TMX, NYSE – HBM 2021 No. 7 Hudbay Announces Significant New Discovery at its Copper World Properties Adjacent to Rosemont
TMX, NYSE – HBM
2021 No. 7
Hudbay Announces Significant New Discovery at its Copper World Properties
Adjacent to Rosemont
- Drill hole #035A intersected 500 feet of 0.82% copper starting at surface
- Drill hole #012 intersected 246 feet of 0.70% copper starting at surface
- Drill hole #011 intersected 440 feet of 1.38% copper
- All new intersections are on Hudbay’s wholly-owned private land
Toronto, Ontario, March 29, 2021 – Hudbay Minerals Inc. (“Hudbay” or the “company”) (TSX, NYSE: HBM)
today announced the intersection of high-grade copper sulphide and oxide mineralization at shallow depth on its
wholly-owned patented mining claims located within seven kilometres of its Rosemont copper project in Arizona. 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.
“This new discovery on our private land in Arizona demonstrates our team’s strong expertise in exploration,” said
Peter Kukielski, Hudbay’s President and Chief Executive Officer . “They saw an opportunity to consolidate
mineralization in the region and we are excited to continue to explore Copper World while remaining committed to
advancing Rosemont through the appeals process.”
Regional View of Copper World
The Copper World deposits are located adjacent to the Rosemont deposit as shown in the plan view in Figure 1. To
date, four deposits have been identified with a combined strike length of over five kilometres with opportunities to
discover additional mineralization between the deposits. The mineralization occurs at shallower depths than at
Rosemont as shown in Figure 2.
“We are very encouraged by the results from the recent drill program at Copper World, where we have intersected
copper mineralization that contains higher grades closer to surface than at Rosemont,” said Cashel Meagher,
Hudbay’s Senior Vice President and Chief Operating Officer. “Copper World has the potential to host at least four
economic deposits with a relatively low strip ratio and may prove to be a viable open-pit operation that is either
separate from or additive to our Rosemont project.”
The Copper World region has a rich history of mining from 1874 to 1969, during which time more than 20 small
underground mines produced a total of approximately 440,000 tons at an average copper grade of 4.42%. Figure 3
illustrates the historical mining activity in the region. This is the first time the region has been explored as a zone of
continuous mineralization.
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2021 No. 7
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A three-dimensional visualization of the Copper World drill results can be found at the link noted below. This visual
shows the location of the Copper World targets, the historical mine sites in the area, the historical drilling coverage
(the results of which are under review and will be reported once the data is validated by Hudbay in accordance with
NI 43-101), as well as drill hole intercepts from Hudbay’s 2020 drill campaign.
https://vrify.com/embed/decks/Hudbay-PR-Deck-03-29
Copper World 2020 Drill Program
Hudbay’s 2020 exploration work began by compiling and validating all historical data on its private land claims and
refining the geological model. This initial review included the discovery of records of historical drilling results for which
assay results cannot be disclosed until the data is validated by Hudbay in accordance with NI 43-101. However, this
review suggested the potential for both copper sulphide and oxide mineralization in skarns and porphyries near
surface in several areas. In September 2020, the company initiated a 15,000-foot drill program which was quickly
expanded to a 40,000-foot drill program after early encouraging intersections of mineralization. During this initial
program, three drill rigs focused on testing the Broad Top Butte, Copper World, Peach and Elgin targets (referred to
collectively as the “Copper World deposits”).
Hudbay has recently received the assay results from the 2020 drill program and the results have exceeded Hudbay’s
expectations. The program confirmed the discovery of four new deposits based on significant volumes of high-grade
copper sulphide and oxide mineralization starting, in most cases, near surface or at shallow depth.
Broad Top Butte Targets
• Drill hole #011 intersected 440 feet of 1.38% copper, including 70 feet of 4.2% copper
• Drill hole #012 intersected 246 feet of 0.70% copper starting at surface
• Drill hole #023 intersected 300 feet of 0.91% copper
The 2020 drilling at Broad Top Butte confirmed the occurrence of significant shallow copper oxide and sulphide
mineralization. Sulphide mineralization was found in a quartz-monzonite porphyry intrusive and in surrounding skarns
at the contact with carbonate units in a similar geological setting as Rosemont. Drill hole #011 intersected a very
strong mineralized zone of 440 feet of 1.38% copper starting at 365 feet from surface, including 70 feet of 4.2%
copper in a massive sulphide zone with chalcopyrite and bornite in skarn (please refer to Figure 4 for a visual of the
drill core). This high-grade sulphide mineralization appears to be similar in copper content to the historical production
from the nearby King Exile mine located approximately 200 feet to the north of this drill hole intersection. King Exile
mine was discovered in 1899 and was in production until 1959. Copper oxide mineralization was found in the upper
portion of the mineralized zones both in porphyry and skarns. The drilling also intersected significant mineralization in
areas with no historical drilling along a major regional structure, known as the backbone fault. This domain consists of
quartzite and other sedimentary units located along a north trending steep dipping fault zone that hosts significant
oxide mineralization that can be mapped on surface almost as a continuum from Broad Top Butte to the Rosemont
deposit. Notably, drill hole #012 intersected 246 feet of 0.70% copper from surface. The samples included in this
mineralized interval were also tested for their solubility in sulfuric acid to measure the copper content in oxides. The
average grade of soluble copper in sulfuric acid (CuSS) is 0.53% indicating that approximately 75% of the copper is
contained in oxides and easily recoverable by a proven and low-cost leaching technology. Please refer to Figure 5 for
a visual of the drill core from hole #012.
