Canada

Snow Lake

Primary Metals

Gold, Zinc, Copper

Daily Ore Mined

4,650 tonnes

Mine Type

Underground

Hudbay is on the cusp of an exciting new growth phase in Canada, the latest chapter in close to 100 years of history.

Our Canadian business can trace its history back almost a century, to our first mines in Manitoba’s Flin Flon Snow Lake Greenstone Belt. It was there we laid the foundation for the mine-building expertise and community engagement that distinguish Hudbay to this day. Our operational focus in Canada is shifting to Manitoba’s Snow Lake region as our reserves, processing capacity and exploration activities expand in the region, setting the stage for a new phase of growth.

Our Lalor mine (gold, zinc, copper, silver) in Snow Lake is a meaningful low-cost gold producer that substantially benefited from the refurbishment of the New Britannia mill in 2021. Hudbay has been actively conducting surface and underground drilling activities in the Snow Lake area, primarily focused on the copper-gold rich feeder zone at the 1901 deposit, the drilling gap between 1901 and lens 17 at Lalor, and a high-priority geophysical target located immediately north of Lalor. In addition, the company continues to compile results from ongoing infill drilling programs at Lalor and 1901.

Number of Employees

1456

Mine Life

Snow Lake

2037

The electricity used to run our processing plants is primarily renewable.

2021 Performance (Contained metal in concentrate produced)

Copper:

21,657 tonnes

Zinc:

93,529 tonnes

Gold & DORÉ:

143,477 ounces

Silver:

1,072,532 ounces

2022 Production Guidance (Contained metal in concentrate)

Copper:

12,000 - 16,000 tonnes

Zinc:

50,000 - 70,000 tonnes

Gold & DORÉ:

150,000 - 185,000ounces

Silver:

800,000 - 1,100,000 ounces

Environment

We take environmental performance seriously, and are implementing the Mining Association of Canada’s TSM (Towards Sustainable Mining) protocols for Biodiversity, Energy and Greenhouse Gas and Tailings at all of our operations. These protocols provide clear guidelines for monitoring, measuring and reporting on performance. They emphasize management processes, senior executive oversight and expert third-party reviews, which help to ensure appropriate technical standards of construction, maintenance and operation.

AA Rating

Retained for tailings management in the latest TSM Progress Report

Community

Hudbay didn’t just build a successful business in northern Manitoba – it helped build successful communities like the city of Flin Flon. Through jobs, business opportunities, taxes and royalties, community development programs and infrastructure investments, we support and advance long-term socio-economic development. In northern Manitoba, where a large portion of the population self-identify as indigenous, we work closely with our indigenous community partners to bridge cultural gaps and improve business opportunities. Developing job skills within indigenous communities not only helps the communities; it also benefits Hudbay by growing the base from which we hire and increasing the number of qualified suppliers from which we procure goods and services.

^$50.7 million

Payments to suppliers

^$2,149,103

Payments to indigenous businesses

People

We recognize that employing people with different backgrounds, experiences and perspectives makes us stronger and fosters collaboration. In Manitoba, we partnered with the Northern Manitoba Sector Council to increase recruitment of indigenous employees. Twelve people have been hired under the program so far. Separately, two women in our Manitoba Business Unit founded the Hudbay Women’s Network, an employee-led voluntary resource group. The group’s founding principle is gender inclusion and its goal is to empower Hudbay employees by providing a vehicle for professional growth and a strong voice. To learn more, please visit: Hudbay Women’s Network: Fostering Gender Diversity in Mining.

17%

Of our employees in Manitoba self-identify as indigenous

15%

Of our employees in Manitoba are female

Reserves and Resources – Lalor

Current mineral reserves and resources as of January 1, 2022

Lalor Mine Mineral Reserve and Resource Estimates^1,2,3,4,5,6	Tonnes	Zn Grade (%)	Au Grade (g/t)	Cu Grade (%)	Ag Grade (g/t)
Base Metal Zone Reserves
Proven - Lalor	6,420,000	5.57	2.6	0.47	29.5
Proven - 1901	1,260,000	8.00	2.2	0.32	24.7
Probable - Lalor	1,300,000	4.02	3.2	0.50	32.4
Probable - 1901	380,000	10.01	0.7	0.29	31.0
Total Proven and Probable - Base Metal	9,360,000	5.86	2.6	0.45	29.3
Gold Zone Reserves
Proven - Lalor	3,590,000	0.82	5.9	0.62	28.5
Proven - 1901	50,000	1.22	3.8	0.78	18.7
Probable - Lalor	4,190,000	0.53	5.1	1.05	27.9
Probable - 1901	20,000	0.51	1.6	1.89	5.3
Total Proven and Probable - Gold	7,850,000	0.67	5.4	0.85	28.1
Total Proven and Probable (Base Metal and Gold)	17,200,000	3.50	3.9	0.64	28.7
Base Metal Zone Resources
Inferred - Lalor	1,960,000	5.72	1.5	0.31	30.4
Inferred - 1901	670,000	6.04	1.4	0.22	27.8
Total Inferred - Base Metal	2,630,000	5.80	1.5	0.29	29.7
Gold Zone Resources
Inferred - Lalor	4,170,000	0.28	5.1	1.56	29.0
Inferred - 1901	1,260,000	0.39	4.9	1.49	20.8
Total Inferred - Gold	5,430,000	0.31	5.1	1.54	27.1
Total Inferred (Base Metal and Gold)	8,060,000	2.10	3.9	1.13	28.0

