WINNIPEG, MANITOBA--(CCNMatthews - Nov. 9, 2005) -
Ore production expected early in second quarter, 2006
HudBay Minerals Inc. (TSX:HBM) (HudBay) announces that, through St.
Lawrence Zinc Company, LLC (SLZ), it expects to reopen the Balmat No. 4
Zinc Mine (the Mine) in the Balmat zinc mining district of New York
state.
The Mine has been maintained to a high standard, during care and
maintenance, since 2001. The Mine includes a 3,200 ft. deep shaft,
underground development to five ore zones and extensive mining equipment
as well as a 5,000 ton per day concentrator. SLZ also owns
approximately 52,000 acres of exploration land in the Balmat district.
"Balmat is a readily available zinc source and will be accretive to
HudBay's performance when first ore is produced early in the second
quarter of 2006." said Peter R. Jones, President and CEO of HudBay with
respect to the reopening. "I am pleased Balmat is reopening where many
prior employees live and where the state of New York encourages new
business with economic incentives. Work to prepare the Mine for its
reopening will begin during the fourth quarter of 2005."
Based on mineral reserves, resources and a planned increase to
resources from an underground exploration program, the mine life will be
approximately eight years and have a capital cost of approximately
US$20 million. First ore production is planned within five months
building to full production of an estimated 635,000 tons per annum,
within 35 months. Operating costs including concentrate treatment are
expected to be US$0.40 per lb. of zinc while total costs including
capital is expected to be US$0.48 per lb. of zinc over the mine life and
based on a zinc price of US$0.56 per lb. for three years and US$0.50
per lb. thereafter produce a greater than 20% IRR after tax.
At November 1, 2005, HudBay recalculated the Mine's mineral reserves
and resources in compliance with National Instrument 43 - 101 based on
high grade selective mining. The mineral reserves are estimated at
1,858,532 tons at 11.2% zinc and mineral resources at 1,387,249 tons at
12.9% zinc. These results have been prepared under the guidance of Kim
J. Lau, B.Sc., P. Geo., a Senior Mineral Resource Analyst of HudBay's
wholly-owned subsidiary Hudson Bay Mining and Smelting Co., Limited
(HBMS) and Gary M. Allen, M.Eng., P.Eng., employed as Manager Mines
Technical Services by HBMS. Both Ms. Lau and Mr. Allen are designated as
Qualified Persons with the ability and authority to verify the
authenticity and validity of this data.
At full production, the Mine will produce approximately 60,000 tons
of zinc metal in concentrates which are planned to be processed at the
Canadian Electrolytic Refinery in Valleyfield, Quebec with an option for
up to 40% of the concentrate to be treated at HudBay's zinc plant in
Flin Flon, Manitoba.
About HudBay Minerals Inc.
HudBay Minerals Inc. is an integrated mining and metal producing
company that operates mines and concentrators in northern Manitoba and
Saskatchewan and a metal processing complex in Flin Flon, Manitoba. The
company also operates a zinc oxide production facility in Brampton,
Ontario and owns the Balmat zinc mine in New York State.
Certain information regarding HudBay set forth in this document,
including management's assessment of HudBay's future plans and
operations contains forward looking statements that involve substantial
known and unknown risks and uncertainties. These forward looking
statements are subject to numerous risks and uncertainties, some of
which are beyond HudBay's and management's control, including but not
limited to, the impact of general economic conditions, industry
conditions, fluctuation of commodity prices, risks related to the
integration of new operations, operating costs, fluctuation of foreign
exchange rates, imperfection of reserve estimates, environmental risks,
industry competition, availability of qualified personnel and
management, timely and cost effective access to sufficient capital from
internal and external sources. HudBay's actual results, performance or
achievement could differ materially from those expressed in or implied
by, these forward looking statements and accordingly, no assurance can
be given that any of the events anticipated to occur or transpire from
the forward looking statements will provide any benefits to HudBay.
FOR FURTHER INFORMATION PLEASE CONTACT:
HudBay Minerals Inc.
Tom Goodman
Vice President, Human Resources and Technical Services
(204) 687-2380
(204) 942-8177 (FAX)
tom.goodman@hbms.ca
www.hudbayminerals.com