777-Mine

Hudbay was founded at the Flin Flon orebody in northern Manitoba over 85 years ago, and today the mineral rich area is still the location of our main operating platform. In the town of Flin Flon, we own our flagship 777 mine as well as an ore concentrator and zinc production facilities. 

Mine

777 Mine

  • Location: Flin Flon
  • Ownership: 100%
  • Property: 4,400 hectares
  • Primary metals: zinc, copper
  • Secondary metals: gold, silver
  • Type of mining: underground

Life of Mine1

Ownership

100%

Daily ore throughput

4,500 tpd

Avg. Annual Cu production2

25k tonnes

Avg. Annual Zn production2

51k tonnes

Cash cost per lb Cu3

$(0.52)/lb

Mine and mill unit cost4

$53/tonne

Avg. annual sustaining capital

$18 million

Mine life remaining

5 years

Source: Hudbay company disclosure, Wood Mackenzie

1.LOM as per NI 43-101 Technical Report on 777 Mine dated October 15, 2012, with the exception of cash costs (see note 3)
2.Production represents contained metal in concentrate
3.Wood Mackenzie LOM average from 2015 to 2020; cash costs per pound of copper, net of by-product credits, adjusted for precious metals stream
4.Combined mine and mill unit operating costs per tonne of ore processed. Includes mill costs for Flin Flon concentrator. 2015 combined mine and mill unit operating cost guidance for the entire Manitoba Business Unit is C$73-88/tonne of ore.
 

Overview

Hudbay’s 100% owned 777 mine is an underground copper, zinc, gold and silver mine located within the Flin Flon Greenstone Belt, immediately adjacent to our principal concentrator and zinc pressure leach plant in Flin Flon, Manitoba. Development of the 777 mine commenced in 1999 and commercial production began in 2004. The anticipated mine life is until 2020.

Ore produced at the 777 mine is transported to Hudbay’s Flin Flon concentrator for processing into copper and zinc concentrates. Copper concentrate is sold to third party purchasers and zinc concentrate is sent to Hudbay’s Flin Flon zinc plant where it is further processed into special high grade zinc before being sold to third party purchasers.

Background

777 is located within the Flin Flon Greenstone Belt (FFGB) in the Canadian Shield, one of the world’s largest exposed areas of Precambrian rocks. Within the Canadian Shield are large, deformed remnants of ancient volcanic-sedimentary terrain known as greenstone belts, which historically have been proven locations of base and precious metals.

The orebodies of the FFGB occur in a highly prospective early Proterozoic island-arc assemblage that stretches for an exposed length of 250 kilometres east-west and 75 kilometres north-south. The deposits are copper-zinc VMS type, rich in gold and silver, and hosted in both felsic and mafic volcanic rocks, with the felsic type hosting the largest deposits. VMS orebodies in the area have ranged in size from less than 100,000 tonnes to more than 60 million tonnes. 

Production

The following table sets forth Hudbay’s production from the 777 Mine for the years ended December 31, 2014, 2013 and 2012.

 

Units

2014

2013

2012

Ore mined

tonnes

1,452,933

1,625,532

1,528,103

Copper grade in ore

%

1.91

1.85

2.32

Zinc grade in ore

%

3.05

3.81

4.16

Gold grade in ore

grams/tonne

1.72

2.02

2.18

Silver grade in ore

Grams/tonne

21.48

23.01

25.77

 

Mineral Reserves and Resources

Manitoba Mineral Reserves as at January 1, 2016  

Category Tonnes Cu (%) Zn (%) Au (g/t) Ag (g/t)
7771
Proven 3,316,000 1.80 4.85 1.79 26.71
Probable 2,986,000 1.50 4.79 1.97 27.80
 Includes 777 North.  

Manitoba Mineral Resources as at September 30, 2015

Category  Tonnes Cu (%) Zn (%) Au (g/t) Ag (g/t)
7771
Indicated 728,000 0.99 3.51 1.83 26.28
Inferred 683,000 1.02 4.71 1.76 32.63
1 Includes 777 North.

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

History

1915 – Prospector Tom Creighton registers a claim on land near the 55th parallel in northern Manitoba. He calls his strike Flin Flon.

1928 – Construction begins at Flin Flon. At the same time, a railway is laid between The Pas and Flin Flon and a hydroelectric plant constructed at Island Falls. At the time of construction, Flin Flon was one of the largest industrial development projects in the Western Hemisphere. It has been said that it was second only to the Panama Canal in terms of scale at the time.

1930 – Production begins at Flin Flon.

1982 – Production begins at Trout Lake.

1992 – The Flin Flon mine closes.

1993 – 777 orebody is discovered by an underground exploration hole.

1999 – 777 mine development begins.

2004 – Completion of the flagship 777 mine in Flin Flon. Commercial production begins.

2010 – After 80 years of service, the copper smelter at Flin Flon closes.

2010 – 777 North expansion begins.

2011 – Hudbay has mined approximately 145 million tonnes of ore since our founding in the FFGB nearly
85 years ago.

777 MINE TECHNICAL REPORT, NOVEMBER 6, 2012

Thumb Date Download
November 6, 2012 Technical Report 10.05 MB

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