TSX, NYSE – HBM 2025 No. 7 Hudbay Provides Annual Reserve and Resource Update , Three-Year Production Outlook and Positive Snow Lake Exploration Results
TSX, NYSE – HBM
2025 No. 7
Hudbay Provides Annual Reserve and Resource Update , Three-Year Production
Outlook and Positive Snow Lake Exploration Results
Toronto, Ontario, March 27, 2025 – Hudbay Minerals Inc. (“Hudbay” or the “company”) (TSX, NYSE: HBM) today
released its annual mineral reserve and resource update and issued new three-year production guidance. All amounts
are in U.S. dollars, unless otherwise noted.
• Affirmed 2025 production guidance and issued new 2026 and 2027 production guidance ,
demonstrating strong copper and gold production from Hudbay’s stable operating platform with three
long-life operations in tier-one mining jurisdictions in the Americas.
• Consolidated copper production is expected to averag e 144,000i tonnes per year over the next three
years, maintaining stable production levels from 2024. Consolidated copper production of 161,000 i
tonnes is expected in 2027, representing a 17% increase from 2024 and reflects the benefits from the
completion of the optimization efforts at Copper Mountain.
• Strong complementary gold exposure with consolidated gold production expected to average 253,000i
ounces per year over the next three years, reflecting continued strong production in Manitoba and a
contribution from Pampacancha high grade gold zones in Peru in 2025.
• Constancia’s expected mine life maintained until 2041 with stable average annual copper production
of over 88,000i tonnes expected over the next three years, in spite of the depletion of Pampacancha in
late 2025.
• Snow Lake’s expected mine life optimized to 2037 with average annual gold production of over
193,000i ounces expected over the next three years and higher mill throughput rates at New Britannia
driving higher life-of-mine gold production.
• Copper Mountain’s expected mine life maintained until 2043 with average annual copper production
of 44,000i tonnes expected over the next three years, including 60,000i tonnes in 2027, a 127% increase
from 2024.
• Announcing accretive transaction to consolidate a 100% interest in Copper Mountain , further
increasing Hudbay’s exposure to a long -life, high-quality copper asset in a tier -1 mining jurisdiction,
and results in a 200% increase in attributable copper production from Copper Mountain in 2027
compared to 2024.
• Large exploration program in Snow Lake continues to execute threefold strategy focused on near -
mine exploration to increase near -term production and mineral reserves, testing regional satellite
deposits for additional ore feed to utilize available capacity at the Stall mill, and exploring the large
land package for a potential new anchor deposit to meaningfully extend mine life.
o Positive initial step out drilling from the exploration drift at the 1901 deposit intersect ed
significant copper-gold mineralization, including 14.3% copper over 2.5 metres and 8.3 grams per
tonne gold over 3.2 metres.
o Follow up drilling at Lalor Northwest continued to intersect copper-gold mineralization, including
16.4 grams per tonne gold over 3.7 metres and 2.6% copper over 3.5 metres.
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2025 No. 7
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• Exploration activities in Peru in 2025 focused on advancing drill permitting for highly prospective
satellite properties near Constancia.
• Feasibility studies are underway at t he fully permitted Copper World project in Arizona and minority
joint venture partnership process commenced.
“Our updated mineral reserve estimates and three-year production outlook demonstrate Hudbay’s stable copper and
gold production profile from our high- quality asset base of long-life mines located in attractive mining regions in the
Americas,” said Peter Kukielski, Hudbay’s President and Chief Executive Officer. “ This solid foundation is further
enhanced by robust exploration efforts at all our assets to drive production growth and significant mine life extension.
We will continue to deliver meaningful free cash flow generation from our diversified operating platform, which together
with our strengthened balance sheet, will allow us to advance our unique copper growth pipeline and unlock significant
value for stakeholders.”
Constancia Operations
Constancia is Hudbay’s 100% owned copper operation located in the province of Chumbivilcas in southern Peru and
consists of the Constancia and Pampacancha deposits. Current mineral reserve estimates total 51 7 million tonnes at
0.25% copper containing approximately 1.3 million tonnes of copper. In 2024, the company increased mineral reserve
estimates at Constancia to include the addition of a tenth mining phase in the Constancia pit after conducting positive
geotechnical drilling and studies in 2023. This extended the expected mine life at Constancia by three years to 2041.
