UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

For the month of December 2023

Commission File Number: 001-34244

HUDBAY MINERALS INC.
(Translation of registrant’s name into English)

25 York Street, Suite 800
Toronto, Ontario
M5J 2V5, Canada
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F [   ]                    Form 40-F [X]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [   ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [   ]

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes [   ]                     No [X]

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- _____________________________


EXPLANATORY NOTE

On December 5, 2023, Hudbay Minerals Inc. (“Hudbay”) filed on the Canadian Securities Administrators’ System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedarplus.ca the following documents: (1) News Release - December 5, 2023, (2) Copper Mountain Mine NI 43-101 Technical Report, (3) Consent of Qualified Person, (4) Certificate of Qualified Person.

Copies of the filings are attached to this Form 6-K and incorporated herein by reference, as follows:

  • Exhibit 99.1 — News Release - December 5, 2023

  • Exhibit 99.2 — Copper Mountain Mine NI 43-101 Technical Report

  • Exhibit 99.3 — Consent of Qualified Person

  • Exhibit 99.4 — Certificate of Qualified Person

2


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

  HUDBAY MINERALS INC.
  (registrant)
     
  By: /s/ Mark Haber
  Name: Mark Haber
  Title: Executive Director, Legal and Corporate Secretary

Date: December 6, 2023

3


EXHIBIT INDEX

The following exhibits are furnished as part of this Form 6-K:

Exhibit   Description
     
99.1   News Release - December 5, 2023
99.2   Copper Mountain Mine NI 43-101 Technical Report
99.3   Consent of Qualified Person
99.4   Certificate of Qualified Person

4



TSX, NYSE - HBM

2023 No. 26

   
25 York Street, Suite 800
Toronto, Ontario
Canada M5J 2V5
tel  416 362-8181
fax 416 362-7844
hudbay,com
News Release
   
   

Hudbay Releases Copper Mountain Technical Report and Advances Mine Stabilization Plans

  • Average annual copper production of 46,500 tonnes over the first five years with cash costs of $1.89i per pound, and 45,000 tonnes over the first 10 years with cash costs of $1.72i per pound.
    • Represents an approximate 90% increase over 2022 production levels and 50% decrease from 2022 cash costs as a result of the implementation of Hudbay's operational efficiencies as part of its stabilization and optimization plans.
  • Mine plan reflects Hudbay's plans to stabilize the operation by remobilizing idle haul trucks, opening additional mining faces and accelerating stripping over the next three years, optimizing ore feed to the plant and implementing plant improvement initiatives.
  • On track to deliver more than $20 million in targeted annual operating efficiencies and $10 million in corporate synergies over the next three years.
  • Efficient capital utilization with minimal capital investment required to expand the mill throughput to the permitted limit of 50,000 tonnes per day.
  • Copper Mountain is expected to increase Hudbay's annual copper production by approximately 50% after 2025ii.
  • Copper Mountain provides additional leverage to gold with approximately 49,500 ounces of annual gold production on average over the next 10 years.
  • Mineral reserve estimates of 367 million tonnes at a copper grade of 0.25% and gold grade of 0.12 grams per tonne support a 21-year mine life and position Copper Mountain as the longest life producing asset in Hudbay's portfolio.
  • Additional 140 million tonnes of measured and indicated resources at 0.21% copper and 0.10 grams per tonne gold and 370 million tonnes of inferred resources at 0.25% copper and 0.13 grams per tonne gold, exclusive of mineral reserves, provide significant upside potential for reserve conversion and extending mine life, with infill drilling planned for 2024.
  • The technical report represents Hudbay's base case mine plan after acquisition and there are numerous technical studies underway to further enhance the production profile, reduce mining costs and continue process optimization.

Toronto, Ontario, December 5, 2023 - Hudbay Minerals Inc. ("Hudbay" or the "company") (TSX, NYSE: HBM) today announced that it has completed a National Instrument 43-101 technical report in respect of its 75%-owned Copper Mountain mine in British Columbia, Canada. This is Hudbay's first technical report for the Copper Mountain mine since acquiring Copper Mountain Mining Corporation ("CMMC") in June 2023. All dollar amounts are in US dollars, unless otherwise noted.

"We are pleased to release our first mine plan for Copper Mountain which demonstrates the meaningful copper production this long-life asset brings to our operating platform and the unique opportunity we have to leverage our efficient operating capabilities to drive value," said Peter Kukielski, Hudbay's President and Chief Executive Officer. "We have applied our proven reserve and resource estimation methodology to develop a prudent and reliable mine plan and are now positioned to implement several operating enhancements to transform Copper Mountain into a stable cash flow generator for our business. With the addition of Copper Mountain, we expect to maintain annual consolidated copper production above 150,000 tonnes through to the end of the decade and are better positioned to achieve our deleveraging objectives and deliver on future copper growth. This increased scale and diversification enhances the company's ability to prudently advance our organic growth pipeline of brownfield expansion and greenfield development opportunities in tier-one mining jurisdictions."


TSX, NYSE - HBM

2023 No. 26

   

Mine Plan Summary

The Copper Mountain mine is located 21 kilometres south of the town of Princeton and 304 kilometres east of Vancouver, as shown in Figure 1. The operations include a series of open pits, an ore processing plant, a waste rock facility, a tailings management facility and other ancillary facilities that support the operations. Please refer to Figure 2 for a site layout map. All claims are controlled by Copper Mountain Mine (BC) Ltd., a joint venture held 75% by Hudbay and 25% by Mitsubishi Materials Corp.

The mine plan contemplates average annual copper production of 46,500 tonnes in the first five years, 45,000 in the first ten years and 37,000 tonnes over the 21-year mine life. Average cash costs and sustaining cash costs over the mine life are expected to be $1.84 and $2.53 per pound of copperi, respectively. The updated mine plan represents an approximate 90% increase in average annual copper production and a 50% decrease in cash costs over the first 10 years compared to 2022.

As shown in Figure 3, Copper Mountain increases Hudbay's expected consolidated annual copper production by approximately 50% and maintains the 150,000 tonne per year level beyond 2025.

A summary of key production and cost details can be found below. For further details, please refer to the detailed mine plan table in Exhibit 1.


TSX, NYSE - HBM

2023 No. 26

   

  2024 2025 2026 2027 2028 2024-
2028
Avg.
2029-
2033
Avg.
2034-
2038
Avg.
2039-
2043
Avg.
LOM
Total
Contained Metal in Concentrate
Cu production tonnes
(000s)
37 40 49 50 56 47 43 39 26 783
Au production ounces
(000s)
21 36 26 44 47 35 64 60 26 935
Ag production ounces
(000s)
378 334 500 434 477 425 235 213 226 5,590
Capital Expenditures
Sustaining capital (after capitalized stripping)1 US$ millions $63 $122 $91 $59 $94 $86 $67 $55 $13 $1,106
Discretionary capitalized stripping2 US$ millions $22 $42 $21 - - $17 - - - $85
Growth capital US$ millions $3 $41 $69 $6 $7 $25 - - - $126
Cash Costs
Cash costs, net of by-product credits3 US$/lb Cu $2.69 $1.89 $1.89 $1.90 $1.36 $1.89 $1.53 $1.75 $2.31 $1.84
Sustaining cash costs, net of by-product credits (excl. discretionary stripping)3,4 US$/lb Cu $3.49 $3.40 $2.74 $2.45 $2.13 $2.76 $2.26 $2.46 $2.58 $2.53

Note: Totals may not add up correctly due to rounding. "LOM" refers to life-of-mine total.

1 Sustaining capital includes capitalized stripping.

2 Discretionary capitalized stripping relates to a portion of accelerated stripping activities over 2024-2026 to access higher grade ore but could be reduced or deferred to a later date based on further geotechnical evaluation and other considerations.

3 By-product credits calculated using the following commodity prices and foreign exchange assumptions: gold price of $1,940 per ounce for 2024, $1,900 per ounce for 2025, $1,800 per ounce for 2026, $1,764 per ounce for 2027, $1,725 per ounce for 2028 and $1,700 per ounce long-term; silver price of $24.00 per ounce for 2024, 2025 and 2026, $23.75 per ounce for 2027, $23.38 per ounce for 2028 and $23.00 per ounce long-term; C$/US$ exchange rate of 1.35 in 2024 and 1.33 in 2025 onwards.

4 Sustaining cash costs incorporate all costs included in cash costs plus sustaining capital expenditures, capitalized stripping, payments on capital leases, royalties and accretion and amortization of decommissioning obligations, and excludes discretionary capitalized stripping. Cash costs and sustaining cash costs are non-IFRS 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 September 30, 2023.

Hudbay's Stabilization Plans

Since completing the acquisition of CMMC in June 2023, Hudbay has been focused on advancing its plans to stabilize the Copper Mountain mine over the next few years to improve reliability and drive sustainable long-term value. The technical report reflects Hudbay's base case stabilization plan including many elements as described further below.

Increased Mining Activities

The company has commenced a fleet ramp-up plan which remobilizes idle haul trucks. The fleet ramp up plan entails a ramp-up from 14 trucks to 26 trucks by the end of 2023, with 23 trucks ramped up to-date. Once the fleet ramp up plan is complete, Copper Mountain is expected to have improved flexibility in the mine with additional mining faces.

Accelerated Stripping to Access Higher Grades

As reflected in the technical report, the company is planning a campaign of accelerated stripping over the next three years to enable access to higher grade ore and to mitigate the substantially reduced stripping undertaken by Copper Mountain over the four years prior to completion of the acquisition (please refer to Figure 4). The accelerated stripping program is also expected to improve operating efficiencies and lower unit operating costs. A portion of the accelerated capitalized stripping costs is considered discretionary and could be reduced or deferred to a later date based on further geotechnical evaluation and other considerations.


TSX, NYSE - HBM

2023 No. 26

   

Improved Mill Throughput and Recoveries

Hudbay's mine plan for Copper Mountain assumes a mill ramp up to its nominal capacity of 45,000 tonnes per day in 2025. An expansion to the permitted capacity of 50,000 tonnes per day is planned in 2027. The mine plan assumes approximately $23 million in growth capital spending over 2025 and 2026 in connection with the mill expansion. The company also plans to improve mill recoveries with a more consistent ore feed grade, changes to the flotation reagents and replacement of key pumps.

Operating Efficiencies and Corporate Synergies

Hudbay's stabilization plans as reflected in the technical report are expected to generate more than $20 million in annual operating efficiencies over the next three years, compared to Copper Mountain's performance in 2022, through improvements in copper recovery, higher throughput rates and lower combined unit operating costs. In addition, Hudbay has realized approximately $9 million of the targeted $10 million in annual corporate synergies and is on track to exceed the target. A full comparison of Hudbay's plan versus Copper Mountain's 2022 performance is presented in the following table.

 

Copper Mountain
2022A
1

2024-2028
Avg.

Change

Mill throughput

tonnes per day

34,814

46,851

+12,037

Copper recovery

%

79.1%

84.5%

+5.4%

Corporate G&A

C$ millions

$17

$4

-$13

Total unit operating costs (after capitalized stripping)2

C$/tonne milled

$23.95

$17.06

-$6.89

Cash costs, net of by-product credits2

US$/lb Cu

$3.53

$1.89

-$1.64

Sustaining cash costs, net of by-product credits (excl. discretionary stripping)2,3

US$/lb Cu

$4.78

$2.76

-$2.02

1 2022 actuals as disclosed by CMMC on March 27, 2023. CMMC Financial Statements and Management's Discussion & Analysis for the applicable periods are available under CMMC's SEDAR+ profile at www.sedarplus.ca. 2022 total unit operating costs includes direct mining and milling costs, employee compensation and benefits, transportation costs and corporate and mine site administration expenses.

2 Cash costs, sustaining cash costs and unit operating costs are non-IFRS financial performance measures with no standardized definition under IFRS. For further details on why Hudbay believes cash costs and unit operating costs are useful performance indicators, please refer to the company's most recent Management's Discussion and Analysis for the period ended September 30, 2023.

3 By-product credits calculated using the following commodity prices and foreign exchange assumptions: gold price of $1,940 per ounce for 2024, $1,900 per ounce for 2025, $1,800 per ounce for 2026, $1,764 per ounce for 2027, $1,725 per ounce for 2028 and $1,700 per ounce long-term; silver price of $24.00 per ounce for 2024, 2025 and 2026, $23.75 per ounce for 2027, $23.38 per ounce for 2028 and $23.00 per ounce long-term; C$/US$ exchange rate of 1.35 in 2024 and 1.33 in 2025 onwards. Sustaining cash costs incorporates all costs included in cash costs plus sustaining capital expenditures, capitalized stripping, payments on capital leases, royalties and accretion and amortization of decommissioning obligations, and excludes discretionary capitalized stripping.


TSX, NYSE - HBM

2023 No. 26

   

Mineral Reserve and Resource Estimates

The mine plan is based on a revised resource model and was constructed using the same methods applied at the Constancia, Copper World and Mason deposits. The mineral reserve estimates total 367 million tonnes at a copper grade of 0.25% and a gold grade of 0.12 grams per tonne, supporting a 21-year mine life. An additional 140 million tonnes of measured and indicated resources at 0.21% copper and 0.10 grams per tonne gold and 370 million tonnes of inferred resources at 0.25% copper and 0.13 grams per tonne gold, exclusive of mineral reserves, provide significant upside potential for reserve conversion and extending mine life. Infill drilling is planned for 2024 to target reserve conversion.

The current mineral reserve and resource estimates for Copper Mountain (effective as of December 1, 2023) are summarized below.

Copper Mountain Mine
Mineral Reserve and Resource
Estimates
1,2,3,4
Tonnes Cu Grade
(%)
Au Grade
(g/t)
Ag Grade
(g/t)
CuEq Grade
(%)
Reserves
Proven 195,037,000 0.27 0.12 0.78 0.35
Probable 171,943,000 0.22 0.11 0.59 0.30
Total proven and probable 366,980,000 0.25 0.12 0.69 0.33
Resources
Measured 41,198,000 0.21 0.09 0.73 0.27
Indicated 96,615,000 0.21 0.11 0.68 0.29
Total measured and indicated 137,814,000 0.21 0.10 0.69 0.28
Inferred 371,319,000 0.25 0.13 0.61 0.34

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 reserve estimates have been calculated using assumed long-term metal prices of $3.75 per pound copper, $1,650 per ounce gold and $22.00 per ounce silver. Mineral resource estimates have been calculated using assumed long-term metal prices of $4.00 per pound copper, $1,650 per ounce gold and $22.00 per ounce silver.

3 Mineral resource estimates tonnes and grades constrained to a Lerch Grossman revenue factor 1 pit shell.

4 Mineral reserves have an effective date of December 1, 2023, but were generated excluding the measured and indicated mineral resource estimates planned to be mined and milled in the month of December 2023. Mineral reserves are reported using an NSR cut-off value of $5.67 that meet a minimum 0.10% Cu grade.

Consistent with the expectations disclosed in the company's news release on November 7, 2023, the 2023 mineral reserve and mineral resource estimates are consistent with historical estimates published by CMMC until 2019, after adjusting for mining depletion and a re-classification of some of the indicated mineral resources to the inferred category, as well as incorporating high grade resources added through exploration since 2019. Hudbay's new 2023 resource estimates are closely aligned with production with both tonnage and grade reconciling positively within 3% to 4% of the credited mine production by the mill over the past three years.


TSX, NYSE - HBM

2023 No. 26

   

Project Optimization and Upside Opportunities

There are several opportunities to further increase production, improve costs and extend mine life for Copper Mountain. While these opportunities have not been considered in the technical report as they are not yet at the level of required engineering, the company is advancing studies to evaluate the potential for these to be reflected in future mine plans.

