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
- Production rate: 4,500 tonnes per day
- Projected life of mine: 20 years
- Capital costs: (2010 to 2015): $794 million
- Annual sustaining capital expenditures: $22 million
- Estimated mining cost per tonne: $36
- Estimated milling cost per tonne: $16
Project Status
The company has invested approximately $338 million of its $794 million capital construction budget for the Lalor project to March 31, 2013 and has entered into an additional $84 million in commitments for the project.
During the first quarter of 2013, Hudbay hoisted 81,800 tonnes of ore from the ventilation shaft at Lalor at a copper grade of 0.57% and zinc grade of 9.94%. During the same period, underground project development continued to advance. The company’s primary focus is to complete the 910 metre shaft station in the second quarter of 2013 and to continue to ramp to the 955 metre level, which the company expects to reach by the end of the third quarter of 2013. Hudbay is developing ore and waste handling systems as well as the dewatering areas on the 910 and 955 metre levels.
Given the nature of the Lalor project, Hudbay expects to refer to three phases of the Lalor project when determining commercial production for accounting purposes. The first phase of the project includes the main ventilation shaft and associated surface and underground workings that will contribute to the production of ore between 2012 and 2014. Hudbay commenced this phase of commercial production on April 1, 2013 with Lalor initial production contributing to profit starting at that time.
As of April 26, 2013 the main production shaft was sunk to approximately 710 metres and is approximately 72% complete. Hudbay expects shaft sinking to be completed in late 2013. Upon completion of sinking, the installation of the steel sets and guides as well as the headframe changeover will begin. Ore production is expected to transition from the ventilation shaft to the main production shaft by the fourth quarter of 2014, subject to receipt of required regulatory permits.
Hudbay is in the process of completing the final engineering work for the load‑out facilities located at the 955 metre level, as well as the main pumping installations. The company is preparing for construction of the main intake fan systems and the main substation, which is scheduled to be completed in the fourth quarter of 2013.
Hudbay expects to submit the Environment Act Licence application for the new concentrator to the Manitoba government in the second quarter of 2013. The new design will incorporate a larger grinding circuit being fed from the surface stockpile. Hudbay will hoist uncrushed ore up the main production shaft at Lalor to be crushed on surface and then conveyed to the surface stockpile. The stockpile will feed a SAG mill and ball mill combination that has design capacity of 5,400 tonnes per day.
Lalor Project – Mineral Reserves* as at March 30, 2012
| Zone |
Category |
Million Tonnes |
Au (g/t) |
Ag (g/t) |
Cu (%) |
Zn (%) |
| Base Metal |
Probable Reserves |
12.591 |
1.55 |
23.81 |
0.63 |
7.92 |
| Gold Zone |
Probable Reserves |
1.841 |
3.99 |
21.77 |
0.38 |
0.38 |
| Total |
Reserves |
14.432 |
1.86 |
23.55 |
0.60 |
6.96 |
*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
| Zone |
Category |
Million Tonnes |
Au (g/t) |
Ag (g/t) |
Cu (%) |
Zn (%) |
| Base Metal |
Inferred |
3.817 |
1.20 |
22.15 |
0.60 |
9.09 |
| Gold Zone |
Inferred |
7.338 |
4.64 |
31.35 |
0.41 |
0.32 |
| Copper-Gold Zone |
Inferred |
1.461 |
6.80 |
20.33 |
4.15 |
0.31 |
| Total |
Inferred |
12.616 |
3.85 |
27.29 |
0.90 |
2.97 |
(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.
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