Reed

Reed

The 70%-owned Reed copper mine commenced initial production in September 2013 and achieved commercial production at the end of the first quarter of 2014. The mine is expected to close in mid 2018.

Key Facts

  • Location: 120 kilometres east of Flin Flon
  • Ownership: Joint venture between Hudbay (70%) and Royal Nickel Corporation (30%)
  • Property: 917 hectares
  • Primary metals: copper
  • Secondary metals: gold, silver, zinc
  • Type of mining: underground

Overview

Reed is a small, high-grade copper deposit that benefits from its proximity to Flin Flon, enabling us to truck ore to our main complex for processing instead of building on-site facilities.

The greatest challenge was Reed’s location – within the boundary of a Manitoba provincial park. We worked with the Manitoba authorities to minimize the mine’s footprint, mitigate other potential disturbances and ensure that the operation does not affect the local caribou habitat. This included limiting tree clearing to seven of the 14 hectares our permit allowed. Even then, trees were removed selectively and the wood was given to the provincial park for use as firewood. Access roads and power and pipeline routes were curved to prevent direct sightlines from public roads to the mine. The main fan was installed underground and sound-reducing enclosures were built for generators, compressors and the ventilation heater. At the close of mining, the site will be indistinguishable from other areas in the park that have been cleared for use as picnic grounds and campsites.

Mineral Reserves and Resources 

Reed Mineral Reserves as at January 1, 20181,2

Category Tonnes Cu (%) Zn (%) Au (g/t) Ag (g/t)
Reed Mine 
Proven 67,000 2.91 1.16 0.47 7.78
Probable 209,000 3.31 0.40 0.74 6.72
Total Mineral Reserve 276,000 3.21 0.58 0.67 6.98
1A zinc price of $1.22 per pound (includes premium), copper price of $2.50 per pound, gold price of $1,300 per ounce and a silver price of $18.00 per ounce using an exchange rate of 1.28 C$/US$ was used to estimate mineral reserves. A zinc price of $1.24 per pound (includes premium), copper preice of $2.67 per pound, gold price of $1,300 per ounce and silver price of $18.00 per ounce using an exchange rate of 1.25 C$/US$ was used to estimate mineral resources.
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 filed on SEDAR on May 14, 2012 by VMS Ventures Inc. titled "Pre-Feasibility Study Technical Report on the Reed Copper Deposit, Central Manitoba, Canada" prepared by Trevor Allen, P. Geo., Cassandra Spence, P. Eng., Mark Hatton, P. Eng. and Brent Christensen, P. Eng. and dated effective April 2, 2012.
 

(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.

2013 - First production at Reed begins

2014 - Achieved commercial production ahead of guidance and completed construction under budget.

Reed Exploration Drill Results, May 16, 2011

Thumb Date Download
May 16, 2011 Collar Locations 7 KB
May 16, 2011 Drill Results 152 KB
Thumb Date Download
December 14, 2015 Technical Report 5.02 MB

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