TMX, NYSE – HBM 2019 No. 12 Hudbay Hosts Analyst Site Visit to Lalor Mine in Manitoba, Announces First Quarter 2019 Manitoba Production Results and Provides Exploration Update
TMX, NYSE – HBM
2019 No. 12
Hudbay Hosts Analyst Site Visit to Lalor Mine in Manitoba, Announces First
Quarter 2019 Manitoba Production Results and Provides Exploration Update
Toronto, Ontario, April 15, 2019 – Hudbay Minerals Inc. (“Hudbay” or the “company”) (TSX, NYSE: HBM)
announced today that it is hosting a site visit by analysts and investors to its Lalor mine in Manitoba on April 15-16,
2019. A copy of the site visit presentation, which contains operational, exploration and other updates, is available on
Hudbay’s website at www.hudbay.com. Hudbay also today released its first quarter 2019 Manitoba production results
and provided an update on exploration drilling results at its Snow Lake properties.
Summary
• The Lalor mine completed ramp up to a nominal throughput rate of 4,500 tonnes per day in February 2019,
resulting in record quarterly production
• The Stall concentrator achieved record quarterly production as a result of operating and maintenance
improvements
• Production results in the first quarter are on track to achieve full year production guidance
• Follow-up drilling on the recently discovered 1901 Zone between Lalor and Chisel North continues to
intersect significant mineralization
o 100 metre step-out drill hole intersected 6 metres of 12.68% Zn, 0.18% Cu, 0.79g/t Au and 89.9g/t
Ag
o Other holes confirm extension along strike to the northwest with 31.2 metres of 6.17% Zn, 0.11%
Cu, 0.38g/t Au and 19.1g/t Ag, and 7.2 metres of 8.84% Zn, 0.45% Cu, 1.16g/t Au and 50.4g/t Ag
• Evaluating plans to develop an underground exploration platform from the existing Chisel-Lalor ramp in
order to drill the 1901 Zone; if this zone is confirmed to be economic, the exploration infrastructure could
allow for a quick ramp up to production
• Initial mineral reserve estimates on WIM, Pen II and New Britannia deposits expected with the 2019 annual
year-end reserve and resource update
“Our Manitoba business unit delivered strong production performance in the first quarter of 2019, as a direct result of
the ongoing efforts of our operations team to drive continued improvements and efficiencies,” said Alan Hair,
Hudbay’s president and chief executive officer. “We are also very pleased with the recent results from our exploration
activities, including further drilling in our newly discovered 1901 Zone, which demonstrates the substantial value
creation potential of our Manitoba business.”
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Manitoba Mine Production
Three months ended
Mar. 31, 2019 Mar. 31, 2018
777
Ore tonnes 278,522 258,386
Copper % 1.65 1.22
Zinc % 3.18 4.86
Gold g/tonne 1.70 2.08
Silver g/tonne 21.75 30.11
Lalor
Ore tonnes 388,483 322,554
Copper % 0.76 0.67
Zinc % 6.70 5.67
Gold g/tonne 1.68 2.06
Silver g/tonne 25.96 27.24
Reed1
Ore tonnes - 122,309
Copper % - 3.54
Zinc % - 0.93
Gold g/tonne - 0.70
Silver g/tonne - 9.43
Total Mines
Ore tonnes 667,005 703,249
Copper % 1.13 1.37
Zinc % 5.23 4.55
Gold g/tonne 1.69 1.83
Silver g/tonne 24.21 25.20
1 Mining activities at Reed were completed in August 2018. Comparable 2018 numbers include 100% of Reed mine production.
Hudbay purchased 30% of the Reed ore production from its joint venture partner on market-based terms.
Hudbay increased ore mined at 777 in the first quarter of 2019 by 8% compared to the same period last year. The
higher production was due to improved availability of the scoop and truck fleet, and a focus on improving the key
performance indicators in the drilling, blasting and backfilling processes. Ore mined at Lalor in the first quarter of
2019 increased by 20% compared to the same period last year. The Lalor production ramp up to a nominal 4,500
tonnes per day was achieved in February 2019. Higher production volumes in the quarter were due to having more
mining fronts available and improvements to the stope cycle time.