  • Conversion of Inferred Resources to Reserves - there is a significant amount of high-grade mineralization in the inferred category that has the potential to be converted to reserves, which would increase production, improve head grades over the next 10 years and extend mine life beyond 21 years. The company has plans for infill drilling in 2024 to target reserve conversion.
  • Lower Stripping Costs - the company will carry out additional geotechnical investigations and pit slope stability tests in the area of Pit 3 to identify opportunities to maximize the use of double benching and reduce waste stripping that is currently classified as discretionary.
  • Evaluation of Mining Technologies - Hudbay will pursue technology trade-offs between trolley assist haul trucks and conveying systems for ore and waste movement in an effort to reduce mining costs, improve mining productivity, and reduce greenhouse gas emissions.
  • Continued Process Optimization - Hudbay continues to conduct metallurgical testing and simulations to optimize mill throughput and recoveries.
  • Renewable Diesel - Hudbay is evaluating the application of renewable diesel at Copper Mountain, which has the potential to reduce costs, lower greenhouse gas emissions and be eligible for additional federal tax credits under Canada's Clean Fuel Regulations.
  • Green Opportunities - the company plans to install a mast to collect wind data to be able to evaluate the potential for site renewable energy generation. This initiative is in addition to the existing net-zero initiatives already underway, including trolley assist haulage and a new electric shovel, which favourably position Copper Mountain in the lowest quartile of the greenhouse gas emissions curve for copper mines.

Non-IFRS Financial Performance Measures

Cash cost and sustaining cash cost per pound of copper produced are shown because the company believes they help investors and management assess the performance of its operations, including the margin generated by the operations and the company. Unit operating costs are shown because these measures are used by the company as a key performance indicator to assess the performance of its mining and processing operations. 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, please refer to page 45 of Hudbay's management's discussion and analysis for the period ended September 30, 2023 available on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov.

Cautionary Note Regarding NI 43-101

The scientific and technical information contained in this news release has been approved by Olivier Tavchandjian, P. Geo, Hudbay's Senior Vice-President, Exploration and Technical Services. Mr. Tavchandjian is a qualified person pursuant to Canadian Securities Administrators' National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").

A copy of the NI 43-101 technical report will be made available on Hudbay's SEDAR+ profile at www.sedarplus.ca and on Hudbay's EDGAR profile at www.sec.gov. This technical report is the current technical report in respect of the Copper Mountain mine and shall supersede and replace all prior technical reports relating to the Copper Mountain mine.


TSX, NYSE - HBM

2023 No. 26

   

Cautionary 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 NI 43-101. 

For this reason, information contained in this news release in respect of the Copper Mountain mine 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 annual information form, a copy of which has been filed under Hudbay's profile on SEDAR+ at www.sedarplus.ca and the company's Form 40-F, a copy of which has been filed under Hudbay's profile on EDGAR at www.sec.gov.

Cautionary Note Regarding 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, operating cost, capital cost and cash cost estimates, project design, including processing and tailings facilities, metal recoveries, mine life and production rates for the Copper Mountain mine, the potential to further enhance the economics of the project and optimize the design, the impact and effects of Hudbay's optimization and stabilization initiatives, statements regarding permitting matters, the relationships with the First Nations groups, local communities of interest, regulatory agencies and other key stakeholders, the expectations and plans for New Ingerbelle, the renegotiation of the participation agreements with the Upper Similkameen Indian Band and Lower Similkameen Indian Band, the costs associated with planned stripping, and the conceptual mine closure and reclamation plan. 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 company's ability to stabilize and optimize the Copper Mountain mine operations;

 the success of exploration and development activities at the Copper Mountain mine, including New Ingerbelle;

 the accuracy of geological, mining and metallurgical estimates;

 anticipated metals prices and the costs of production;


TSX, NYSE - HBM

2023 No. 26

   

 the supply and demand for metals Hudbay produces;

 the supply and availability of all forms of energy and fuels at reasonable prices;

 no significant unanticipated operational or technical difficulties;

 the availability of additional financing, if needed;

 the availability of personnel for the company's exploration, development and operational projects and ongoing employee relations;

 maintaining applicable and necessary permits;

 maintaining good relations with the First Nations groups, local communities of interest, regulatory agencies and other key stakeholders, including the neighbouring communities and local governments in British Columbia;

 no significant unanticipated challenges with stakeholders at the Copper Mountain mine;

 no significant unanticipated events or changes relating to regulatory, environmental, health and safety matters;

 no contests over title to Hudbay's properties, including as a result of rights or claimed rights of Indigenous peoples or challenges to the validity of its unpatented mining claims;

 no offtake commitments in respect of production from the Copper Mountain mine, other than those contemplated herein;

 certain tax matters, including, but not limited to the mining tax regime in British Columbia; 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 and the current geopolitical environment, such as economic factors (including future commodity prices, currency and interest rate fluctuations, energy and consumable prices, supply chain constraints and general cost escalation in the current inflationary environment), risks related to product delivery and financing, risks related to the ability for the company to successfully maintain all applicable and necessary permits, risks related to changes in government and government policy, risks related to changes in law, risks in respect of community relations, including but not limited to the relationships with First Nations groups, local communities of interest, regulatory agencies and other key stakeholders, risks related to contracts that were entered into in respect of the Copper Mountain mine, including but not limited to the renegotiation of the participation agreements with the Upper Similkameen Indian Band and Lower Similkameen Indian Band, risks related to the conceptual mine closure and reclamation plan, uncertainties related to the geology, continuity, grade and estimates of mineral reserves and resources, and the potential for variations in grade and recovery rates, 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 most recent management's discussion and analysis.

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. The company 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.


TSX, NYSE - HBM

2023 No. 26

   

About Hudbay

Hudbay (TSX, NYSE: HBM) is a copper-focused mining company with three long-life operations and a world-class pipeline of copper growth projects in tier-one mining-friendly 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. Hudbay's growth pipeline includes the Copper World project in Arizona, 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

(416) 814-4387

investor.relations@hudbay.com

______________________________

i Cash costs and sustaining cash costs are non-IFRS 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 September 30, 2023.

ii Based on copper production from most recent technical reports for Hudbay's Constancia, Snow Lake and Copper Mountain operations.


TSX, NYSE - HBM

2023 No. 26

   

Exhibit 1: Detailed Mine Plan Information

  2024 2025 2026 2027 2028 2024-
2028
Avg.
2029-
2033
Avg.
2034-
2038
Avg.
2039-
2043
Avg.
LOM
Total
Mining
Ore mined tonnes
(000s)
18,983 22,363 14,020 20,710 21,096 19,434 20,411 18,460 4,180 312,425
Waste mined tonnes
(000s)
82,832 91,637 86,480 63,290 48,904 74,629 47,589 44,940 6,154 866,559
Strip ratio waste:
ore
4.36 4.10 6.17 3.06 2.32 3.84 2.33 2.43 1.47 2.77
Processing
Ore milled tonnes
(000s)
15,008 16,425 17,520 18,250 18,300 17,101 18,260 18,260 18,260 366,980
Daily ore milled tonnes
per day
41,118 45,000 48,000 50,000 50,137 46,851 50,027 50,027 50,027 47,877
Cu grade % 0.30% 0.29% 0.33% 0.32% 0.36% 0.32% 0.27% 0.24% 0.17% 0.25%
Au grade g/t 0.07 0.10 0.07 0.11 0.12 0.10 0.16 0.15 0.07 0.12
Ag grade g/t 1.12 0.90 1.27 1.07 1.17 1.11 0.60 0.54 0.55 0.69
Cu recovery % 82.5% 84.0% 84.0% 85.6% 85.5% 84.5% 86.7% 86.4% 85.1% 85.7%
Au recovery % 65.0% 65.0% 65.0% 67.9% 67.8% 66.5% 69.6% 69.0% 66.0% 68.3%
Ag recovery % 70.0% 70.0% 70.0% 69.2% 69.2% 69.6% 66.5% 67.1% 69.7% 68.5%
Contained Metal in Concentrate
Cu production tonnes (000s) 37 40 49 50 56 47 43 39 26 783
Au production ounces
(000s)
21 36 26 44 47 35 64 60 26 935
Ag production ounces
(000s)
378 334 500 434 477 425 235 213 226 5,590
Capital Expenditures (US$ millions)1
Sustaining capital $46 $63 $50 $45 $36 $48 $27 $22 $13 $549
Capitalized stripping $17 $59 $41 $14 $57 $38 $41 $33 - $558
Sustaining capital (after capitalized stripping) $63 $122 $91 $59 $94 $86 $67 $55 $13 $1,106
Discretionary capitalized stripping2 $22 $42 $21 - - $17 - - - $85
Growth project capital $3 $41 $69 $6 $7 $25 - - - $126
Total capital expenditures $88 $205 $181 $65 $101 $128 $67 $55 $13 $1,317
Unit Operating Costs (C$ per tonne milled)3
Mining4   $15.30 $16.33 $13.84 $12.06 $11.92 $13.78 $11.73 $11.32 $4.82 $10.21
Milling   $7.41 $6.77 $5.94 $5.70 $5.69 $6.25 $5.70 $5.70 $5.70 $5.85
G&A   $1.48 $1.35 $1.27 $1.22 $1.18 $1.29 $1.17 $1.14 $0.87 $1.13
Total operating costs (before cap. stripping) $24.19 $24.45 $21.05 $18.98 $18.79 $21.32 $18.60 $18.16 $11.39 $17.19
Total operating costs (after cap. stripping) $20.68 $16.27 $16.31 $17.96 $14.61 $17.06 $15.64 $15.73 $11.39 $14.86
Cash Costs and Sustaining Cash Costs (US$/lb Cu)
Copper production million
lbs
81.6 87.9 108.4 110.6 124.0 102.5 95.1 85.1 58.4 1,726.4


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Cash costs3,5

 

$2.69

$1.89

$1.89

$1.90

$1.36

$1.89

$1.53

$1.75

$2.31

$1.84

Sustaining cash costs3,5 (excl. discretionary stripping)

$3.49

$3.40

$2.74

$2.45

$2.13

$2.76

$2.26

$2.46

$2.58

$2.53

Sustaining cash costs3,5 (incl. discretionary stripping)

$3.77

$3.87

$2.94

$2.45

$2.13

$2.93

$2.26

$2.46

$2.58

$2.58

Note: LOM refers to life-of-mine total.

1 Sustaining capital includes capitalized lease payments.

2 Discretionary capitalized stripping relates to a portion of accelerated stripping activities over 2024-2026 to access higher grade ore but could be reduced or deferred to a later date based on further geotechnical evaluation and other considerations.

3 Cash costs, sustaining cash costs and unit operating costs are non-IFRS financial performance measures with no standardized definition under IFRS. For further details on why Hudbay believes cash costs and unit operating costs are useful performance indicators, please refer to the company's most recent Management's Discussion and Analysis for the period ended September 30, 2023.

4 Mining cost before the impact of capitalized stripping.

5 By-product credits calculated using the following commodity prices and foreign exchange assumptions: gold price of $1,940 per ounce for 2024, $1,900 per ounce for 2025, $1,800 per ounce for 2026, $1,764 per ounce for 2027, $1,725 per ounce for 2028 and $1,700 per ounce long-term; silver price of $24.00 per ounce for 2024, 2025 and 2026, $23.75 per ounce for 2027, $23.38 per ounce for 2028 and $23.00 per ounce long-term; C$/US$ exchange rate of 1.35 in 2024 and 1.33 in 2025 onwards. Sustaining cash costs incorporates all costs included in cash cost plus sustaining capital expenditures, capitalized stripping, payments on capital leases, royalties and accretion and amortization of decommissioning obligations.

Figure 1: Copper Mountain Mine Location

The Copper Mountain mine is located in British Columbia, Canada, 21 kilometres by road south of the town of Princeton and 304 kilometres by road east of Vancouver.


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Figure 2: Copper Mountain Site Layout

The operations consist of the Copper Mountain pit, the New Ingerbelle pit, an ore processing plant, a waste rock facility, a tailings management facility and other associated site infrastructure that support the operations.


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2023 No. 26

   

Figure 3: Hudbay Consolidated Production Profile Graph

Copper Mountain is a meaningful contributor to Hudbay's consolidated copper production profile. The impact is significant after 2025 with increases of up to 50% in annual copper production to maintain the 150,000 tonnes per year level.

Source: Based on Hudbay previously issued copper production guidance for 2023 to 2025. Copper production in the years 2026 to 2028 is sourced from Hudbay's Constancia NI 43-101 technical report dated March 2021, Snow Lake NI 43-101 technical report dated March 2021 and Copper Mountain NI 43-101 technical report dated December 4, 2023. Production profile excludes potential future production from the Copper World project.


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2023 No. 26

   

Figure 4: Copper Mountain Mine Performance

Hudbay's mine plan incorporates accelerated stripping activities to help mitigate the impacts of substantially reduced stripping undertaken by Copper Mountain over the past four years. The accelerated stripping is expected to enable access to higher grade ore and improve the efficiency of the mine. Hudbay expects sustained improvements in mill throughput to achieve the design capacity of 45,000 tonnes per day and an expansion to the permitted limit of 50,000 tonnes per day in 2027.

Source: CMMC historical annual disclosure for the years 2018 to 2022 and Hudbay's Copper Mountain NI 43-101 technical report dated December 4, 2023 for the years 2024 to 2028.




CAUTIONARY NOTES

Cautionary Note Regarding Forward Looking Information

This Technical Report contains "forward-looking statements" and "forward-looking information" (collectively, "forward-looking information") within the meaning of applicable Canadian and United States securities legislation. All information contained in this Technical Report, 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 Technical Report is qualified by this cautionary note.

Forward-looking information includes, but is not limited to, production; operating cost; capital cost and cash cost estimates; project design, including processing and tailings facilities, metal recoveries, mine life and production rates for the Copper Mountain Mine; the potential to further enhance the economics of the project and optimize the design; the impact and effects of our optimization and stabilization initiatives; statements regarding permitting matters; the relationships with the First Nations groups, local communities of interest, regulatory agencies, and other key stakeholders; the expectations and plans for New Ingerbelle; the renegotiation of the participation agreements with the Upper Similkameen Indian Band and Lower Similkameen Indian Band; the costs associated with planned stripping; and the conceptual mine closure and reclamation plan. 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 Hudbay at the date the forward-looking information is provided, are inherently 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:

  • Hudbay's ability to stabilize and optimize the Copper Mountain Mine operations

  • The success of exploration and development activities at the Copper Mountain Mine, including New Ingerbelle

  • The accuracy of geological, mining, and metallurgical estimates

  • Anticipated metals prices and the costs of production

  • The supply and demand for metals Hudbay produces

  • The supply and availability of all forms of energy and fuels at reasonable prices

  • No significant unanticipated operational or technical difficulties

  • The availability of additional financing, if needed

  • The availability of personnel for Hudbay's exploration, development, and operational projects and ongoing employee relations

  • Maintaining applicable and necessary permits

  • Maintaining good relations with the First Nations groups, local communities of interest, regulatory agencies and other key stakeholders, including the neighbouring communities and local governments in British Columbia

  • No significant unanticipated challenges with stakeholders at the Copper Mountain Mine

  • No significant unanticipated events or changes relating to regulatory, environmental, and health and safety matters

  • No contests over title to Hudbay's properties, including as a result of rights or claimed rights of Indigenous peoples or challenges to the validity of its unpatented mining claims


  • No off-take commitments in respect of production from the Copper Mountain Mine, other than those contemplated herein

  • Certain tax matters, including, but not limited to the mining tax regime in British Columbia

  • 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 and the current geopolitical environment, such as economic factors (including future commodity prices, currency and interest rate fluctuations, energy and consumable prices, supply-chain constraints and general cost escalation in the current inflationary environment); risks related to product delivery and financing; risks related to the ability for Hudbay to successfully maintain all applicable and necessary permits; risks related to changes in government and government policy; risks related to changes in law; risks in respect of community relations, including but not limited to the relationships with First Nations groups, local communities of interest, regulatory agencies, and other key stakeholders; risks related to contracts that were entered into in respect of the Copper Mountain Mine, including but not limited to the renegotiation of the participation agreements with the Upper Similkameen Indian Band and Lower Similkameen Indian Band; risks related to the conceptual mine closure and reclamation plan; uncertainties related to the geology, continuity, grade, and estimates of Mineral Reserves and Mineral Resources, and the potential for variations in grade and recovery rates; as well as the risks discussed under the heading "Risk Factors" in Hudbay's most recent Annual Information Form (AIF) and under the heading "Financial Risk Management" in Hudbay's most recent Management Discussion and Analysis (MD&A).

