Lalor

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

Key Facts

  • 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

Life of Mine1

Ownership

100%

Daily ore throughput

3,300 tpd

Avg. annual Zn production2

59k tonnes

Avg. annual Au-Eq. production2

43k ounces

Avg. annual Cu production2

5k tonnes

Cash cost per lb Zn3

$(0.09)/lb

Mine and mill unit cost4

$58/tonne

Avg. annual sustaining capital

$23 million

Mine life

+15 years

Source: Hudbay company disclosure, Wood Mackenzie

1.LOM as per NI 43-101 Pre-Feasibility Study Technical Report on Lalor Deposit dated March 29, 2012, with the exception of cash costs (see note 4)
2.Production represents contained metal in concentrate; silver converted to gold at a rate of 50:1
3.Wood Mackenzie LOM average from 2015 to 2027; cash costs per pound of zinc, net of by-product credits
4.Combined mine and mill unit operating costs per tonne of ore processed


Project Status

At Hudbay’s 100% owned Lalor project in Manitoba, of the total mine construction budget of $441 million, Hudbay has invested approximately $404 million and has entered into an additional $32 million in commitments to June 30, 2014. Hudbay has completed the underground mine project development. The company has also completed the new 6,000 tonne per day capacity (ore and waste) production shaft and mechanically commissioned it for hoisting as well as personnel transport.

 

Construction is complete on the 910 and 955 metre levels on the mine dewatering systems, rock breakers and the loadout systems. There is minor electrical work remaining that is expected to be completed in August 2014. Commissioning of the rockbreakers and loadout systems is complete and Hudbay will commission the main de-watering system after the remaining electrical work has been completed. The remaining committed funding is largely for the office/changehouse and surface exhaust fan installation. Hudbay expects the completion of the remaining surface construction to be completed in late 2014. Hudbay has substantially completed the refurbishment of the Snow Lake concentrator which will be commissioned to treat 2,700 tonnes per day, doubling its previous capacity.

 

An underground exploration drift at Lalor will be started in the third quarter of 2014 at an estimated cost of $3.1 million. The exploration drilling is intended to assist in the upgrading of inferred resources to a higher resource category and allow for an expanded program in 2015 to further test the down dip extension of the copper/gold zone.

Manitoba Mineral Reserves as at January 1, 2014

 

Category

Tonnes

Cu (%)

Zn (%)

Au (g/t)

Ag (g/t)

Lalor – Base Metal1

 

 

 

 

 

Proven

1,332,000

0.73

8.99

1.53

17.49

Probable

11,334,000

0.68

7.81

1.56

23.77

Lalor – Gold Zone

 

 

 

 

 

Probable

2,530,000

0.37

0.42

4.28

24.45

1 Includes the copper-gold zone.

 

 

Manitoba Mineral Resources as at September 30, 2013

 

Category

Tonnes

Cu (%)

Zn (%)

Au (g/t)

Ag (g/t)

Lalor – Base Metal1

 

 

 

 

 

Inferred

3,832,000

2.04

5.77

3.47

21.24

Lalor – Gold Zone

 

 

 

 

 

Inferred

6,281,000

0.42

0.49

4.70

31.48

1Includes the copper-gold zone.



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

History

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

2014 - Lalor mine construction complete on time and on budget

Lalor NI 43-101 Technical Report March 29, 2012

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March 29, 2012 Technical Report 16.39 MB

New Lalor Copper-Gold Mineralization Discovered, March 7, 2012

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Lalor Project Exploration Drill Results – May 16, 2011

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May 16, 2011 Chisel 181 KB
May 15, 2011 Lalor 215 KB

Lalor Project Drill Results – March 11, 2011

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March 11, 2011 Lal C-Au Zone Plan View 160 KB
March 11, 2011 Lalor Drill Hole Table 47 KB

Lalor Project Exploration Drill Results – December 13, 2010

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November 13, 2010 Exploration Plan View 391 KB

Lalor Supplemental Disclosure – August 4, 2010

Lalor Drill Results and Interactions Information, October 8, 2009

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October 8, 2009 Assay Information for Gold Zones 267 KB
October 8, 2009 Collar Information 56 KB
October 8, 2009 Survey Information 364 KB
October 8, 2009 Collar Map 98 KB

Base Metal Zones and Gold Mineralization, January 29, 2009

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New Gold Zone at Lalor, January 9, 2009

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January 9, 2009 Lalor Collars 14 KB
January 9, 2009 Lalor Assasy 68 KB

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