WINNIPEG, MANITOBA--(CCNMatthews - Aug. 8, 2006) - HudBay Minerals
Inc. (TSX:HBM) (HudBay) announces that its wholly owned subsidiary,
Hudson Bay Mining and Smelting Co., Limited (HBMS), plans to mine
additional ore production from pillars at its Trout Lake mine in
northern Manitoba.
The Trout Lake mine has been in production
since 1982 and has pillars of ore remaining from prior mining. HudBay
plans to use contractors to mine 42,000 tons of selected pillar ore from
the Trout Lake mine mineral reserves, of approximately 1.4% copper and
5.4% zinc and to increase the mine output from 441,400 tons to 483,750
tons, during the second half of 2006. The pillar mining is expected to
cost approximately $5.0 million.
The pillar ore will be processed
at the Flin Flon concentrator and the concentrates produced will be
treated at the Flin Flon metallurgical plant.
"Although the
pillar ore will be at a higher mining cost than our other Trout Lake
mine ore, it is expected to be strongly accretive to HudBay at current
metal prices," said Russell Rood, President of HBMS's Mining Division.
About HudBay Minerals Inc:
HudBay
Minerals Inc. is an integrated mining company that operates mines,
concentrators and a metal production complex in northern Manitoba and
Saskatchewan. The company also owns a zinc oxide production facility in
Ontario, the White Pine copper refinery in Michigan, and the Balmat zinc
mine in New York State.
HudBay is a member of the S&P/TSX Composite Index.
Forward Looking Statements
This
news release contains "forward-looking statements", within the meaning
of applicable Canadian securities legislation, concerning the business,
operations and financial performance and condition of HudBay.
Forward-looking statements include, but are not limited to, statements
with respect to anticipated mining activities at Trout Lake mine and
related matters and their potential impact on HudBay. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "subject to" "expects", or
"does not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates", or "does not anticipate", or
"believes" or variations of such words and phrases or state that certain
actions, events or results "may", "could", "would", "might", "can be",
"will" or "will be taken", "occur", or "be achieved". Forward-looking
statements are 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 statements, including
risks associated with the mining industry such as government
regulation, environmental and reclamation risks, title disputes or
claims, success of mining activities, future commodity prices, costs of
production, possible variations in ore reserves, resources, grade or
recovery rates, failure of plant, equipment or processes to operate as
anticipated, accidents, labour disputes, the timing of estimated future
production, capital expenditures, financial market fluctuations,
requirements for additional capital, conclusions of economic
evaluations, limitations on insurance coverage, risks associated with
using third-party contractors, inflation 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 statements, 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 statements. Accordingly, readers should not place
undue reliance on forward-looking statements. HudBay does not undertake
to update any forward-looking statements, except in accordance with
applicable securities laws.
FOR FURTHER INFORMATION PLEASE CONTACT:
HudBay Minerals Inc.
Don Bain
Director, Investor Relations
(204) 949-4272
(204) 942-8177 (FAX)
[email protected]
www.hudbayminerals.com