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 technical report or to explain any material difference between subsequent actual events and any forward-looking information, except as required by applicable law.

Cautionary Note Regarding NI 43-101

The scientific and technical information contained in this Technical Report has been approved by Olivier Tavchandjian, P.Geo, Hudbay's Senior Vice-President, Exploration and Technical Services. Mr. Tavchandjian is a Qualified Person pursuant to Canadian Securities Administrators' National Instrument (NI) 43-101-Standards of Disclosure for Mineral Projects.

This technical report is the current technical report in respect of all the mineral properties that form part of the Copper Mountain Mine and shall supersede and replace all prior technical reports relating to the Copper Mountain Mine.

Non-IFRS Financial Performance Measures

Cash cost and sustaining cash cost per pound of copper produced are shown because Hudbay believes they help investors and management assess the performance of its operations, including the margin generated by the operations and Hudbay. Unit operating costs are shown because Hudbay uses these measures as a key performance indicator to assess the performance of its mining and processing operations. These measures do not have a meaning prescribed by the International Financial Reporting Standards (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 the non-IFRS performance measures Hudbay uses, please refer to page 45 of Hudbay's management's discussion and analysis for the period ended September 30, 2023 (available on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov).


Cautionary Note to United States Investors

This Technical Report 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 NI 43-101.

For this reason, information contained in this Technical Report in respect of the Copper Mountain Mine 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 Hudbay's AIF, a copy of which has been filed under Hudbay's profile on SEDAR+ at www.sedarplus.ca and Hudbay's Form 40-F, a copy of which has been filed on EDGAR at www.edgar.com.


SIGNATURE PAGE

This Technical Report titled NI 43-101 Technical Report Updated Mineral Resources & Reserves Estimate, Copper Mountain Mine, Princeton, British Columbia, and dated December 4, 2023, with an effective date of December 1, 2023, was prepared under the supervision and signed by the following author:

Original Signed and Sealed  
Olivier Tavchandjian, Ph.D., P.Geo.
Senior Vice President, Exploration and Technical Services
Hudbay Minerals Inc.
 


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

Contents

1 Summary 1-1
   
1.1 Property Description and Location 1-1
   
1.2 Accessibility, Climate, Local Resources, Infrastructure, and Physiography 1-3
   
1.3 History 1-3
   
1.4 Geological Setting and Mineralization 1-4
   
1.5 Deposit Types 1-4
   
1.6 Exploration 1-5
   
1.7 Drilling 1-5
   
1.8 Sample Preparation, Analyses, and Security 1-6
   
1.9 Data Verification 1-6
   
1.10 Mineral Processing and Metallurgical Testwork 1-7
1.10.1 Comminution 1-7
1.10.2 Flotation 1-7
1.10.3 Concentrate Characterization 1-8
   
1.11 Mineral Resource Estimate 1-8
   
1.12 Mineral Reserve Estimate 1-10
   
1.13 Mining Methods and Production Schedules 1-11
   
1.14 Recovery Methods 1-15
   
1.15 CMM Infrastructure 1-15
   
1.16 Market Studies and Contracts 1-16
   
1.17 Environmental Studies, Permitting, and Social or Community Impacts 1-16
1.17.1 Permitting 1-16
1.17.2 Environmental, Social Setting, and Community Engagement 1-17
1.17.3 Conceptual Mine Closure and Reclamation 1-17
   
1.18 Capital and Operating Costs 1-17
1.18.1 Capital Costs 1-17
1.18.2 Operating Costs 1-19
   
1.19 Economic Analysis 1-19
   
1.20 Conclusions 1-20
   
1.21 Recommendations 1-20
   
2 Introduction 2-1
   
2.1 Qualified Person 2-1
   
2.2 Source of Information 2-1
   
2.3 Unit of Measure Abbreviations Used in Report 2-2
   
3 Reliance on Other Experts 3-1
   
4 Property Description and Location 4-1
   
4.1 Location 4-1
   
4.2 Land Use, Mineral Tenure, and Surface Rights 4-2
   
4.3 Environmental Property Liabilities 4-7

 


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

4.4 Royalties 4-7
   
5 Accessibility, Climate, Local Resources, Infrastructure, and Physiography 5-1
   
5.1 Accessibility 5-1
   
5.2 Climate 5-1
   
5.3 Local Resources 5-1
   
5.4 Infrastructure 5-1
   
5.5 Physiography 5-3
   
6 History 6-1
   
6.1 Copper Mountain Mine Area and Mining History 6-1
   
6.2 Exploration and Mineral Resource Estimates History 6-3
   
7 Geological Setting and Mineralization 7-1
   
7.1 Regional Geology 7-1
   
7.2 CMM Geology 7-1
7.2.1 Lithologies 7-4
7.2.2 Structure 7-5
7.2.3 Geochronology 7-6
   
7.3 Deposit Geology 7-7
7.3.1 Alteration 7-7
7.3.2 Mineralization 7-7
7.3.3 Weathering 7-9
   
8 Deposit Types 8-1
   
8.1 Alkalic Porphyry Deposits 8-1
   
9 Exploration 9-1
   
9.1 Geological and Geochemical Mapping 9-1
   
9.2 Geophysics 9-1
9.2.1 Airborne Surveys 9-1
9.2.2 Ground Surveys 9-1
   
9.3 Exploration Potential 9-3
   
10 Drilling 10-1
   
10.1 Drill Summary 10-1
   
10.2 Drilling Methods 10-5
   
10.3 Geological Logging 10-6
   
10.4 Recovery 10-6
   
10.5 Collar Surveys 10-6
   
10.6 Downhole Surveys 10-6
   
10.7 RC and Percussion Drilling 10-7
   
10.8 Geotechnical and Hydrological Drilling 10-7
   
10.9 Drill Coverage 10-8
   
10.10 Comments on Drilling 10-8


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

11 Sample Preparation, Analyses, and Security 11-1
   
11.1 Sampling Methods 11-1
11.1.1 Historical Drilling 11-1
11.1.2 Diamond and Reverse-Circulation Drilling 11-1
   
11.2 Density (Specific Gravity) Determinations 11-2
   
11.3 Analytical and Test Laboratories 11-3
11.3.1 Laboratory Accreditation 11-4
   
11.4 Sample Preparation and Analysis 11-4
   
11.5 Quality Assurance and Quality Control 11-4
11.5.1 Historical Data (Pre-2007) 11-6
11.5.2 2007-2023 QA/QA Control Program 11-6
   
11.6 Check and Re-Assay Programs 11-11
11.6.1 Check Assays 11-11
11.6.2 External Check-Assays Results 11-12
11.6.3 Re-Assays 11-12
   
11.7 Sample Security 11-13
   
11.8 Sample Storage 11-13
   
11.9 Comments on Sample Preparation, Analyses, and Security 11-14
   
12 Data Verification 12-1
   
12.1 Internal Verification 12-1
12.1.1 Collars 12-2
12.1.2 Downhole Surveys 12-2
12.1.3 Assays 12-3
12.1.4 Database Corrections 12-4
12.1.5 Data Security 12-5
12.1.6 Site Visits 12-5
   
12.2 Comments on Data Verification 12-5
   
13 Mineral Processing and Metallurgical Testing 13-1
   
13.1 Comminution 13-1
13.1.1 Copper Mountain Main and North Pit 13-1
13.1.2 New Ingerbelle 13-1
   
13.2 Flotation 13-2
13.2.1 Copper Mountain Main and North Pit 13-2
13.2.2 New Ingerbelle 13-3
13.2.3 Precious Metal Recoveries 13-5
   
14 Mineral Resource Estimates 14-1
   
14.1 Drilling Database 14-1
   
14.2 Density 14-7
   
14.3 Gold and Silver Regressions 14-8
   
14.4 Compositing 14-8
   
14.5 Exploratory Data Analysis 14-8
   
14.6 Grade Capping 14-9
   
14.7 Variography 14-9
   
14.8 Grade Estimation and Interpolation Methods 14-10


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

14.9 Grade Estimation Validation 14-11
   
14.10 Visual Inspection 14-11
   
14.11 Global-Bias Checks 14-14
   
14.12 Smoothing Assessment 14-16
   
14.13 Smoothing Correction 14-16
   
14.14 Classification of Mineral Resource 14-18
   
14.15 Post-Processing of Dykes, Mined-Out Areas, and Backfill 14-19
   
14.16 Reasonable Prospects for Economic Extraction and Mineral Resource Estimates 14-19
   
14.17 Reconciliation 14-20
   
14.18 Conclusion 14-22
   
15 Mineral Reserve Estimates 15-1
   
15.1 Dilution and Mining Recovery 15-1
   
15.2 Geotechnical Considerations 15-1
   
15.3 Pit Optimization 15-2
   
15.4 Mineral Reserve Statement 15-2
   
15.5 Factors that may Materially Affect Mineral Reserves 15-2
   
16 Mining Methods 16-1
   
16.1 Mining Overview 16-1
   
16.2 Pit and Waste-Rock Storage Area Design Criteria 16-1
   
16.3 Pit Dewatering 16-5
   
16.4 Life-of-Mine Production Schedule and Sequence 16-5
16.4.1 Sequence, Dilution, and Mill-Feed Cut-Off Strategy 16-5
16.4.2 Dilution and Mill-Feed Cut-Off Strategy 16-5
16.4.3 New Ingerbelle Development 16-6
16.4.4 Production Schedule 16-7
   
16.5 Mine Equipment 16-9
   
17 Recovery Methods 17-1
   
17.1 Process Plant Description 17-1
17.1.1 Crushing Circuit 17-1
17.1.2 Grinding and Classification 17-3
17.1.3 Flotation Circuit 17-3
17.1.4 Copper-Concentrate Dewatering 17-4
17.1.5 Reagents and Consumables 17-4
   
17.2 50 kt/d Debottlenecking 17-5
17.2.1 Comminution Circuit 17-6
17.2.2 Flotation Circuit 17-6
   
18 Infrastructure 18-1
   
18.1 Power Supply 18-3
18.1.1 Copper Mountain Mine Power Reticulation 18-4
   
18.2 Water Supply and Management 18-4
18.2.1 Existing Water Management Systems 18-5
   
18.3 Other Services 18-6


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

18.3.1 Process Plant Maintenance 18-6
18.3.2 Fleet Maintenance 18-7
18.3.3 Fuel Storage and Distribution 18-7
18.3.4 Administration Facilities 18-7
18.3.5 Warehousing 18-7
18.3.6 Waste Rock Facility 18-7
18.3.7 Tailings Management Facility 18-8
   
18.4 New Ingerbelle Pit Activation 18-8
18.4.1 New Ingerbelle Maintenance Services 18-8
18.4.2 New Ingerbelle Pit Access 18-8
18.4.3 New Ingerbelle Power Reticulation 18-10
18.4.4 New Ingerbelle Water-Management Installations 18-12
18.4.5 New Ingerbelle Waste Rock Facility 18-12
   
19 Market Studies and Contracts 19-1
   
19.1 Copper Concentrate 19-1
   
19.2 Related Contracts 19-1
   
19.3 Logistics 19-2
   
20 Environmental Studies, Permitting, and Social or Community Impact 20-1
   
20.1 Permitting 20-1
20.1.1 Existing Major Permits 20-1
20.1.2 Other Potential Permits 20-3
   
20.2 Environmental Studies and Monitoring Programs 20-4
20.2.1 Meteorology 20-4
20.2.2 Air Quality and Greenhouse Gas Emissions 20-4
20.2.3 Hydrology, Hydrogeology, and Water Quality 20-4
20.2.4 Waste Rock Geochemistry 20-5
20.2.5 Fish and Aquatics 20-5
20.2.6 Wildlife and Vegetation 20-6
20.2.7 Archaeology 20-6
20.2.8 Environmental Disclosure 20-6
   
20.3 Social and Community 20-6
20.3.1 Employment and Economy 20-7
20.3.2 Land Use 20-8
20.3.3 Engagement 20-10
   
20.4 Conceptual Mine Closure and Reclamation 20-11
   
21 Capital and Operating Costs 21-1
   
21.1 Capital Costs 21-1
21.1.1 Project Capital 21-1
21.1.2 Sustaining Capital and Capitalized Stripping 21-2
   
21.2 Operating Costs 21-4


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

22 Economic Analysis 22-1
   
23 Adjacent Properties 23-1
   
24 Other Relevant Data and Information 24-1
   
25 Interpretation and Conclusions 25-1
   
26 Recommendations 26-1
   
27 References, Abbreviations, and Units of Measure 27-1
   
27.1 References 27-1
   
27.2 Abbreviations and Units of Measure 27-9

Tables

Table 1-1:    Copper Mountain Mineral Resource Estimates Inclusive of Mineral Reserves  Effective as of December 1, 2023 1-9
Table 1-2:    Copper Mountain Mineral Resource Estimates Exclusive of Mineral Reserves  Effective as of December 1, 2023 1-9
Table 1-3:    Reconciliation between the 2019, 2022, and 2023 Copper Mountain  Mineral Resource Estimates 1-10
Table 1-4:    Copper Mountain Mine Mineral Reserves, Effective as of December 1, 2023 1-11
Table 1-5:    Copper Mountain LOM Mine Schedule-2024-2044 1-14
Table 1-6:    Production Ramp-Up Schedule 1-15
Table 1-7:    Major Permits at Copper Mountain Mine 1-16
Table 1-8:    Copper Mountain Mine-Summary of LOM Capital Cost ($ 000s) 1-18
Table 1-9:    Copper Mountain Mine-Summary of LOM Operating Costs ($/t) 1-19
Table 1-10:  Operating Costs and Sustaining Costs per Pound (US$/lb) 1-19
Table 3-1:    Reliance on Other Experts 3-1
Table 4-1:    Crown Grants 4-4
Table 4-2:    Mineral Claims 4-5
Table 4-3:    Mining Leases 4-7
Table 6-1:    Reconciliation between the 2019, 2022, and 2023 Copper Mountain  Mineral Resource Estimates 6-4
Table 10-1:  Summary of Historical Drill Hole Data for the Copper Mountain Project 10-2
Table 10-2:  Summary of Recent Drill Hole Data for the Copper Mountain Project 10-3
Table 11-1:  Sample Preparation and Analytical Laboratories 11-3
Table 11-2:  Laboratory Location and Accreditation 11-4
Table 11-3:  Summary of CMM QA/QC from 2007 to 2023 11-5
Table 11-4:  Blank and CRM Insertion Procedures from 2007 to 2023 11-7
Table 11-5:  CRMs Used from 2007-2023 11-8
Table 11-6:  Summary of CRM Performance for Drill Programs 2007-2023 11-9
Table 11-7:  Summary of Blank Performance for Drill Programs 2007-2023 11-10
Table 11-8:  Summary of CRM Performance for Copper Mountain Mine Laboratory 2012-2022 11-11
Table 11-9:  Summary of External Check Assays 2012-2022 for Cu% by AA Method 11-12
Table 11-10: Summary of Half-Core Duplicate Check-Assays 2021-2022 for Cu% by AA Method 11-13
Table 12-1:  Summary of Survey by Hole Type 12-3
Table 12-2:  Survey Type in Recent Drill Holes (2007-2023) 12-3
Table 12-3:  Assay Database Summary by Element, Period, and Laboratory 12-4
Table 13-1:  Main and North Pit Hardness 13-1


