- Hudbay intersects 35.6 metres
of 5.21% Zn, 0.33% Cu, 1.37g/t Au and 15.7g/t Ag, including 4.6
metres of 20.76% Zn and 6.2 metres of 6.34g/t
Au
Hudbay Minerals Inc. (“Hudbay” or the “company”) (TSX,
NYSE:HBM) today announced the discovery of 35.6 metres of
high-grade mineralization including both zinc-rich massive sulfides
and gold. This deposit is located between the old Chisel North mine
and the producing Lalor mine at a down hole depth between 540.7 and
576.3 metres. The property is 100% owned by Hudbay and free of any
encumbrances.
“These zinc-rich and gold-rich intersections
highlight the ever prospective nature of the Flin Flon greenstone
belt and demonstrate the value of our Manitoba assets,” said Alan
Hair, Hudbay’s president and chief executive officer. “The
discovery of these new zones within close proximity to our existing
infrastructure and at shallow depth aligns very well with our
Manitoba strategy and is another example of leveraging our
exploration expertise to realize additional value. We look forward
to continuing to drill this new discovery, while advancing
exploration activities in the gold and copper-gold zones at Lalor
and in the broader Snow Lake camp as we pursue our strategy over
the next several years to maximize the value of our Manitoba assets
and extend both base metal and gold production at Lalor beyond its
current mine life,” said Mr. Hair.
The drill hole intersections occurred less than
1,000 metres from the existing active ramp between Chisel North and
Lalor, within trucking distance to surface and the crushing station
at Chisel North, and within 15 kilometres of the Stall concentrator
in Snow Lake, Manitoba (please see Figure 1). The mineralization
was discovered by following up-dip a favorable plane with discrete
copper-gold rich feeder intersections from drilling completed in
2011 and 2012 by Hudbay in holes CH1101, CH1201 and CH1203. The
plane of the mineralization is interpreted to dip at approximately
20 degrees to the northeast (please see Figures 2 and 3).
Drill hole CH1901, completed in February 2019,
intersected a series of mineralized lenses including a new zone of
high-grade zinc mineralization, a rich footwall gold zone and a
third thick zone of stringers and disseminated sulfides with zinc
mineralization. The mineralized zones occur along the hanging wall
contact of the stratigraphic horizon hosting the Chisel North
deposit (please see Figure 2 and Figure 3). The Chisel North
deposit was mined from 2000 to 2012 and produced a total of 3.3
million tonnes at 9.0% zinc.
Drill hole CH1901 assayed 20.76% Zn, 0.20% Cu,
0.56g/t Au and 24.2g/t Ag over 4.6 metres from 540.7 to 545.3
metres. Located approximately 10 metres below the high-grade zinc
lens, a high-grade gold zone was also intersected from 554.4 to
560.6 metres assaying 6.34 g/t Au, 0.70% Cu, 1.21% Zn, and 38.9g/t
Ag. Immediately below the gold zone, another thick lens of zinc
mineralization was also intersected from 561.6 to 576.3 metres
assaying 4.38% Zn, 0.37% Cu, 0.26g/t Au and 8.2g/t Ag.
Drill hole CH1902, also completed in February
2019, intersected 6.1 metres of massive sulfide with visual
estimates of approximately 50% sphalerite from 601.7 to 607.8
metres. This second drill hole intersection is located
approximately 100 metres from the CH1901 intersection in the
general interpreted up-dip plane of the mineralization but in a
lower position, as shown in Figure 3. This lower relative position
in CH1902 may be related to folding, faulting or a change in
orientation of the sulfide lens. Alternatively, the intersection in
CH1902 could represent a different lens. Confirmation of the
presence of any gold mineralization requires completion of assays,
which are pending.
Hole ID |
From |
To |
Intercept |
Depth |
Zn |
Cu |
Au |
Ag |
(m) |
(m) |
(m) |
(m) |
(%) |
(%) |
(g/t) |
(g/t) |
CH1901 |
540.7 |
545.3 |
4.6 |
833 |
20.76 |
0.20 |
0.56 |
24.2 |
CH1901 |
554.4 |
560.6 |
6.2 |
833 |
1.21 |
0.70 |
6.34 |
38.9 |
CH1901 |
561.6 |
576.3 |
14.7 |
833 |
4.38 |
0.37 |
0.26 |
8.2 |
CH1902 |
601.7 |
607.8 |
6.1 |
761 |
assays pending |
CH1101 |
736.0 |
742.2 |
6.2 |
896 |
0.18 |
4.80 |
0.92 |
19.9 |
CH1201 |
657.0 |
661.0 |
4.0 |
1031 |
0.04 |
1.22 |
1.47 |
7.6 |
CH1203 |
693.5 |
695.0 |
1.5 |
891 |
0.06 |
5.08 |
6.10 |
21.8 |
Note: all grade values are uncut.
Hole ID |
From (m) |
To (m) |
AzimuthatIntercept |
Dip atIntercept |
Easting |
Northing |
Elevation |
Easting |
Northing |
Elevation |
CH1901 |
427239 |
6078707 |
-236 |
427238 |
6078706 |
-241 |
227 |
-83 |
CH1901 |
427237 |
6078705 |
-251 |
427236 |
6078704 |
-256 |
227 |
-83 |
CH1901 |
427236 |
6078705 |
-256 |
427234 |
6078703 |
-270 |
227 |
-83 |
CH1902 |
427127 |
6078613 |
-263 |
427125 |
6078612 |
-269 |
239 |
-71 |
CH1101 |
427471 |
6078922 |
-399 |
427471 |
6078921 |
-402 |
162 |
-72 |
CH1201 |
427266 |
6078917 |
-312 |
427265 |
6078916 |
-316 |
215 |
-72 |
CH1203 |
427201 |
6079084 |
-365 |
427200 |
6079084 |
-367 |
251 |
-73 |
Two drills will continue to operate in the
immediate vicinity of this initial discovery in order to further
confirm the continuity of the mineralization and its lateral extent
while testing a recently reinterpreted electromagnetic conductive
plate west of the two recent intersections. Depending on the
success of future drilling, the company expects to develop an
exploration drift off the ramp from Chisel North to the Lalor mine
in order to drill this new discovery from an underground
platform.
