TORONTO, ONTARIO, Oct 30, 2009 (Marketwire via COMTEX News Network)
-- HudBay Minerals Inc. ("HudBay", "the company") (TSX:HBM) today
announced that it will re-start operations at its Chisel North mine and
concentrator in Snow Lake, Manitoba effective immediately, with full
production expected in the second quarter of 2010. The re-start of
operations at Snow Lake is expected to provide approximately 30,000
tonnes of zinc concentrate feed to the company's Flin Flon zinc plant
annually. The capital costs of the re-start are expected to be
approximately CDN$7 million and operating costs are expected to be
comparable to what they were prior to the suspension of operations
earlier this year.
The company also announced today that it has
entered into a hedge of approximately 50% of the anticipated zinc
production from the Chisel North mine at an average price of
approximately US$1.01
per pound of zinc. This forward sale is intended to ensure that Chisel
North remains economic at lower zinc prices, while providing unfettered
upside for the remaining 50% of its zinc production.
The Chisel
North mine and Snow Lake concentrator have been on care and maintenance
since the first quarter of 2009, due to depressed zinc prices at the
time. Work will begin immediately to prepare both the mine and
concentrator for the re-start. To facilitate this work, personnel and
equipment will be redeployed from Flin Flon to Snow Lake. The company
also expects the re-start of operations to provide additional employment
opportunities for some employees impacted by the closure of its copper
smelter in 2010.
"The re-start of our Snow Lake operations is
exciting news for the company and the local community," said Peter R.
Jones, chief executive officer of HudBay. "Re-starting this supply of
domestic zinc concentrate is more economical than purchasing
third-party concentrates. Also, the benefit to the community in Snow
Lake will be substantial as we expect to employ up to 100 people once
full production is achieved over the next several months."
The
re-start of the Snow Lake operations will be carried out at the same
time as the commencement of the previously announced Phase 1 exploration
and development of the company's Lalor deposit. HudBay expects the
development of the ramp to the zinc-rich base metals zone #10 to take
about 30 months and, subject to receiving applicable regulatory
approvals, produce approximately 1,200 tonnes of ore per day once
completed. Production from Chisel North and the early production from
Lalor will help provide a continuous feed of domestic zinc concentrate
to the company's Flin Flon zinc plant until Lalor reaches full
production, which is expected in 2014.
HudBay Minerals Inc.: Strength
to Build the Future
HudBay Minerals Inc. (TSX:HBM) is a Canadian
integrated mining company with assets in North and Central America
principally focused on the discovery, production and marketing of base
metals. The company's objective is to maximize shareholder value through
efficient operations, organic growth and accretive acquisitions, while
maintaining its financial strength. A member of the S&P/TSX
Composite Index and the S&P/TSX Global Mining Index, HudBay is
committed to high standards of corporate governance and sustainability.
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 the
timing and costs to re-start operations, the anticipated effect of
hedging, and the
ability to increase zinc concentrate supply to the company's zinc plant,
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, as well as those risk factors discussed in the
Annual Information Form for the year ended December 31, 2008 for HudBay
Minerals Inc. 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
undertakes 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.
(HBM-G)
SOURCE: HudBay Minerals Inc.
HudBay Minerals Inc.
John Vincic, Vice President, Investor Relations
and Corporate Communications
(416) 362 0615
john.vincic@hudbayminerals.com
www.hudbayminerals.com
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