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

Table 13-2:  New Ingerbelle Hardness Testwork Results 13-1
Table 13-3:  Historical Ingerbelle Flotation Performance 13-4
Table 14-1:  Drill-Hole Summary 14-1
Table 14-2:  Drill-Hole Summary per Deposit 14-2
Table 14-3:  Mineralized Envelopes Code Equivalency 14-2
Table 14-4:  Specific Gravity by Mineralization Domains 14-7
Table 14-5:  Copper Mountain and New Ingerbelle Capping Thresholds 14-9
Table 14-6:  East Deposit Variogram Parameters 14-9
Table 14-7:  Search Ellipse Parameters 14-10
Table 14-8:  Global Statistics 14-15
Table 14-9:  Summary of Smoothing Correction 14-17
Table 14-10: Resource Classification Proportion Pre- and Post-Processing 14-19
Table 14-11: Copper Mountain Mineral Resource Estimates Inclusive of Mineral Reserves  Effective as of December 1, 2023 14-20
Table 14-12: Copper Mountain Mineral Resource Estimates Exclusive of Mineral Reserves  Effective as of December 1, 2023 14-20
Table 14-13: December 2020 to October 2023 Mineral Reserve Estimates vs. Plant Reconciled Results 14-21
Table 14-14: Reconciliation between the 2019, 2022, and 2023 Copper Mountain  Mineral Resource Estimates 14-21
Table 15-1:  Copper Mountain Mine Mineral Reserves, December 1, 2023 15-3
Table 16-1:  Pit Wall Slope Parameters 16-3
Table 16-2:  Copper Mountain Mine WRF Design Criteria 16-4
Table 16-3:  Copper Mountain Mine Planning Parameters 16-5
Table 16-4:  Copper Mountain LOM Mine Schedule-2024-2044 16-8
Table 16-5:  Copper Mountain Mine Pit Equipment Fleet, Peak Production 16-9
Table 17-1:  Production Ramp-Up Schedule 17-5
Table 17-2:  Process Design Criteria 17-7
Table 18-1:  Site Power Demand Summary 18-4
Table 20-1:  Major Permits at Copper Mountain Mine 20-1
Table 21-1:  LOM Capital Projects Expenditures ($ 000s) 21-1
Table 21-2:  LOM Sustaining Capital and Capitalized Stripping Expenditures ($ 000s) 21-3
Table 21-3:  On-Site Operating Costs ($/t Milled) 21-4
Table 21-4:  Operating Costs-Mining/Activity ($/t Moved) 21-4
Table 21-5:  Operating Costs-Mining/Components ($/t Moved) 21-5
Table 21-6:  Operating Costs-Milling and G&A ($/t Milled) 21-5
Table 21-7:  Operating Costs and Sustaining Costs per Pound (US$/lb) 21-6

Figures

Figure 1-1:    Copper Mountain Mine Land Tenure 1-2
Figure 1-2:    Copper Mountain and New Ingerbelle Ultimate Pits 1-12
Figure 4-1:    Copper Mountain Mine Location 4-1
Figure 4-2:    Copper Mountain Mine Land Tenure 4-3
Figure 5-1:    Copper Mountain Mine Site 5-2
Figure 6-1:    Locations and Names of Historical and Current Mining Zones and Areas 6-2
Figure 7-1:    Terranes of British Columbia Showing the Copper Mountain Deposit Location 7-2
Figure 7-2:    Geology of the Copper Mountain Area 7-3
Figure 7-3:    Schematic Representation of a Geological SW-NE Cross-Section Across Copper Mountain 7-4


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

Figure 7-4:    Contoured Blastholes in the CM Main Pit at November 2019 Mining Surface 7-9
Figure 9-1:    Total Magnetic Intensity 9-2
Figure 9-2:    Location of IP Survey Lines 9-3
Figure 10-1:  Isometric View of Drill Hole in the CM Main and CM North Zones 10-5
Figure 13-1:  Monthly Copper Recovery 13-2
Figure 13-2:  Rougher Flotation Co-Collector Testwork on Copper Mountain Main Pit Samples 13-3
Figure 13-3:  Rougher Flotation Testwork on New Ingerbelle Composites 13-4
Figure 13-4:  Monthly Gold Recovery 13-5
Figure 13-5:  Monthly Silver Recovery 13-6
Figure 14-1:  Plan View of the Geological Model 14-3
Figure 14-2:  Plan View of the Mineralized Domains 14-4
Figure 14-3:  New Ingerbelle Mineralization 14-4
Figure 14-4:  Copper Mountain North Mineralization 14-5
Figure 14-5:  Copper Mountain Central East Mineralization 14-5
Figure 14-6:  Copper Mountain Central Mineralization 14-6
Figure 14-7:  Copper Mountain South Central Mineralization 14-6
Figure 14-8:  Copper Mountain South Mineralization 14-7
Figure 14-9:  Ore Percentage Example 14-10
Figure 14-10:New Ingerbelle-OK Model and Copper Grade Composites N-S Section View 14-11
Figure 14-11:Copper Mountain North-OK Model and Copper Grade Composites  N-S Section View 14-12
Figure 14-12:Copper Mountain Central East-OK Model and Copper Grade Composites  N-S Section View 14-12
Figure 14-13:Copper Mountain Central and South Central-OK Model and Copper Grade Composites  N-S Section View 14-13
Figure 14-14:Copper Mountain South-OK Model and Copper Grade Composites N-S Section View 14-13
Figure 14-15:Resource Classification at the CMM Deposits 14-18
Figure 14-16:Copper Mountain 2022 Block Model vs. Hudbay Grade Shells 14-22
Figure 16-1:  Copper Mountain and New Ingerbelle Ultimate Pits 16-2
Figure 16-2:  Geotechnical Zones 16-4
Figure 16-3:  Annual Material Movement 16-9
Figure 17-1:  Process Plant 45 kt/d Flowsheet 17-2
Figure 18-1:  BC Hydro Transmission Map 18-3
Figure 18-2:  Overall 25 kV Distribution System 18-5
Figure 18-3:  Site Water Management Schematic 18-6
Figure 18-4:  Proposed Equipment Bridge Crossing the Similkameen River 18-9
Figure 18-5:  New Ingerbelle Proposed Power Supply and Reticulation 18-11
Figure 19-1:  Global Copper Production and Primary Demand 19-1
Figure 20-1:  Copper Mountain Permitted Mine Area 20-2
Figure 20-2:  Community Boundaries and Setting in Relation to Copper Mountain Mine 20-7
Figure 20-3:  Ingerbelle Land Tenure 20-9


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

1 Summary

This Technical Report has been prepared for Hudbay Minerals Inc. (Hudbay) to support the public disclosure of updated Mineral Resource and Mineral Reserve estimates and an updated life-of-mine (LOM) plan for the Copper Mountain Mine (CMM). This Technical Report conforms to National Instrument (NI) 43-101 Standards of Disclosure for Mineral Projects.

Hudbay acquired Copper Mountain Mining Corporation (CMMC) in June 2023 and indirectly holds a 75% interest in Copper Mountain Mine (BC) Ltd. (CMML) and the CMM. The remaining 25% interest in CMML and the CMM is held by Mitsubishi Materials Corp. (MMC).

Hudbay is an integrated Canadian mining company with assets in North and South America, principally focused on the discovery, production, and marketing of base metals and precious metals. Hudbay's objective is to maximize shareholder value through efficient operations, organic growth, and accretive acquisitions while maintaining its financial strength.

Hudbay's operations at the CMM include a series of open pits, an ore processing plant, waste rock facilities (WRF), a tailings management facility (TMF), and other ancillary facilities that support the operations.

After 15 years of care and maintenance, CMMC restarted operations at the CMM in mid-2011. Operations have continued since 2011 without major interruptions. As of the date of this Technical Report, the CMM is in steady-state production.

The Qualified Person (QP) who supervised the preparation of this Technical Report is Hudbay's Olivier Tavchandjian, P.Geo., Senior Vice-President, Exploration and Technical Services.

Unless the context suggests otherwise, references to "Hudbay" refer to Hudbay Minerals Inc. and its direct and indirect subsidiaries, including but without limitation, CMML.

1.1 Property Description and Location

The CMM is 21 km by road south of Princeton and 180 km east of Vancouver, British Columbia (B.C.). The CMM property consists of 135 Crown-granted mineral claims, 145 located mineral claims, 14 mining leases, 12 fee simple properties, and 7 cell claims, which together cover 6,354 ha (63.5 km2). All claims are controlled by CMML, a joint venture held 75% by Hudbay and 25% by MMC. The claims straddle the Similkameen River, with New Ingerbelle on the river's west side and the Copper Mountain Main (CM Main) and Copper Mountain North (CM North) Pits on the east. The Hope-Princeton Highway (Highway 3) passes immediately west of the property (Figure 1-1).


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

Figure 1-1: Copper Mountain Mine Land Tenure

Source: CMMC (2022).


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

1.2 Accessibility, Climate, Local Resources, Infrastructure, and Physiography

Almost all the CMM property area is accessible by highway, with the site served by a paved access road, local gravel roads (remaining either from previous mining or logging), and those used for current mining. Electrical power from the provincial grid is connected to the property. Supplemental water for operations, in addition to water recycled from the TMF, is pumped from the Similkameen River. Property elevations range from approximately 770 m above sea level (masl) to 1,300 masl. The CMM area has a relatively dry climate, typical of B.C.'s southern interior. Summers are warm and dry, and winters are cool, with minor precipitation.

The Town of Princeton connects to the mine by way of an 18.4 km-long paved road, and a gravel road approximately 2.6 km long. The town has a population of approximately 3,000 and a diversified economy driven by mining, ranching, forestry, and tourism. The CMM operation is the predominant employer in the area. Princeton has services typical of its size; however, the mine's proximity to Vancouver, Kamloops, and other larger centres ensures that almost all the services required by mine operations are easily obtainable.

1.3 History

Initial exploration at the Copper Mountain area dates to around 1884. Underground mining began in 1923, when Granby Consolidated Mining, Smelting and Power Company (Granby) acquired the property and built a milling facility in Allenby (adjacent to Princeton). Between 1927 and 1957, Granby extracted around 31.5 Mt of economic mineralization with an estimated head grade of 1.08% Cu, as well as significant amounts of gold and silver, mostly from its underground operations. In 1972, Newmont began open pit mining operations at the Ingerbelle Pit, and in 1979, development on the east side of the Similkameen River commenced with the installation of a new primary crusher and conveyor system across the Similkameen River. This helped feed the Ingerbelle mill, which was expanded from 13 kt/d to over 20 kt/d. In 1988, Newmont sold the entire property to Cassiar Mining Corporation, which later became Princeton Mining Corporation. Mining operations ceased in 1996.

In 2006, the property was acquired by a joint venture held 75% by CMMC and 25% by MMC. Following extensive exploration and engineering studies, construction was initiated in early 2010, and the current phase of open pit mining began in 2011. The mill was initially designed to process 35 kt/d. Additional equipment has since been added to increase the nominal capacity to 45 kt/d, including a secondary crusher and a third ball mill. The current permit allows the mill to run at 50 kt/d.

Hudbay acquired CMMC and a 75% interest in the CMM in June 2023.

CMMC has published two technical reports since 2020 to support a future expansion of the mill to 65 kt/d (Holbek et al., 2020) and to report significant increases in Mineral Resource and Mineral Reserve estimates (Redmond et al., 2022). Hudbay did not endorse the Mineral Resource and Mineral Reserve estimates and mine plans that CMMC previously published. The present technical report supports the first Mineral Resource and Mineral Reserve estimates and LOM plan prepared under Hudbay's ownership and is more consistent with the assumptions used in CMMC's 2019 technical report (Holbek et al., 2019).


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

1.4 Geological Setting and Mineralization

The CMM porphyry copper deposit lies near the southern end of the Quesnel Terrane-an allochthonous composite crustal fragment consisting of Paleozoic and Mesozoic volcanic, sedimentary, and plutonic rocks. The southern Quesnel Terrane is dominated by the late Triassic Nicola Group, a subaqueous island-arc assemblage composed of volcanic and sedimentary rocks that make up the Nicola Volcanic Arc. At CMM, the Nicola Group is cut by a suite of intrusive rocks including the composite Copper Mountain Stock (CMS), the Voigt Stock, and the slightly younger, polyphase, Lost Horse Intrusive Complex (LHIC).

The bulk of the known copper-gold mineralization at CMM occurs in a northwesterly trending belt of Nicola Group rocks, approximately 5 km long and 2 km wide, bounded in the south by the CMS and in the west by the northerly trending Boundary Fault system. Copper-gold mineralization postdates the CMS and is temporally and spatially associated with the LHIC. Host rocks and mineralization in the mine area are cut by numerous late, north-south-trending felsite dykes, which are related to emplacement of the Cretaceous Verde Creek quartz monzonite, approximately 3.5 km northeast of the mine area. Sedimentary and volcanic rocks of the Eocene Princeton Group have been unconformably deposited on Nicola Group rocks and LHIC along the northern margin of the CMM and dip at about 30° to the north.

Alteration types in the CMM deposit are typical of porphyry copper deposits. Three major alteration types are observed at CMM: potassic, sodic, and propylitic. Other volumetrically minor alteration types include kaolinitic and sericite-chlorite clay. All mineralization-related hydrothermal alteration types postdate the hornfelsing of Nicola Group volcanic rocks adjacent to the CMS. Mineralization had been subdivided into four types, as follows:

  • Disseminated and stockwork chalcopyrite, bornite, chalcocite, and pyrite in altered Nicola Group volcanic rocks and LHIC rocks
  • Bornite-chalcopyrite associated with pegmatite-like veins (coarse masses of orthoclase, calcite, and biotite)
  • Magnetite-(±hematite)-chalcopyrite replacements and/or veins
  • Chalcopyrite-bearing magnetite breccias.

Due to Pleistocene glacial erosion most of the CMM deposits are characterized by a relatively fresh erosion surface, with limited surficial oxidation and no significant secondary enrichment of copper.

1.5 Deposit Types

Copper Mountain is an example of an alkalic porphyry deposit, in which copper-gold mineralization is spatially and genetically associated with multiple pulses of volumetrically restricted, and compositionally varied, alkaline porphyry intrusions. Although less common globally than calc-alkalic porphyry deposits, alkalic porphyry deposits are common in B.C., where they have been extensively studied. Well known examples of alkalic porphyry deposits in B.C. include Copper Mountain, Afton/Ajax, Mt. Milligan, Mount Polley, Lorraine, Red Chris, and Galore Creek. Alkalic porphyry deposits in B.C. have been further subdivided into two types; silica-undersaturated (e.g., Galore Creek) and silica-saturated (e.g., Copper Mountain).

Mineralization in alkalic porphyry deposits is typically hosted by potassic and/or calc-potassic alteration zones, and potassic alteration is typically more extensive spatially than copper-gold mineralization. Alkalic porphyry deposits in general are characterized by a relative scarcity of phyllic (sericitic) alteration, and an almost total lack of clay alteration. Sulphides in alkalic porphyry deposits are typically zoned from a bornite-rich core to bornite + chalcopyrite and then pyrite + chalcopyrite zones, with an outer barren zone where pyrite is the dominant sulphide. Overall, the sulphide content, especially pyrite content, is low compared to calc-alkalic porphyry deposits.


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

1.6 Exploration

The CMM has a long history of exploration and mining. Historical soil sampling and rock chip sampling were carried out, but there is limited information available on these historical geochemical surveys, and the surficial data are not relevant to the current Mineral Resource estimate.

