Reserves-and-Resources

Peru Mineral Reserves as at January 1, 2015

Category Tonnes Cu (%) Mo (g/t) Au (g/t) Ag (g/t)
Constancia
  Proven 477,000,000 0.30 94 0.038 2.91
  Probable 94,000,000 0.22 61 0.036 2.77
Pampacancha
  Proven 23,000,000 0.52 142 0.298 4.28
  Probable 20,000,000 0.44 159 0.252 3.74
Total Proven 500,000,000 0.31 97 0.050 2.97
Total Probable 114,000,000 0.26 78 0.074 2.94
Total Reserves 614,000,000 0.30 93 0.054 2.97
 Note: totals may not add up correctly due to rounding

Peru Mineral Resources as at September 30, 2015

Category Tonnes Cu (%) Mo (g/t) Au (g/t) Ag (g/t)
Constancia
  Measured  68,000,000 0.22 59 0.036 2.17
  Indicated 293,000,000 0.20 58 0.033 1.96
  Inferred  200,000,000  0.19   51   0.031   1.86 
Pampacancha
  Measured 5,000,000 0.41 69 0.243 5.46
  Indicated   6,000,000 0.34  98   0.211   4.68 
Total Measured + Indicated 372,000,000 0.20 59 0.039 2.09
Total Inferred 200,000,000 0.19 51 0.031 1.86
Note: totals may not add up correctly due to rounding 

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
Lalor – Base Metal
  Proven 5,143,000 0.75 7.42 1.94 25.11
  Probable 7,828,000 0.82 6.06 2.18 25.33
Lalor – Gold Zone
  Proven 823,000 0.33 0.27 4.85 19.61
  Probable 1,491,000 0.35 0.38 5.26 28.79
Reed2 
  Proven 677,000 3.80 0.46 0.35 4.87
  Probable  517,000  4.46  0.28 0.52 6.11
Total Proven 9,959,000 1.27 5.50 2.02 23.81
Total Probable 12,822,000 1.07 4.87 2.42 25.53
Total Reserves 22,781,000 1.16 5.15 2.25 24.78

1 Includes 777 North.
2 Stated at 100%, Hudbay holds a 70% joint venture interest in the Reed mine.
Note: totals may not add up correctly due to rounding.
 

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
Lalor - Base Metal
  Inferred 3,300,000 1.35 6.06 2.87 26.59
Lalor - Gold Zone 
   Measured2 56,000  0.17  0.50  4.52 18.49
   Indicated21,097,000 0.39 0.43 
 4.24  31.29 
   Inferred33,522,000  0.35 0.20
5.4733.48
 Reed4
   Inferred 203,000   4.63  0.39 0.81 7.71
Total Measured + Indicated 1,881,000 0.61 1.63 3.31 28.97
Total Inferred 7,708,000 0.95 3.11 3.91 29.87
1 Includes 777 North.
2 Gold resources not in contact with base metal zone and are anticipated to be mined and milled separately from base metal ore.
3 Includes gold resources in contact and not in contact with base metal zones.
4 Stated at 100%, Hudbay holds a 70% joint venture interest in the Reed mine.
Note: totals may not add up correctly due to rounding.   

Additional Information

The reserve and resource estimates included on this website were prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Reserves: Definitions and Guidelines.

All mineral resources referred to on this website are exclusive of and additional to stated mineral reserves.  Mineral resources that are not mineral reserves do not have demonstrated economic viability.

 