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Manitoba Processing Facilities
Three months ended
Mar. 31, 2019 Mar. 31, 2018
Flin Flon Concentrator
Ore tonnes 289,244 391,627
Copper % 1.55 1.73
Zinc % 3.49 4.16
Gold g/tonne 1.66 1.76
Silver g/tonne 21.78 24.55
Copper concentrate tonnes 16,744 27,176
Concentrate grade % Cu 23.54 22.91
Zinc concentrate tonnes 16,910 27,808
Concentrate grade % Zn 49.41 49.57
Copper recovery % 88.1 91.9
Zinc recovery % 82.9 84.7
Gold recovery % 61.8 64.8
Silver recovery % 52.3 58.8
Contained metal in concentrate produced
Copper tonnes 3,941 6,226
Zinc tonnes 8,354 13,784
Precious metals1 ounces 11,033 16,938
Stall Concentrator
Ore tonnes 321,523 276,742
Copper % 0.78 0.61
Zinc % 6.75 5.85
Gold g/tonne 1.75 2.07
Silver g/tonne 26.89 27.72
Copper concentrate tonnes 11,112 7,709
Concentrate grade % Cu 19.69 18.53
Zinc concentrate tonnes 38,493 29,403
Concentrate grade % Zn 51.13 51.01
Copper recovery % 87.2 85.1
Zinc recovery % 90.7 92.7
Gold recovery % 59.1 61.4
Silver recovery % 64.2 60.6
Contained metal in concentrate produced
Copper tonnes 2,188 1,429
Zinc tonnes 19,683 14,998
Precious metals1 ounces 13,233 13,469
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2019 No. 12
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1 Precious metals production includes gold and silver production on a gold-equivalent basis. Silver is converted to gold at a 70:1
ratio.
Ore processed in Flin Flon in the first quarter of 2019 was 26% lower than the same period in 2018. The lower
processing volumes were a result of the Reed mine closure, and sustained improvements at the Stall concentrator
resulting in less ore transported to Flin Flon for processing, partially offset by increased ore production from the 777
mine. Ore processed at the Stall concentrator was 16% higher in the first quarter of 2019 compared with the same
period in 2018, as a result of ongoing operational and maintenance improvements.
Manitoba contained metal in
concentrate produced1,2
Three months ended Guidance
Mar. 31, 2019 Mar. 31, 2018 Annual 2019
Copper tonnes 6,129 7,655 22,000 – 25,000
Gold ounces 20,205 25,675 -
Silver ounces 284,265 331,252 -
Zinc tonnes 28,037 28,782 100,000 – 115,000
Precious metals3 ounces 24,266 30,407 105,000 – 125,000
1 2018 figures include 100% of Reed mine production. Hudbay has a 70% interest in the Reed mine and purchased 30% of the
Reed ore production from its joint venture partner on market terms. 2 Metal reported in concentrate is prior to deductions associated with smelter terms. 3 Precious metals production includes gold and silver production on a gold -equivalent basis. Silver is converted to gold at a 70:1
ratio.
In the first quarter of 2019, copper, gold, and silver production was 20%, 21% and 14% lower, respectively, compared
to the same period in 2018 due to the closure of Reed mine, partially offset by increased production at 777 and Lalor.
Zinc production was 3% lower compared to the same period in 2018 due to lower 777 zinc grade, partially offset by
higher grades at Lalor.
Precious metals production in the first quarter of 2019 was also affected by the stope sequencing of Lalor gold zone
ores and the timing of processing as this material is currently transported to the Flin Flon mill and blended to achieve
optimal recoveries. Full year production for all metals is expected to be within the guidance ranges.
Snow Lake Exploration Update
Hudbay continues to intersect high-grade zinc mineralization at the newly discovered 1901 Zone, located between
the former producing Chisel North mine and Lalor mine. The discovery is situated less than 1,000 metres from the
existing active underground ramp at a depth ranging from 520 to 620 metres and within 15 kilometres of the Stall
concentrator in Snow Lake, Manitoba (please refer to Figure 1).