Hudbay continues to mine the high-grade Pampacancha satellite deposit , located approximately six kilometres from
the Constancia processing plant. Mining at the Pampacancha pit commenced in 2021 and is expected to extend until
early December 2025. The mine plan has smoothed Pampacancha production throughout the year , resulting in t otal
mill ore feed for 2025 from Pampacancha to be ~25%, lower than the typical one-third in prior years. Annual production
at the Constancia operations is expected to average approximately 88 ,000i tonnes of copper and 31 ,000i ounces of
gold over the next three years. This reflects steady copper production levels as higher mill throughput is expected to
offset lower grades starting in 2026 after the completion of Pampacancha in late 2025.
Current mineral reserves and resources (exclusive of reserves) for Constancia and Pampacancha as of January 1,
2025 are summarized below.
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2025 No. 7
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Constancia Operations
Mineral Reserve and Resource
Estimates1,2,3,4,5
Tonnes
Cu Grade
(%)
Mo Grade
(g/t)
Au Grade
(g/t)
Ag Grade
(g/t)
Constancia Reserves
Proven 443,200,000 0.252 80 0.037 2.59
Probable 64,800,000 0.205 73 0.036 1.78
Total Proven and Probable - Constancia 508,000,000 0.246 79 0.037 2.49
Pampacancha Reserves
Proven 8,700,000 0.452 110 0.272 5.38
Probable 200,000 0.284 117 0.167 2.81
Total Proven and Probable - Pampacancha 9,000,000 0.448 110 0.269 5.32
Total Proven and Probable 517,000,000 0.249 79 0.041 2.54
Constancia Resources
Measured 92,700,000 0.211 57 0.039 2.24
Indicated 86,900,000 0.222 83 0.039 2.24
Inferred – Open Pit 33,700,000 0.247 69 0.056 2.75
Inferred – Underground 6,500,000 1.200 69 0.140 8.62
Pampacancha Resources
Inferred 700,000 0.144 54 0.083 2.46
Total Measured and Indicated 179,700,000 0.216 69 0.039 2.24
Total Inferred 40,900,000 0.397 69 0.069 3.68
Note: totals may not add up correctly due to rounding.
1 Mineral resources are exclusive of mineral reserves and do not have demonstrated economic viability.
2 Mineral reserves are estimated using a minimum NSR cut-off of $6.40 per tonne at Pampacancha, $7.30 per tonne at Constancia
and assuming metallurgical recoveries (applied by ore type) of 86% for copper on average for the life of mine.
3 Mineral resource estimates are based on resource pit design and do not include factors for mining recovery or dilution.
4 The open pit mineral resources are estimated using a minimum NSR cut-off of $6.40 per tonne and assuming metallurgical
recoveries (applied by ore type) of 86% for copper on average for the life of mine, while the underground inferred resources at
Constancia Norte are based on a 0.65% copper cut-off grade.
5 Long-term metal prices of $4.15 per pound copper, $15.00 per pound molybdenum, $1,900 per ounce gold and $23.00 per ounce
silver were used to confirm the economic viability of the mineral reserve estimates and to estimate mineral resources.
Maria Reyna and Caballito Exploration
Hudbay controls a large, contiguous block of mineral rights with the potential to host satellite mineral deposits in close
proximity to the Constancia processing facility, including the past producing Caballito property and the highly
prospective Maria Reyna property. The company commenced early exploration activities at Maria Reyna and Caballito
after completing a surface rights exploration agreement with the community of Uchucarcco in August 2022. As part of
the drill permitting process, environmental impact assessment (EIA) applications were submitted for the Maria Reyna
property in November 2023 and for the Caballito property in April 2024. The EIA for Maria Reyna was approved by the
government in June 2024 and the Caballito EIA was approved in September 2024. This represents one of several steps
in the drill permitting process, which is expected to be completed in 2025. Surface mapping and geochemical sampling
confirm that both Caballito and Maria Reyna host sulfide and oxide rich copper mineralization in skarns, hydrothermal
breccias and large porphyry intrusive bodies, as shown in Figure 1.
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2025 No. 7
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Snow Lake Operations
Hudbay’s 100% owned Snow Lake operations in Manitoba include the Lalor gold-copper-zinc mine, the New Britannia
gold mill, the Stall base metals concentrator, the 1901 zinc-gold deposit and several satellite deposits. The Lalor mine
achieved commercial production in 2014 and reached a significant milestone in December 2024 with the recovery of a
total of one million ounces of gold from the mine. Current mineral reserve estimates in Snow Lake total approximately
16 million tonnes with approximately 1.7 million ounces in contained gold and an expected mine life of to 2037. Snow
Lake’s life -of-mine production schedule has been optimiz ed for higher mill throughput rates at New Britannia,
maximizing gold production and cash flows.
