Hudbay plans to increase copper and gold output, discovers high-grade mineralization near Rosemont
(Kitco News) - Hudbay Minerals (TSX, NYSE: HBM) today announced that the company’s total mineral reserves increased by approximately 170,000 tonnes of contained copper and 360,000 ounces of contained gold compared to the prior year’s estimates after adjusting for mining depletion in 2020.
According to a new three-year production guidance issued by Hudbay, the company’s consolidated copper and gold production expected to increase by 36% and 125%, respectively, by 2023 from 2020 levels as Hudbay brings online its Pampacancha and New Britannia growth projects. These growth projects more than offset the lost copper and gold production from 777 project after its closure in mid-2022.
Pampacancha and New Britannia growth projects are nearing completion with a total of approximately $80 million remaining to be spent in 2021. Hudbay’s two flagship producing assets, Constancia and the Snow Lake operations, each have a 17-year mine life (to 2037) based on current reserves.
Hudbay also announced the intersection of high-grade copper sulphide and oxide mineralization at shallow depth on its Copper World properties located on wholly owned patented mining claims within seven kilometres of Rosemont. The drill program was initiated in 2020 to confirm historical drilling in this past-producing copper region formerly known as Helvetia. After receiving encouraging initial results, the company launched a larger drill program in early 2021 and has since doubled the number of drill rigs at site to six to further test the four known deposits at Copper World and the potential for additional mineralization.