The mineralization was first discovered in drill hole CH1901 completed in Fe bruary 2019 and is interpreted as a
volcanogenic massive sulphide (“VMS”) deposit fed by a system of discrete copper-gold rich feeder zones intersected
from drilling completed in 2011 and 2012 by Hudbay (please refer to Figure 2). Hudbay has now completed ten drill
holes in the area with five holes intersecting significant thicknesses of high-grade zinc with locally high-grade gold
and silver content. The mineralization occurs along the hanging wall contact of the stratigraphic horizon hosting the
Chisel North deposit (please refer to Figure 3 and Figure 4). The Chisel North deposit was mined from 2000 to 2012
and produced a total of 3.3 million tonnes at 9.0% zinc.
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2019 No. 12
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Hudbay continues the drill program from surface to both define the lateral extent of this new discovery and to
establish the spatial continuity of the high -grade lenses located within the mineralized zone. Based on drilling
success, an underground exploration platform may be developed later this year from the Chisel-Lalor ramp in order to
access and further define the deposit, including a 1,200 metre drift and a 600 metre ventilation raise. If this zone is
confirmed to be economic, the exploration infrastructure could allow a quick ramp up to production.
As announced on February 26, 2019, the initial discovery hole CH1901 assayed 5.21% Zn, 0.33% Cu, 1.37g/t Au and
15.7g/t Ag over 35.6 metres from 540.7 to 576.3 metres. Since the discovery announcement, the company received
assays on drill hole CH1902, also completed in February 2019, which intersected 6 metres of massive sulfide with
assays confirming 12.68% Zn, 0.18% Cu, 0.79g/t Au and 89.9g/t Ag from 601.7 to 607.6 metres. This second drill
hole intersection is located approximately 100 metres from the CH1901 intersection in the general interpreted up-dip
plane of the mineralization but in a lower position (please refer to Figure 3). Drill holes CH1903 and CH1904,
completed in March 2019, have confirmed that the zone extends along strike to the northwest with significant
intersections of 31.2 metres assaying 6.17% Zn, 0.11% Cu, 0.38g/t Au and 19.1g/t Ag from 524.7 to 555.9 metres in
CH1903, and 7.2 metres assaying 8.84% Zn, 0.45% Cu, 1.16g/t Au and 50.4g/t Ag from 585.0 to 592.2 metres in
CH1904 (please see Figure 4). Mineralization was also intersected over nine metres in hole CH1907, completed in
April 2019, from 569 to 578 metres and assays are pending. This intersection in CH1907 is located approximately 70
metres southeast of the intersection in hole CH1901. Overall, the zinc-rich mineralization is currently interpreted as a
shallow dipping zone extending approximately 250 metres along strike and 350 metres down dip.
Hole ID
From To Intercept Estimated
true width1 Zn2 Cu2 Au2 Ag2
(m) (m) (m) (m) (%) (%) (g/t) (g/t)
CH03053 736.5 743.7 7.2 7.0 0.03 0.40 0.04 1.76
CH07013 728.5 729.5 1.0 1.0 0.56 9.93 13.44 80.57
CH07023 764.5 767.0 2.5 2.4 0.02 1.69 3.22 5.02
CH07033 744.0 746.1 2.1 2.0 0.01 0.06 3.40 3.38
CH11013 736.0 742.4 6.4 6.0 0.18 4.80 0.92 19.86
CH1101W013 738.0 738.6 0.6 0.6 0.04 0.97 1.54 6.17
CH12013 657.0 661.0 4.0 3.8 0.04 1.22 1.47 7.63
CH12033 693.5 695.0 1.5 1.5 0.06 5.08 6.10 21.76
CH18013 761.9 762.6 0.7 0.6 0.24 1.86 1.84 14.54
CH19014 540.7 576.3 35.6 35.3 5.21 0.33 1.37 15.65
CH19024 601.6 607.5 5.9 5.5 12.68 0.18 0.79 89.89
CH19034 524.7 555.9 31.2 30.8 5.75 0.11 0.39 19.42
CH19044 585.0 592.2 7.2 7.2 8.84 0.45 1.16 50.47
CH1907 569.0 578.0 9.0 8.6 assays pending
1 True widths are estimated based on drill angle and intercept geometry of mineralization. 2 All gold, silver, copper and zinc values are uncut. 3 No density data so assay results are length weighted. 4 Assay results are density and length weighted.
