WINNIPEG, MANITOBA--(CCNMatthews - March 1, 2006) - HudBay Minerals Inc.
(TSX:HBM) ("HudBay") announces estimated January 01, 2006 mineral
reserves at its 777, Trout Lake and Chisel North Mines in Northern
Manitoba and its Balmat Mine project in New York State in compliance
with NI 43-101 of 21,357,000 tonnes at 1.8 g/t gold, 21.1 g/t silver,
2.0% copper and 5.3% zinc.
Prior period mineral reserves are filed in the Canadian Securities
Administrators SEDAR filing system in the Renewal Annual Information
Form of HudBay Minerals Inc., March 29, 2005.
Estimate of January 01, 2006 Mineral Reserves
---------------------------------------------
Tonnes Au (g/t) Ag (g/t) Cu (%) Zn (%)
777
Proven 3,474,000 2.5 28.4 2.4 4.7
Probable 12,261,000 2.1 25.7 2.5 4.4
Trout Lake
Proven 1,433,000 1.0 11.1 1.4 4.7
Probable 1,058,000 1.7 20.5 2.5 4.0
Chisel North
Proven 661,000 - - - 8.9
Probable 761,000 - - - 8.4
Balmat
Proven 686,000 - - - 10.6
Probable 1,023,000 - - - 11.4
Total
Proven 6,254,000 1.6 18.3 1.6 5.8
Total
Probable 15,103,000 1.8 22.3 2.2 5.0
Total
Reserves 21,357,000 1.8 21.1 2.0 5.3
Separately, as of January 01, 2006, HudBay estimated aggregate inferred
mineral resources at its 777, Trout Lake and Chisel North Mines in
Northern Manitoba and its Balmat Mine project in New York State of
4,940,000 tonnes at 1.2 g/t gold 19.1 g/t silver, 1.0% copper and 7.45%
zinc.
The categorization of measured and indicated mineral resource is
determined in a 12-step process, which includes determination of the
integrity and validation of the data collected, including, confirmation
of specific gravity, assay results and methods of data recording. The
process also includes determining the appropriate geological model,
selection of data and the application of statistical models including
probability plots and restrictive kriging to establish continuity and
model validation. The resultant estimates of measured and indicated
mineral resources are converted to proven and probable mineral reserves
by the application of mining dilution and recovery, as well as the
determination of economic viability using historical operating costs.
Other factors such as depletion from production are applied as
appropriate. Long term metal prices, including premiums used for
economic viability of the 2006 mineral reserves, were US $400 oz. gold,
US $6.00 oz. silver, US $0.91 lb. copper and US $0.52 lb. zinc.
The 2006 measured and indicated mineral resource estimates were
prepared under the supervision of Kim Lau, B.Sc., P.Geo, who is employed
by Hudson Bay Mining and Smelting Co., Limited (HBMS) as
Superintendent, Mining Technical Services and who is a Qualified Person
under NI 43-101. The 2006 mineral reserve estimates have been prepared
under the supervision of Gerald Beauchamp, B.Sc., P.Eng., who is
employed by HBMS as Senior Mines Analyst and who is a Qualified Person
under NI 43-101.
Peter Jones, President and CEO commenting on the results said,
"HudBay's 2006 aggregate mineral reserves are similar to last year after
a year of mining, and it is particularly pleasing that we have growth,
after production, in both mineral reserves and mineral resources at our
mines in Northern 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 a
metal processing complex in Flin Flon, Manitoba. The company also owns a
zinc oxide production facility in Brampton, Ontario and the Balmat zinc
mine in New York State, which is being re-opened.
Forward Looking Information
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, acquisition risks,
fluctuation of foreign exchange rates, imperfection of reserve
estimates, environmental and financing risks, debt and cash
requirements, industry competition and 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
HudBay Minerals Inc.
Don Bain
Director, Investor Relations
(204) 949-4272
(204) 942-8177 (FAX)
don.bain@hbms.ca
www.hudbayminerals.com