Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — Technical Presentation (November 2021)
90 slides from Hudbay Minerals's technical presentation, Nov 17, 2021
Slide 1: Snow Lake Site Visit Presentation
SNOW LAKE SITE VISIT PRESENTATION November 17-18, 2021
Slide 2: Cautionary Information
CAUTIONARY INFORMATION This presentation contains forward-looking information within the meaning of applicable Canadian and United States securities legislation. All information contained in this presentation, other than statements of current and historical fact, is forward-looking information. Ofte
Slide 3: Team Introductions
TEAM INTRODUCTIONS EUGENE LEI PETER AMELUNXEN ROB ASSABGUI SVP CORP. DEV. & STRATEGY VP TECHNICAL SERVICES VP MANITOBA B.U. Over 20 years of global mining Responsible for managing Over 30 years of sector investment banking and internal and external project experience and provides corporate developme
Slide 4: Manitoba Business Unit
New Britannia Gold Mill MANITOBA BUSINESS UNIT 1,500 tpd capacity Snow Lake Stall Base Metal Mill 3,800 tpd capacity MINE LALOR MINE ~4,650 tpd MILL TOWN RAIL ROAD LALOR 777 0 5km SASKATCHEWAN MANITOBA Winnipeg Snow Lake LALOR MINE 777 MINE ~2,800 tpd Flin Flon Canada Economic Risk Business Flin Flo
Slide 5: Manitoba Operations
17 / <1 YEARS Au-Zn-Cu 3.8 / 6.0k tpd MANITOBA OPERATIONS SNOW LAKE/ 777 MINE LIFE1 VMS DEPOSITS STALL MILL / FLIN FLON CONCENTRATOR CAPACITY 20-24kt 150-165koz 96-107kt 2021E CU PRODUCTION 2021E AU PRODUCTION 2021E ZN PRODUCTION GOLD PRODUCTION PROFILE2 200 $800 190 191 170 158 $400 $434 $440 Cash
Slide 6: Flin Flon Transition
FLIN FLON TRANSITION TRANSITION PLANNING FROM FLIN FLON TO SNOW LAKE AHEAD OF CLOSURE The zinc plant closure is expected ahead of 777 mine, in May 2022 777 mine and Flin Flon mill final ore production is expected in June 2022 The transition plan highlights include: People Our intention is to take ov
Slide 7: Snow Lake Gold Strategy
SNOW LAKE GOLD STRATEGY PHASE 1: Repositioning PHASE 2: Optimization PHASE 3: Historical Work Lalor as a Gold Mine & Execution Expansion Potential ✓2008 & 2009 – Au zone and Cu- ✓2018 – Completion of tradeoff ✓2020 – Optimized mine plan with ✓2021 – Further optimized mine plan Au zone identified stu
Slide 8: Lalor Mine Continuous Optimization
LALOR MINE CONTINUOUS OPTIMIZATION SEVERAL OPTIMIZATION EFFORTS HAVE DELIVERED STEADY ANNUAL INCREASES IN ORE OUTPUT Lalor has increased ore throughput by 50% since 2016 LALOR MINE DAILY THROUGHPUT 5.0 50% ✓ Completion of paste backfill plant in 2018 4.5 ✓ Conversion from longitudinal to 4.2 transve
Slide 9: Stall Mill Enhancements
STALL MILL ENHANCEMENTS LOW-CAPITAL IMPROVEMENTS HAVE EXCEEDED EXPECTATIONS Stall has exceeded performance expectations as several low-capital enhancements have pushed the throughput levels beyond the previous capacity of 3,000 tpd STALL MILL DAILY THROUGHPUT 30% 4.0 3.9 ✓ Operational debottleneckin
Slide 10: Maximizing Value from New Britannia
MAXIMIZING VALUE FROM NEW BRITANNIA LOW-COST SOLUTION FOR PROCESSING LALOR GOLD ORE The acquisition of the New Britannia gold mill provided an innovative and low-cost processing solution for Lalor’s gold ores NEW BRITANNIA MILL REFURBISHMENT 2018 ✓ US$10M acquisition in 2015 2021 ✓ 2019 sanctioning
Slide 11: Snow Lake Ore Flow
SNOW LAKE ORE FLOW LALOR GOLD AND BASE METAL ORE FLOW - 2023 Crushed Gold & Copper- Gold & Copper-Gold Gold Ore Trucked to New New Britannia Mill ROM Ore Britannia 1,500 tpd Lalor Run-of-Mine Primary Crusher (ROM) Ore at Stall Mill 5,300 tpd Base Metal ROM Ore Stall Mill 3,800 tpd Crushed Base Metal
Slide 12: Snow Lake Processing