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Hole ID
From (m) To (m) Azimuth
at
Intercept
Dip at
Intercept Easting Northing Elevation Easting Northing Elevation
CH0305 427622 6079055 -419 427621 6079054 -426 229 -76
CH0701 427540 6079130 -403 427535 6079122 -443 214 -77
CH0702 427451 6079221 -444 427451 6079220 -447 227 -76
CH0703 427467 6079110 -400 427460 6079102 -431 220 -70
CH1101 427467 6078914 -375 427469 6078900 -415 170 -70
CH1101W01 427466 6078942 -414 427466 6078942 -415 184 -81
CH1201 427267 6078924 -297 427257 6078912 -342 270 -70
CH1203 427200 6079087 -366 427200 6079087 -367 254 -72
CH1801 427766 6079097 -468 427766 6079097 -469 249 -78
CH1901 427237 6078710 -239 427233 6078707 -274 229 -82
CH1902 427126 6078616 -266 427123 6078615 -276 241 -69
CH1903 427150 6078843 -222 427147 6078839 -253 218 -82
CH1904 427104 6078710 -282 427103 6078709 -289 241 -82
CH1907 427252 6078640 -259 427251 6078639 -264 229 -74
During the first quarter of 2019, Hudbay reported mineral resource estimates for other 100%-owned deposits in the
Snow Lake area, including the WIM, PEN II and New Britannia mine properties. For additional information, please
refer to the National Instrument (“NI”) 43-101 technical report filed by Hudbay on SEDAR on March 28, 2019. Drilling
activities for metallurgical testing, geotechnical investigations and engineering studies are underway at all three of
these Snow Lake deposits with the expectation to upgrade the mineral resources estimates to mineral reserves with
the 2019 annual year-end reserve and resource update.
Hudbay continues to advance exploration activities at Lalor where drilling has confirmed the extension of known high-
grade lenses. Lalor in-mine exploration drilling will continue throughout the year and is expected to be incorporated in
the annual mineral reserve and resource estimate for the year ended 2019.
First Quarter 2019 Financial Results
Hudbay plans to issue a news release containing the first quarter 2019 results on Monday, May 6, 2019. Senior
management will host a conference call on Tuesday, May 7, 2019 at 8:00 a.m. ET to discuss the company’s first
quarter 2019 results.
First Quarter 2019 Results Conference Call and Webcast
Date: Tuesday, May 7, 2019
Time: 8:00 a.m. ET
Webcast: www.hudbay.com
Dial in: 647-794-1827 or 1-800-347-6311
An archived audio webcast of the call also will be available on Hudbay’s website.
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Quality Assurance and Quality Control
Exploration core drilling was NQ size. The core was logged and mineralized intersections were marked for sampling
and assaying by geologists and geotechnicians employed by Hudbay. The marked intersections or intervals were
sawn in half by a diamond saw and one half of the core was placed in plastic bags and tagged with unique sample
numbers, while the second half was returned to the core box and stored. Each bagged core sample was transported
to ACME Bureau Veritas assay laboratory in Vancouver, British Columbia where it was dried, crushed and pulverized
and a 250-gram sample was prepared for assaying. From each 250-gram sample 0.25 grams was removed and
leached in aqua regia and analyzed by ICP-AES for Ag, Cu, Zn, As, Pb, Ni and Fe. Also, from the 250-gram sample,
30 grams was removed for gold determination by fire assaying with an Atomic Absorption or gravimetric finish.
Assaying integrity is monitored internally with a quality control program, which includes the use of assay sample
standards, blanks, duplicates and repeats and externally through national and international programs. In addition,
within each group of 20 core samples, one core sample has a second 250 -gram split collected that will be check
assayed at SGS Analytical Laboratories Ltd., an independent company in Vancouver, British Columbia. This news
release provides core lengths and estimates of vertical thickness only. True widths are not provided. Where metal
assays are provided for intersections, they are either a single assay of a sample of the entire intersection length or a
composite of assays calculated from interval weighted assays over the intersection length.
Qualified Person
The technical and scientific information contained in this news release has been approved by Olivier Tavchandjian, P.