In 2024, record annual gold production of 214,225 ounces was achieved in Snow Lake through a combination of higher
metallurgical recoveries at the New Britannia and Stall mills, despite processing lower gold grades year-over-year, and
the strategic allocati on of more gold ore feed to the New Britannia mill. Annual gold production from Snow Lake is
expected to average more than 193,000i ounces over the next three years.
Infill drilling at Lalor in 2024 resulted in the successful conversion of inferred gold resources to mineral reserves,
offsetting half of the 2024 mining depletion . There remains another 1. 3 million ounces of gold contained in inferred
resources in Snow Lake that have the potential to maintain strong annual gold production levels beyond 2030 and
further extend the mine life in Snow Lake beyond 2038.
The Snow Lake mineral reserve and resource estimates include the copper -gold WIM deposit, the gold -rich 3 Zone
and the zinc -rich Watts, Pen II and Talbot deposits, which have the potential to provide feed for the Stall and New
Britannia processing faciliti es and further extend the life of the Snow Lake operations. Hudbay continues to conduct
geophysical and drilling programs on the Snow Lake land package, including the Cook Lake claims and other promising
regional targets, as discussed further below.
Current mineral reserves and resources (exclusive of reserves) for Lalor, 1901 and other Snow Lake satellite deposits
as of January 1, 2025 are summarized below.
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Lalor Mine and 1901 Deposit
Mineral Reserve and Resource Estimates1,2,3,4,5,6,7 Tonnes Au Grade
(g/t)
Zn Grade
(%)
Cu Grade
(%)
Ag Grade
(g/t)
Gold Zone Reserves
Proven – Lalor 3,250,000 5.3 0.72 0.62 32.6
Proven – 1901 102,000 2.8 1.33 1.00 19.2
Probable – Lalor 3,701,000 4.3 0.32 1.02 24.5
Probable – 1901 51,000 1.6 0.45 1.84 5.2
Total Proven and Probable - Gold 7,103,000 4.7 0.52 0.84 28.0
Base Metal Zone Reserves
Proven – Lalor 3,631,000 2.7 5.17 0.38 30.7
Proven – 1901 1,157,000 2.3 8.31 0.31 25.4
Probable – Lalor 574,000 1.6 5.05 0.28 34.4
Probable – 1901 274,000 0.8 11.31 0.30 28.3
Total Proven and Probable – Base Metal 5,636,000 2.4 6.10 0.35 29.9
Total Gold and Base Metal Zone Reserves
Proven and Probable – Lalor 11,156,000 3.9 2.26 0.66 29.4
Proven and Probable – 1901 1,584,000 2.1 8.13 0.40 24.8
Total Proven and Probable (Gold and Base Metal) 12,740,000 3.7 2.99 0.62 28.8
Gold Zone Resources
Inferred – Lalor 1,953,000 4.3 0.26 2.36 14.8
Inferred – 1901 1,587,000 5.5 0.30 0.85 16.6
Total Inferred - Gold 3,540,000 4.8 0.28 1.68 15.6
Base Metal Zone Resources
Inferred – Lalor 560,000 1.7 5.45 0.39 31.7
Inferred – 1901 312,000 1.6 5.87 0.19 32.2
Total Inferred – Base Metal 873,000 1.7 5.60 0.32 31.9
Total Gold and Base Metal Zone Resources
Inferred – Lalor 2,513,000 3.7 1.42 1.92 18.6
Inferred – 1901 1,900,000 4.8 1.22 0.74 19.1
Total Inferred (Gold and Base Metal) 4,413,000 4.2 1.33 1.41 18.8
Note: totals may not add up correctly due to rounding.
1 Mineral resources are exclusive of mineral reserves and do not have demonstrated economic viability.
2 Lalor mineral reserves and resources are estimated using a NSR cut-off ranging from C$154 to C$182 per tonne, assuming a long
hole mining method and depending on mill destination.
3 Individual stope gold grades at Lalor and 1901 were capped at 10 grams per tonne. This capping method resulted in an
approximate 3% reduction in the overall gold reserve grade.
4 1901 mineral reserves and resources are estimated using a minimum NSR cut-off of C$166 per tonne.
5 Mineral resources do not include factors for mining recovery or dilution.
6 Base metal mineral resources are estimated based on the assumption that they would be processed at the Stall concentrator while
gold mineral resources are estimated based on the assumption that they would be processed at the New Britannia concentrator.
7 Long-term metal prices of $2,090 per ounce gold, $1.25 per pound zinc, $4.30 per pound copper and $24.30 per ounce silver with
an exchange rate of 1.33 C$/US$ were used to confirm the economic viability of the mineral reserve estimates and to estimate
mineral resources.
