Reed

Reed is a high-grade copper deposit located in the Flin Flon Greenstone Belt. Hudbay, which has a 70% interest in the project, is exploring the deposit in partnership with VMS Ventures Inc. The project received Hudbay Board approval to proceed to full construction in December 2011 and commenced initial production in 2013.

Click here to view a time lapse video of Reed

Key Facts

  • Location: 120 kilometres east of Flin Flon
  • Ownership: Joint venture between Hudbay (70%) and VMS Ventures Inc. (30%)
  • Property: 917 hectares
  • Primary metals: copper
  • Secondary metals: gold, silver, zinc
  • Type of mining: underground
  • Projected production rate: 1,300 tonnes per day
  • Expected mine life: five years
  • Features:
    • Near-surface deposit
    • Advantageous location adjacent to a provincial highway and near the Flin Flon complex
    • Limited environmental footprint with ore being trucked to Hudbay's Flin Flon concentrator

Project Status

During the third quarter of 2013, Hudbay’s 70% owned Reed mine near Flin Flon, Manitoba received its Environment Act Licence from the Manitoba government and commenced initial production. The licence permits the operation of a 1,300 tonne per day underground copper mine and supporting infrastructure. Of Hudbay’s $72 million estimated capital construction budget, the company has invested approximately $59 million on the project to October 31, 2013 and has entered into an additional $7 million in commitments. Capital expenditures at Reed are expected to total approximately $40 million in 2013. The project is on schedule and on budget.

During the third quarter of 2013, we mined 8,235 tonnes at a copper grade of 1.66% and a zinc grade of 2.74%. The underground ramp had advanced approximately 1,358 metres, and an additional 147 metres of pre-production drifting had been achieved as of September 30, 2013. The project remains on track to reach full production of approximately 1,300 tonnes of ore per day in the first half of 2014.

Reed Copper Project – Mineral Reserves as at March 30, 2012 and Mineral Resources as at March 15, 2011*

Category Million Tonnes Au (g/t) Ag (g/t) Cu (%) Zn (%)
Probable 2.157 0.48 6.02 3.83 0.59
Inferred 0.170 0.38 4.55 4.26 0.52

*Hudbay holds a 70% joint venture interest in the Reed property

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

History

2007 – Deposit discovered by VMS Ventures Inc.

2010 – Hudbay and VMS sign joint venture agreement on July 5, 2010 giving Hudbay a 70% interest and VMS a
30% interest.

2010 – Hudbay drills 35 optimum core angle holes in winter of 2010-2011.

2011 - Reed copper project receives Board approval to proceed to full construction with first production expected by late 2013. Annual copper production in concentrate from the Reed mine expected to average 17,000 tonnes over the five year mine life.

Reed Exploration Drill Results, May 16, 2011

Thumb Date Download
May 16, 2011 Collar Locations 7 KB
May 16, 2011 Drill Results 152 KB

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