TORONTO, ONTARIO, Aug 26, 2008 (Marketwire via COMTEX News Network)
--
HudBay Minerals Inc. (TSX:HBM) is pleased to announce a National
Instrument 43-101 (NI 43-101) compliant mineral resource estimate for
its 100% owned Lalor Lake (Lalor) deposit in the Flin Flon Greenstone
Belt. The Lalor deposit is located near Snow Lake, Manitoba,
approximately 3 km from HudBay's Chisel North mine and 15 km from
HudBay's Snow Lake concentrator.
Lalor - Mineral Resources
-------------------------
-------------------------------------------------------------
Resource Tonnes Au Ag Cu Zn
Classification (millions) (g/t) (g/t) (%) (%)
-------------------------------------------------------------
Indicated 3.4 1.9 20.5 0.71 8.82
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Inferred 13.2 2.9 34.1 0.70 8.19
-------------------------------------------------------------
Notes:
1. CIM Definitions were followed for the estimation of Mineral
Resources.
2. Mineral Resources are estimated at a zinc equivalency (ZNEQ)
cut-off of 4% (ZNEQ% equals Zn% + Cu% x 2.352 + Au g/t x 0.626 +
Ag g/t x 0.009) and a minimum two metre true width.
3. Long term $US metal prices of $700/oz gold, $12.00/oz silver,
$2.00/lb copper and $0.85/lb zinc were used for the estimation
of ZNEQ.
4. Metal recovery assumptions of 65% gold, 60% silver, 90% copper
and 90% zinc were used for the estimation of ZNEQ.
5. Specific gravity measurements using industry standard techniques
were completed on all assayed intervals.
"These results continue to be positive, and support our belief
that Lalor has the potential to be HudBay's next mine from the Flin Flon
Greenstone Belt," said Allen Palmiere, President and CEO of HudBay. "As
we've previously indicated, we believe this is a significant asset with
opportunity to grow in size and add to our company's extensive mineral
resources in northern Manitoba."
The mineral resource estimate is
effective as of a June 23, 2008 cut-off date, which includes
information from 40 drill holes and 5 wedge offsets. Since the cut-off
date, HudBay has continued to drill at Lalor with six rigs in an effort
to upgrade the Inferred mineral resources and collect samples for
metallurgical testing purposes.
Copper and zinc mineralized
intersections were geologically interpreted into six stacked lenses, or
zones, of zinc rich polymetallic near solid to solid
sulphide mineralization at approximately 570 m to 1,170 m below surface.
The reported resource estimates of gold and silver are contained
within the interpreted zones of copper and zinc mineralization.
However, high grade precious metal intersections also occur outside the
mineralized zones and HudBay is currently working with Scott Wilson
Roscoe Postle Associates Inc. (Scott Wilson RPA) to evaluate their
continuity.
"Our fundamental strategy is to build long-term value
organically by leveraging HudBay's assets and our exploration program,"
said Mr. Palmiere. HudBay has one of the largest and most aggressive
exploration programs in Canada. "Lalor continues to be one of our
important exploration properties and we look forward to continued
assessment of this asset and moving to a Feasibility Study for the
deposit."
He added that HudBay is in the process of constructing
an all-weather access road to its Lalor site, which is scheduled to be
completed by mid September, and preparation of the Feasibility Study is
expected to commence during the Company's fourth quarter.
The
Lalor core samples were all prepared and analyzed by HudBay's Hudson Bay
Mining and Smelting Co., Limited subsidiary (HBMS) at the Flin Flon, MB
assay laboratory. As part of HBMS QA/QC measures, pulp duplicates are
sent to Acme Analytical Laboratories Ltd. in Vancouver, BC, for
comparison and verification purposes.
The mineral resource
estimate included in this news release was prepared by Robert Carter, P.
Eng., Senior Mines Analyst of HBMS, and audited by Ian Blakley, P.
Geo., Senior Consulting Geologist of Scott Wilson RPA. Both are
Qualified Persons under NI 43-101 and have reviewed and approved this
press release.
A Technical Report supporting the mineral
resource estimate in this news release, prepared by Scott Wilson RPA to
NI 43-101 standards, will be filed and made available on SEDAR.
About HudBay Minerals Inc.
HudBay
Minerals Inc. is a leading integrated base metals mining company with
assets in North and Central America and a focus on the discovery and
production of nickel, zinc and copper metal. The company is investing
for the future in one of the most ambitious exploration programs in
Canada, targeting its 400,000 hectare exploration territory in the Flin
Flon Greenstone Belt, and commencing development of the world class
Fenix Nickel Project (the "Fenix Project") in Guatemala. As an
integrated mining company, HudBay operates mines, concentrators and
metal production facilities in northern Manitoba and Saskatchewan, a
zinc oxide production facility in Ontario, and the White Pine copper
refinery in Michigan. HudBay
is a member of the S&P/TSX Composite Index and the S&P/TSX
Global Mining Index.
(HBM-G)
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, information concerning
HudBay's mineral resource estimates and potential plans for Lalor Lake
as well as HudBay's exploration and development plans and its strategies
and future prospects. Generally, forward-looking information can be
identified by the use of forward-looking terminology such as "plans",
"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
statements that certain actions, events or results "may",
"could", "would", "might", or "will be taken", "occur", or "be
achieved". Forward-looking information is based on the opinions and
estimates of management at the date the information is made, and is
based on a number of assumptions and subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the forward-looking
information. Many of these assumptions are based on factors and events
that are not within the control of HudBay and there is no assurance they
will prove to be correct.
Factors that could cause actual
results to vary materially from results anticipated by such
forward-looking information include changes in market conditions,
variations in ore grade or recovery rates, risks relating to
international operations, fluctuating metal prices and currency exchange
rates, economic
factors, government regulation and approvals, environmental and
reclamation risks, costs, timing and amount of future production,
capital expenditures and requirements for additional capital, changes in
project parameters, the possibility of project cost overruns or
unanticipated costs and expenses, permitting timelines, labour disputes
and the availability of skilled labour, results of exploration and other
risks of the mining industry, failure of plant, equipment or processes
to operate as anticipated, the business of the companies not being
integrated successfully or such integration proving more difficult, time
consuming or costly than expected as well as those risk factors
discussed in the Annual Information Form for the year ended December 31,
2007 for each of HudBay and its Skye Resources Inc. subsidiary
available at
www.sedar.com. Although HudBay has attempted to identify
important factors that could cause actual actions, events or results to
differ materially from those described in forward-looking information,
there may be other factors that cause actions, events or results not to
be anticipated, estimated or intended. There can be no assurance that
forward-looking information will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such information. HudBay undertake no obligation to update
forward-looking information if circumstances or management's estimates
or opinions should change except as required by applicable securities
laws. The reader is cautioned not to place undue reliance on
forward-looking information.
SOURCE: HudBay Minerals Inc.
HudBay Minerals Inc.
Brad Woods
Director Investor Relations
(204) 949-4272
Email: brad.woods@hbms.ca
Website: www.hudbayminerals.com
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