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 with first production expected by late 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 first quarter of 2013, Hudbay’s focus for its 70% owned Reed copper project near Flin Flon, Manitoba was advancing the underground ramp and sinking the escape and ventilation raises from surface. Of Hudbay’s $72 million capital construction budget, the company has invested approximately $37 million on the project to March 31, 2013 and has entered into an additional $13 million in commitments. Capital expenditures at Reed are expected to total approximately $44 million in 2013.

After completing the first portal development round in October 2012, the underground ramp had advanced approximately 363 metres as of March 31, 2013. In March 2013, Hudbay was able to start hauling waste from underground via haul trucks, which is expected to reduce cycle times and improve the rate of ramp development.

Hudbay expects initial production at the Reed copper project by the fourth quarter of 2013 and full production of approximately 1,300 tonnes of ore per day by the first quarter of 2014.

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

*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.