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Peach and Elgin Targets
• Drill hole #035A intersected 500 feet of 0.82% copper starting at surface
• Drill hole #037 intersected 600 feet of 0.40% copper starting at surface
• Drill hole #048 intersected 280 feet of 0.46% copper starting at surface
• Drill hole #051 intersected 140 feet of 1.01% copper starting at surface
• Drill hole #062 intersected 300 feet of 0.64% copper starting at surface
All of the 2020 drill holes at the Peach target included at least one significant mineralized intercept. Many included
high-grade thick intercepts starting at or very near surface, with significant copper oxide in the upper portion of the
profile. Drill hole #035A intersected 500 feet of 0.82% copper from surface with 40% of the copper in oxides (please
refer to Figure 6 for a visual of this intersection). Similarly, hole #062 intersected 300 feet of 0.64% copper from
surface with 40% of the copper in oxides.
At the Elgin target, shallow mineralization also starts at surface in most cases. Drill hole #051 intersected 140 feet of
1.01% copper from surface and hole #048 intersected 280 feet of 0.46% copper from surface. The Elgin deposit
remains open to the south and to the east where another porphyry intrusive similar in geometry and nature as those
identified at Rosemont and Broad Top Butte appears to be the main controlling feature associated with the
occurrence of copper mineralization.
Next Steps
Given the very positive results from last year’s drill program, Hudbay initiated a second phase of exploration drilling in
2021 with a 70,000 foot follow-up drill program and has doubled the number of drill rigs operating at site to six. The
2021 program will focus on developing an understanding of the full extent of the mineralization at the Copper World
deposits and potentially defining initial mineral resource estimates. Mineralogical studies and metallurgical testing
have also been initiated and are expected to continue in the coming months. Geophysical surveys are underway to
assist in generating further targets in this prolific region. Hudbay has a current exploration budget of approximately
$10 million for its Arizona properties in 2021 which is likely to increase with further exploration success. Hudbay will
review the results from its 2021 exploration program to determine the next steps for its Copper World properties and
the potential synergies with Rosemont.
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2021 No. 7
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Copper World Detailed Assay Results
Broad Top Butte - Copper World
Hole ID# From
(ft)
To
(ft)
Length
(ft)
Length
(m)
Cu1
(%)
Ag1
(g/t)
CuSS1,2
(%)
Mo1
(g/t) Location
002 No significant mineralization Broad Top
005 15 48 33 10 0.75 19.2 0.53 121 Broad Top
005 48 133 85 26 1.43 8.7 0.05 206 Broad Top
006 0 340 340 104 0.43 3.0 pending 173 Broad Top
007 0 121 121 37 0.19 1.2 0.11 13 Broad Top
007 121 415 294 90 0.52 2.8 0.06 198 Broad Top
008 No significant mineralization Broad Top
009 No significant mineralization Broad Top
010 0 180 180 55 0.20 1.5 0.13 83 Broad Top
011 365 805 440 134 1.38 6.2 0.04 33 Broad Top
014 No significant mineralization Broad Top
015 0 290 290 88 0.28 1.2 0.16 105 Broad Top
016 0 280 280 85 0.71 3.7 0.29 149 Broad Top
017 55 425 370 113 0.30 1.1 0.22 151 Broad Top
018 0 524 524 160 0.30 2.3 0.01 97 Broad Top
019 0 675 675 206 0.44 1.7 0.12 190 Broad Top
020 0 357 357 109 0.59 3.6 0.23 161 Broad Top
023 100 400 300 91 0.91 2.7 0.48 196 Broad Top
024A 130 500 370 113 0.33 1.1 0.25 184 Broad Top
027 310 450 140 43 0.39 2.4 0.10 64 Broad Top
032 No significant mineralization Broad Top
012 0 246 246 75 0.70 3.3 0.53 42 Broad Top
013 0 60 60 18 0.37 1.4 0.29 15 Broad Top
013 190 335 145 44 0.38 2.2 0.17 50 Broad Top
034 80 195 115 35 0.67 4.0 0.17 53 Broad Top
001 No significant mineralization Copper World
003 6 217 211 64 0.38 1.4 0.04 333 Copper World
004 26 122 96 29 0.30 3.9 0.20 28 Copper World
Note: Assay results are length-weighted because no specific gravity data is available. At this early stage of exploration, Hudbay
does not have sufficient knowledge of the geometry of the mineralization to estimate true width.