Manitoba

  • To estimate mineral reserves, measured and indicated mineral resources were first estimated in a 12-step process, which includes determination of the integrity and validation of the data collected, including confirmation of specific gravity, assay results and methods of data recording. The process also includes determining the appropriate geological model, selection of data and the application of statistical models including probability plots and restrictive kriging to establish continuity and model validation. The resultant estimates of measured and indicated mineral resources are then converted to proven and probable mineral reserves by the application of mining dilution and recovery, as well as the determination of economic viability using full cost analysis. Other factors such as depletion from production are applied as appropriate.
  • Estimated inferred mineral resources within our mines were estimated by a similar 12-step process, used to estimate measured and indicated resources.
  • Hudbay's four-year average metal price and foreign exchange rate forecasts were used to estimate mineral reserves and mineral resources at the 777 and Reed mines. The zinc price was $1.16 per pound (includes premium), the copper price was $2.75 per pound, the gold price was $1,190 per ounce and the silver price was $16.50 per ounce using an exchange rate of 1.25 C$/US$.
  • The zinc price used for mineral reserve and resource estimations for the Lalor mine was $1.07 per pound (includes premium), the copper price was $3.15 per pound, the gold price was $1,260 per ounce and the silver price was $18.00 per ounce using an exchange rate of 1.10 C$/US$. The reserve statements at Lalor are not significantly impacted by lower long-term metal prices of $3.00 per pound or $2.75 per pound; however, they may not be optimized at those prices.
  • For additional details relating to the estimates of mineral reserves and resources at the 777 mine, including data verification and quality assurance/quality control processes refer to the “Technical Report 777 Mine, Flin Flon, Manitoba, Canada” dated October 15, 2012 on SEDAR.
  • For additional details relating to the estimates of mineral reserves and resources at the Lalor mine, including data verification and quality assurance/quality control processes refer to the “Pre-Feasibility Study Technical Report, on the Lalor Deposit” dated March 29, 2012 on SEDAR.
  • For additional details relating to the estimates of mineral reserves and resources at the Reed mine, including data verification and quality assurance/quality control processes refer to the “Pre-Feasibility Study Technical Report on the Reed Copper Deposit, Central Manitoba, Canada” as filed on SEDAR by VMS Ventures Inc. on May 14, 2012. 

 

Peru

  • A complete estimate update of the mineral reserves at Constancia was not conducted in 2015. Constancia proven reserves were depleted due to production in 2015 and gains were included based on mining and drilling in the upper portion of the deposit.
  • The Constancia and Pampacancha mineral reserves are based on a Peruvian Sole: US Dollar exchange rate of 2.85:1 and the following long term metals prices: copper price of $3.00 per pound; silver price of $25.00 per ounce; gold price of $1,250.00 per ounce; and molybdenum price of $13.50 per pound. The reserve statements at Constancia are not significantly impacted by lower long-term metal prices of $2.75 per pound; however, they may not be optimized at that price.
  • There was no material reduction in the Constancia resources due to depletion in 2015 and changes in our long-term metal prices and exchange rate assumptions would not have a material impact on our estimates of the 2013 mineral resources at Constancia. As such, we did not conduct an updated estimate in 2015.
  • The Constancia and Pampacancha mineral resources correspond to a resources pit shell. In compliance with NI 43-101 requirements for the disclosure of minerals resources, a pit optimization to delimit the portion of the block model having reasonable prospects for economic extraction was performed.
  • The Constancia resource pit consists of a non-operational pit of Measured, Indicated and Inferred resources diluted to a 10x10x15m full block size using a 0.12% copper cut-off based on a copper price of $2.88 per pound and a molybdenum price of $16.00 per pound, copper recovery of 89%, molybdenum recovery of 60%, processing costs of $5.50 per tonne and mining costs of $1.30 per tonne.
  • The Pampacancha resource pit consists of a non-operational pit of Measured, Indicated and Inferred resources diluted to a 10x10x15m full block size using a 0.1% copper cut-off based on a copper price of $3.00 per pound, a molybdenum price of $13.50 per pound, silver price of $25.00 per ounce, gold price of $1,250 per ounce, copper recovery of 85%, molybdenum recovery of 40%, gold and silver recovery of 65%; processing costs of $4.72 per tonne and mining costs of $1.90 per tonne.
  • Measured and indicated mineral resources were estimated in house. The process includes determination of the integrity and validation of the data collected, including confirmation of specific gravity, assay results and methods of data recording. The process also includes determining the appropriate geological model, selection of data and the application of statistical models including probability plots to establish continuity and model validation.
  • For additional details relating to the estimates of mineral reserves and resources at the Constancia project, including data verification and quality assurance/quality control processes refer to "The Constancia Project, National Instrument 43-101 Technical Report" as filed on SEDAR by Hudbay on November 6, 2012.

 

Qualified Person

 

The scientific and technical information contained on this website related to the Constancia mine has been approved by Cashel Meagher, P.Geo., our Senior Vice President and Chief Operating Officer. The scientific and technical information related to all other sites and projects contained on this website has been approved by Robert Carter, P.Eng., our Director, Business Development and Technical Services, Manitoba Business Unit. Messrs. Meagher and Carter are qualified persons pursuant to NI 43-101. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources, as well as data verification procedures and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal title, taxation, sociopolitical, marketing or other relevant factors, please see the technical reports for our material properties as filed by us on SEDAR at www.sedar.com.

 

 

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