Airborne geophysical surveys were flown within the CMM area in 1993 and 2014. A Titan induced polarization (IP)/resistivity/magnetotelluric survey, covering the CM Main and CM North Zones, was carried out in 2007; it consisted of seven lines totalling 22.8 line km. Another IP/resistivity survey was carried out in 2017, consisting of seven geophysical survey lines totalling 9.9 line km. Data from these geophysical surveys have been used to support geological mapping, exploration, and interpretation of the CMM deposits.

The CMM deposits remain open at depth with also a number of undrilled exploration targets generated using a combination of geophysical, geochemical, and structural geology data.

1.7 Drilling

The majority of the Copper Mountain area historical drilling (1912-2007) was diamond drilling, with some percussion holes drilled in the 1950s and reverse-circulation (RC) holes drilled in 1994. Since 2007, the majority of the drilling has been diamond drilling, with some RC drilling carried out in 2021-2022. Drilling on the CMM completed to September 1, 2023, includes 6,041 core and percussion drill holes (647,642 m) and 281 RC drill holes (45,744 m), for a total of 6,322 drill holes (693,386 m).

In 2023, Hudbay conducted global comparisons of assay results obtained from RC drilling and closely located diamond drilling in order to confirm the absence of sampling biases between the two drilling techniques.

A number of different drill-core diameters have been employed over the history of the CMM, including BX (36.6 mm core diameter for historical underground), NQ (47.6 mm core diameter), and HQ (63.5 mm core diameter). From 2007 onwards, the standard method of drilling was to start all holes with HQ core, then reduce to NQ core at depth. Core recoveries are typically between 90% and 100%, with local zones of lower recovery associated with fault zones.

Diamond core drill-holes have been geologically logged for lithology, structure, alteration, vein type, and mineralization. The geological logging of RC chips is recorded using a modified logging template to capture the same major characteristics as the core logging.

Historical collar surveys used industry-standard theodolite instrumentation to establish local grid control. From 2007, drill-hole collars were surveyed using either a total station instrument or differential Global Positioning System.

Downhole survey data were absent in pre-1960 drill holes. Downhole dip data, presumably by acid tests, were included in drill data from 1960 to 1987. From 1988 to 1998, downhole surveys were obtained using a Pajari instrument, which provided both azimuth and dip data. From 2007, downhole surveys were obtained using digital REFLEX instruments (or similar systems) which were compass based.


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

1.8 Sample Preparation, Analyses, and Security

Hudbay has no information on quality assurance and quality control (QA/QC) procedures for historical (pre-2007) drill-hole data. However, since 2007 large drilling programs that included QA/QC measures have globally validated the historical data. Historical drill-hole data are also supported by more than 12 years of reconciled copper production and operational data.

From 2007 to 2022, QA/QC data were collected and regularly monitored, and do not indicate any problems with the analytical programs. However, QA/QC submission rates varied throughout this time, and from 2021 to early 2022 QA/QC insertion rates dropped below industry-accepted standards. To address this shortcoming, a half-core re-assay program was carried out by CMMC, representing a 5% check of primary analyses of >0.1% Cu from the 2021-2022 drilling program; the results of this re-assay program showed that the original assay results are acceptable. From March 2022, QA/QC insertion rates have met industry-accepted standards.

From 2012 to 2022, sample preparation and primary analysis for copper and silver was carried out at the CMM laboratory. During this time, pulps from samples that returned >0.1% Cu in the CMM laboratory were routinely sent to a number of different independent laboratories for gold analysis, and on average 10% of these sample pulps were also analyzed for copper and silver. These check-assay results indicate that analytical data from the CCM laboratory are acceptable.

Based on a review of QA/QC data and the results of check and re-assay programs, the copper, gold, and silver data generated from drill core and RC samples are considered acceptable to support Mineral Resource and Mineral Reserve estimates.

In all, 1,673 specific gravity measurements have been made on drill core samples, representing a range of lithology, alteration, and mineralization types, using the weigh-in-air/weigh-in-water technique. These measurements have confirmed the validity of the historical tonnage conversion factor used at the CMM operations of 2.78 t/m3 for all rock types, which has also resulted in reasonable reconciliation with historical mine production.

Hudbay has no information on sample security measures prior to 2007. From 2007, samples have been stored in secure areas at the mine site. No significant security issues have been identified. CMM exploration staff continually verified data starting with the drilling programs in 2007-2008, which supported the mine restart in 2011, and continuing through the most recent 2022 drill program. Drill-hole data are also supported by more than 12 years of reconciled copper production and operational data.

1.9 Data Verification

CMMC exploration staff continually verified data starting with the drilling programs in 2007-2008, which supported the mine restart in 2011; this has continued through the most recent 2023 drill program.

There is no direct method for verifying historical (pre-2007) drill data. Although some drill cores remain on site, their condition does not allow for any systematic resampling or reanalysis. However, these historical data were obtained and compiled by major producing mining companies for mine design and production, and it is assumed that the data were acquired in the industry standard manner for their time.


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

In 2023, a major database migration to move all exploration project data into a cloud-based Seequent MX Deposit Database Management System has been completed. Prior to this, data were stored and managed within a Surpac Access Database on the company server. The 2023 project database has been extensively independently validated by Hudbay staff; the process included manual checks for transcription errors, data gaps, hole collar and assay interval locations, and downhole survey measurements.

Hudbay personnel working under the supervision of the Qualified Person have visited the CMM area to conduct site inspections to: become familiar with conditions on the property, observe the geology and mineralization, perform core review, and verify the work completed on the property as part of the Mineral Resource estimation and technical report process.

1.10 Mineral Processing and Metallurgical Testwork

The metallurgical characteristics of the CMM deposits have been developed through extensive mill experience and ongoing on-site- and off-site-based testing over the past decade.

1.10.1 Comminution

Feed sourced from the CM Main and North Pits is competent and hard. To predict processing throughput from these areas, a conservative set of hardness values has been used based on recent plant performance from these active mining areas. The New Ingerbelle Pit constitutes a significant percentage of the LOM Mineral Reserve estimates, with a material impact on projected throughput. Comminution testwork campaigns were completed in 2021 and 2022, with hardness results indicating that the New Ingerbelle mineralization is similar to the CM Main Pit with similar expected processing throughput.

1.10.2 Flotation

Since retained in 2012, the copper-cleaner recovery has been consistent since the beginning of operations and is expected to remain within the 96% to 98% operating range. Rougher-copper recovery is a function of the feed-ore quality and the overall operational efficiency of the comminution and flotation circuits. Without any changes to the existing circuit, inclusive of any configuration, equipment, and reagent schemes, the rougher-copper recovery would vary from 81% to 85% recovery, for a total copper recovery of 79% to 83%.

Flotation testwork has been initiated to increase the average flotation recovery via changes to the reagent scheme. The target of the programs has been the sulphide-mineral collectors and sulphurization agents. Adding a secondary co-collector has significantly increased the rougher-circuit recovery, by up to 8%, against the current scheme. In addition, two on-site lab-scale test campaigns were completed in 2023 to determine the effectiveness of improving recovery of oxide, transition, and sulphide minerals by reapplying active S ions to the surface of the target minerals. These tests were successful, showing sulphide-copper recovery improvements of 2%, and oxide-copper recovery improvements in excess of 20%, together with silver-recovery improvements. An overall 4% improvement over three years in copper recovery has been included in the mine plan.


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

Testwork on New Ingerbelle Pit mineralization began in 2017. Results of the flotation tests performed on composite samples exceeded 85% rougher recovery, with many above 90%. Historical production data from the Ingerbelle mill from 1970 through 1983 indicate recovery varying between 86% and 89%. With the existing circuit, the rougher recovery from New Ingerbelle is expected to be 87% to 92%. Applying the same cleaner-copper recovery range as per the CM Main Pit, total copper recovery is expected to be in the 85% to 90% range, with an estimated 87% on average.

Gold and silver are recovered as by-products by means of flotation. Historical production data from production records indicates that both gold and silver are correlated with overall copper recovery. Based on recent production records for Main and North Pits as discussed in Section 13.2.3, and on production records available for the 1976-1979 period for New Ingerbelle, recovery targets for gold and silver have been set to a range of 65% to 70%.

1.10.3 Concentrate Characterization

There are currently no penalties associated with concentrates produced by the CMM concentrator. Moreover, there is no indication of any potential future concerns.

1.11 Mineral Resource Estimate

The CMM Mineral Resource estimate is effective as of December 1, 2023.

Following its acquisition of the CMM in June 2023, Hudbay has worked to complete a new Mineral Resource and Mineral Reserve estimate with an effective date of December 1, 2023, which constitutes the basis for the updated Mineral Resource estimate presented in this Technical Report. A total of 693,386 m representing 6,322 holes has been used to construct the resource model for the CMM deposits. When gold and silver grade were not measured, they were calculated from the copper grade using robust regression formulae, by geological domain. Density was assigned a fixed value of 2.78 g/cm3.

Resource modelling at CMM is based on integrated geological and assay interpretations of information recorded from diamond core and RC logging and assaying, and comprises the following key steps: constructing mineralized envelopes; exploratory data analysis; and modelling (composites, variography, and interpolation) and validations, including a thorough assessment of the smoothing effect occurring during grade interpolation by domain, with consistent drill spacing and statistical distributions, and correction for over-smoothing when required. This methodology was validated through reconciliation between Mineral Reserve estimates and mill-credited production.

The CMM geological model was developed from an initial interpretation of six lithological domains. This geological framework was then used to model six continuous estimation-domains hosting the mineralization grading above 0.1% Cu. Post-mineralization barren dykes cross-cutting the mineralization were assigned a grade of zero, as they host minimal metal. In addition, former underground stopes filled with caved mineralization mixed with barren rocks were assigned a density of 2.0 g/cm3 and an average grade of 0.12% Cu, and the gold and silver grade were estimated through regression formula from the copper grade. Areas that have been backfilled were assigned an average density of 1.9 g/cm3 and a zero grade for all metals.

For each mineralized envelope, resource classification is based on the kriging slope of regression, which is a function of drill spacing, mineralization continuity, and mining block geometry. Distance to closest samples was also considered, as well as the search criteria during interpolation. A first-pass coding was based on the kriged regression slope for Measured resources being >80% and between 60% and 80% for Indicated resources. These thresholds align with the classification criteria used by Hudbay for its other operating mines and projects. Some local adjustments were made to produce resource category domains that are smoother and more continuous, while also considering the number and distance of the samples used for interpolation.


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

The Mineral Resource estimates inclusive and exclusive of Mineral Reserve estimates are reported in Table 1-1 and Table 1-2 at a 0.10% Cu cut-off grade, and inside an economic pit shell demonstrating that they have reasonable prospects for economic extraction.

Table 1-1: Copper Mountain Mineral Resource Estimates Inclusive of Mineral Reserves
Effective as of December 1, 2023

Resource Classification Tonnes
(kt)
% Cu Au g/t Ag g/t CuEq %
Measured 225,145 0.27 0.12 0.81 0.34
Indicated 273,304 0.22 0.11 0.63 0.39
Measured+Indicated 498,450 0.25 0.12 0.71 0.32
Inferred 371,319 0.25 0.13 0.61 0.34

Notes: Totals may not add up correctly due to rounding.
Mineral Resources are estimated as of December 1, 2023, and exclude those Mineral Resources expected to be mined and milled in the month of December 2023, resulting in an effective date of December 1, 2023.
Tonnes and grades constraint to a Lerch-Grossman revenue factor 1 pit shell.
Mineral Resources are not Mineral Reserves as they do not have demonstrated economic viability.
Mineral Resources are reported using long-term copper, gold, and silver prices of US$4.00/lb, US$1,650/oz, and US$22.00/oz, respectively.

Table 1-2: Copper Mountain Mineral Resource Estimates Exclusive of Mineral Reserves
Effective as of December 1, 2023

Resource Classification Tonnes
(kt)
% Cu Au g/t Ag g/t CuEq %
Measured 41,198 0.21 0.09 0.73 0.27
Indicated 96,615 0.21 0.11 0.68 0.29
Measured+Indicated 137,814 0.21 0.10 0.69 0.28
Inferred 371,319 0.25 0.13 0.61 0.34

Notes: Totals may not add up correctly due to rounding.
Mineral Resources are estimated as of December 1, 2023 and exclude those Mineral Resources expected to be mined and milled in December 2023, resulting in an effective date of December 1, 2023.
Tonnes and grades constraint to a Lerch-Grossman revenue factor 1 pit shell.
Mineral Resources are not Mineral Reserves as they do not have demonstrated economic viability.
Mineral Resources are reported using long-term copper, gold, and silver prices of US$4.00/lb, US$1,650/oz, and US$22.00/oz, respectively.

Table 1-3 presents a comparison of the Measured, Indicated, and Inferred Mineral Resource tonnages inclusive of Mineral Reserve estimates, with the estimates reported by CMMC in the Holbek et al. (2019) and Redmond et al. (2022) technical reports. Table 1-3 shows a reasonable agreement with the 2019 CMMC estimates after mining depletion and considering a reclassification of some of the Indicated Mineral Resource estimates to the Inferred category, as well as some exploration successes since 2019 that have resulted in the addition of high-grade resources while the 2022 CMMC estimates are deemed to represent an anomaly with an inflated estimate of the Mineral Resources based on optimistic assumptions. Importantly, the new 2023 Mineral Resource estimates are showing close results with production with both tonnage and grade reconciling within 3% to 4% of credited mine production by the mill over the past three years.


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

Table 1-3: Reconciliation between the 2019, 2022, and 2023 Copper Mountain
Mineral Resource Estimates

Categories CMMC 2019 PFS
(as of January 1, 2019)
CMMC 2022 PFS
(as of August 1, 2022)
Hudbay 2023
(as of December 1, 2023)
Tonnes
(Mt)
Cu
(%)
Au
(ppm)
Ag
(ppm)
Tonnes
(Mt)
Cu
(%)
Au
(ppm)
Ag
(ppm)
Tonnes
(%)
Cu
(%)
Au (ppm)
(%)
Ag (ppm)
(%)
Measured + Indicated 549 0.24 0.11 0.75 1,080 0.22 0.09 0.65 440 0.25 0.12 0.73
Inferred 237 0.21 0.10 0.50 446 0.19 0.09 0.54 371 0.25 0.13 0.61

Notes: PFS = prefeasibility study.
Cut-off at 0.10% Cu.
Mineral Resources are constrained by a $3.50/lb Cu pit shell in the 2019 and 2022 and by a pit shell using long-term copper, gold, and silver prices of US$4.00/lb, US$1,650/oz, and US$22.00/oz, respectively in 2023.

1.12 Mineral Reserve Estimate

Hudbay prepared the Mineral Reserve estimates for the CMM deposits presented in this Technical Report. The QP who supervised the preparation of this Technical Report is Olivier Tavchandjian, P.Geo., Hudbay's Senior Vice-President, Exploration and Technical Services.

Hudbay has opted to use a net smelter return (NSR) optimization model considering the copper, silver, and gold grades; mill recoveries; contained metal in concentrate; deductions and payable metal values; metal prices; freight costs; exchange rate; smelting and refining charges; and royalty charges.

The 2023 Proven and Probable Mineral Reserve estimates at the CMM total 367 Mt at a copper grade of 0.25% that supports a 21 year mine life. The mine plan is based on the capacity of the process plant, which in turn relies on the grinding circuit throughput. The plant is permitted to process 50 kt/d.