1. All copper, silver and molybdenum values are uncut.
2. CuSS shows the average grade of soluble copper in sulfuric acid.
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Peach
Hole ID#
From
(ft)
To
(ft)
Length
(ft)
Length
(m)
Cu1
(%)
Ag1
(g/t)
CuSS1,2
(%)
Mo1
(g/t)
021 0 250 250 76 0.31 6.7 0.23 36
022 0 300 300 91 0.32 2.0 0.14 29
025 0 150 150 46 0.34 2.4 0.24 119
025 320 393 73 22 0.39 1.2 0.19 102
026 0 390 390 119 0.35 3.2 0.21 228
029 0 370 370 113 0.36 2.9 0.27 15
031 0 335 335 102 0.50 3.1 0.21 42
035A 0 500 500 152 0.82 4.3 0.33 53
037 0 600 600 183 0.40 2.7 0.13 60
039 0 460 460 140 0.44 2.9 0.19 77
041 260 440 180 55 0.29 3.7 0.02 112
042 0 160 160 49 0.42 4.4 0.28 63
045 180 610 430 131 0.32 3.2 0.04 96
046 0 220 220 67 0.37 4.8 0.27 78
046 390 490 100 31 0.30 4.5 0.18 54
046 545 740 195 59 0.29 2.6 0.03 78
050B 0 610 610 186 0.37 2.9 0.24 26
054 0 280 280 85 0.56 3.0 0.42 32
057 0 415 415 126 0.36 3.6 0.24 48
058 0 445 445 136 0.52 3.6 0.17 56
062 0 300 300 91 0.64 6.0 0.25 87
063 0 327 327 100 0.24 3.5 pending 59
065 0 188 188 57 0.56 4.3 0.27 84
Note: Assay results are length-weighted because no specific gravity data is available. At this early stage of exploration, Hudbay
does not have sufficient knowledge of the geometry of the mineralization to estimate true width.
1. All copper, silver and molybdenum values are uncut.
2. CuSS shows the average grade of soluble copper in sulfuric acid.
Elgin
Hole ID# From
(ft)
To
(ft)
Length
(ft)
Length
(m)
Cu1
(%)
Ag1
(g/t)
CuSS1,2
(%)
Mo1
(g/t)
028 No significant mineralization
030 100 230 130 40 0.65 2.9 0.10 72
033 No significant mineralization
036 No significant mineralization
038 No significant mineralization
040 0 180 180 55 0.25 5.2 0.05 127
043 No significant mineralization
044 No significant mineralization
047 No significant mineralization
048 0 280 280 85 0.46 2.8 0.03 189
049 0 130 130 40 0.44 2.7 0.08 186
051 0 140 140 43 1.01 4.5 0.40 214
052 0 35 35 11 0.81 4.7 0.63 36
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053 0 280 280 85 0.71 8.2 0.21 129
055 0 100 100 30 0.88 9.2 0.34 64
056 No significant mineralization
059 40 144 104 32 0.39 2.5 0.15 129
060 15 87 72 22 0.27 2.3 0.12 44
061 No significant mineralization
064 75 185 110 34 0.50 3.5 0.05 99
066 0 88 88 27 0.35 3.5 0.10 98
Note: Assay results are length-weighted because no specific gravity data is available. At this early stage of exploration, Hudbay
does not have sufficient knowledge of the geometry of the mineralization to estimate true width.
1. All copper, silver and molybdenum values are uncut.
2. CuSS shows the average grade of soluble copper in sulfuric acid.
Qualified Person and NI 43-101
The scientific and technical information contained in or incorporated by reference into this news release has been
prepared under the supervision of Olivier Tavchandjian, P. Geo., Hudbay’s Vice President, Exploration and Geology.
Mr. Tavchandjian is a “Qualified Person” for purposes of National Instrument 43-101 — Standards of Disclosure for
Mineral Projects (“NI 43-101”).
Mr. Tavchandjian has verified the exploration data disclosed in this news release, including sampling, analytical, and
test data underlying the information or opinions expressed herein. The data verification and quality assurance /
quality control (QA/QC) measures that were used as part of the Copper World drill program are summarized below:
• Drill core was removed from the core tube by drilling contractors and placed in labelled core boxes. Core
was logged by geologist, photographed, measured for conductivity, and tagged with sample tags. Core was
cut in half and placed in labeled sample bags with the sample tags and transported to the sample
preparation lab of Bureau Veritas in Reno, Nevada by courier in locked trucks.
