WINNIPEG, MANITOBA--(CCNMatthews - Dec. 4, 2006) - HudBay Minerals
Inc. (TSX:HBM) (HudBay) today announced plans to invest approximately
$8.5 million at its Bur mineral deposit for in-fill diamond drilling,
underground excavations to extract a 10,000 tonne ore sample, obtaining
production permits as well as completion of a feasibility study. The
expenditure will be in addition to HudBay's recently announced
exploration program for 2007.
"The Bur deposit is 22 kilometers from our Snow Lake ore
concentrator in Manitoba and can be accessed quickly," said Peter Jones,
President and CEO. "Assuming a positive feasibility study and
subsequent production decision, this potential mine, despite high costs,
is financially attractive based on forward metal prices and it is
similar to several other of our small mineral deposits in the Snow Lake
area."
Work at Bur will begin as soon as an advanced exploration permit can
be obtained. The feasibility study is expected to be completed within
six months and the underground decline and 10,000 tonne ore sample
completed within 12 months.
Based on previously announced exploration updates dated March 20,
2006 and September 27, 2006, and assuming a positive feasibility study
and a production decision, the mineral resources at Bur are being
targeted to provide incremental feed to HudBay's Snow Lake concentrator
and the Flin Flon metallurgical plants for up to three years producing
an additional annual refined metal production of approximately 6,000
tonnes of copper, 20,000 tonnes of zinc, 2,000 oz. of gold and 45,000
oz. of silver.
The Snow Lake concentrator will require minor modification to
produce both copper and zinc concentrates as well as re-starting of its
second grinding circuit. Concentrates produced would be trucked to the
Flin Flon metallurgical plants, which have capacity to process the
additional tonnage.
Work at the Bur will be a high priority for HudBay and arrangements
are being made for the in-fill diamond drilling suitable for the
feasibility study. In the event that environmental permits for full
production are obtained, and the feasibility study supports a production
decision, the major project capital is expected to be in the order of
$35 million (including the $8.5 million pre-expenditure).
About HudBay Minerals Inc.
HudBay Minerals Inc. is an integrated mining company that operates
mines, concentrators and a metal production facility in northern
Manitoba and Saskatchewan. HudBay also owns a zinc oxide production
facility in Ontario, the White Pine copper refinery in Michigan and the
Balmat zinc mine operations in New York state.
HudBay is a member of the S&P/TSX Composite Index.
Forward Looking Information
This news release contains "forward-looking information", within the
meaning of applicable Canadian securities legislation. Forward-looking
information includes, but is not limited to, statements with respect to
HudBay's plans for the Bur deposit. Generally, forward-looking
information can be identified by the use of forward-looking terminology
such as "plans", "seeks" "budget" or variations of such words or state
that certain actions, events or results "may", "could", "will", "will
be", "would be" or "is expected to be". Forward-looking information is
subject to known and unknown risks, uncertainties and other factors that
may cause the actual results, level of activity, performance or
achievements of HudBay to be materially different from those expressed
or implied by such forward-looking information, including risks
associated with the mining industry such as economic factors, government
regulation and approvals, environmental risks, success of exploration
activities, future commodity prices, capital expenditures, conclusions
of economic evaluations as well as those factors discussed in the
section entitled "Risk Factors" in HudBay's Annual Information Form for
the year ended December 31, 2005, available on www.sedar.com.
Although HudBay has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be no
assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated
in such information. Accordingly, readers should not place undue
reliance on forward-looking information. HudBay does not undertake to
update any forward-looking information, except in accordance with
applicable securities laws.
FOR FURTHER INFORMATION PLEASE CONTACT:
HudBay Minerals Inc.
Brad Woods
Director, Investor Relations
(204) 949-4272
(204) 942-8177 (FAX)
brad.woods@hbms.ca
www.hudbayminerals.com