Note: totals may not add up correctly due to rounding.
¹ Mineral resources are exclusive of mineral reserves and do not have demonstrated economic viability.
² Mineral resources do not include factors for mining recovery or dilution.
³ Base metal mineral resources are estimated based on the assumption that they would be processed at the Stall concentrator while gold mineral resources are estimated based on the assumption that they would be processed at the New Britannia concentrator.
⁴ Long-term metal prices of $1.15 per pound zinc, $1,500 per ounce gold, $3.45 per pound copper, and $20.00 per ounce silver with an exchange rate of 1.30 C$/US$ were used to estimate mineral reserves and resources.
⁵ Lalor mineral reserves and resources are estimated using a minimum NSR cut-off of C$117 per tonne for waste filled mining areas and a minimum of C$127 per tonne for paste filled mining areas.
⁶ Individual stope gold grades at Lalor were capped at 10 grams per tonne as a prudent estimate until reserves-to-mill reconciliations can be developed to support the recovery of higher-grade gold. This capping method resulted in an approximate 3% reduction in the overall gold reserve grade at Lalor.
⁷ 1901 mineral reserves and resources are estimated using a minimum NSR cut-off of C$110 per tonne.

Reserves and Resources – snow lake region

Current mineral reserves and resources as of January 1, 2022

Snow Lake Regional Deposits - Gold Mineral Reserve and Resource Estimates^{1,2,3,4,5,6,7,8}	Tonnes	Zn Grade(%)	Au Grade (g/t)	Cu Grade (%)	Ag Grade (g/t)
Probable Reserves
WIM	2,450,000	0.25	1.6	1.63	6.3
3 Zone	660,000	-	4.2	-	-
Total Probable (Gold)	3,110,000	0.20	2.2	1.28	5.0
Inferred Resources²
Birch	570,000	-	4.4	-	-
New Britannia	2,750,000	-	4.5	-	-
Total Inferred (Gold)	3,320,000	-	4.5	-	-

Note: totals may not add up correctly due to rounding.
¹ Mineral resources are exclusive of mineral reserves and do not have demonstrated economic viability.
² Mineral resources in the above tables do not include mining dilution or recovery factors.
³ Gold mineral resources are estimated based on the assumption that they would be processed at the New Britannia concentrator.
⁴ Long-term metal prices of $1.15 per pound zinc, $1,500 per ounce gold, $3.45 per pound copper, and $20.00 per ounce silver with an exchange rate of 1.30 C$/US$ were used to confirm the economic viability of the mineral reserve estimates.
⁵ WIM mineral reserves are estimated using a minimum NSR cut-off of C$150 per tonne, assuming processing recoveries of 98% for copper, 88% for gold and 70% for silver based on processing through New Britannia mill's flotation and tails leach circuits.
⁶3 Zone mineral reserves are estimated using a minimum NSR cut-off of C$150 per tonne, assuming processing recoveries of 85% for gold based on processing through New Britannia mill's leach circuit.
⁷New Britannia mineral resource estimates have been reported at a minimum true width of 1.5 metres and with a cut-off grade varying from 2 grams per tonne (at the lower part of New Britannia) to 3.5 grams per tonne (at the upper part of New Britannia).
⁸Mineral reserves and resources were initially estimated using metal price assumptions that vary marginally over the assumptions used to estimate mineral reserves at Lalor. In the Qualified Person’s opinion, the combined impact of these small variations does not have any impact on the mineral reserve and resource estimates

Snow Lake Regional Deposits - Base Metals Mineral Reserve and Resource Estimates^{1,2,3,4,5,6,7}	Tonnes	Zn (%)	Au Grade(g/t)	Cu Grade(%)	Ag Grade(g/t)
Indicated Resources
Pen II	470,000	8.89	0.3	0.49	7
Talbot	2,190,000	1.79	2.1	2.33	36
Total Indicated (Base Metals)	2,660,000	3.04	1.8	2.01	31
Inferred Resources
Watts	3,150,000	2.58	1.0	2.34	31
Pen II	130,000	9.81	0.3	0.37	7
Talbot	2,450,000	1.74	1.9	1.13	26
Total Inferred (Base Metals)	5,730,000	2.39	1.3	1.78	28

Note: totals may not add up correctly due to rounding.
¹ Mineral resources are exclusive of mineral reserves and do not have demonstrated economic viability.
²Mineral resources in the above tables do not include mining dilution or recovery factors.
³ Base metal mineral resources are estimated based on the assumption that they would be processed at the Stall concentrator.
⁴ Watts mineral resources are estimated using a minimum NSR cut-off of C$150 per tonne, assuming processing recoveries of 90% for copper, 80% for zinc, 70% for gold and 70% for silver.
⁵ Pen II mineral resources are estimated using a minimum NSR cut-off of C$75 per tonne.
⁶ Watts and Pen II mineral resources were initially estimated using metal price assumptions that vary marginally over the assumptions used to estimate mineral resources at Lalor. In the Qualified Person’s opinion, the combined impact of these small variations does not have any impact on the mineral resource estimates.
⁷ Includes 100% of the Talbot mineral resources reported by Rockcliff Metals Corp. in its 2020 NI 43-101 technical report published on SEDAR. Hudbay currently owns a 51% interest in the Talbot project.

Canada

Snow Lake

Primary Metals

Daily Ore Mined

Mine Type

Number of Employees

Mine Life

Snow Lake

2021 Performance (Contained metal in concentrate produced)

Copper:

Zinc:

Gold & DORÉ:

Silver:

2022 Production Guidance (Contained metal in concentrate)

Copper:

Zinc:

Gold & DORÉ:

Silver:

Environment

Community

People

Reserves and Resources – Lalor

Current mineral reserves and resources as of January 1, 2022

Lalor Mine

Reserves and Resources – snow lake region

Current mineral reserves and resources as of January 1, 2022

Snow Lake Regional Deposits - Gold

Snow Lake Regional Deposits - Base Metals

Latest Report

Technical Reports

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