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Snow Lake Regional Deposits - Gold
Mineral Reserve and Resource
Estimates1,2,3,4,5,6,7
Tonnes
Au Grade
(g/t)
Zn Grade
(%)
Cu Grade
(%)
Ag Grade
(g/t)
Probable Reserves
WIM 2,450,000 1.6 0.25 1.63 6.3
3 Zone 660,000 4.2 - - -
Total Probable (Gold) 3,110,000 2.2 0.20 1.28 5.0
Inferred Resources
New Britannia 2,750,000 4.5 - - -
Birch 570,000 4.4 - - -
Total Inferred (Gold) 3,320,000 4.5 - - -
Note: totals may not add up correctly due to rounding.
1 Mineral resources are exclusive of mineral reserves and do not have demonstrated economic viability.
2 WIM mineral reserves assume processing recoveries of 98% for copper, 88% for gold, and 70% for silver based on processing
through New Britannia's flotation and tails leach circuits.
3 3 Zone mineral reserves assume processing recoveries of 85% for gold based on processing through New Britannia's leach circuit.
4 Long-term metal prices of $1,700 per ounce gold, $1.25 per pound zinc, $4.00 per pound copper and $23.00 per ounce silver with
an exchange rate of 1.33 C$/US$ were used to confirm the economic viability of the mineral reserve estimates.
4 Mineral resources do not include factors for mining recovery or dilution.
6 Gold mineral resources are estimated based on the assumption that they would be processed at the New Britannia concentrator.
7 New Britannia mineral resource estimates have been reported at a minimum true width of 1.5 metres and with a cut-off grade
varying from 2 grams per tonne (at the lower part of New Britannia) to 3.5 grams per tonne (at the upper part of New Britannia).
Snow Lake Regional Deposits – Base Metal
Mineral Reserve and Resource
Estimates1,2,3,4,5,6,7
Tonnes
Au Grade
(g/t)
Zn Grade
(%)
Cu Grade
(%)
Ag Grade
(g/t)
Indicated Resources
Pen II 470,000 0.3 8.89 0.49 6.8
Talbot 2,190,000 2.1 1.79 2.33 36.0
Total Indicated (Base Metals) 2,660,000 1.8 3.04 2.01 30.9
Inferred Resources
Watts 3,150,000 1.0 2.58 2.34 31.0
Pen II 130,000 0.3 9.81 0.37 6.8
Talbot 2,450,000 1.9 1.74 1.13 25.8
Total Inferred (Base Metals) 5,730,000 1.3 2.39 1.78 28.3
Note: totals may not add up correctly due to rounding.
1 Mineral resources are exclusive of mineral reserves and do not have demonstrated economic viability.
2 Mineral resources do not include factors for mining recovery or dilution.
3 Base metal mineral resources are estimated based on the assumption that they would be processed at the Stall concentrator.
4 Watts and Pen II mineral resources were initially estimated using metal price assumptions that vary marginally over the
assumptions used to estimate mineral resources at Lalor. In the Qualified Person’s opinion, the combined impact of these small
variations does not have any impact on the mineral resource estimates.
5 Watts mineral resources are estimated using a minimum NSR cut-off of C$150 per tonne, assuming processing recoveries of 90%
for copper, 80% for zinc, 70% for gold and 70% for silver.
6 Pen II mineral resources are estimated using a minimum NSR cut-off of C$75 per tonne.
7 The above resource estimates table includes 100% of the Talbot mineral resources reported by Rockcliff Metals Corp. in its 2020
NI 43-101 technical report published on SEDAR+.
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Snow Lake Exploration Program – Executing Threefold Strategy
Hudbay continues to execute the largest exploration program in Snow Lake in the company’s history through extensive
geophysical surveying and multi-phased drilling campaigns as part of its threefold exploration strategy.
1) Near-Mine Exploration to Further Increase Near-term Production and Extend Mine Life
The company is testing mineralized extensions of the Lalor and 1901 deposits to increase mineral reserves and
resources, providing near-term production growth and long-term mine life extension potential.