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

Table 1-4: Copper Mountain Mine Mineral Reserves, Effective as of December 1, 2023

Category Tonnes
(kt)
Cu Grade
(% Cu)
Au Grade
(g/t)
Ag Grade
(g/t)
Cu Pounds
(Mlb)
Au Ounces
(koz)
Ag Ounces
(koz)
CuEq %
Proven                
Mined Tonnes 194,199 0.27 0.12 0.78 1,168 775 4,880 -
Stockpile 838 0.15 0.05 0.59 3 1 16 -
Total Proven 195,037 0.27 0.12 0.78 1,171 777 4,896 0.35
Probable                
Mined Tonnes 118,226 0.25 0.14 0.65 659 524 2,489 -
Stockpile 53,717 0.16 0.04 0.45 185 69 779 -
Total Probable 171,943 0.22 0.11 0.59 844 593 3,268 0.30
Proven + Probable                
Mined Tonnes 312,425 0.27 0.13 0.73 1,827 1,299 7,370 -
Stockpile 54,555 0.16 0.04 0.45 188 71 795 -
Total 366,980 0.25 0.12 0.69 2,015 1,370 8,164 0.33

Notes: CIM Definition Standards for Mineral Resources & Mineral Reserves (CIM, 2014) were followed for Mineral Reserves.
Mineral Reserves were estimated as of December 1, 2023, but were generated excluding the Measured and Indicated Mineral Resource estimates planned to be mined and milled in the month of December 2023.
Mineral Reserves are reported using an NSR cut-off value of US$5.67 that meets a minimum 0.10% Cu grade.
Mineral Reserves are reported using long-term copper, gold, and silver prices of US$3.75/lb, US$1,650/oz, and US$22.00/oz, respectively.
Average density is 2.78 t/m3 for hardrock material, 2.0 t/m3 for stockpiled material, and 1.90 t/m3 for material in old stopes from previous underground mining activities.
Stockpile tonnes and grade are based on historical production grade control processes.
Totals may not add due to rounding.

1.13 Mining Methods and Production Schedules

CMM employs conventional open pit mining methods composed of blasthole drilling, blasting, shovel loading, and rigid-frame rear-dump-truck haulage. The blasthole cuttings are mapped and sampled, with samples transported to the on-site analytical laboratory. Samples are pulverized and analyzed for copper. Assays are uploaded by the geology department and combined with the exploration drill database, which is then interpolated onto bench plans together with blasthole grades and geological information. Grade boundaries are selected manually, and depending on the material, the blasting details are determined. Following blasting, the dig plans are uploaded to the shovels and dispatch system to direct mining and haulage.

Hudbay uses standard steps of open pit optimization, pit design, production scheduling, and financial modelling for estimating the CMM's Mineral Reserves. Assumptions are based on operating experience and both mine and mill performance. The production model considers all operating costs, capital costs, and sustaining expenditures. Capital costs include new or used mine equipment required to achieve the production profile. Operating costs include all costs such as power, diesel fuel, parts, maintenance, grinding media and other consumables, and general and administrative (G&A) costs.

Production schedules are based on achieving a tonnage of mill feed, which is constrained by the specified mining fleet, mineralization and waste-haul profiles, and calculated productivities. The Copper Mountain Pit, New Ingerbelle Pit, and key mining infrastructure is shown in Figure 1-2.


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

Figure 1-2: Copper Mountain and New Ingerbelle Ultimate Pits

The mine uses an NSR cut-off value of $5.67/t with an additional constraint of 0.10% Cu. Material above the NSR cut-off can be sent directly to the crusher, to a temporary high-grade stockpile, or alternatively to a low-grade stockpile when the copper grade is between 0.10% and 0.13% Cu, depending upon production rates of the various materials over a given time. The fine-ore stockpile that feeds the mill has enough capacity for approximately five days of milling. The projected mining fleet owned by Hudbay will move an average of 94 Mt/a from 2024 though 2026. In addition to the CMM fleet, it is projected that a contract miner will move an additional 40 Mt of material from mid-2024 to mid-2026 to maximize high-grade ore exposure. Following 2026, the material movement rate will decrease over time as waste stripping demands decrease. The estimated fleet will sustain the projected mill ramp-up production to 50 kt/d by 2027. Table 1-5 shows a summary of the LOM for the CMM.

Hudbay has conducted trade-off studies between various scenarios for the LOM plan, aiming to uncover high-grade mill feed early in the mine's life. The base case selected for the LOM plan adopted in this Technical Report constitutes a conservative approach to maximizing high-grade access while adhering to known geotechnical requirements. Hudbay has identified opportunities to reduce waste stripping requirements that are not yet at the mature level of engineering required to comply with NI 43-101 requirements; however, Hudbay intends to develop and demonstrate these improvements in the coming months fully, and as such, the capitalized stripping associated to the extra 40 Mt of waste stripping is considered as a discretionary investment that could be reduced or deferred to a later date but is fully costed in this Technical Report.


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

Mine plans are updated on an annual basis or as required due to changing circumstances. Inferred resource blocks within the design pit have been treated as waste; however, experience suggests that a significant portion of the Inferred Mineral Resource material will be upgraded to Mineral Reserves, either with future exploration drilling or during production drilling. Similarly, within the later years of the mine plan, there will be times when low-grade stockpile material will be used as mill feed. Continued exploration may alleviate this situation, resulting in higher mill feed-grades and metal production.


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

Table 1-5: Copper Mountain LOM Mine Schedule-2024-2044

Category Unit LOM Total/Avg. 2024 2025 2026 2027 2028 2029-2033 2034-2038 2039-2044
Ex-Pit Mining                    
Ore Mined from Pit kt 312,425 18,983 22,363 14,020 20,710 21,096 102,055 92,300 20,898
Waste Mined from Pit kt 866,559 82,832 91,637 86,480 63,290 48,904 237,945 224,700 30,770
Total Mined from Pit kt 1,178,984 101,815 114,000 100,500 84,000 70,000 340,000 317,000 51,669
Mined Stripping Ratio w:o 2.8 4.4 4.1 6.2 3.1 2.3 2.3 2.4 1.5
Stockpile Movement                    
High-Grade Stockpile Starting Balance kt - 1,258 - - - - - - -
Material Mined to High-Grade Stockpile kt - 0 - - - - - - -
Reclaimed to Mill from High-Grade Stockpile kt - 1,258 - - - - - - -
High-Grade Stockpile Ending Balance kt - 0 - - - - - - -
Low-Grade Stockpile Starting Balance kt - 53,297 58,530 64,468 60,968 63,428 66,224 76,979 77,979
Material Mined to Low-Grade Stockpile kt - 6,160 5,938 0 2,460 2,796 10,755 1,000 0
Reclaimed to Mill from Low-Grade Stockpile kt - 927 0 3,500 0 0 0 0 77,979
Low-Grade Stockpile Ending Balance kt - 58,530 64,468 60,968 63,428 66,224 76,979 77,979 0
Total Material Movement                    
Total Material Movement kt 1,262,648 104,000 114,000 104,000 84,000 70,000 340,000 317,000 129,648
Mill Feed                    
Mill Feed Tonnes kt 366,980 15,008 16,425 17,520 18,250 18,300 91,300 91,300 98,877
Copper Grade % Cu 0.25 0.30 0.29 0.33 0.32 0.36 0.27 0.24 0.17
Gold Grade g/t 0.12 0.07 0.10 0.07 0.11 0.12 0.16 0.15 0.07
Silver Grade g/t 0.69 1.12 0.90 1.27 1.07 1.17 0.60 0.54 0.55
Copper Recovery % 85.7 82.5 84.0 84.0 85.6 85.5 86.7 86.4 85.1
Gold Recovery % 68.3 65.0 65.0 65.0 67.9 67.8 69.6 69.0 66.0
Silver Recovery % 68.5 70.0 70.0 70.0 69.2 69.2 66.5 67.1 69.6
Recovered Metal                    
Copper Mlb 1,726 82 88 108 111 124 475 425 313
Gold koz 935 21 36 26 44 47 321 302 138
Silver koz 5,590 378 334 500 434 477 1,174 1,067 1,225

Notes: LOM plan contains only Proven and Probable Mineral Reserves.
Inferred Mineral Resources are treated as waste.
Numbers may vary due to rounding.


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

1.14 Recovery Methods

The processing plant consists of a standard crush-grind-flotation circuit that operates two shifts 12 h/d, 365 d/a, with targeted plant availability of 92%. The process plant has an installed capacity of 45 kt/d process via a comminution circuit consisting of a primary and secondary crushing circuit reducing the feed to minus 40 mm ahead of a semi-autogenous grinding mill, ball mill, and pebble crusher grinding circuit further reducing the feed size to P80 150 µm.

The comminution circuit is followed by a sulphide flotation circuit that produces a copper-silver-gold concentrate. The flotation tailings are transported to the TMF unthickened via a gravity pipeline, with the sands and slime separation occurring on the TMF's dam walls via mobile cyclone units. The concentrate is dewatered via two pressure filters and stored on site before transport via truck to the Port of Vancouver for shipment to the final customers.

The process plant throughput is planned to be stabilized at 45 kt/d throughout 2024-2025, followed by an expansion to 50 kt/d by 2027 via minor capital upgrades targeted at removing process bottlenecks in the primary and secondary crushing circuits, enabling a finer product to be fed to the grinding circuit (Table 1-6). Adding new major equipment is not planned for this stage of debottlenecking.

Table 1-6: Production Ramp-Up Schedule

Criteria Unit 2024 2025 2026 2027 2028
Throughput kt/d 41.1 45.0 48.0 50.0 50.0
t/oph 1,861 2,038 2,174 2,264 2,264
Cu Recovery % 83 84 84 86 86
Cu Concentrate Grade %Cu 24 26 26 26 26
Au Recovery % 65 65 65 68 68

Note: t/oph = tonnes per operating hour.

1.15 CMM Infrastructure

The CMM was constructed between 2010 and mid-2011 on a site of previous mining activity; significant parts of the infrastructure were already in place, including power line, roads, water source, mine office building, and TMF. The key components required for the mine restart were a 35 kt/d concentrator processing facility, a power-line extension, new transformers and power distribution, a new freshwater booster station and piping to the new concentrator, new mine maintenance truck shop, and a fleet of open pit mining equipment.

Electricity is supplied from the BC Hydro Nicola substation near Merritt, along a 138 kV transmission line to the Similco Mines substation (SCO) that BC Hydro owns and maintains. The BC Hydro line can also supply power to the Princeton substation operated by FortisBC. The SCO, owned by Hudbay, supplies equipment operating on the west side of the Similkameen River, such as the freshwater pumps. A 3.3 km-long 138 kV line crossing the Similkameen River then runs from the SCO substation to the CMM substation at the CMM concentrator. This substation provides the required voltage step-downs to service all other equipment operating east of the Similkameen River.

Concentrator process water is recycled from the TMF pond, with additional make-up water pumped from the Similkameen River. Existing infrastructure installed to support the CMM operation also includes a complete 45 kt/d Cu-Au-Ag flotation plant and concentrate load-out facility; the current and historical pits and WRFs; a cyclone sand-dam TMF with seepage return pumping systems installed at the toe of the east and west dams; pumping stations; truck shop and warehouse facilities; potable and wastewater treatment facilities servicing the full allotment of operating and administration staff; laboratory; administration offices; and a 1 km trolley assist waste-hauling system.


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

1.16 Market Studies and Contracts

Global copper concentrate fundamentals are expected to be strong in the medium to longer term as smelters globally will seek to maximize metal production in an attempt to satisfy unprecedented demand driven by the green energy megatrend. Buyers are expected to compete aggressively for concentrate supply, exerting downward pressure on treatment charges, relative to current market conditions.

CMM concentrate quality is well established. It is a clean concentrate, attracting no penalties, and includes important by-product precious-metal credits.

Concentrate production is sold exclusively to MMC, a major Japanese smelting entity, pursuant to an offtake agreement that was entered into in connection with the joint venture. CMM incurs treatment and refining charges consistent with the global industry benchmark established by major miners and smelters

1.17 Environmental Studies, Permitting, and Social or Community Impacts

1.17.1 Permitting

Mining and processing at the CMM are authorized and regulated by three major permits (Table 1-7). Additionally, discharges from the mine site are governed by the federal Metal and Diamond Mining Effluent Regulations under the federal Fisheries Act. All permits have specific monitoring requirements, and general or specific discharge limits and characteristics.

Table 1-7: Major Permits at Copper Mountain Mine

Permit Issued By Original Date of Issue Last Permit Amendment
B.C. Mines Act Permit M-29 B.C. Ministry of Energy, Mines and Petroleum Resources August 3, 1970 March 3, 2021
Effluent Permit PE-261 B.C. Ministry of Environment and Climate Change Strategy February 3, 1969 March 17, 2022
Air Emissions Permit PA-105340 B.C. Ministry of Environment October 3, 2011 January 18, 2016

The current B.C. Mines Act M-29 permit, issued and enforced by the B.C. Ministry of Energy, Mines, and Low Carbon Innovation (EMLI) authorizes the mine and reclamation plans, tailings, and WRFs, site roads, and water management. It also contains requirements for reclamation liabilities, closure-cost estimates, and associated reclamation bonding.

The major permits (Table 1-7) will require amendments based on the CMM LOM plan, but no federal authorizations are required. The New Ingerbelle Open Pit Push-Back and Mine Life Extension, which is part of the CMM LOM plan, is advancing through a joint coordination authorization process to amend the B.C. Mines Act (MA) and B.C. Environmental Management Act permits, through EMLI's Major Mines Office permit amendment process.


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

1.17.2 Environmental, Social Setting, and Community Engagement

The CMM biophysical setting includes relevant baseline studies, monitoring, and management plans for vegetation, wildlife and wildlife habitat, fish and aquatic resources, hydrology, hydrogeology, water quality, sediment, periphyton and benthic invertebrates, air quality, as well as greenhouse gas (GHG) and climate change.

Hudbay has strong support from local communities and the Town of Princeton. Transparent engagement and strong cooperative working relationships with all local communities are priorities for Hudbay. The CMM is within the Traditional Territory of the Smilq'mixw People as represented by the Upper Similkameen Indian Band (USIB), in Hedley, and the Lower Similkameen Indian Band (LSIB), in Cawston. Hudbay maintains a cooperative and respectful relationship with USIB and LSIB that is in keeping with the principles of economic sustainability, environmental stewardship, and self-determination in respect of Smilq'mixw Territory. Hudbay will continue engagement activities with USIB and LSIB on the New Ingerbelle development plan and for the TMF dam raise, specifically with involvement in environmental baseline studies, input of Indigenous Knowledge into design considerations, and review of basic engineering concepts.

1.17.3 Conceptual Mine Closure and Reclamation

A conceptual end land-use plan (ELUP) has been developed in collaboration with LSIB and USIB for the CMM. The conceptual ELUP serves as a guide for reclamation planning, progressive reclamation efforts, and research on site-throughout operations, as well as a tool for input from LSIB and USIB in developing a detailed ELUP. The detailed ELUP, once developed, will continue to be used to achieve the end land-use objectives and to identify challenges and solutions that can be addressed through recontouring, reclamation research, and reclamation implementation.

As required under Mines Act Permit M-29, Hudbay will develop and submit a detailed Closure Plan to EMLI for approval at least twelve months prior to final closure. Hudbay will also continue to engage First Nations, local communities, and regulatory agencies in focused consultation about closure and development of an appropriate and detailed mine closure plan that is responsive to First Nations and stakeholder concerns.

1.18 Capital and Operating Costs

1.18.1 Capital Costs

The LOM sustaining capital is estimated to be $731 million (excluding capitalized stripping) for the mine and the mill, while the mill stabilization and growth capital is estimated to be $167 million. Capitalized stripping represents $742 million over the LOM with an additional discretionary capitalized stripping project of $114 (Table 1-8).

The total capital cost includes expenses required for major mining equipment acquisition, rebuilds, and major repair. The cost also includes site infrastructure expansion (TMF, WRFs, and others) and process-plant infrastructure; however, the capital costs exclude all costs related to mine closure. Growth associated capital costs include New Ingerbelle development expenditures.


