Constancia

In 2011, Hudbay acquired Norsemont Mining Inc. and its wholly owned Constancia copper porphyry project located in southern Peru. Production began as expected during the fourth quarter of 2014. Commercial production remains on track for the second quarter of 2015.

Click here to view a time lapse video of Constancia.

Key Facts

  • Location: South-eastern Andes of Peru, in the Chamaca and Livitaca Districts, Province of Chumbivilcas, Department of Cusco
  • Ownership: 100%
  • Property: 22,516 hectares in 36 mineral concessions
  • Primary metals: copper
  • Secondary metals: molybdenum, silver
  • Contemplated type of mining: open pit

Life of Mine1

Ownership

100%

Daily ore throughput

80k tpd

Avg. annual Cu production2

82k tonnes

Cash cost per Cu lb3

US$1.25/lb

Mine and mill unit cost4

US$7.48/tonne

Avg. annual sustaining capital

US$47 million

Mine life

22 years

Source: Hudbay company disclosure

1.LOM as per NI 43-101 Technical Report on the Constancia Project dated October 15, 2012 and subsequent updates to project estimates in public disclosure
2.Production is contained metal in concentrate
3.Net of by-products. Includes impact of silver and gold streams. Assumed metal prices per the Silver Wheaton stream agreement are as follows: Gold US$400/oz, Silver US$5.90/oz. Other metal price assumptions include: Molybdenum 2014-US$12/lb, 2015-US$13/lb, 2016-US$13/lb, LT-US$13.50/lb; Gold 2014-US$1,350/oz, 2015-US$1,325/oz, 2016-US$1,300/oz, 2017-US$1,275/oz, LT-US$1,250/oz
4.Combined mine and mill unit operating costs per tonne of ore processed

Project Status

At Hudbay’s 100% owned Constancia project in Peru, physical construction was essentially completed and copper concentrate production began as expected during the fourth quarter of 2014. Commercial production remains on track for the second quarter of 2015 and the mine is expected to achieve full capacity in the second half of the year.  Safety remains a primary focus at the operation with the project achieving approximately 21 million hours worked and only one lost time injury in 2014.

 

Commissioning is ongoing and copper concentrate produced to date has met specifications. Trucking to the port commenced in early January and the first sale of concentrate is expected later in the first quarter of 2015.

 

Initial mining of softer supergene ore from the main Constancia pit is expected to result in the concentrator processing ore at average grades 30% above reserve grade in the first five years of the projected 22 year mine life.  There are currently approximately 800,000 tonnes of ore on the run-of-mine pad and an additional 1.8 million tonnes of broken ore in the Constancia pit, representing approximately one month of expected throughput in the plant at design capacity. Mining and civil earthworks productivity has been at or above expectations.

 

 

Peru Mineral Reserves as at January 1, 2014

 

Category

Tonnes

Cu (%)

Mo (g/t)

Au (g/t)

Ag (g/t)

Constancia

 

 

 

 

 

Proven

483,000,000

0.32

93

0.040

3.04

Probable

94,000,000

0.22

61

0.036

2.77

Pampacancha

 

 

 

 

 

Proven

23,000,000

0.52

142

0.298

4.28

Probable

20,000,000

0.44

159

0.252

3.74

Total Proven

506,000,000

0.33

95

0.052

3.09

Total Probable

114,000,000

0.26

78

0.074

2.94

Total Reserves

620,000,000

0.32

92

0.056

3.07

Note: totals may not add up correctly due to rounding

 

Peru Mineral Resources as at September 30, 2013

 

Category

Tonnes

Cu (%)

Mo (g/t)

Au (g/t)

Ag (g/t)

Constancia

 

 

 

 

 

Measured

68,000,000

0.22

59

0.036

2.17

Indicated

293,000,000

0.20

58

0.033

1.96

Inferred

200,000,000

0.19

51

0.031

1.86

Pampacancha

 

 

 

 

 

Measured

5,000,000

0.41

69

0.243

5.46

Indicated

6,000,000

0.34

98

0.211

4.68

Total Measured & Indicated

372,000,000

0.20

59

0.039

2.09

Total Inferred

200,000,000

0.19

51

0.031

1.86

Note: totals may not add up correctly due to rounding.


(For more detailed information about reserves and resources at Constancia, please see Reserves and Resources.)

Pampacancha Deposit Expanded to the North and West, March 7, 2012

Thumb Date Download

Pampacancha Exploration Drill Results, August 9, 2011

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August 9, 2011 Cross Section 381 KB
August 8, 2011 Plan Map 846 KB
August 7, 2011 Collar Locations 7 KB
August 6, 2011 Composite Intervals 8 KB

Pampacancha Exploration Drill Results, June 14, 2011

Thumb Date Download
June 14, 2011 Cross Section 529 KB
June 14, 2011 Plan Map 1.21 MB
June 14, 2011 Pampacancha Results 10 KB

Constancia Project Exploration Drill Results, May 16, 2011

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May 16, 2011 Collar Locations 27 KB
May 16, 2011 Map 1.76 MB

CONSTANCIA PROJECT TECHNICAL REPORT, NOVEMBER 6, 2012

Thumb Date Download
November 12, 2014 Technical Report 28.36 MB

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