1901 Deposit Step-out Drilling Confirms Down Plunge Copper-Gold Extensions
The 2024 drilling activities at the 1901 deposit targeted down plunge extensions of the ore body with five step-out holes
drilled beyond the known extent of the mineralization, as shown in the images provided in Figure 2. All five of the step-
out holes intersected copper-gold mineralization, including:
• Hole NUX0006 intersected 8.6 metres at 2.6 grams per tonne gold and 1.5% copper
• H ole NUX0007 intersected 3.2 metres at 8.3 grams per tonne gold and 1.8% copper
• H ole NUX0008 intersected 2.5 metres at 4.4 grams per tonne gold and 14.3% copper
In addition to the copper-gold extensions, a recent drill hole on the face of the 1901 exploration drift, directed towards
the planned drift extension, intersected zinc -rich massive sulphides 20 metres earlier than expected. This positive
outcome further reinforces the company’s target of achieving first ore from the 1901 deposit in the second quarter of
2025.
Additional exploration drilling is planned for 2025 targeting additional step-out drill holes to potentially extend the ore
body and infill drilling to convert inferred mineral resources in the gold lenses to mineral reserves.
Lalor Northwest Drilling Confirms Copper-Gold Mineralized Zones
At Lalor Northwest, follow-up drilling in the second half of 2024 confirmed the potential for a new gold-copper discovery
located approximately 400 metres from the existing Lalor underground infrastructure. Several 2024 intersections have
helped establish the geometry of this new discovery, including:
• Hole CH2406 intersected 9.3 metres at 3.0% copper and 6.2 grams per tonne gold
• Hole CH2408 intersected 3.5 metres at 2.6% copper and 3.8 grams per tonne gold
• Hole CH2410 intersected 9.9 metres at 1.4% copper and 1.4 grams per tonne gold
• Hole CH2411 intersected 3.7 metres at 1.3% copper and 16.4 grams per tonne gold
The company plans to continue to drill Lalor Northwest in 2025 through a surface drill program that is focused on testing
the extent of the mineralization, as shown in Figure 3.
2) Testing Regional Satellite Deposits to Utilize Available Processing Capacity and Increase Production
Hudbay increased its land package by more than 250% in 2023 through the acquisition of Rockcliff Metals Corp.
(“Rockcliff”), which included the addition of several known deposits located within trucking distance of the Snow Lake
processing infrastructure. These newly acquired deposits, together with several deposits already owned by Hudbay in
Snow Lake, have created an attractive portfolio of regional deposits in Snow Lake, as shown in Figure 4, including:
• Talbot – Consolidated 100% ownership of this copper-zinc-gold rich deposit through the Rockcliff acquisition.
Rockcliff estimated indicated mineral resources of 2.2 million tonnes at 2.3% copper, 1.8% zinc and 2.1 grams
per tonne gold.
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• Rail – Acquired through Rockcliff, Hudbay’s 2024 drill program yielded new intersections of high-grade copper-
gold mineralization. These results will be combined with historical drilling results on the property to update the
geological model and assess its economic potential.
• P en II – Hudbay consolidated land adjacent to this low tonnage, near surface, high-grade zinc deposit through
the Rockcliff acquisition. Rockcliff intersected mineralization down-dip from Hudbay’s deposit and identified a
deep geophysical conductive plate.
• W atts – A copper-zinc-rich deposit located near existing powerlines and 100 kilometres by road from the Stall
mill. Drilling by Hudbay in 2019 successfully extended the known high-grade copper mineralization.
• 3 Z one – Acquired by Hudbay in 2015, this gold-rich deposit is located three kilometres from the New Britannia
mill and is expected come into production after the Lalor deposit is depleted.
• W IM – Acquired by Hudbay in 2018, this copper-gold deposit is located 15 kilometres from the New Britannia
mill and is expected to come into production after the Lalor deposit is depleted.
With the recent strong performance from the New Britannia mill operating at above 2,000 tonnes per day, the company
has been increasing the amount of Lalor ore sent to New Britannia which has freed up processing capacity at the Stall
mill. There is approximately 1,500 tonnes per day of available capacity at the Stall mill which can be utilized by the
regional satellite deposits to increase production. The regional satellite deposits also have the potential to extend the
life of the Snow Lake operations beyond 2038.
3) Exploring Large Land Package for New Anchor Deposit to Significantly Extend Mine Life
Large Modern Geophysics Program
A majority of the newly acquired Cook Lake and former Rockcliff claims have been untested by modern deep
geophysics, which was the discovery method for the Lalor deposit. A large geophysics program is currently underway
consisting of surface electromagnetic surveys using cutting-edge techniques that enable the team to detect targets at
depths of almost 1,000 metres below surface. Figure 4 outlines the regional geophysics that have been completed to
date. The planned geophysics program in 2025 is the largest geophysics program in Hudbay’s history and includes
800 kilometres of ground electromagnetic surveys and an extensive airborne geophysics survey.