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

Table 1-8: Copper Mountain Mine-Summary of LOM Capital Cost ($ 000s)

  2024 2025 2026 2027 2028 2024-2028
Avg.
2029-2033
Avg.
2034-2038
Avg.
2039-2043
Avg.
LOM
Sustaining Capital                    
CMM and New Ingerbelle                    
Mine Equipment - New Trucks and Equipment - 11,517 13,664 15,290 12,870 10,668 4,473 - - 75,704
Mine Equipment - Major Repair 17,352 18,651 19,584 19,895 19,459 18,988 19,202 18,574 7,303 321,691
Mine Equipment - Equipment Leases
(Current Commitments)
21,755 19,768 16,818 10,132 3,622 14,419 412 210 210 76,465
Mine - Other 3,375 3,325 3,325 3,325 3,325 3,335 3,325 3,325 2,261 61,363
Plant 12,704 7,680 4,380 4,563 4,575 6,780 4,565 4,565 4,565 104,271
Plant - Stabilization 698 14,947 5,167 - - 4,162 - - - 20,812
TMF 2,925 4,063 2,901 4,365 4,330 3,717 3,421 2,473 2,586 60,980
Other 3,139 4,400 - 2,000 - 1,908 - - - 9,539
Total (Before Capitalized Stripping) 61,947 84,350 65,838 59,569 48,180 63,977 35,398 29,147 16,925 730,826
Total (Before Capitalized Stripping) (US$ 000s) 45,887 63,421 49,503 44,789 36,226 47,965 26,615 21,915 12,726 548,803
Capitalized Stripping 22,659 78,287 54,936 18,607 76,394 50,176 54,020 44,192 - 741,940
Discretionary Capitalized Stripping1 30,000 56,000 28,000 - - 22,800 - - - 114,000
Total (After Capitalized Stripping) 114,606 218,637 148,774 78,177 124,574 136,953 89,418 73,339 16,925 1,586,766
Total (After Capitalized Stripping) (US$ 000s) 84,893 164,389 111,860 58,779 93,665 102,717 67,231 55,142 12,726 1,191,780
                     
Project Capital                    
Plant 150 15,791 14,659 - - 6,120 - - - 30,600
Mine 3,453 38,736 77,638 7,673 9,103 27,321 - - - 136,603
Total Project Capital 3,603 54,527 92,297 7,673 9,103 33,441 - - - 167,203
Total Project Capital (US$ 000s) 2,669 40,997 69,397 5,769 6,844 25,135 - - - 125,676
                     
Total Sustaining and Project Capital
(Before Capitalized Stripping)
65,550 138,877 158,135 67,242 57,283 97,418 35,398 29,147 16,925 898,029
Total Sustaining and Project Capital
(After Capitalized Stripping)
118,209 273,164 241,071 85,850 133,677 170,394 89,418 73,339 16,925 1,753,969
Total Sustaining and Project Capital
(Before Capitalized Stripping) (US$ 000s)
48,556 104,418 118,900 50,558 43,070 73,100 26,615 21,915 12,726 674,479
Total Sustaining and Project Capital
(After Capitalized Stripping) (US$ 000s)
87,562 205,386 181,257 64,548 100,509 127,852 67,231 55,142 12,726 1,317,456

Notes: 1 Discretionary capitalized stripping relates to a portion of accelerated stripping activities over 2024-2026 to access higher grade ore but could be reduced or deferred to a later date based on further geotechnical evaluation and other considerations.


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

1.18.2 Operating Costs

The average cost per tonne milled is shown in Table 1-9, with all assumptions in place for the mining and milling of an integrated mine plan. The mine cost includes all mining costs for rehandling existing mineralized stockpiles to feed the concentrator.

Table 1-9: Copper Mountain Mine-Summary of LOM Operating Costs ($/t)

   2024 2025 2026 2027 2028 2024-2028
Avg.
2029-2033
Avg.
2034-2038
Avg.
2039-2043
Avg.
LOM
Unit Costs                    
Mining 15.30 16.33 13.84 12.06 11.92 13.78 11.73 11.32 4.82 10.21
Milling 7.41 6.77 5.94 5.70 5.69 6.25 5.70 5.70 5.70 5.85
G&A 1.48 1.35 1.27 1.22 1.18 1.29 1.17 1.14 0.87 1.13
Total Operating Costs
(Before Capitalized Stripping)
24.19 24.45 21.05 18.98 18.79 21.32 18.60 18.16 11.39 17.19
Total Operating Costs
(After Capitalized Stripping)
20.68 16.27 16.31 17.96 14.61 17.06 15.64 15.73 11.39 14.86

Cash costs and sustaining cash costs per pound of copper are summarized in Table 1-10. Cash costs include mining, milling G&A, off-site costs, and treatment and refining charges. Sustaining cash costs also include both sustaining capital and lease payments (but exclude any growth capital related to mill expansion and New Ingerbelle). Both cash costs and sustaining cash costs include the impact of capitalized stripping and are reported net of by-product credits.

Table 1-10: Operating Costs and Sustaining Costs per Pound (US$/lb)

  2024 2025 2026 2027 2028 2024-2028
Avg.
2029-2033
Avg.
2034-2038
Avg.
2039-2043
Avg.
LOM
Cash Costs 2.69 1.89 1.89 1.90 1.36 1.89 1.53 1.75 2.31 1.84
Sustaining Cash Costs
(Excl. discretionary stripping)
3.49 3.40 2.74 2.45 2.13 2.76 2.26 2.46 2.58 2.53
Sustaining Cash Costs
(Incl. discretionary stripping)
3.77 3.87 2.94 2.45 2.13 2.93 2.26 2.46 2.58 2.58

Notes: Cash cost and sustaining cash cost, net of by-product credits per pound of copper contained in concentrate. By-product credits are calculated using the following commodity prices:
Gold: US$1,940/oz for 2024, US$1,900/oz for 2025, US$1,800/oz for 2026, US$1,764/oz for 2027, US$1,725/oz for 2028, and
US$1,700/oz long term.
Silver: US$24.00/oz for 2024-2026, US$23.75/oz for 2027, US$23.38/oz for 2028, and US$23.00/oz long term.
Discretionary capitalized stripping relates to a portion of accelerated stripping activities over 2024-2026 to access higher grade ore but could be reduced or deferred to a later date based on further geotechnical evaluation and other considerations.

1.19 Economic Analysis

Pursuant to NI 43-101, producing issuers may exclude the information required for economic analysis on properties in production, unless the technical report includes a material expansion of current production. As Hudbay is a producing issuer, it has excluded information required by Item 22 of Form 43-101F1.


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

1.20 Conclusions

The CMM has been in continuous operation since restarting commercial production in 2011. The mine has continually improved its performance indicators and is expected to achieve the projected throughput and forecast results as outlined in this report, producing copper saleable concentrates. The Mineral Resource and Mineral Reserve estimates are compliant with industry best practices as outlined in the Canadian Institute of Mining, Metallurgy and Petroleum's (CIM) CIM Definition Standards for Mineral Resources & Mineral Reserves (CIM, 2014, May 19).

Thorough reconciliations from Mineral Reserve estimates to mill-credited production will continue to be closely monitored in order to continue to validate the performance of the reserve model.

Other than the risks described in this Technical Report, the other risk factors described in Hudbay's most recent annual information form dated March 29, 2023, and management's discussion and analysis for the three and nine months ended September 30, 2023, there are no known significant risks and uncertainties that could reasonably be expected to materially affect the potential development of the Mineral Reserve and Mineral Resource estimates in this Technical Report.

1.21 Recommendations

The CMM deposits are still open at depth and the Mineral Resource estimates include a significant proportion of high-grade mineralization in the Inferred category at an expected strip ratio close to the current LOM plan that offers many opportunities to improve the profitability of the operation and to extend the life of the operation beyond the mine plan presented in this report, based solely on Proven and Probable Mineral Reserve estimates. There are also several studies that Hudbay has scoped or initiated to materialize opportunities to improve the LOM presented in this Technical Report. Studies that are not at a sufficient level of maturity to be incorporated in this Technical Report in compliance with NI 43-101 include:

  • Carrying out geotechnical investigations along the south wall of Pit 3 to identify opportunities to maximize the use of double benching and reduce waste stripping
  • Continuing infill drilling programs and open pit optimization to convert inferred mineral resource to mineral reserve estimates in the CM North Pit and at New Ingerbelle
  • Conducting additional technical and economic trade-off studies to reduce ore and waste transportation by diesel trucks in an effort to reduce mining costs, improve mining productivity, and reduce GHGs
  • Metallurgical testing and simulations to refine the forecast model for mill throughput and metals and continue process optimization
  • Installing a mast for collecting real-time wind data, to evaluate site renewable-energy generation.

In parallel, ongoing work should continue in the following areas:

  • Thorough reconciliations from Mineral Reserve estimates to mill-credited production continuing to be closely monitored in order to continue to validate the performance of the new reserve model
  • Continue with the TMF Engineer of Record's construction engineering guidance to confirm the annual construction plan for increasing the existing tailings impoundment capacity

NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023
  • Continuing with environmental baseline studies and environmental monitoring to support permit amendments
  • Continuing to engage with communities of interest and First Nations.

NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

2 Introduction

This Technical Report has been prepared for Hudbay Minerals Inc. (Hudbay) to support the public disclosure of Mineral Resources and Mineral Reserves at the Copper Mountain Mine (CMM) as of December 1, 2023.

Hudbay acquired Copper Mountain Mining Corporation (CMMC) in June 2023 and indirectly holds a 75% interest in Copper Mountain Mine (BC) Ltd. (CMML) and the CMM. The remaining 25% interest in CMML and the CMM is held by Mitsubishi Materials Corp. (MMC).

Hudbay is an integrated Canadian mining company with assets in North and South America principally focused on the discovery, production, and marketing of base and precious metals. Hudbay's objective is to maximize shareholder value through efficient operations, organic growth, and accretive acquisitions, while maintaining its financial strength.

Hudbay's operations at CMM include the Copper Mountain Pits 2, 3, and North, and the New Ingerbelle Pit, a processing plant, waste rock facilities (WRF), a tailings management facility (TMF) and other ancillary facilities that support the operations.

At the date of this Technical Report, CMM is in steady production. Following the acquisition of the dormant asset by Copper Mountain Mining Corporation in January 2007, the mining and concentrator operations were restarted in May 2011 and expanded with the installation of the secondary crusher in August 2014, and the operations has continued without interruption since then.

Unless the context suggests otherwise, references to "Hudbay" refer to Hudbay Minerals Inc. and its direct and indirect subsidiaries, including but without limitation, CMML.

2.1 Qualified Person

This Technical Report has been prepared in accordance with National Instrument (NI) Form 43-101 F1. The Qualified Person (QP) who supervised the preparation of this Technical Report is Olivier Tavchandjian, P.Geo., Senior Vice-President, Exploration and Technical Services of Hudbay.

Olivier Tavchandjian is not independent of Hudbay, and this is not an independent technical report, but Hudbay is a "producing issuer" as defined in NI 43-101. As such, this Technical Report is not required to be prepared by or under the supervision of an independent QP.

Mr. Tavchandjian has been directly involved on a regular basis with the exploration, geology, resource-modelling, mine planning, and estimation of operating and capital costs for the CMM and the New Ingerbelle deposit since Hudbay's acquisition of these assets in June 2023. Mr. Tavchandjian has visited the operation on a regular basis since July 2022, as well as the core storage facilities, and has directly overseen the Mineral Resource and Mineral Reserve estimation process.

2.2 Source of Information

Geology and Mineral Resource estimation sources of information are: drilling log and sample data, blasthole sample data, and in-pit geology mapping.


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

Mineral Reserve sources of information are the Mineral Resources, actual production, and budget projections.

Metallurgy, processing, and economic sources of information are the actual operating data acquired since copper production commenced in 2014, and operating budget estimates.

All other relevant information has been updated with information or reports provided and translated by senior site personnel.

Multiple participants have worked on this Technical Report. Discussions were held with personnel from Hudbay and CMM. The QP relied upon additional senior Hudbay personnel who were also involved in preparing this document: Matt Taylor (Vice President Metallurgy Services), Javier Toro (Vice President Mining Services), Richard Klue (Vice President Engineering Studies), and Jon Douglas (Vice President and Treasurer), as listed in Section 3.

2.3 Unit of Measure Abbreviations Used in Report

Units of measurement used in this report conform to the International System of Units (metric system), apart from some equipment sizes given in imperial units. All currency is in Canadian dollars ($) unless otherwise noted.

Definition Acronyms
Canadian Institute of Mining, Metallurgy and Petroleum CIM
Copper Mountain Mine CMM or the mine
Copper Mountain Mine (BC) Ltd CMML

Granby Consolidated Mining, Smelting and Power Company

Granby
Hudbay Minerals Inc. and its direct and indirect subsidiaries
(unless the context suggests otherwise)
Hudbay
Life-of-mine LOM
National Instrument 43-101 NI 43-101
Pre-feasibility Study PFS
Tailings Management Facility TMF


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

3 Reliance on Other Experts

The information, conclusions, opinions, and estimates contained herein are based on:

  • Information available to Hudbay at the time of preparation of this Technical Report

  • Assumptions, conditions, and qualifications as set forth in this Technical Report.

In accordance with NI 43-101 guidelines, the QP responsible for this Technical Report is Mr. Olivier Tavchandjian, Senior Vice President, Exploration and Technical Services of Hudbay.

Table 3-1 lists the Hudbay vice presidents involved in preparing this Technical Report.

Table 3-1: Reliance on Other Experts

Section

Description

Relied Upon

1

Summary

OT

2

Introduction

OT

3

Reliance on Other Experts

OT

4

Property Description and Location

RK

5

Accessibility, Climate, Local Resources, Infrastructure, and Physiography

RK

6

History

RK

7

Geological Setting and Mineralization

OT

8

Deposit Types

OT

9

Exploration

OT

10

Drilling

OT

11

Sample Preparation, Analyses, and Security

OT

12

Data Verification

OT

13

Mineral Processing and Metallurgical Testing

MT

14

Mineral Resource Estimates

OT

15

Mineral Reserve Estimates

JT

16

Mining Methods

JT

17

Recovery Methods

MT

18

Infrastructure

RK

19

Market Studies and Contracts

JD

20

Environmental Studies, Permitting, and Social or Community Impact

RK

21

Capital and Operating Costs

JT, MT, OT

22

Economic Analysis

OT

23

Adjacent Properties

OT

24

Other Relevant Data and Information

OT

25

Interpretation and Conclusions

OT

26

Recommendations

OT

27

References, Abbreviations, and Units of Measure

RK

Notes: JD = Jon Douglas (VP Treasurer); JT = Javier Toro (VP Mining); MT = Matt Taylor (VP Metallurgy); OT = Olivier Tavchandjian (Senior VP, Exploration and Technical Services); RK = Richard Klue (VP Engineering Studies).


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

4 Property Description and Location

4.1 Location

The CMM lies in southern British Columbia (B.C.) at latitude 49°20′ N, longitude 120°31′ W, 21 km by road south of Princeton and 304 km by road east of Vancouver (Figure 4-1). The property consists of 126 Crown-granted mineral claims, 157 located mineral claims, 14 mining leases and 12 fee simple properties covering an area of 8,989 ha (89.9 km2).

Figure 4-1: Copper Mountain Mine Location


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

4.2 Land Use, Mineral Tenure, and Surface Rights

The mine has a B.C. Mining Permit (M-29) and is operated in accordance with government regulations. All permits are in good standing. Envirogreen Technologies Ltd. (Envirogreen), a soil remediation company, operates on the Lela Crown Grant near the historical Ingerbelle Pit area, thermally remediating hydrocarbon-contaminated soils to produce inert soils. Their facility and materials are stored on the Lela claim. The New Ingerbelle Pit development will impact a small portion of the Lela claim. Hudbay has a right to have the Lela claim and certain other mineral claims that it optioned to Envirogreen reconveyed to it in exchange for replacement properties. Hudbay and Envirogreen are in discussions to reach an agreement on this matter.

