-- Aggressive $45 million program continues --
Winnipeg, Manitoba – October 15, 2007 – HudBay Minerals Inc. (TSX: HBM)
(HudBay) announces results from its first half 2007 exploration program .
Previously released data is available at www.hudbayminerals.com.
During the first half of 2007, approximately 56,430 metres of diamond
drilling in 153 surface drill holes was completed. Exploration
expenditures including in-mine exploration totaled $20.5 million.
"Exploration is proceeding extremely well," said Peter Jones, President
& CEO. "We're taking full advantage to drive organic growth with
our $45 million exploration program and surface drilling at 56,430
metres is more than double the same period in 2006."
MINERAL DEPOSIT TARGETS (Flin Flon Greenstone Belt)
Lalor Lake Deposit
The Lalor Lake deposit is approximately 3 km off Highway 395 and 15 km
from HudBay's Snow Lake concentrator, which has significant additional
capacity.
On August 2, 2007, HudBay provided an update on its ongoing diamond
drill program at the Lalor Lake deposit. Mineralization intersections
from the first 10 holes at approximately 800 metres from surface
indicate a strike length of approximately 550 metres and a width of
approximately 700 metres measured in plan view. Based on the 10 holes,
the mineralization remains open in at least three directions. The
massive sulphide mineralization at the Lalor Lake deposit is
coarse-grained and similar to HudBay's nearby Chisel North Mine, and the
previously mined Photo Lake and Chisel Mines. These mines had excellent
concentrator recoveries and have produced 9.8 million ore tonnes to
date, with the Chisel North Mine continuing in production.
The following tabulations are repeated from HudBay's August 2, 2007 news
release. Further updates on Lalor Lake are expected to be released
prior to October 31, 2007.
Bur Deposit
The Bur deposit is 22 km from the Snow Lake concentrator. Drilling at
the Bur deposit in 2007 continued to improve the definition of the known
mineralization. During the first half, 5,881 metres were completed in
19 holes. Notable intersections include:
0.53% Cu, 10.94% Zn over 0.85 metres in drill hole BZS016
0.72% Cu, 17.26% Zn over 0.30 metres in drill hole BZS017
1.43% Cu, 3.46% Zn over 1.28 metres in drill hole BZS018
3.96% Cu, 16.66% Zn over 1.25 metres in drill hole BZS019
0.20% Cu, 3.74% Zn over 0.20 metres in drill hole BZS020
1.41% Cu, 2.85% Zn over 0.64 metres in drill hole BZS021
2.06% Cu, 14.97% Zn over 0.46 metres in drill hole BZS023
1.63% Cu, 4.86% Zn over 1.34 metres in drill hole BZS024
0.93% Cu, 14.25% Zn over 0.20 metres in drill hole BZS025
2.15% Cu, 12.30% Zn over 0.19 metres in drill hole BZS026
2.89% Cu, 8.91% Zn over 0.85 metres in drill hole BZS028
2.21% Cu, 9.44% Zn over 2.02 metres in drill hole BZS029
1.20% Cu, 1.07% Zn over 0.93 metres in drill hole BZS030
1.85% Cu, 15.99% Zn over 0.80 metres in drill hole BZS031
2.58% Cu, 6.44% Zn over 0.60 metres in drill hole BZS032
0.50% Cu, 1.43% Zn over 0.60 metres in drill hole BZS033
3.00% Cu, 5.46% Zn over 0.85 metres in drill hole BZS034
0.17% Cu, 9.47% Zn over 1.07 metres in drill hole BZS035
HudBay expects to complete a feasibility study on the Bur deposit later
this year. A production decision will follow a positive feasibility
study.
Talbot Lake Deposit
The Talbot Lake deposit is located 83 km from the Snow Lake
concentrator. 3,156 metres were drilled in five holes. Notable
intersections include:
4.63% Cu, 0.43% Zn over 3.32 metres in drill hole TLS021
HudBay expects to undertake additional drilling in 2008.
Watts River Deposit
The Watts River deposit is located 45 km from the Snow Lake
concentrator. 2,737 metres of drilling were completed in four holes.
Notable intersections include:
0.78% Cu, 4.36% Zn over 1.76 metres in drill hole WRS017
1.65% Cu, 2.68% Zn over 12.76 metres in drill hole WRS019
1.21% Cu, 3.69% Zn over 2.61 metres in drill hole WRS019
3.70% Cu, 0.61% Zn over 2.80 metres in drill hole WRS020
HudBay expects to complete a National Instrument 43-101 compliant resource estimate for the Watts River deposit.
Grassberry Deposit
The Grassberry deposit is located 73 km from the Flin Flon concentrator.
A total of 895 metres were completed in three drill holes. Notable
intersections include:
4.98% Cu, 12.02% Zn over 1.17 metres in drill hole GBS001
7.53% Cu, 5.10% Zn over 0.98 metres in drill hole GBS002
0.54% Cu, 11.95% Zn over 0.96 metres in drill hole GBS003
0.47% Cu, 6.22% Zn over 3.32 metres in drill hole GBS003
1.43% Cu, 9.89% Zn over 0.71 metres in drill hole GBS003
Drilling was interrupted due to deteriorating ice conditions. HudBay currently expects to restart drilling in 2008.
Jazz Deposit
The Jazz deposit is located 60 km from the Flin Flon concentrator. 3,578
metres were completed in nine holes. Notable intersections include:
2.42% Cu, 4.63% Zn over 0.58 metres in drill hole JZS005
2.19% Cu, 0.10% Zn over 2.45 metres in drill hole JZS008
2.04% Cu, 0.11% Zn over 2.58 metres in drill hole JZS009
Additional drilling is not currently planned.