SNOW LAKE PROCESSING FLOW CHART - 2023 Lalor Crushed Ore Stall Mill New Britannia Mill Grinding Grinding Flotation Flotation Tails to Tails Zn Concentrate Cu Concentrate Cyanide Destruction Anderson TIA or Leaching/CIP Dewatering Dewatering Process Lalor Paste Plant Electrowinning Tails to Stall Mil
Slide 13: Snow Lake Gold Production Profile
SNOW LAKE GOLD PRODUCTION PROFILE Incorporates early production of gold at New Britannia in 2021 in addition to several near-to- medium term optimization initiatives: Increasing Lalor’s mining rate to 5,300 tpd starting in 2023 after the 777 mine closes Adding 1901 zinc-rich reserves to the mine pla
Slide 14: Snow Lake Achievements & Opportunities
SNOW LAKE ACHIEVEMENTS & OPPORTUNITIES DELIVERED AND ADVANCED SEVERAL GROWTH INITIATIVES IN 2021 Q1 2021 – Issued optimized mine plan for Snow Lake incorporating higher 5,300tpd mining rate at Lalor, enhanced recoveries at Stall and mining of the nearby 1901 deposit H1 2021 – Advanced underground de
Slide 15: Snow Lake Processing Logistics
SNOW LAKE PROCESSING LOGISTICS LALOR MINE 2021 11 years 2031 Source Ore 1901 DEPOSIT 2026 6 years 2031 SATELLITE GOLD DEPOSITS 2030 8 years 2037 (WIM, 3 ZONE) Processing STALL BASE METAL MILL Location 2021 11 years 2031 (WITH GOLD BY-PRODUCT) NEW BRITANNIA GOLD MILL 2021 17 years 2037 (WITH COPPER B
Slide 16: Our Approach to Sustainability
OUR APPROACH TO SUSTAINABILITY MUTUAL RESPECT, TRUST AND CONTINUOUS DIALOGUE By living our values, we build strong relationships with our employees, host communities and governments, making us a better partner and a better company Our Values are: Dignity & Respect: Caring: We treat each other in way
Slide 17: Sustainability in Our Manitoba Business Unit
SUSTAINABILITY IN OUR MANITOBA BUSINESS UNIT We have operated mines in Manitoba for over CASE STUDY: Ensuring a Lasting Legacy 90 years, successfully reclaiming 20 mines Our Reed mine closed in 2018. We applied best practices to achieve positive closure outcomes to ensure all waste and contaminated
Slide 18: Snow Lake Gold Is a Valued Asset Relative to Newcrest Acquisition of Pretium
SNOW LAKE GOLD IS A VALUED ASSET AND COMPARES WELL RELATIVE TO THE RECENT NEWCREST GOLD ACQUISITION OF PRETIUM RESOURCES Newcrest recently announced the acquisition of Pretium Resources for US$2.8bn, purchasing the Brucejack mine for a 7.3x 2022E EV/EBITDA multiple (Broker consensus)2, 1.3x P/NAV mu
Slide 19: H' DBAY
H' DBAY
Slide 20: Safety Share
SAFETY SHARE MOUNT AND DISMOUNT PERSONNEL CARRIER Maintain three-point contact while climbing in and out of the back of a personnel carrier Watch your footing while exiting personnel carrier as the ground may be uneven LALOR MINE PROCESSING EXPLORATION TAILINGS 20
Slide 21: Safety Strategy
SAFETY STRATEGY FOCUS CONTINUES TO BE ON BUILDING CAPACITY WITHIN THE LINE MANAGEMENT - ENSURING LIFE SAVING RULES CONTROLS ARE KNOWN, UTILIZED AND EFFECTIVE Front Line Supervisor reviewing Life Saving Rule Book with new employees Superintendents travelling with supervisors in the field completing L
Slide 22: Lalor Mine 2021 LOM Production
LALOR MINE 2021 LOM PRODUCTION LONGITUDINAL OF LALOR MINE SHOWING THE DISTRIBUTION OF BASE METAL, GOLD, AND COPPER- GOLD STOPES BASED ON 2021 MINERAL RESERVE AND RESOURCE ESTIMATE LALOR MINE PROCESSING EXPLORATION TAILINGS 22
Slide 23: Lalor Mine 2021 2P Reserve Mine Plan
LALOR MINE 2021 2P RESERVE MINE PLAN ABLE TO SUSTAIN 5,300 TPD UNTIL 2027 WITH 1901 DEPOSIT Inferred resources at both Lalor and 1901 could further extend the 5,300tpd production profile and mine life LALOR MINE PROCESSING EXPLORATION TAILINGS 23
Slide 24: 1901 Deposit Pre-Feasibility Study