On February 19, 2019, Hudbay announced an update
of its mineral resource and mineral reserve estimates and a revised
mine plan for its Lalor mine and the satellite deposits in the Snow
Lake camp and intends to file an updated National Instrument (“NI”)
43-101 technical report before the end of March 2019. For
additional information, please refer to our investor presentation
for the BMO 28th Global Metals & Mining Conference, a copy of
which is available on our website at www.hudbay.com.
Quality Assurance and Quality
Control
Exploration core drilling was NQ size. The core
was logged and mineralized intersections were marked for sampling
and assaying by geologists and geotechnicians employed by Hudbay.
The marked intersections or intervals were sawn in half by a
diamond saw and one half of the core was placed in plastic bags and
tagged with unique sample numbers, while the second half was
returned to the core box and stored. Each bagged core sample was
transported to ACME Bureau Veritas assay laboratory in Vancouver,
British Columbia where it was dried, crushed and pulverized and a
250-gram sample was prepared for assaying. From each 250 gram
sample 0.25 grams was removed and leached in aqua regia and
analyzed by ICP-AES for Ag, Cu, Zn, As, Pb, Ni and Fe. Also from
the 250-gram sample, 30 grams was removed for gold determination by
fire assaying with an Atomic Absorption or gravimetric finish.
Assaying integrity is monitored internally with
a quality control program, which includes the use of assay sample
standards, blanks, duplicates and repeats and externally through
national and international programs. In addition, within each group
of 20 core samples, one core sample has a second 250 gram split
collected that will be check assayed at SGS Analytical Laboratories
Ltd., an independent company in Vancouver, B.C. This news release
provides core lengths and estimates of vertical thickness only.
True widths are not provided. Where metal assays are provided for
intersections they are either a single assay of a sample of the
entire intersection length or a composite of assays calculated from
interval weighted assays over the intersection length.
Qualified Person
The technical and scientific information
contained in this news release has been approved by Olivier
Tavchandjian, P. Geo, Hudbay’s Vice President, Exploration and
Geology. Mr. Tavchandjian is a qualified person pursuant to NI
43-101.
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, the potential of the newly discovered zinc-rich massive
sulfide zone and the possibility that it will add value to Hudbay’s
Manitoba business, Hudbay’s exploration plans for the new zinc-rich
zone and Snow Lake region and Hudbay’s Manitoba strategy more
generally, including the anticipated Lalor mine plan and its plans
to refurbish the New Britannia mill. 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
identified and were applied by the company in drawing conclusions
or making forecasts or projections set out in the forward-looking
information include, but are not limited to:
- the schedule for the refurbishment of the New Britannia mill
and the success of the company’s Lalor gold strategy;
- the success of mining, processing, exploration and development
activities at Lalor;
- the scheduled maintenance and availability of the Stall and New
Britannia 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 produces;
- the supply and availability of all forms of energy and fuels at
reasonable prices;
- no significant unanticipated operational or technical
difficulties;
- the execution of Hudbay’s business and growth strategies,
including the success of its strategic investments and
initiatives;
- the availability of additional financing, if needed;
- the ability to complete project targets on time and on budget
and other events that may affect the company’s ability to implement
the Lalor life-of-mine plan;
- the timing and receipt of various regulatory and governmental
approvals;
- the availability of skilled personnel for Lalor’s ongoing
operations and the gold development project;
- ongoing employee and union relations;
- maintaining good relations with the communities in which the
company operates, including the First Nations communities
surrounding the Lalor mine;
- no significant unanticipated challenges with stakeholders at
the company’s Manitoba business unit;
- 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 aboriginal peoples;
- no significant unanticipated litigation; 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 generally associated
with the mining industry, such as economic factors (including
future commodity prices, currency fluctuations, energy prices and
general cost escalation), uncertainties related to the development
and operation of the Lalor mine, risks related to the new Lalor
mine plan, including the schedule for the refurbishment of the New
Britannia mill and the ability to convert inferred mineral resource
estimates to higher confidence categories, dependence on key
personnel and employee and union relations, 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 the company’s reserves,
volatile financial markets 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
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, 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.
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.
About Hudbay
Hudbay (TSX, NYSE: HBM) is an integrated mining
company primarily producing copper concentrate (containing copper,
gold and silver), molybdenum 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 three
polymetallic mines, four ore concentrators and a zinc production
facility in northern Manitoba and Saskatchewan (Canada) and Cusco
(Peru), and copper projects in Arizona and Nevada (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. Further information about Hudbay can
be found on www.hudbay.com.
For further information, please contact:
Candace BrûléDirector, Investor Relations(416)
814-4387candace.brule@hudbay.com
Figures accompanying this announcement are available
at:
http://www.globenewswire.com/NewsRoom/AttachmentNg/0cb27fdd-2609-40fc-b25a-a7ef487d8d4d
http://www.globenewswire.com/NewsRoom/AttachmentNg/bfe9c12d-dd05-4cff-a946-65d28420053b
http://www.globenewswire.com/NewsRoom/AttachmentNg/f34e4228-d288-4782-9d3a-3de5685a30f8
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