Peru Mineral Reserves as at August 8, 2012
| Category |
Tonnes |
Cu (%) |
Mo (g/t) |
Au (g/t) |
Ag (g/t) |
| Constancia |
| Proven |
349,000,000 |
0.37 |
100 |
0.043 |
3.29 |
| Probable |
54,000,000 |
0.24 |
60 |
0.035 |
2.98 |
| Pampacancha |
| Proven |
10,000,000 |
0.54 |
170 |
0.318 |
4.20 |
| Probable |
37,000,000 |
0.46 |
140 |
0.276 |
4.56 |
| Total Proven |
359,000,000 |
0.37 |
102 |
0.051 |
3.32 |
| Total Probable |
91,000,000 |
0.33 |
93 |
0.133 |
3.63 |
| Total Reserves |
450,000,000 |
0.36 |
100 |
0.067 |
3.38 |
Peru Mineral Resources as at August 8, 20121
| Category |
Tonnes |
Cu (%) |
Mo (g/t) |
Au (g/t) |
Ag (g/t) |
| Constancia |
| Measured |
119,000,000 |
0.23 |
62 |
0.038 |
2.3 |
| Indicated |
344,000,000 |
0.20 |
58 |
0.034 |
2.0 |
| Inferred |
219,000,000 |
0.19 |
49 |
0.032 |
1.8 |
| Pampacancha4 |
| Inferred |
4,000,000 |
0.41 |
103 |
0.207 |
6.2 |
| Total Measured + Indicated |
463,000,000 |
0.21 |
59 |
0.035 |
2.0 |
| Total Inferred |
223,000,000 |
0.19 |
50 |
0.035 |
1.9 |
1 The above mineral resources are exclusive of mineral reserves
Manitoba Mineral Reserves as at January 1, 2013
| Category |
Tonnes |
Cu (%) |
Zn (%) |
Au (g/t) |
Ag (g/t) |
| 7771 |
| Proven |
4,959,000 |
2.37 |
4.05 |
1.95 |
27.31 |
| Probable |
6,448,000 |
1.48 |
4.40 |
1.79 |
28.49 |
| Lalor – Base Metal |
| Proven |
57,000 |
0.48 |
12.40 |
0.63 |
15.52 |
| Probable |
13,147,000 |
0.67 |
8.15 |
1.59 |
23.62 |
| Lalor – Gold Zone |
| Probable |
1,866,000 |
0.37 |
0.37 |
3.96 |
21.41 |
| Total Proven |
5,016,000 |
2.35 |
4.15 |
1.93 |
27.18 |
| Total Probable |
21,461,000 |
0.89 |
6.35 |
1.86 |
24.89 |
| Total Reserves |
26,477,000 |
1.17 |
5.93 |
1.87 |
25.32 |
1Includes 777 North
Manitoba Mineral Resources as at January 1, 20131
| Category |
Tonnes |
Cu (%) |
Zn (%) |
Au (g/t) |
Ag (g/t) |
| 7772 |
| Inferred |
782,000 |
1.06 |
4.43 |
1.75 |
31.15 |
| Lalor - Base Metal |
| Inferred |
3,191,000 |
0.62 |
8.83 |
1.24 |
23.07 |
| Lalor - Gold Zone |
| Inferred |
7,338,000 |
0.41 |
0.32 |
4.63 |
31.32 |
| Lalor - Copper Gold Zone |
| Inferred |
1,461,000 |
4.16 |
0.31 |
6.81 |
20.34 |
| Total Inferred |
12,772,000 |
0.93 |
2.70 |
3.86 |
27.99 |
1 The above mineral resources are exclusive of mineral reserves
2 Includes 777 North
Reed Copper Project – Mineral Reserves as at March 30, 2012 and Mineral Resources as at March 15, 20111
| Category |
Tonnes |
Cu (%) |
Zn (%) |
Au (g/t) |
Ag (g/t) |
| Probable |
2,157,000 |
3.83
|
0.59 |
0.48 |
6.02
|
| Inferred |
170,000 |
4.26 |
0.52 |
0.38
|
4.55
|
1Hudbay holds a 70% joint venture interest in the Reed Copper Project
Other Properties – Mineral Resources
| Category |
Tonnes |
Cu (%) |
Zn (%) |
Au (g/t) |
Ag (g/t) |
Pb (%) |
| Back Forty1 Open Pit |
|
| Measured |
4,721,000 |
0.55 |
3.49 |
2.24 |
26.77 |
0.13 |
| Indicated |
4,927,000 |
0.14 |
1.49 |
1.90 |
18.30 |
0.21 |
| Inferred |
152,000 |
0.19 |
2.86 |
2.76 |
34.56 |
0.39 |
| Back Forty Underground |
|
| Measured |
1,982,000 |
0.29 |
5.04 |
1.97 |
28.56 |
0.31 |
| Indicated |
3,504,000 |
0.33 |
3.57 |
1.96 |
27.78 |
0.32 |
| Inferred |
2,184,000 |
0.37 |
2.15 |
2.03 |
25.96 |
0.33 |
| Tom2 |
|
| Indicated |
4,980,000 |
|
6.64 |
|
47.80 |
4.36 |
| Inferred |
13,550,000 |
|
6.68 |
|
31.80 |
3.10 |
| Jason2 |
| Indicated |
1,460,000 |
|
5.25 |
|
86.70 |
7.42 |
| Inferred |
13,550,000 |
|
6.68 |
|
31.80 |
3.10 |
| Lost3 |
| Indicated |
411,000 |
1.8 |
6.1 |
1.0 |
20.0 |
|
| Inferred |
11,000,000 |
1.5 |
6.2 |
0.8 |
16.5 |
|
| Total Measured |
6,703,000 |
|
|
|
|
|
| Total Indicated |
15,282,000 |
|
|
|
|
|
| Total Inferred |
26,955,000 |
|
|
|
|
|
1 Hudbay holds a 51% joint venture interest in the Back Forty property. Back Forty mineral resources as at February 4, 2013
2 Tom and Jason mineral resources as at May 24, 2007
3 Hudbay holds a 51% joint venture interest in the Lost property. Lost mineral resources as at March 4, 2011
