, for Lalor as of January 1, 2018 are
summarized below.
Lalor Mine Mineral Reserve and Resource
Estimates |
Tonnes |
Cu Grade (%) |
Zn Grade (%) |
Au Grade (g/t) |
Ag Grade (g/t) |
Lalor Reserves1 |
|
|
Proven |
|
3,511,000 |
0.73 |
6.21 |
2.37 |
27.18 |
Probable |
|
9,484,000 |
0.65 |
4.31 |
2.72 |
26.03 |
Total proven and probable |
|
12,995,000 |
0.67 |
4.83 |
2.62 |
26.33 |
Lalor Resources – Base Metal
Zone2 |
|
|
Indicated |
|
2,100,000 |
0.49 |
5.34 |
1.69 |
28.10 |
Inferred |
|
545,000 |
0.32 |
8.15 |
1.45 |
22.28 |
Lalor Resources – Gold Zone2 |
|
|
Indicated |
|
1,750,000 |
0.34 |
0.40 |
5.18 |
30.61 |
Inferred |
|
4,121,000 |
0.90 |
0.31 |
5.02 |
27.61 |
|
|
|
|
|
|
|
Note: totals may not add up correctly due to rounding.1 Mineral
reserves calculated using metal prices of $1.07 per pound zinc
(includes premium), $1,260 per ounce gold, $3.00 per pound copper
and $18.00 per ounce of silver, and using a CAD/USD exchange rate
of 1.10.2 Mineral resources calculated using metal prices of $1.19
per pound zinc (includes premium), $1,300 per ounce gold, $18.00
per ounce of silver and $2.67 per pound copper.
777 and Reed Mines
Current mineral reserves and resources for 777
and mineral reserves for Reed as of January 1, 2018 are
summarized below.
777 Mine Mineral Reserve and Resource
Estimates1 |
Tonnes |
Cu Grade (%) |
Zn Grade (%) |
Au Grade (g/t) |
Ag Grade (g/t) |
Mineral Reserves |
|
|
Proven |
|
2,625,000 |
1.78 |
4.20 |
1.70 |
25.97 |
Probable |
|
1,251,000 |
1.11 |
4.33 |
1.82 |
25.41 |
Total proven and probable |
|
3,876,000 |
1.56 |
4.24 |
1.73 |
25.79 |
Mineral Resources2 |
|
|
Indicated |
|
736,000 |
0.99 |
3.53 |
1.82 |
26.24 |
Inferred |
|
673,000 |
1.01 |
4.26 |
1.72 |
30.95 |
|
|
|
|
|
|
|
Note: totals may not add up correctly due to rounding.1 Mineral
reserves and resources calculated using metal prices of $2.67 per
pound copper, $1.24 per pound zinc (includes premium), $1,300 per
ounce gold, and $18.00 per ounce silver, and using a CAD/USD
exchange rate of 1.25.2 Mineral resources are exclusive of mineral
reserves.
Reed Mine Mineral Reserve
Estimates1 |
Tonnes |
Cu Grade (%) |
Zn Grade (%) |
Au Grade (g/t) |
Ag Grade (g/t) |
Mineral Reserves |
|
|
Proven |
|
67,000 |
2.91 |
1.16 |
0.47 |
7.78 |
Probable |
|
209,000 |
3.31 |
0.40 |
0.74 |
6.72 |
Total proven and probable |
|
276,000 |
3.21 |
0.58 |
0.67 |
6.98 |
|
|
|
|
|
|
|
Note: totals may not add up correctly due to rounding.1 Mineral
reserves calculated using metal prices of $2.50 per pound copper,
$1.22 per pound zinc (includes premium), $1,300 per ounce gold, and
$18.00 per ounce silver, and using a CAD/USD exchange rate of
1.28.
The closure of the Reed mine is expected in the
third quarter of 2018. The focus for the 777 mine is maximizing
value as the mine approaches the end of its life.
For additional detail on the Constancia mine,
refer to the 2018 Technical Report, which is available under
Hudbay’s profile on SEDAR at www.sedar.com and will be filed on
EDGAR at www.sec.gov. Additional detail on the Lalor, Rosemont, 777
and Reed properties, including a year-over-year reconciliation of
reserves and resources for all properties, is included in Hudbay's
Annual Information Form for the year ended December 31, 2017, which
is available on SEDAR at www.sedar.com and will be filed on EDGAR
at www.sec.gov.
Non-IFRS Financial Performance
Measures
Cash cost, sustaining and all-in sustaining cash
cost per pound of copper produced are shown because the company
believes they help investors and management assess the anticipated
performance of its operations, including the margin generated by
the operations and the company. These measures do not have a
meaning prescribed by IFRS and are therefore unlikely to be
comparable to similar measures presented by other issuers. These
measures should not be considered in isolation or as a substitute
for measures prepared in accordance with IFRS and are not
necessarily indicative of operating profit or cash flow from
operations as determined under IFRS. Other companies may calculate
these measures differently. For further details on these measures,
including reconciliations to the most comparable IFRS measures,
please refer to page 39 of Hudbay’s management’s discussion and
analysis for the three months and year ended December 31, 2017
available on SEDAR at www.sedar.com and EDGAR at www.sec.gov.
