TORONTO, ONTARIO, Sep 10, 2010 (Marketwire via COMTEX News Network)
-- HudBay Minerals Inc. ("HudBay") (TSX:HBM) announced today that,
pursuant to the terms of a Subscription, Option and Joint Venture
Agreement with Aquila Resources Inc. ("Aquila")
(TSX:AQA)(FRANKFURT:JM4A), it has exercised its option to earn a 51%
joint venture interest in Aquila's Back Forty Project in Michigan's
Upper Peninsula. Pursuant to the agreement, HudBay was obligated to
expend US$10 million on the project in order to earn its 51% interest.
HudBay will act as operator of the Back Forty joint venture and can
increase its ownership interest in the project to 65% by completing a
feasibility study and submitting a mine permit application to the State
of Michigan.
Following recent encouraging drill results at the
Back Forty Project (see Aquila's June 15, 2010, April 2, 2010 and
December 9, 2009 press
releases), exploration at the property is ongoing and an updated
National
Instrument 43-101 ("NI 43-101") mineral resource estimate is underway
with targeted completion by the end of 2010. The updated resource
estimate will support the preparation of a feasibility study and an
associated mine permit application, which is now anticipated to be
submitted in the fourth quarter of 2011.
"We are encouraged by
ongoing progress at the Back Forty Project and are pleased to have
reached this milestone in our relationship with Aquila Resources," said
David Garofalo, HudBay's president and chief executive officer. "The
Back Forty Project is an excellent fit with our strategy of acquiring
and developing VMS and porphyry deposits with strong exploration
potential in mining friendly jurisdictions."
The Back Forty
Project contains an advanced exploration-stage volcanogenic massive
sulfide ("VMS") deposit containing gold, zinc, copper and silver. A NI
43-101
compliant resource estimate announced on January 15, 2009 by Aquila
includes 8.5 million tonnes in the measured and indicated category and
an additional 1.2 million tonnes in the inferred category. The project
also includes a significant exploration land package of approximately
9,600 acres, which will allow HudBay to use its award-winning
exploration techniques for VMS deposits.
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 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.
Qualified Person
The
contents of this news release have been reviewed and approved by Cashel
Meagher, P.Geo., HudBay's Vice President, Exploration. Mr. Meagher 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.
Forward-Looking Information
This
news release contains "forward-looking information" within the meaning
of applicable securities laws. Forward-looking information includes but
is not limited to information concerning the company's ability to
develop its Lalor project and 777 North expansion, the ability to
maintain a regular dividend on its common shares and the ability to
obtain a listing on the New York Stock Exchange, the ability of
management to execute on key strategic and operational
objectives, the ability to meet production forecasts, the potential
impact of changing economic conditions on HudBay's financial results and
the company's 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", "understands" or "does not anticipate", or
"believes" or variations of such words and phrases or statements that
certain actions, events or results "will", "may", "could", "would",
"might", or "will be taken", "occur", or "be achieved". Forward-looking
information is based on the views, opinions, intentions 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 anticipated or projected in the forward-looking
information (including the actions of other parties who have agreed to
do certain things and the approval of certain regulatory bodies).
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 or events to vary
materially from results or events anticipated by such forward-looking
information include the ability to develop and operate the Lalor project
on an economic basis, the ability to meet required solvency tests to
support a dividend payment, and in accordance with anticipated
timelines, risks associated with the mining industry such as economic
factors (including costs of construction materials, future
commodity prices, currency fluctuations and energy prices), failure of
plant, equipment, processes and transportation services to operate as
anticipated, including new and upgraded facilities at Lalor, dependence
on key personnel, employee relations and availability of equipment and
skilled personnel, environmental risks, government regulation, actual
results of current exploration activities, possible variations in ore
grade or recovery rates, permitting timelines, capital expenditures,
reclamation activities, land titles, and social and political
developments and other risks of the mining industry, as well as those
risk factors discussed in the company's Annual Information Form dated
March 30, 2010, which risks may cause actual results to differ
materially from any forward-looking statement.
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, or to comment on analyses, expectations or
statements made by third parties in respect of HudBay, its financial or
operating results or its securities. 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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