• Samples were prepared and assayed following standard analytical protocols at the Bureau Veritas Mineral
Laboratories in Reno (NV) and Vancouver (BC). Samples were dried, crushed to 70% -passing 2mm (10
mesh), then riffle split and pulverized until 85% passing 75μm (-200 mesh). Analyses were carried using a
combination of Inductively Coupled Plasma Mass Spectrometry (ICP-MS) and Inductively Coupled Plasma
Emission Spectroscopy (ICP-ES), following multi acid digestion (Method MA200) to achieve near total
dissolution. Gold was analyzed by fire assay with AAS finish (Method FA430). Samples with concentration
of Cu>8000 ppm and Mo>1000 ppm, were reanalyzed multi acid (Method MA370 ICP -ES/MS) for base-
metal sulphide and precious-metal ores. Non-sulphide Cu (Soluble Cu) was analyzed by Sulphuric acid
leach (Method LH402) with AAS finish. QA/QC included the insertion of 6% of samples as blanks, 6% as
standards (from 4 certified reference materials) and 5% as pulp duplicates.
• Failure rates were low in all cases and no significant QA/QC issue was identified.
Further details on the drill holes reported in this news release, including the location, azimuth, and dip of the drill
holes and the depth of the sample intervals, can be found in the section titled “Supplemental Drill Hole Information” at
the end of this news release.
Hudbay is not aware of any drilling, sampling, recovery, or other factors that could materially affect the accuracy or
reliability of the data disclosed in this news release.
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Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian and United States
securities legislation. Forward-looking information includes, but is not limited to, our expectations regarding the future
potential of the Copper World deposits, our plans for additional drilling and other exploration work on the Copper
World deposits, the potential to identify additional mineralization and declare an estimate of mineral resources at the
Copper World deposits and our plans and expectations regarding the Rosemont project and any related legal
challenges. Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward -
looking information is based on, among other things, opinions, assumptions, e stimates and analyses that, while
considered reasonable by the company at the date the forward-looking information is provided, inherently are subject
to significant risks, uncertainties, contingencies and other factors that may cause actual results and ev ents to be
materially different from those expressed or implied by the forward-looking information.
The material factors or assumptions that Hudbay identified and were applied by the company in drawing conclusions
or making forecasts or projections set out in the forward-looking information include, but are not limited to, our ability
to continue to operate safely and at full capacity during the COVID-19 pandemic; the availability, global supply and
effectiveness of COVID-19 vaccines, the effective distribution of such vaccines in the countries in which we operate,
the lessening of restrictions related to COVID-19, and the anticipated rate and timing for each of the foregoing. .
The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those
expressed or implied by the forward-looking information may include, but are not limited to, risks associated with the
COVID-19 pandemic and its effect on our operations, financial condition, projects and prospects, the possibility of a
global recession arising from the COVID-19 pandemic and attempts to control it, risks generally associated with the
mining industry, such as economic factors (including future commodity prices, currency fluctuations, energy prices
and general cost escalation), risks associated with the Rosemont litigation as well as the risks discussed under the
heading “Risk Factors” in Hudbay’s most recent Annual Information Form.
Should one or more risk, uncertainty, contingency or other factor materialize or should any factor or assumption prove
incorrect, actual results could vary materially from those expressed or implied in the forward -looking information.
Accordingly, you should not place undue reliance on forward -looking information. Hudbay does not assume any
obligation to update or revise any forward-looking information after the date of this news release or to explain any
material difference between subsequent actual events and any forward-looking information, except as required by
applicable law.
About Hudbay
Hudbay (TSX, NYSE: HBM) is a diversified mining company primarily producing copper concentrate (containing
copper, gold and silver) and zinc metal. Directly and through its subsidiaries, Hudbay owns three polymetallic mines,
four ore concentrators and a zinc production facility in northern Manitoba and Saskatchewan (Canada) and Cusco
(Peru), and copper projects in Arizona and Nevada (United States). The company’s growth strategy is focused on the
exploration, development, operation and optimization of properties it already controls, as well as other mineral assets
it may acquire that fit its strategic criteria. Hudbay’s vision is to be a responsible, top-tier operator of long-life, low-cost
mines in the Americas. Hudbay’s mission is to create sustainable value through the acquisition, development and
operation of high-quality, long-life deposits with exploration potential in jurisdictions that support responsible mining,
and to see the regions and communities in which the company operates benefit from its presence. The company is
governed by the Canada Business Corporations Act and its shares are listed under the symbol "HBM" on the Toronto
Stock Exchange, New York Stock Exchange and Bolsa de Valores de Lima. Further information about Hudbay can
be found on www.hudbay.com.
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For further information, please contact:
Candace Brûlé
Director, Investor Relations
(416) 814-4387