Qualified Person
The scientific and technical information
contained in this news release related to the Constancia mine and
surrounding exploration properties has been approved by Cashel
Meagher, P.Geo., our Senior Vice President and Chief Operating
Officer. The scientific and technical information related to all
other sites and projects contained in this news release has been
approved by Robert Carter, P.Eng., our General Manager Mining
Operations, Manitoba Business Unit. Messrs. Meagher and Carter are
qualified persons pursuant to NI 43-101. For a description of the
key assumptions, parameters and methods used to estimate mineral
reserves and resources, as well as data verification procedures and
a general discussion of the extent to which the estimates of
scientific and technical information may be affected by any known
environmental, permitting, legal title, taxation, sociopolitical,
marketing or other relevant factors, please refer to the 2018
Technical Report as filed by Hudbay on SEDAR at www.sedar.com.
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 may differ materially from the requirements of
United States securities laws applicable to U.S. issuers.
Information concerning the Constancia mine has
been prepared in accordance with the requirements of Canadian
securities laws, which differ in material respects from the
requirements of the Securities and Exchange Commission (the “SEC”)
set forth in Industry Guide 7. Under the SEC’s Industry Guide 7,
mineralization may not be classified as a “reserve” unless the
determination has been made that the mineralization could be
economically and legally produced or extracted at the time of the
reserve determination, and the SEC does not recognize the reporting
of mineral deposits which do not meet the SEC Industry Guide 7
definition of “Reserve”.
In accordance with National Instrument 43-101 –
Standards of Disclosure for Mineral Projects (“NI 43-101”) of the
Canadian Securities Administrators, the terms “mineral reserve”,
“proven mineral reserve”, “probable mineral reserve”, “mineral
resource”, “measured mineral resource”, “indicated mineral
resource” and “inferred mineral resource” are defined in the
Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”)
Definition Standards for Mineral Resources and Mineral Reserves
adopted by the CIM Council on May 10, 2014. While the terms
“mineral resource”, “measured mineral resource”, “indicated mineral
resource” and “inferred mineral resource” are recognized and
required by NI 43-101, the SEC does not recognize them. You are
cautioned that, except for that portion of mineral resources
classified as mineral reserves, mineral resources do not have
demonstrated economic value. Inferred mineral resources have a high
degree of uncertainty as to their existence and as to whether they
can be economically or legally mined. It cannot be assumed that all
or any part of an inferred mineral resource will ever be upgraded
to a higher category. Therefore, you are cautioned not to assume
that all or any part of an inferred mineral resource exists, that
it can be economically or legally mined, or that it will ever be
upgraded to a higher category. Likewise, you are cautioned not to
assume that all or any part of measured or indicated mineral
resources will ever be upgraded into mineral reserves.
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, production, cost and capital expenditure forecasts, the
timing, cost and schedule for the acquisition of Pampacancha
surface rights and the development of the Pampacancha deposit,
reserve and resource estimates and the other information included
in the table entitled “Mine Plan Summary”, prospective information
with respect to the newly acquired exploration properties
surrounding Constancia, anticipated production and recoveries from
the gold zones at Lalor and potential processing solutions, as well
as statements related to, among other things, Hudbay’s objectives,
strategies, and intentions and its future financial and operating
performance. 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 us 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
identified and were applied by Hudbay in drawing conclusions or
making forecasts or projections set out in the forward-looking
information include, but are not limited to, the execution of
Hudbay’s business and growth strategies, including the success of
its strategic investments and initiatives; the availability and
performance of Hudbay’s processing facilities; the acquisition of
the surface rights required to start mining the Pampacancha
deposit; the timing and costs of the closure of the Reed mine; the
availability of additional financing, if needed; the ability to
complete project targets on time and on budget and other events
that may affect Hudbay’s ability to develop its projects; and no
significant and continuing adverse changes in general economic or
social or political conditions or conditions in the financial
markets.
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 generally associated
with the mining industry, such as economic factors (including
future commodity prices, currency fluctuations, energy prices and
general cost escalation), risks related to the schedule for mining
at the Pampacancha deposit (including the timing and cost of
acquiring the required surface rights), risks related to accessing
and carrying out exploration work on the newly acquired exploration
properties surrounding Constancia, risks related to political or
social unrest or change, risks in respect of aboriginal and
community relations, rights and title claims, operational risks and
hazards, including 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
Hudbay’s reserves, volatile financial markets that may affect
Hudbay’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, Hudbay’s
ability to comply with its pension and other post-retirement
obligations, Hudbay’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 Hudbay’s most recent annual information
form.
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, the reader 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:HBM) (NYSE:HBM) is an integrated
mining company primarily producing copper concentrate (containing
copper, gold and silver), zinc concentrate and zinc metal. With
assets in North and South America, the company is focused on the
discovery, production and marketing of base and precious metals.
Directly and through its subsidiaries, Hudbay owns four
polymetallic mines, four ore concentrators and a zinc production
facility in northern Manitoba and Saskatchewan (Canada) and Cusco
(Peru), and a copper project in Arizona (United States). The
company’s growth strategy is focused on the exploration and
development of properties it already controls, as well as other
mineral assets it may acquire that fit its strategic criteria.
Hudbay’s vision is to be a responsible, top-tier operator of
long-life, low-cost mines in the Americas. Hudbay’s mission is to
create sustainable value through the acquisition, development and
operation of high-quality, long-life deposits with exploration
potential in jurisdictions that support responsible mining, and to
see the regions and communities in which the company operates
benefit from its presence. The company is governed by the Canada
Business Corporations Act and its shares are listed under the
symbol "HBM" on the Toronto Stock Exchange, New York Stock Exchange
and Bolsa de Valores de Lima. Hudbay also has warrants listed under
the symbol “HBM.WT” on the Toronto Stock Exchange and “HBM/WS” on
the New York Stock Exchange.
For further information, please contact:
Carla NawrockiDirector, Investor Relations(416)
362-7362carla.nawrocki@hudbay.com
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