1901 DEPOSIT PRE-FEASIBILITY STUDY RESERVES INCLUDED IN 2021 MINERAL RESERVE AND RESOURCE ESTIMATE MINE PLAN Development 1901 MINE DESIGN LAYOUT (ISOMETRIC VIEW) Accessed via Lalor Ramp Twin ramp design – Haul Ramp & Service Ramp Establish ventilation and infrastructure at start of access Surface On
Slide 25: Lalor Mining Methods
LALOR MINING METHODS COMPLEXITY OF STACKED LENSES AND ORE TYPES Early in mine life, more selective methods were used to allow geological evaluation and to better understand the ore Post Pillar Cut and Fill (PPCF) and longitudinal retreat open stoping Paste backfill plant commissioned in mid- 2018 su
Slide 26: Lalor Mine Production Expansion
LALOR MINE PRODUCTION EXPANSION 2022 PATH TO ACHIEVE 5,300 TPD MINING RATE BY 2023 LALOR MINE PROCESSING EXPLORATION TAILINGS 26
Slide 27: Mobilaris Short Interval Control Room
MOBILARIS SHORT INTERVAL CONTROL ROOM MONITORING SHIFT PERFORMANCE IN REAL TIME Monitor performance of the shift compared to the agreed upon daily targets in real time Coordinators see the shift unfold and can reduce potential bottlenecks with direct communication to LHD and Truck Operators Ability
Slide 28: Integration of Underground Mine Planning & Scheduling
INTEGRATION OF UNDERGROUND MINE PLANNING & SCHEDULING Operations activity based 7 + 21 plans Ability to track and monitor activity progress Manage compliance to plan, production data is directly matched against planned activities Team collaboration to build and schedule the plan LALOR MINE PROCESSIN
Slide 29: Mobilaris Onboard – Navigation System for Underground
MOBILIARIS ONBOARD – NAVIGATION SYSTEM FOR UNDERGROUND CHANGING THE UNDERGROUND MINING WORLD Mobilaris Onboard is now installed on 27 pieces of equipment that acts as an underground navigation system Shows incoming traffic in real time, allows operate to avoid congestions and time to safely move out
Slide 30: Lalor Automation
LALOR AUTOMATION UNDERGROUND MUCKING LEVEL SET-UP TELE-REMOTE MUCKING Operator is on surface and continues to muck through the entire shift even when no workers underground and through blast clearance times Improves stope mucking cycle times TELE-REMOTE MUCKING FROM STOPE AUTONOMOUS DUMPING AT OREPA
Slide 31: Lalor Drone Scanning
LALOR DRONE SCANNING DRONE TECHNOLOGY FOR CAVITY MONITORING SURVEY AND STOCKPILE SURVEYS Implementation of drone survey system for improved safety during stope cavity monitoring, stope reconciliation and stock pile surveys Post blast survey to improved recognition of stope hazards reducing potential
Slide 32: Lalor 910ML Maintenance Shop
LALOR 910ML MAINTENANCE SHOP OVERVIEW AND GENERAL ARRANGEMENT 64,000 square feet in size 3 overhead cranes 8 work bays, plus wash bay and welding bay Warehouse plus kitting/staging area Oil system - 8 drops throughout the shop with remote waste management system 2 sets of 160 tonne column lifts Serv
Slide 33: Lalor 910ML Maintenance Shop
LALOR 910ML MAINTENANCE SHOP LALOR MINE PROCESSING EXPLORATION TAILINGS 33
Slide 34: Lalor 910ML Fuel Bay Lub System
LALOR 910ML FUEL BAY LUB SYSTEM INSTALLATION OF PIPING AND REEL RACKS Bulk distribution of lubricates Reduce environmental footprint, less 5 gallon plastic pails in workplace Lower costs Safety and ergonomic benefits Improved material logistics Reduces the potential for contaminants entering equipme
Slide 35: Lalor Ramp to Surface Reconditioning
LALOR RAMP TO SURFACE RECONDITIONING RAMP DEVELOPED +25 YEARS AGO Ramp to surface developed in very competent ground, limited ground support installed when developed Third party Ground Control Engineer inspected ramp to surface and provided recommendations Enhance ground support by installing mesh s
Slide 36: Lalor Remuck #3 Water Reservoir
