Lalor

The 100%-owned zinc, gold and copper Lalor mine began ore production in 2012 through the ventilation shaft. Production from the main shaft began in the second half of 2014. Hudbay expects Lalor to reach a production rate of 4,500 tonnes per day by the third quarter of 2018. 

Key Facts

  • Location: Chisel Basin of the Flin Flon Greenstone Belt in Manitoba, 210 kilometres east of Flin Flon
  • Ownership: 100%
  • Property: 916 hectares
  • Primary metals: gold, zinc, copper
  • Secondary metals: silver
  • Type of mining: underground

Last Twelve Months

Daily ore milled

3,060 tonnes per day

Zn production1

59,000 tonnes

Au-Eq production1

68,000 ounces

Cu production1

6,000 tonnes

Unit operating cost2

C$140/t

Current mine life

9 years

Note: Last Twelve Months as of March 31, 2018

1. Production is contained metal in concentrate; silver converted to gold at a rate of 70:1
2. Combined mine, mill and G&A unit operating costs per tonne of ore processed

Overview

Hudbay’s 100% owned Lalor mine is a zinc, copper and gold mine near the town of Snow Lake in the province of Manitoba. Lalor is located approximately 210 kilometres by road east of Flin Flon, Manitoba.

Given existing processing capacity at the Flin Flon mill, Hudbay has been trucking excess production from Lalor to the Flin Flon mill since August 2017 and no longer has plans to expand the processing capacity of the Stall concentrator. Ore processed at the Stall and Flin Flon mills is produced into zinc and copper concentrates.

A decline to access the copper-gold zone at Lalor commenced in January 2018 and additional detailed technical work is underway to optimize the mine plan. Test mining of the gold zone began in February 2018, which will enable a better understanding of the gold zone characteristics and better inform the evaluation of options for processing Lalor gold in the future. The gold ore is currently being shipped to Flin Flon for processing.

Mineral Reserves and Resources 

Lalor Mineral Reserves as at January 1, 20181,2,3

CategoryTonnesCu (%)Zn (%)Au (g/t)Ag (g/t)
Lalor Mine 
  Proven3,511,0000.736.212.3727.18
  Probable9,484,0000.654.312.7226.03
Total Mineral Reserve12,995,000 0.674.83  2.62 26.33 
1Mineral reserves are estimated at an NSR cut-off of $88 per tonne for longhole open stope mining method and $111 per tonne for cut and fill mining method.
A zinc price of $1.07 per pound (includes premium), copper price of $3.00 per pound, gold price of $1,260 per ounce and silver price of $18.00 per ounce and an exchance rate of 1.10 C$/US$ was used to estimate mineral reserves.
For additional details relating to the estimates of mineral reserves at the Lalor mine, including data verification and quality assurance / quality control processes, refer to Schedule B in Hudbay's Annual Information Form for the year ended December 31, 2017 and the Lalor Technical Report.
 

Lalor Base Metal Mineral Resources as at January 1, 20181,2

CategoryTonnesCu (%)Zn (%)Au (g/t)Ag (g/t)
Lalor - Indicated Base Metal
  Indicated2,100,0000.495.341.6928.10
Lalor - Inferred Base Metal
  Inferred545,0000.328.151.4522.28
1 A zinc metal price of $1.19 per pound, a copper price of $2.67 per pound, gold price of $1,300 per ounce and a silver price of $18.00 per ounce were used to calculate a zinc equivalence (Zn Eq) cut-off of 4.1%, where Zn Eq = Zn% + (1.98 x Cu%) + (1.11 x Au g/t) + (0.01 x Ag g/t) - (0.01 x Pb%). An exchange rate of 1.25 C$/US$ was used to estimate mineral resources. The Zn Eq considers the ratio of milling recovery, payabilitiy and value of metals after application of downstream processing costs. The Zn Eq cut-off of 4.1% covers administration overhead, mining removal, milling and general and administration costs.
2 Mineral resources that are not mineral reserves do not have demonstrated economic viability. Please refer to Schedule A "Glossary of Mining Terms" in Hudbay's Annual Information Form for the year ended December 31, 2017.  

Lalor Gold Mineral Resources as at January 1, 20181,2

CategoryTonnesCu (%)Zn (%)Au (g/t)Ag (g/t)
Lalor - Indicated Gold Zone
  Indicated1,750,0000.340.405.1830.61
Lalor - Inferred Gold Zone
  Inferred4,121,0000.900.315.0227.61
1 A gold metal price of $1,300 per ounce, a copper price of $2.67 per pound and a silver price of $18.00 per ounce were used to calculate a gold equivalence (Au Eq) cut-off of 2.4 g/t Au Eq, where Au Eq = Au g/t + (1.34 x Cu%) + (0.01 x Ag g/t). An exchange rate of 1.25 C$/US$ was used to estimate mineral resources. The Au Eq considers the ratio of milling recovery, payabilitiy and value of metals after application of downstream processing costs. Au Eq cut-off of 2.4 g/t covers administration overhead, mining removal, milling and general and administration costs.
2 Mineral resources that are not mineral reserves do not have demonstrated economic viability. Please refer to Schedule A "Glossary of Mining Terms" in Hudbay's Annual Information Form for the year ended December 31, 2017.

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

History 

1955 – Exploration in the Chisel Basin has been active since 1955. The Basin has hosted five producing mines: Chisel Lake, Chisel Open Pit, Chisel North, Photo and Ghost-Lost.

2007 - Initial discovery hole drilled. 

2009 – Gold zone and copper-gold zone identified. In December, construction begins on the three-kilometre underground ramp from the Chisel North mine to Lalor deposit.2007 – Lalor deposit is discovered.

2010 – Hudbay's board of directors made a full commitment to the development of Lalor by authorizing the expenditures necessary to put the project into full production.

2012 - Initial ore production commenced from ventilation shaft

2014 - Lalor mine construction complete on time and on budget

2018 - Test mining of the Lalor gold zone begins, which will better inform the evaluation of options for processing Lalor gold in the future


Lalor NI 43-101 Technical Report

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New Lalor Copper-Gold Mineralization Discovered, March 7, 2012

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Lalor Project Exploration Drill Results – May 16, 2011

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May 16, 2011 Chisel 181 KB
May 15, 2011 Lalor 215 KB

Lalor Project Drill Results – March 11, 2011

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March 11, 2011 Lal C-Au Zone Plan View 160 KB
March 11, 2011 Lalor Drill Hole Table 47 KB

Lalor Project Exploration Drill Results – December 13, 2010

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November 13, 2010 Exploration Plan View 391 KB

Lalor Supplemental Disclosure – August 4, 2010

Lalor Drill Results and Interactions Information, October 8, 2009

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October 8, 2009 Assay Information for Gold Zones 267 KB
October 8, 2009 Collar Information 56 KB
October 8, 2009 Survey Information 364 KB
October 8, 2009 Collar Map 98 KB

Base Metal Zones and Gold Mineralization, January 29, 2009

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New Gold Zone at Lalor, January 9, 2009

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January 9, 2009 Lalor Collars 14 KB
January 9, 2009 Lalor Assasy 68 KB

Lalor Copper-Gold Zone Exploration Results, July 29, 2015

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July 29, 2015 Lalor Vertical Composite 57 KB
July 29, 2015 Lalor Plan View 42 KB

Lalor Copper-Gold Zone Exploration Results, May 7, 2015

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May 7, 2015 Lalor Veritcal Composite 64 KB
May 7, 2015 Lalor Plan View 46 KB

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