-- New encouraging copper and precious metals assays
-- Deposit remains open in two directions
-- Aggressive drilling continues with five rigs operating 24/7
WINNIPEG, MANITOBA, Mar 3, 2008 (Marketwire via COMTEX News
Network) --
HudBay Minerals Inc. (TSX:HBM) (HudBay) today announced drill results
from additional holes at its Lalor Lake zinc exploration project near
Snow Lake, Manitoba in the Flin Flon Greenstone Belt. The results
indicate encouraging copper and precious metals content and also
continue to support the deposit's previously announced conceptual
estimate of a potential of 18 - 20 million tonnes of 7.7% to 8.8%
zinc(i).
"We continue to be impressed with the results at Lalor
Lake," said Allen Palmiere, President & CEO. "These latest assays
indicate the potential for significant precious metals in the deposit.
We are also encouraged that certain of the drill hole results have some
higher grades of copper and mineralization similar to what was mined
previously at our copper and gold rich Photo Lake Mine." The Photo Lake
Mine which is approximately three kilometres from Lalor Lake, operated
from
1994 to 1998.
The following tabulations are selected notable intersections.
Main Zone Intersections
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From To Length Au Ag Copper Zinc
Drill Hole metres metres metres g/t g/t % %
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DUB 192 869.60 870.66 1.06 0.72 158.81 0.30 8.75
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DUB 194 812.90 820.00 7.10 0.24 10.14 0.05 6.43
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DUB 198 902.27 906.68 4.41 0.23 11.10 0.28 12.64
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DUB 199 848.15 861.00 12.85 0.58 6.12 0.34 10.31
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Footwall Intersections
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From To Length Au Ag Copper Zinc
Drill Hole metres metres metres g/t g/t % %
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DUB 194 871.00 885.36 14.36 3.37 21.29 0.62 7.10
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DUB 194 1055.80 1065.45 9.65 2.62 19.41 0.40 8.89
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DUB 195 817.00 829.00 12.00 7.27 59.93 1.57 16.75
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DUB 200 845.58 853.09 7.51 15.21 81.36 2.43 4.57
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Precious Metal Intersections
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From To Length Au Ag Copper Zinc
Drill Hole metres metres metres g/t g/t % %
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DUB 189 1141.00 1145.00 4.00 6.99 54.69 0.19 1.02
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DUB 189 1155.00 1161.00 6.00 3.57 8.80 0.38 0.26
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DUB 189 1188.30 1192.00 3.70 21.79 30.63 0.09 0.15
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includes 1191.00 1192.00 1.00 76.66 101.83 0.15 0.41
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DUB195 810.00 817.00 7.00 13.86 46.38 0.66 0.32
---------------------------------------------------------------------------
DUB 197 989.20 1004.50 15.30 8.26 25.98 0.36 0.27
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DUB 198 909.50 914.00 4.50 5.19 83.33 0.09 0.02
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DUB 199 861.00 866.00 5.00 5.63 31.26 1.81 0.16
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A complete tabulation of drilling results and assayed
intersections to date as well as a plan map of the Lalor Lake drilling
are included as attachments to this news release.
The conceptual
estimate of potential tonnes and grade at Lalor Lake was announced on
October 23, 2007 and was based on assay results from 16 drill holes. The
estimate excluded copper and zinc mineralization interpreted to be
outside the main and footwall zones as well as all gold and silver
values. The estimate also excluded dilution and recovery. The
mineralization in the main and three footwall zones at Lalor Lake is
similar to the coarse grained pyrite and sphalerite at the nearby Chisel
North zinc mine as well as the previously mined Chisel Lake zinc mine.
To
date, HudBay has completed 35 drill holes including two wedge cuts and
has a further five in progress. Four rigs are drilling in
fill holes to confirm correlation between intersections in the main and
three footwall zones and to collect metallurgical samples. A fifth drill
continues to test the extent of the mineralization to the northwest of
the main zone. Drill spacing in this area is quite wide, generally
greater than 200 metres. Assay results from the mineralization in this
area tend to have more significant copper and gold assay values. Visible
gold has been noted in at least two drill holes. This style of
mineralization is also associated with, or located between, the footwall
zones. Zones enriched with precious metals continue to be intersected
adjacent to the main zinc rich zone.
Kelly Gilmore, Chief
Exploration Geologist with HudBay's Hudson Bay Exploration and
Development Company Limited (HBED) subsidiary, stated "the deposit
remains open on the north and west sides and copper and gold grades are
higher in that area. The deposit appears to be adequately defined on the
south and east margins where the deposit is more zinc rich." HudBay
plans to continue drilling at Lalor Lake with five rigs to define the
extent and to improve confidence in the interpretation to produce a
National Instrument 43-101 (NI 43-101) compliant resource estimate,
which is expected to be completed near the end of the first half of
2008.
"The positive results we are seeing at Lalor Lake have been
achieved through our aggressive exploration program, which is
continuing again in 2008 with a planned expenditure of $43 million,"
added Mr. Palmiere. "Our 400,000 hectares of exploration lands in the
prolific Flin Flon Greenstone Belt is a tremendous asset - and one we
fully intend to continue leveraging in support of creating value."
2008 Exploration 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 HBED subsidiary. 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 Hudson Bay Mining and Smelting
Co., Limited subsidiary'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,
calculated vertical thickness 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 NI 43-101, with the ability and authority to
verify the authenticity and validity of the data.
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.
(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 with respect to
future exploration plans and results with respect to the Lalor Lake
exploration project as well as other exploration expenditures and plans
by HudBay. 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 state that certain
actions, events or results "may", "could", "would", "might", or "will
be taken", "occur", or "be achieved". 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 as
they effect exploration, future commodity prices, actual results of
current exploration activities, government regulation, environmental
risks, permitting timelines, capital expenditures, 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.
(i) 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.
To view the Lalor Lake Drill Hole Locations and Assay Results, please click on the following link:
http://media3.marketwire.com/docs/Lalor%20Results%20All%20holes.pdf.
To view the Lalor Lake Plan Map, please click on the following link:
http://media3.marketwire.com/docs/Lalor%20Map.pdf.
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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