WINNIPEG, MANITOBA--(CCNMatthews - Jan. 31, 2007) - HudBay Minerals Inc.
(TSX:HBM) today announced its January 1, 2007 mineral reserves and
mineral resources estimated in accordance with National Instrument
43-101 ("NI 43-101"). Mineral reserves aggregate 22,785,000 tonnes.
Separately, inferred mineral resources aggregate 3,244,000 tonnes.
"Both
our mineral reserves and inferred mineral resources are contained in
operating mines and these have historically grown substantially as they
are mined," said Peter Jones, President and CEO. "This trend continues
and I am delighted to report that our aggregate mineral reserves at
January 1, 2007 increased compared to those at January 1, 2006, after
taking into account 2006 ore production."
"Beyond our estimated
mineral reserves and mineral resources announced today, we have one of
the most aggressive exploration programs in Canada underway in 2007 with
a budget of $37 million," added Mr. Jones. "Additionally, we are
investing $8.5 million to advance our Bur deposit, near our Snow Lake
concentrator, through the feasibility study stage, which includes a
decline to extract a 10,000 tonne mineral sample. Both of these
initiatives, as well as the scoping study underway on our Tom and our
optioned Jason deposits in the Yukon, have the potential to further add
to our mineral reserve and mineral resource position."
For a
comparison of HudBay mineral reserve and mineral resource statements for
2005 and 2006 please see HudBay's 2005 Annual Information Form dated
March 29, 2005 and its 2006 Annual Information Form dated March 21, 2006
respectively, which are available at www.sedar.com.
Estimated Mineral Reserves - January 1, 2007
Mine Tonnes Au (g/t) Ag (g/t) Cu (%) Zn (%)
777
Proven 5,041,000 2.3 27.5 2.8 4.5
Probable 11,813,000 2.1 26.9 2.3 4.5
Trout Lake
Proven 1,301,000 1.6 18.1 2.2 4.7
Probable 896,000 1.8 19.1 3.0 4.1
Chisel North
Proven 605,000 - - - 8.2
Probable 1,054,000 - - - 8.0
Balmat
Proven 912,000 - - - 10.1
Probable 1,163,000 - - - 11.4
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Total Proven 7,859,000
Total Probable 14,926,000
Total Reserves 22,785,000
To estimate mineral reserves, measured and indicated mineral
resources were first estimated by 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 then 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
to determine economic viability of the 2007 mineral reserves were US
$450 oz. gold, US $7.00 oz. silver, US $1.10 lb. copper and US $0.60 lb.
zinc.
Estimated Inferred Mineral Resources(1) - January 1, 2007
Mine Tonnes Au (g/t) Ag (g/t) Cu (%) Zn (%)
777 1,145,000 2.0 26.5 1.4 4.3
Trout Lake 403,000 1.3 22.7 1.4 5.1
Chisel North 248,000 - - - 7.9
Balmat 1,448,000 - - - 12.8
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Total Resources 3,244,000
Estimated inferred mineral resources within HudBay mines were estimated
by a similar 12-step process, used to estimate measured and indicted
resources. The inferred mineral resources tabulated above and contained
in HudBay mines are compliant with the requirements of NI 43-101 and
additionally have had dilution and recovery applied and have been
economically tested using the same historical costs and long term metal
prices as those used for the estimation of mineral reserves.
The
2007 estimated measured and indicated mineral resource and the estimated
inferred mineral resource were prepared under the supervision of
Kimberley Lau, B.Sc., P.Geo, who is employed by Hudson Bay Mining and
Smelting Co., Limited (HBMS), a wholly-owned subsidiary of HudBay, as
Superintendent, Mining Technical Services and who is a Qualified Person
under NI 43-101. The 2007 estimated mineral reserve and the estimated
diluted, recovered and economically tested inferred mineral resources
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.
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. The Company 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
January 1, 2007 mineral reserves and resources as well as certain
exploration programs. 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, possible variations in ore reserves,
grade, or recovery rates, 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.
(1) Diluted, recovered and economically tested