Located three kilometres from the Chisel North mine, the Lalor project is on a fast track to become our next major underground mine. The project is believed to hold the second-largest metal deposit in the Flin Flon Greenstone Belt and the largest pre-development deposit discovered in the Flin Flon-Snow Lake region.
Click here to view a time lapse video of Lalor
- Location: Chisel Basin of the Flin Flon Greenstone Belt in Manitoba, 210 kilometres east of Flin Flon
- Ownership: 100%
- Property: 916 hectares
- Primary metals: gold, zinc, copper
- Secondary metals: silver
- Type of mining: underground
- Production rate: 4,500 tonnes per day
- Projected life of mine: 20 years
- Capital costs for Lalor mine: (2010 to 2014): $441 million
- Annual sustaining capital expenditures: $22 million
- Estimated mining cost per tonne: $36
- Estimated milling cost per tonne: $16
Of the total mine construction budget of $441 million, Hudbay has invested approximately $381 million at its 100% owned Lalor project in Manitoba to December 31, 2013 and has entered into an additional $32 million in commitments. The underground mine remains on schedule and on budget. Hudbay is continuing underground project development and has completed the excavation of the production shaft to the 985 metre level. Hudbay has completed the steel guide installation to the 220 metre level as at January 31, 2014 and is planning to complete the installation in the second quarter of 2014. Underground construction on the ore and waste handling systems and main dewatering is proceeding on schedule. Hudbay has now completed the final engineering for the surface exhaust fan installation which will be built after the main ventilation shaft hoist is dismantled. Hudbay has completed the final planning for the office/changehouse and final site layout. The company expects to receive the Environmental Act licence, which permits mining from the production shaft, in the ordinary course.
Lalor Project – Mineral Reserves* as at March 30, 2012
*The weighted average (based on planned production tonnage) price from 2012 to 2016 used for mineral reserve estimation for zinc was US$1.11 per pound (includes premium), the copper price was US$3.12 per pound, the gold price was US$1,399 per ounce and the silver price was US$27.28 per ounce using an exchange of 1.03 C$/US$. Post 2016 the mineral reserve estimation used a zinc price of US$1.00 per pound (includes premium), a copper price of US$2.75 per pound, a gold price of US$1,100 per ounce and a silver price of US$22 per ounce using an exchange of 1.05 C$/US$.
Lalor Project – Mineral Resources as at September 30,2011
(For more detailed information about reserves and resources at Lalor, please see Reserves and Resources.)
The estimates of the tonnes and grade of the gold zone and the copper-gold zone are conceptual in nature and to date there has been insufficient exploration to define a mineral resource compliant with NI 43-101. It is uncertain if further exploration will result in the target deposit being delineated as a mineral resource.
1955 – Exploration in the Chisel Basin has been active since 1955. The Basin has hosted five producing mines: Chisel Lake, Chisel Open Pit, Chisel North, Photo and Ghost-Lost.
2007 – Lalor deposit is discovered.
2009 – Gold zone and copper-gold zone identified. In December, construction begins on the three-kilometre underground ramp from the Chisel North mine to Lalor deposit.
2010 – Hudbay's board of directors made a full commitment to the development of Lalor by authorizing the expenditures necessary to put the project into full production.
2011 – Decision made to construct new concentrator.
2012 - Initial ore production commenced from ventilation shaft