Geo, Hudbay’s Vice President, Exploration and Geology. Mr. Tavchandjian is a qualified person pursuant to NI 43-
101.
Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian and United States
securities legislation. All information contained in this news release, other than statements of current and historical
fact, is forward-looking information. Often, but not always, forward-looking information can be identified by the use of
words such as “plans”, “expects”, “budget”, “guidance”, “scheduled”, “estimates”, “forecasts”, “strategy”, “target”,
“intends”, “objective”, “goal”, “understands”, “anticipates” and “believes” (and variations of these or similar words) and
statements that certain actions, events or results “may”, “could”, “would”, “should”, “might” “occur” or “be achieved” or
“will be taken” (and variations of these or similar expressions). All of the forward-looking information in this news
release is qualified by this cautionary note.
Forward-looking information includes, but is not limited to, production, cost and capital and exploration expenditure
guidance, anticipated production at the company’s Manitoba mines and processing facilities, expectations regarding
the Snow Lake gold strategy, including the refurbishment of the New Britannia mill, the low costs of the operation and
the possibility of optimizing the value of the company's gold r esources at Lalor and elsewhere in Manitoba, the
possibility of converting inferred mineral resource estimates to higher confidence categories and discovering
additional mineralized zones at Lalor, the potential and the company’s anticipated plans for advancing its mining
properties in the Snow Lake region anticipated mine plans, anticipated metals prices and the anticipated sensitivity of
the company’s financial performance to metals prices, events that may affect its operations and development
projects, anticipated cash flows from operations and related liquidity requirements, the anticipated effect of external
factors on revenue, such as commodity prices, estimation of mineral reserves and resources, mine life projections,
reclamation costs, economic outlook, government regulation of mining operations, and business and acquisition
strategies. 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, ass umptions, estimates and analyses that, while
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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 res ults and events 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:
• the schedule for the refurbishment of the New Britannia mill and for carrying out additional technical studies
and exploration work;
• the success of the company’s Snow Lake gold strategy;
• the success of mining, processing, exploration and development activities in Manitoba and Hudbay’s ability
to grow the business in Snow Lake;
• the scheduled maintenance and availability of the processing facilities;
• the accuracy of geological, mining and metallurgical estimates;
• anticipated metals prices and the costs of production;
• the supply and demand for metals the company produces;
• the supply and availability of all forms of energy and fuels at reasonable prices;
• no significant unanticipated operational or technical difficulties;
• the execution of Hudbay’s business and growth strategies, including the success of its strategic investments
and initiatives;
• the availability of additional financing, if needed;
• the ability to complete project targets on time and on budget and other events that may affect the company’s
ability to develop its projects;
• the timing and receipt of various regulatory approvals;
• the availability of personnel for the exploration, development and operational projects and ongoing employee
relations;
• maintaining good relations with the communities in which the company operates, including First Nations
communities surrounding the Lalor mine;
• no significant unanticipated challenges with stakeholders at the company’s various projects;
• no significant unanticipated events or changes relating to regulatory, environmental, health and safety
matters;
• no contests over title to the company’s properties, including as a result of rights or claimed rights of
aboriginal peoples; and
• no significant unanticipated litigation and no significant and continuing adverse changes in general economic
conditions or conditions in the financial markets (including commodity prices and foreign exchange rates).
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 generally associated
with the mining industry, such as economic factors (including future commodity prices, currency fluctuations, energy
prices and general cost escalation), uncertainties related to the development and operation of the company’s projects
(including risks related legal challenges, risks related to the new Lalor mine plan and the schedule for the
refurbishment of the New Britannia mill and the ability to convert inferred mineral resource estimates to higher
confidence categories), risks related to the maturing nature of the 777 mine and its impact on the related Flin Flon
metallurgical complex, dependence on key personnel and employee and union relations, risks in respect of aboriginal
and community relations, rights and title claims, operational risks and hazards, including unanticipated environmental,
industrial and geological events and developments and the inability to insure agai nst all risks, failure of plant,
equipment, processes, transportation and other infrastructure to operate as anticipated, compliance with government
and environmental regulations, including permitting requirements and anti -bribery legislation, depletion of the
company’s reserves, volatile financial markets that may affect the company’s ability to obtain additional financing on