In 2019, Arrow Transportation purchased the compost facility and associated licenses of occupation on the Ingerbelle WRF from Highline Mushrooms (formerly Gro-well Enterprises) with the intent to compost green waste and produce a Class A Compost. Hudbay and Arrow Environmental have entered into an agreement that supports Arrow's continued operation of their facility and Hudbay's planned development of New Ingerbelle.

The earliest type of tenure at Copper Mountain was in the form of Crown granted mineral claims that covered both the historical underground and open pit mining areas on the eastern side of the Similkameen River (Table 4-1). Mineral claims surround the crown grants and subsequent mining leases exist in the northeast and southern areas of the claim block.

All tenure is currently in good standing-physical work completed in 2023 that includes a large ground geophysical survey and geological mapping will be applied as assessment work and will assist in pushing current mineral claim expiry dates beyond 2024 and 2025.

Figure 4-2 shows the property tenure, and Table 4-1, Table 4-2, and Table 4-3 contain the list of Crown grants, mineral claims, and mining leases, respectively.

Section A.3 (a) of Mines Act Permit M-29 (March 3, 2021) authorizes mine-related development, including surface disturbance and works, plus a management buffer around the approved disturbance, within a defined, permitted mine area. The mine site and most of the surrounding region for a considerable distance have been heavily logged in the past, including the areas undisturbed by mining that are proposed to be disturbed as part of the current development plan. Much of the Ingerbelle side of the property has been cleared in conjunction with previous mining activity.


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

Figure 4-2: Copper Mountain Mine Land Tenure


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

Table 4-1: Crown Grants

 

PID No.

Lot No.

Name

 

PID No.

Lot No.

Name

 

PID No.

Lot No.

Name

1

011-483-814

835

Ada B

51

011-483-709

385S

Lone Star Fraction

101

011-466-294

635S

Tin Cup

2

011-493-372

839

Ada B Fraction

52

011-457-163

3024

Mabel Fraction

102

011-457-139

3026

Tinhorn Fraction

3

011-464-275

386S

Adelaide Fraction

53

011-468-696

2580S

Malone Fraction

103

011-469-455

3534

Transvaal Fraction

4

011-455-497

2429

Alabama

54

011-457-074

3025

Milo Fraction

104

011-458-356

1832

Triangle Fraction

5

011-457-180

787

Annie L.

55

011-455-594

255

Mogul

105

011-483-989

123A

Vancouver

6

011-458-283

1775S

Automatic Fraction

56

011-457-228

256

Mogul Fraction

106

001-567-403

1295

Vancouver

7

011-483-920

420A

Bell Fraction

57

011-484-039

2268S

Mooney

107

011-455-021

1295

Vancouver

8

011-464-976

419S

Blue Bird

58

011-458-291

1778S

Nelson Fraction

108

011-467-231

1790S

Vera Fraction

9

011-463-911

280

Boanite

59

011-464-143

382S

Nero Fraction

109

011-455-501

2428

Virginia

10

011-463-775

236

Brooklyn

60

011-467-142

1776S

New No. 37 Fraction

110

011-458-259

943S

W.G. Fraction

11

011-455-730

2270S

Casino No. 1 Fraction

61

011-465-778

1777S

New Wolf Fraction

111

011-465-794

474S

Cabin

12

011-457-198

840

Centre Star Fraction

62

011-469-510

3349

No. 1

112

011-465-891

476S

Colorado Fraction

13

011-458-631

1833

Copper Bench

63

011-469-544

3289

No. 14

113

011-463-082

135

Columbia Fraction

14

011-467-967

1940

Copper Bluff

64

011-466-219

1598S

No. 15 Fraction

114

011-463-732

231

Fraser

15

011-467-843

1939

Copper Cliff

65

011-469-579

3288

No. 18

115

011-463-619

234

Ingersoll Belle

16

011-451-254

122A

Copper Farm

66

011-468-564

2256S

No. 18 Fraction

116

011-463-759

235

Magnetic

17

011-458-267

122A

Copper Farm

67

011-466-073

480S

No. 27 Fraction

117

011-466-057

479S

No 26 Fraction

18

011-458-402

1831

Copper King

68

011-469-480

3359

No. 33

118

011-465-972

477S

No 6 Fraction

19

011-464-640

403

Copper King

69

011-469-498

3354

No. 5

119

011-466-006

478S

No. 7 Fraction

20

011-454-431

1830

Copper Reef

70

011-464-895

417S

No. 50 Fraction

120

011-463-074

133

Nubian Fraction

211

011-454-814

816

Daisy

71

011-464-780

413S

No. 51 Fraction

121

011-463-791

238

Red Butte Fraction

22

011-469-200

3265

Diamond Dot

72

011-464-836

414S

No. 52

122

011-468-343

2046

Rifle

23

011-457-121

384S

Dividend

73

011-464-941

418S

No. 53

123

011-469-005

3187S

May Fraction

24

011-462-680

63S

Duke of York

74

011-462-647

61S

No. 69

124

011-465-867

475S

Frieda

25

011-466-146

481S

Edward Fraction

75

011-462-655

62S

No. 70

125

011-464-615

402

Key West

26

011-464-852

416S

Falum

76

011-464-801

415S

No. 71

126

011-459-204

3572

 

27

011-463-376

226

Fraser Fraction

77

011-465-018

443S

No. 73 Fraction

127

011-457-279

3573

Smelter

28

011-455-527

2430

Frisco

78

011-455-551

3357

R.S.

128

011-458-917

2254S

New No. 61

29

011-454-482

2050

Great Republic

79

011-469-021

3262

Olympia

129

011-466-715

1596S

No 63A

30

011-463-988

322S

Great Western Fraction

80*

011-454-636

808

Oriole

130

011-466-391

1595S

New 62A

31

011-463-058

127

Hamilton

81

011-468-424

2158S

Oronoco

131

011-459-522

2572S

Zapata 1 Fraction

32

011-457-155

120A

Helen H. Gardner

82

011-455-586

250

Peerless Fraction

132

011-458-437

2164S

No. 60B

33

011-454-571

3537

Holdfast

83

011-456-329

2248S

Princess Caroline Fraction

133

011-462-612

52S

Zapata No. 1 Fraction

341

017-236-274

121A

Humbolt

84

011-456-078

2282S

Princess Dorthia No. 1

134

011-462-639

53S

No 63A

35

001-701-819

1294

Home Rule

85

011-456-370

2271S

Princess Helen No. 1

135

011-458-232

424

 

36

011-454-946

1294

Home Rule

86

011-456-264

2273S

Princess Louise

136

011-450-916

118S

 

37

011-469-048

3263

Honey Suckle

87

011-483-873

1837

Princess Maud

137

011-451-394

251S

 

38

011-468-378

2047

I.X.L.

88

011-467-690

1829

Princess May

138

011-458-160

423

 

39

011-454-695

813

Iron Mask

89

011-467-444

1829

Princess May

139

011-457-309

 

 

40

011-454-601

810

Jennie Silkman

90

011-455-641

153

Princeton

140

011-451-548

 

 

41

011-456-345

2269S

Jessie

91

011-455-551

3357

R.S.

141

011-450-819

 

 

42

011-455-489

814

Jubilee #2

92

011-463-864

279

Red Buck

 

 

 

 

431

011-468-840

3028

Kenley

93

011-451-319

149

Red Eagle

 

 

 

 

44

011-468-904

3029

June Bug

94

011-455-578

3568

Robert Bryant

 

 

 

 

45

011-454-679

809

King Soloman

95

011-463-007

66S

Silver Dollar

 

 

 

 

461

011-454-750

378S

Klondike

96

011-454-652

811

Spider Fraction

 

 

 

 

47

011-455-659

233

Lareine

97

011-464-127

369S

Sunlight

 

 

 

 

48

011-484-829

2281S

Leon

98

011-458-798

3023

Sunrise

 

 

 

 

49

011-464-224

383S

Little Gem Fraction

99

011-457-058

1077

Sunset

 

 

 

 

501

011-454-865

1935

Lone Star

100

011-455-683

251

Tempest Fraction

 

 

 

 

Notes: 1 Partial Ownership. Grant 21- 50% Bertha May Foss/50% CMM BC Ltd; Grant 34-25% Charles and Alice Cooper/75% CMM BC Ltd; Grant 43-79.5% CMM BC Ltd; Grant 46-25% William Wheeler/75% CMM BC Ltd; Grant 50-25% Sydney Johnson/25% Bertha May Ross/50% CMM BC Ltd; Grant 80-6.25% Doug French & David O Day/93.75% CMM BC Ltd.


NI 43-101 Technical Report
Updated Mineral Resources and Mineral Reserves Estimate, Copper Mountain Mine
Princeton, British Columbia
Effective Date: December 1, 2023

Table 4-2: Mineral Claims

 

Title
Number

Claim Name

Good To
Date

Area
(ha)

 

Title
Number

Claim Name

Good To
Date

Area
(ha)

 

Title
Number

Claim Name

Good To
Date

Area
(ha)

 

Title
Number

Claim
Name

Good To
Date

Area
(ha)

1

248598

ROAD

2027/NOV/30

75.0

51

250177

ELEPHANT NO. 2 FR.

2028/APR/26

25.0

101

250244

MCB #1

2028/APR/26

25.0

151

1092456

EXT WEST 2

2025/FEB/09

147.29

2

248603

SIMCOL #1 FR.

2028/NOV/30

25.0

52

250178

ELEPHANT NO. 3

2028/APR/26

25.0

102

250245

MCB #2

2028/APR/26

25.0

152

1092473

YOSHI TRIO

2025/FEB/09

189.39

3

248604

SIMCOL #2 FR.

2028/NOV/30

25.0

53

250179

ELEPHANT NO. 4

2028/APR/26

25.0

103

250246

MCB #3

2025/APR/26

25.0

153

1092582

WEST EXT 3

2025/FEB/09

42.08

4

248605

SIMCOL #10

2026/NOV/30

100.0

54

250182

"E.M." FR

2028/APR/26

25.0

104

250247

MCB #4

2025/APR/26

25.0

154

1095841

INGER 1

2024/MAY/30

63.14

5

248606

SIMCOL #11

2028/NOV/30

25.0

55

250185

"BEM" NO.1

2028/APR/26

25.0

105

250248

MCB #5

2025/APR/26

25.0

155

1095842

INGER 2

2024/MAY/30

84.2

6

248609

NEWMIN #1

2026/JAN/30

500.0

56

250186

"BEM" NO.3

2028/APR/26

25.0

106

250249

MCB #6

2025/APR/26

25.0

156

1095869

INGER 3

2024/MAY/31

21.05

7

248610

NEWMIN #2

2026/JAN/30

400.0

57

250187

"BEM" NO.5

2028/APR/26

25.0

107

250250

DEEP #1

2025/APR/26

25.0

157

1097616

WEST EXT 4

2025/FEB/09

84.17

8

248626

NEWMIN #3

2027/JAN/30

225.0

58

250188

"BEM" NO.7

2028/APR/26

25.0

108

250251

DEEP #2

2025/APR/26

25.0

158

1103113

WILD WEST

2024/MAR/16

1,136.61

9

248627

NEWMIN #4

2028/NOV/30

50.0

59

250195

RAD NO.1

2028/JAN/15

25.0

109

250252

DEEP #3

2025/APR/26

25.0

159

1106800

Wild South

2024/AUG/15

927.1

10

248628

NEWMIN #5

2027/NOV/30

75.0

60

250196

RAD NO.2

2028/JAN/15

25.0

110

250253

DEEP #4

2025/APR/26

25.0

 

 

 

 

 

11

248640

DOT FR

2028/APR/26

25.0

61

250197

RAD NO.3

2029/APR/26

25.0

111

250254

DEEP #5

2025/APR/26

25.0

 

 

 

 

 

12

248723

ALPINE #1

2028/APR/26

75.0

62

250198

RAD NO.4

2028/APR/26

25.0

112

250255

DEEP #6

2025/APR/26

25.0

 

 

 

 

 

13

248724

ALPINE FR.

2028/APR/26

25.0

63

250199

RAD NO.5

2028/APR/26

25.0

113

250256

DEEP #7

2025/APR/26

25.0

 

 

 

 

 

14

248778

BULLET #1 FR.

2028/APR/26

25.0

64

250200

RAD NO.6

2028/APR/26

25.0

114

250257

DEEP #8

2025/APR/26

25.0

 

 

 

 

 

15

248779

BULLET #2 FR.

2028/APR/26

25.0

65

250201

RAD NO.7

2028/APR/26

25.0

115

250258

DEEP #9

2025/APR/26

25.0

 

 

 

 

 

16

248782

REFER TO LOT TABLE

2028/OCT/26

25.0

66

250202

RAD NO.8

2028/APR/26

25.0

116

250259

DEEP #10

2025/APR/26

25.0

 

 

 

 

 

17

248783

NM #1 FR.

2028/OCT/26

25.0

67

250204

RAD NO.10

2028/APR/26

25.0

117

250260

AF 13

2025/NOV/30

25.0

 

 

 

 

 

18

248784

NM #2 FR.

2028/APR/26

25.0

68

250205

BRIAN H. FR.

2028/NOV/26

25.0

118

250261

AF 14

2025/NOV/30

25.0

 

 

 

 

 

19

248785

NM #3 FR.

2028/APR/26

25.0

69

250206

SER #3

2028/APR/26

25.0

119

250262

FRIEDA FR

2025/APR/26

25.0

 

 

 

 

 

20

248786

NM #4 FRACTION

2028/APR/26

25.0

70

250207

SER #4

2028/APR/26

25.0

120

250268

ANNIE FR.

2025/APR/26

25.0

 

 

 

 

 

211

248787

NM #5 FR.

2028/APR/26

25.0

71

250208

SER #5

2028/APR/26

25.0

121

250269

RAD #1 FR.

2025/APR/26

25.0

 

 

 

 

 

22

248788

NM #6 FR.

2028/OCT/26

25.0

72

250209

SER #6

2028/APR/26

25.0

122

250270

BETH #1 FR

2025/APR/26

25.0

 

 

 

 

 

23

248809

LAN NO.1

2028/NOV/30

50.0

73

250210

SER #7

2028/APR/26

25.0

123

250271

BETH #2 FR

2025/APR/26

25.0

 

 

 

 

 

24

248810

LAN NO.2

2028/NOV/30

25.0

74

250211

SER #8

2028/APR/26

25.0

124

250272

BETH #3 FR

2025/APR/26

25.0

 

 

 

 

 

25

248811

LAN NO.3

2028/NOV/30

150.0

75

250212

SER #9

2028/APR/26

25.0

125

250273

BETH #5 FR

2025/JAN/15

25.0

 

 

 

 

 

26

248812

LAN NO.4

2027/NOV/30

100.0

76

250213

SER #10

2028/APR/26

25.0

126

250274

BETH #4 FR

2025/JAN/15

25.0

 

 

 

 

 

27

248813

LAN NO.5

2027/NOV/30

50.0

77

250214

SER #11

2028/APR/26

25.0

127

250275

BETH #6 FR

2025/APR/26

25.0

 

 

 

 

 

28

248814

LAN NO.6

2028/NOV/30

50.0

78

250215

SER #12

2028/APR/26

25.0

128

250276

BETH #7 FR

2025/APR/26

25.0

 

 

 

 

 

29

248815

LAN NO.7

2028/NOV/30

50.0

79

250216

SER #13

2028/APR/26

25.0

129

250277

BETH #8 FR.

2025/JAN/15

25.0

 

 

 

 

 

30

249233

ALPINE 3

2024/APR/26

500.0

80*

250217

SER #14

2028/APR/26

25.0

130

250278

BETH #9 FR.

2025/APR/26

25.0

 

 

 

 

 

31

249234

ALPINE 4

2024/APR/26

500.0

81

250218

SER #15

2028/APR/26

25.0

131

250279

BETH #10 FR

2025/JAN/15

25.0

 

 

 

 

 

32

249235

ALPINE 5

2028/APR/26