Additional Information
The reserve and resource estimates included in this news release were prepared in accordance with NI 43-101 and the Canadian Institute on Mining, Metallurgy and Petroleum Standards on Mineral Resources and Reserves: Definitions and Guidelines. Mineral resources are not mineral reserves and 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.
· The zinc price used for mineral reserve and resource estimations for the Manitoba mines was US$1.01 per pound (includes premium), the copper price was US$2.75 per pound, the gold price was US$1,250.00 per ounce and the silver price was US$25.00 per ounce using an exchange of 1.05 C$/US$.
· 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 project, 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.
Peru
- 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
- Copper equivalent % is calculated for the in situ value of contained metals using the following $US metal price assumptions, Cu=2.75/lb Mo=13.00/lb, Ag-22.00/oz and Au=1,100/oz
- 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: Cu US$2.75/lb; Ag US$23.00/oz; Au US$1,150/oz; and Mo US$14.00/lb
- The Constancia mineral resources are reported at a 0.12% copper cut-off and are based on the following assumptions: a copper price of US$2.88/lb, a molybdenum price of US$14.00/lb, copper recovery of 89%, molybdenum recovery of 60%, processing cost of US$5.50/t and mining cost of US$1.30/t
- The Pampacancha mineral resources are reported at a 0.20% copper cut-off and are based on a Peruvian Sole: US Dollar exchange rate of 2.85:1 and the following long term metals prices: Cu US$2.75/lb; Ag US$23.00/oz; Au US$1,150.00/oz; and Mo US$14.00/lb
- 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
Reed
· The weighted average (based on planned production tonnage) used in the Reed pre-feasibility study for mineral reserve estimation for copper was US$2.95 per pound, the gold price was US$1,269.09 per ounce and the silver price was US$24.78 per ounce using an exchange rate of 1.034 C$/US$.
Other Properties
· Back Forty mineral resources were estimated using NSR cut-off values based on metal price assumptions of US$0.96 per pound zinc, US$3.65 per pound copper, US$1.01 per pound lead, US$1,456.36 per troy ounce gold and US$27.78 per troy ounce silver and applying recoveries for each metallurgical domains determined for the deposit. Back Forty mineralization offering reasonable prospects for economic extraction by open pit were determined using the Lerchs-Grossman optimizing algorithm. Optimization parameters were based on costs derived in the "Technical Report, Preliminary Economic Assessment on the Back Forty Deposit, Menominee County, Michigan, USA" dated April 26, 2012 as well as updated metallurgical recoveries and updated metal prices. Average NSR cut-off values for the open pit mineral resources were US$27.75/tonne and average NSR cut-off values for an underground mining scenario were US$66.45/tonne.
· Tom and Jason Metal prices used (US$0.57/lb Zn, US$0.35/lb Pb and US$7.00/oz Ag) and a gross dollar value cut-off of US$50/tonne. Ag values were capped at 550 g/t. For additional detail relating to the Tom/Jason mineral resource estimates see “Technical Report on the Tom and Jason Deposits, Yukon territory, Canada” as filed on SEDAR by Hudbay on May 24, 2007.
Qualified Person
The technical and scientific information in this news release related to the Constancia project has been approved by Cashel Meagher, P. Geo, Hudbay’s Vice-President, South America. The technical and scientific information related to all other sites and projects contained in this news release has been approved by Robert Carter, P. Eng, Hudbay’s Director, Technical Services. Messrs. Meagher and Carter are qualified persons pursuant to NI 43-101.