Peru

In 2011, Hudbay acquired Norsemont Mining Inc. and its wholly owned Constancia copper porphyry project located in southern Peru. Production began as expected during the fourth quarter of 2014 and achieved commercial production on April 30, 2015.

Key Facts

  • Location: South-eastern Andes of Peru, in the Chamaca and Livitaca Districts, Province of Chumbivilcas, Department of Cusco
  • Ownership: 100%
  • Property: 22,516 hectares in 36 mineral concessions
  • Primary metals: copper
  • Secondary metals: molybdenum, silver
  • Contemplated type of mining: open pit

Average Life of Mine1

Ownership

100%

Daily ore milled

85k tpd

Annual Cu production2

81k tonnes

Unit operating cost3  $7.39/t

Cash cost per Cu lb4

$1.28/lb

Annual sustaining capital5

US$57 million

Sustaining cash cost6 $1.62/lb

Mine life7

19 years

Source: Hudbay company disclosure

1.LOM as per NI 43-101 Technical Report on the Constancia Mine dated November 21, 2016. LOM average calculated from 2017-2035

2.Production is contained metal in concentrate

3.Combined mine, mill and G&A unit operating costs per tonne of ore processed (after impact of capitalized stripping)

4.Net of by-products. Includes impact of silver and gold streams. Metal prices per the precious metals stream agreement are as follows: Gold US$400/oz, Silver US$5.90/oz. Other metal price assumptions in LOM estimate are based on reserve prices ($3.00/lb Cu, $11.00/lb Mo, $1,260/oz Au 

5.Sustaining capital includes capitalized stripping costs, but excludes Pampacancha project capital. 2017 Peru sustaining capital expenditure guidance is $120 million, including capitalized stripping costs of ~$15 million

6.Sustaining cash cost per pound copper produced, includes sustaining capital costs and royalties

7.Mine life as of January 1, 2017

 

 

Overview

Constancia is Hudbay’s 100% owned copper mine in Peru, which the company acquired through its acquisition of Norsemont in 2011. It is located in the Province of Chumbivilcas in southern Peru and consists of the Constancia and Pampacancha deposits.

On August 8, 2012, Hudbay’s board of directors approved a US$1.5 billion investment to fund the development and construction of its Constancia project in Peru. Following substantial completion of the detailed engineering in the third quarter of 2013, the board approved a revised capital cost estimate for the project of US$1.7 billion.

 

 

Constancia Processing

Our processing plant at Constancia is designed to process a nominal throughput of 81,900 tpd of ore and average annual throughput of 29 million tonnes per year from the Constancia open pit and Pampacancha satellite deposit. The principal products of the concentrator are copper concentrate and molybdenum concentrate. The primary crusher, belt conveyors, thickeners, tanks, flotation cells, mills and various other types of equipment are designed and constructed to be open to the environment. The concentrate filtration and storage building is enclosed. The tailings is pumped to the tailings management facility for storage and water is returned via parallel piping to the process plant for reuse.

 

Peru Mineral Reserves as at January 1, 2017

 

Category

Tonnes

Cu (%)

Mo (g/t)

Au (g/t)

Ag (g/t)

Constancia

 

 

 

 

 

Proven

431,300,000

0.30

95

0.037

2.88

Probable

109,900,000

0.23

62

0.034

2.55

Pampacancha

 

 

 

 

 

Proven

22,800,000

0.53

149

0.299

4.44

Probable

20,200,000

0.44

164

0.250

3.85

Total Reserves

584,200,000

0.30

93

0.054

2.91

Note: totals may not add up correctly due to rounding

 

Peru Mineral Resources as at January 1, 2017

 

Category

Tonnes

Cu (%)

Mo (g/t)

Au (g/t)

Ag (g/t)

Constancia

 

 

 

 

 

Measured

161,800,000

0.19

55

0.031

2.26

Indicated

287,800,000

0.17

50

0.026

1.89

Inferred

138,100,000

0.17

40

0.018

1.70

Pampacancha

 

 

 

 

 

Measured

7,500,000

0.35

57

0.235

4.13

Indicated

15,200,000

0.18

90

0.180

2.85

Total Measured & Indicated

472,300,000

0.18

53

0.036

2.08

 

Note: totals may not add up correctly due to rounding.


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

1.LOM as per NI 43-101 Technical Report on the Constancia Mine dated November 21, 2016. LOM average calculated from 2017-2035

2.Production is contained metal in concentrate

3.Combined mine, mill and G&A unit operating costs per tonne of ore processed (after impact of capitalized stripping)

4.Net of by-products. Includes impact of silver and gold streams. Metal prices per the precious metals stream agreement are as follows: Gold US$400/oz, Silver US$5.90/oz. Other metal price assumptions in LOM estimate are based on reserve prices ($3.00/lb Cu, $11.00/lb Mo, $1,260/oz Au 

5.Sustaining capital includes capitalized stripping costs, but excludes Pampacancha project capital. 2017 Peru sustaining capital expenditure guidance is $120 million, including capitalized stripping costs of ~$15 million

6.Sustaining cash cost per pound copper produced, includes sustaining capital costs and royalties

7.Mine life as of January 1, 2017

Constancia Technical Report, November 21, 2016

Thumb Date Download
November 21, 2016 Technical Report 18.14 MB

Constancia Project Technical Report, November 6, 2012

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November 12, 2014 Technical Report 28.36 MB

Pampacancha Deposit Expanded to the North and West, March 7, 2012

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Pampacancha Exploration Results, August 9, 2011

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August 9, 2011 Cross Section 381 KB
August 8, 2011 Plan Map 846 KB
August 7, 2011 Collar Locations 7 KB
August 6, 2011 Composite Intervals 8 KB

Pampacancha Exploration Results, June 14, 2011

Thumb Date Download
June 14, 2011 Cross Section 529 KB
June 14, 2011 Plan Map 1.21 MB
June 14, 2011 Pampacancha Results 10 KB

Constancia Exploration Results, May 16, 2011

Thumb Date Download
May 16, 2011 Collar Locations 27 KB
May 16, 2011 Map 1.76 MB

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