Growing resource base positions company well for the long-term
WINNIPEG, MANITOBA, Feb 12, 2008 (Marketwire via COMTEX News
Network) --
HudBay Minerals Inc. (TSX:HBM) today announced its January 1, 2008
mineral reserves and mineral resources estimated in accordance with
National Instrument 43-101 ("NI 43-101").
"Our company has a
strong base of reserves and resources," said Allen Palmiere, President
and CEO. "Through our 2007 exploration efforts, we have, for the third
consecutive year, largely replaced our in-mine reserves and resources.
We have expanded our pre-development property resources with the
addition of the Tom and Jason deposits in the Yukon and with the Bur and
Watts River deposits in the Flin Flon Greenstone Belt. Our exploration
program has also delivered the Lalor Lake discovery, which positions
HudBay well for the longer term."
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Mineral Reserves and Resources - January 1, 2008
Operating Properties
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In-mine reserves 21.4 million tonnes
In-mine resources 3.5 million tonnes
Pre-Development Properties
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Indicated resources 7.5 million tonnes
Inferred resources 31.5 million tonnes
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Lalor Lake Deposit -- October 23, 2007
Conceptual Estimate(1) 18 - 20 million tonnes
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(1) The estimate of potential tonnes and grade of the Lalor Lake mineral
deposit are conceptual in nature. The basis upon which the disclosed
potential tonnes (18 - 20 million tonnes) and grade (7.7% - 8.8% zinc)
has been determined is provided in the Company's news release dated
October 23, 2007. There has been insufficient exploration to define a
mineral resource and it is uncertain if further exploration will result
in the Lalor Lake deposit being delineated as a mineral resource.
HudBay's 400,000 hectares of exploration lands in the highly
prolific and prospective Flin Flon Greenstone Belt is one of the
company's key assets. HudBay has discovered 25 mines in this area and
has more than 1,200 untested geophysical targets representing potential
for future discoveries. "Our inventory of reserves and resources
reflects the potential of our exploration properties and the strength of
HudBay's exploration capabilities," added Mr. Palmiere. "We fully
intend on continuing to invest in exploration in support of the ongoing
development of our pipeline of projects in the Flin Flon Greenstone
Belt."
HudBay has committed $43 million to exploration this year,
which follows the company's 2007 planned exploration spend of $45
million and makes the program one of the most aggressive in Canada. A
significant focus of HudBay's 2008 exploration will be the Flin Flon
Greenstone Belt, targeting new discoveries and advancing the Lalor Lake
deposit through ongoing drilling and completion of a NI 43-101 compliant
resource estimate during the first half of the year.
OPERATING PROPERTIES
Estimated Mineral Reserves - January 1, 2008
Mine Tonnes Au (g/t) Ag (g/t) Cu(%) Zn(%)
777
Proven 4,464,700 2.4 25.7 3.1 4.0
Probable 11,224,300 2.2 29.9 2.1 5.0
Trout Lake
Proven 1,535,000 1.3 13.7 2.0 4.1
Probable 831,800 1.7 21.8 2.1 4.7
Chisel North
Proven 528,700 - - - 9.3
Probable 879,400 - - - 6.8
Balmat
Proven 1,000,100 - - - 9.5
Probable 890,400 - - - 10.8
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Total Proven 7,528,500
Total Probable 13,825,900
Total Reserves 21,354,400
Estimated Inferred Mineral Resources(2) - January 1, 2008
Mine Tonnes Au (g/t) Ag (g/t) Cu(%) Zn(%)
777 1,456,200 1.8 26.9 1.3 4.2
Trout Lake 299,900 0.8 4.0 2.3 0.7
Chisel North 272,100 - - - 5.5
Balmat 1,442,300 - - - 12.8
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Total 3,470,500
(2) Diluted, recovered and economically tested
PRE-DEVELOPMENT PROPERTIES
Estimated Mineral Resources - January 1, 2008
Property Tonnes Au (g/t) Ag (g/t) Cu(%) Zn(%) Pb(%)
Tom
Indicated 4,980,000 - 47.8 - 6.6 4.4
Inferred 13,550,000 - 31.8 - 6.7 3.1
Jason
Indicated 1,460,000 - 86.7 - 5.3 7.4
Inferred 11,000,000 - 36.4 - 6.8 4.0
Watts River
Indicated - - - - - -
Inferred 6,623,000 0.7 25.6 1.9 2.6 -
Bur
Indicated 1,050,000 0.1 12.1 1.9 8.6 -
Inferred 302,000 0.1 9.6 1.4 9.0 -
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Total Indicated 7,490,000
Total Inferred 31,475,000
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 2008 mineral
reserves were US $550 oz. gold, US $11.00 oz. silver, US $1.45 lb.
copper and US $0.75 lb. zinc.
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 2008 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 2008
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.
The data herein and the contents of this news release
have been reviewed by Kimberley Lau, B.Sc., P.Geo, who is employed by
HBMS, a wholly-owned subsidiary of HudBay, as Superintendent, Mining
Technical Services and who is a Qualified Person within the meaning of
NI 43-101, with the ability and authority to verify the authenticity and
validity of the data.
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 and a member of the S&P/TSX Global
Mining 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, information with respect to HudBay's
January 1, 2008 mineral reserves and resources as well as certain
exploration programs and related investment and HudBay's future
prospects. 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, changes
in project parameters as plans continue to be refined as well as those
factors discussed in the section entitled "Risk Factors" in HudBay's
Annual Information Form for the year ended December 31, 2006, 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 information 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.
(HBM-G)
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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