Reed

Reed

The 70%-owned Reed copper mine commenced initial production in September 2013 and achieved commercial production at the end of the first quarter of 2014. The mine is expected to add approximately 15,000 tonnes of annual copper production over a five-year mine life. It is located 120 kilometres from Flin Flon, and ore is trucked to the Flin Flon concentrator for processing.

Reed is a small, high-grade copper deposit that benefits from its proximity to Flin Flon, enabling us to truck ore to our main complex for processing instead of building on-site facilities.

The greatest challenge was Reed’s location – within the boundary of a Manitoba provincial park. We worked with the Manitoba authorities to minimize the mine’s footprint, mitigate other potential disturbances and ensure that the operation does not affect the local caribou habitat. This included limiting tree clearing to seven of the 14 hectares our permit allowed. Even then, trees were removed selectively and the wood was given to the provincial park for use as firewood. Access roads and power and pipeline routes were curved to prevent direct sightlines from public roads to the mine. The main fan was installed underground and sound-reducing enclosures were built for generators, compressors and the ventilation heater. At the close of mining, the site will be indistinguishable from other areas in the park that have been cleared for use as picnic grounds and campsites.

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

Life of Mine1

Ownership

70%

Daily ore throughput

1,300 tpd

Avg. annual Cu production2

15k tonnes

Cash cost per lb Cu3

$1.64/lb

Mine and mill unit cost4

$90/tonne

Avg. annual sustaining capital

$10 million

Mine life

4 years

Source: Hudbay and VMS Venture Inc. company disclosure

1.LOM as per NI 43-101 Pre-Feasibility Study Technical Report on the Reed Copper Deposit dated April 2, 2012 as filed by VMS Ventures Inc., shown on 100% basis
2.Production represents contained metal in concentrate
3.Cash costs per lb calculated using the life of mine model supporting the NI 43-101 report
4.Combined mine and mill unit operating costs per tonne of ore processed

 

Manitoba Mineral Reserves as at January 1, 2016

Category Tonnes Cu (%) Zn (%) Au (g/t) Ag (g/t)
Reed1 
Proven 677,000 3.80 0.46 0.35 4.87
Probable  517,000 4.46 0.28 0.52 6.11
 Stated at 100%, Hudbay holds a 70% joint venture interest in the Reed mine.

Manitoba Mineral Resources as at September 30, 2015

Category  Tonnes Cu (%) Zn (%) Au (g/t) Ag (g/t)
 Reed1
 Inferred 203,000  4.63  0.39 0.81 7.71
1 Stated at 100%, Hudbay holds a 70% joint venture interest in the Reed mine.

(For more detailed information about reserves and resources at Reed, please seeReserves 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.

2013 - First production at Reed begins

2014 - Achieved commercial production ahead of guidance and completed construction under budget.

Reed Exploration Drill Results, May 16, 2011

Thumb Date Download
May 16, 2011 Collar Locations 7 KB
May 16, 2011 Drill Results 152 KB
Thumb Date Download
December 14, 2015 Technical Report 5.02 MB

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