Other Deposits
1,147 metres of drilling were completed in three drill holes at the
Fenton and Pen-2 deposits. There were no notable intersections.
Additional drilling is not currently planned at the Fenton deposit, but
additional drilling is expected at the Pen-2 deposit in 2007.
STRUCTURAL TARGETS (Flin Flon Greenstone Belt)
Chisel Lake
DUB166, which was drilled in 2006, tested a Quantec Titan 24 geophysical
anomaly located down dip from the Chisel North Mine. The notable
intersection was:
19.12% Cu, 0.81% Zn over 0.13 metres in drill hole DUB166
Additional drilling is not currently planned.
Trout Lake
1,473 metres were drilled in two surface holes near the Trout Lake Mine
to test for mineralization along strike and for fold repetitions. There
were no notable intersections. HudBay expects to resume drilling in
2007.
STRUCTURAL TARGETS (Balmat Area USA)
In the first half of 2007, three surface drill holes tested the Balmat
Mine stratigraphy between the Balmat Mine and the previously mined Hyatt
Mine. Notable intersections included:
21.82% Zn over 3.07 metres in drill hole 2355
Drilling is continuing in this area.
GEOPHYSICAL TARGETS (Flin Flon Greenstone Belt)
24,944 metres in 99 holes were drilled to test geophysical targets.
New discoveries of massive sulphide mineralization were made
approximately 50 km from the Snow Lake concentrator and 9 km north of
Provincial Highway 39. Notable intersections include:
0.42% Cu, 0.46% Zn over 0.40 metres in drill hole KUS308
0.07% Cu, 2.43% Zn over 0.39 metres in drill hole KUS310
2.15% Cu, 0.67% Zn over 0.75 metres in drill hole KUS340
In the area south of Flin Flon drill hole WZS001 tested an
electromagnetic anomaly adjacent to HudBay's Windy Lake copper zinc
deposit. The notable intersection was:
1.00% Cu, 3.13% Zn over 0.79 metres in drill hole WZS001
Drill testing of geophysical anomalies is expected to continue.
GEOPHYSICAL SURVEYS (Flin Flon Greenstone Belt)
877 km of line cutting, 391 km of horizontal loop electromagnetic
survey, 730 km of ground magnetometer surveys and 287 km of Crone fixed
loop time domain electromagnetic (FLEM) surveys were completed. Deep
penetrating, large loop FLEM surveys continued in the vicinity of the
Lalor Lake deposit.
10,539 km of helicopter borne electromagnetic surveys using the Geotech
Airborne Survey VTEM system were also completed. These surveys were done
to better define targets prior to drill testing and to identify targets
in new areas not previously surveyed with the VTEM system.
In conjunction with the Geological Survey of Canada, seismic surveys
were in progress in the area of HudBay's Flin Flon and 777 mine
properties. These 2D and 3D surveys image stratigraphy at considerable
depth.
OPERATING MINES
$2.2 million of underground in-mine exploration was completed in the
first half of 2007. Results from this diamond drilling during 2007,
will be included in HudBay's mineral reserve and mineral resource
estimates for each underground mine as of January 1, 2008.
OPTIONED PROPERTIES (Flin Flon Greenstone Belt)
In the first six months of 2007, HudBay entered into agreements to
option exploration land to Rockcliff Resources Inc. and VMS Ventures
Inc. In total, HudBay had option agreements in place with six
exploration companies at June 30, 2007.
2007 HudBay Procedures
Exploration core drilling was either BQ or NQ size. The core was logged
and mineralized intersections were marked for sampling and assaying by
geologists and geotechnicians employed by HudBay's subsidiary Hudson Bay
Exploration and Development Company Limited (HBED). The marked
intersections or intervals were sawn in half by a diamond saw and one
half of the core was placed in plastic bags and tagged with unique
sample numbers, while the second half was returned to the core box and
stored. Each bagged core sample was transported to HudBay's subsidiary
Hudson Bay Mining and Smelting Co., Limited's assay laboratory in Flin
Flon, Manitoba where it was dried, crushed and pulverized and a 250-gram
sample was prepared for assaying. From each 250 gram sample 0.25 grams
was removed and leached in aqua regia and analyzed by ICP-AES for Ag,
Cu, Zn, As, Pb, Ni and Fe. Also from the 250-gram sample, 15 grams was
removed for gold determination by fire assaying with Atomic Absorption
finish.
Assaying integrity is monitored internally with a quality control
program, which includes the use of assay sample standards, blanks,
duplicates and repeats and externally through national and international
programs. In addition, within each group of 20 core samples, one core
sample has a second 250 gram split collected for check assaying at Acme
Analytical Laboratories Ltd. in Vancouver, B.C. This news release
provides core lengths and additionally where indicated, horizontal or
vertical lengths of mineralization intersected. True widths are not
provided. Where metal assays are provided for intersections they are
either a single assay of a sample of the entire intersection length or a
composite of assays calculated from interval weighted assays over the
intersection length. The data herein and the contents of this news
release have been reviewed by Kelly Gilmore, B.Sc. P. Geo., Chief
Exploration Geologist with HBED, who is a Qualified Person within the
meaning of National Instrument 43-101, with the ability and authority to
verify the authenticity and validity of the data.
Attached to this news release are tables showing the first half 2007
drill results. Prior period drill results may be found at the HudBay web
site, www.hudbayminerals.com.
About HudBay Minerals Inc.
HudBay is an integrated mining company operating 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
and a member of the S&P/TSX Global Mining Index.
For further information:
Brad Woods
Director, Investor Relations
Tel: (204) 949-4272
brad.woods@hbms.ca
www.hudbayminerals.com
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