LALOR REMUCK #3 WATER RESERVIOR WATER COLLECTION FACILITY TO CAPTURE NATURAL GROUNDWATER Water reservoir constructed to capture natural water inflow, convert water to process water to be used for mining activities Freshwater Use per Site (dam3 / month) 80 Reservoir 1,200.0 Commissioned Significantly
Slide 37: Lalor 835ML Substation Tie-In
LALOR 835ML SUBSTATION TIE-IN COMPLETED CONNECTION TO MAIN EXISTING HIGH VOLTAGE ELECTRICAL GRID UNDERGROUND Previously, all underground electrical supply drawn from 910mL substation, created overload issues and power disruptions 835mL substation tie-in, levels the power load and improved reliabilit
Slide 38: Lalor Future Mining Fronts
LALOR FUTURE MINING FRONTS DRIVING RAMPS TO ACCESS NEW MINING FRONTS FOR FUTURE PRODUCTION Zone 27 Longsection showing stope production and development to the end of 2022. 1100mL 1160mL Stope production to the end of 2022 Development to the end of 2022 1240mL LALOR MINE PROCESSING EXPLORATION TAILIN
Slide 39: Lalor Surface Ore Bunker Upgrades
LALOR SURFACE ORE BUNKER UPGRADES OVERFLOW ORE STORAGE WHEN SURFACE ORE BIN IS FULL Enclosure of surface bunker with two separate steel doors to allow loader operator to safely remove ore at same time as ore is being skipped and placed in bunker Allows skipping of ore on a continuous basis Ability t
Slide 40: Lalor Changehouse and Office Expansion
LALOR CHANGEHOUSE AND OFFICE EXPANSION CURRENT FACILITY IS INSUFFICIENT FOR FUTURE WORKFORCE REQUIREMENTS Current facility and conditions are shared between multiple different changehouse facilities at Lalor and Chisel North and are insufficient to meet future workforce needs New design with 710 loc
Slide 41: Snow Lake Camp Relocation
SNOW LAKE CAMP RELOCATION ESTABLISHED LONG-TERM AGREEMENT WITH TOWN OF SNOW LAKE Previous location not suitable, too close to New Brit operations and did not meet noise regulation for people occupancy Permanent relocation and expansion of lower camp area Additional parking to meet future needs LALOR
Slide 42: H' DBAY
H' DBAY
Slide 43: Snow Lake Material Flow Map
SNOW LAKE MATERIAL FLOW MAP Lalor gold ore is processed at the New Britannia mill and base metal ore processed at the Stall mill A pipeline corridor connects New New Britannia Birch Lake TDF Britannia and the Stall mills to Mill Pipeline transport tailings, copper Lalor Mine System concentrate and r
Slide 44: History of New Britannia Mine & Mill
HISTORY OF NEW BRITANNIA MINE & MILL Gold was first discovered in 1914 Construction started in 1945 The Nor-Acme mine was opened in 1949 and production continued until 1958 4.9 million tonnes were mined at an average grade of 4.4 g/t and Nor-Acme mill recovered approximately 610,000 ounce of gold du
Slide 45: New Britannia – Site Layout
NEW BRITANNIA – SITE LAYOUT NEW BUILDING CONTAINS NEW FLOTATION, THICKENING AND DEWATERING PROCESSES, CONCENTRATE SHED LALOR MINE PROCESSING EXPLORATION TAILINGS 45
Slide 46: New Britannia – Processing Description
NEW BRITANNIA – PROCESSING DESCRIPTION Run-of-mine Lalor high-grade gold ore is crushed at Stall mill and trucked to New Britannia Ore processed in a flotation circuit first to recover copper as a concentrate. The concentrate contains a significant fraction of the gold The tails of the flotation pro
Slide 47: Stall Mill – New Central Crushing Facility
STALL MILL – NEW CENTRAL CRUSHING FACILITY External crusher in full production in Q1 2021 Eliminates need for a new Stall crushing plant Reduced risks associated with refurbishment of legacy New Britannia crushing plant LALOR MINE PROCESSING EXPLORATION TAILINGS 47
Slide 48: New Britannia – Flow Sheet
NEW BRITANNIA – FLOW SHEET Crushed Feed LALOR MINE PROCESSING EXPLORATION TAILINGS 48
Slide 49: New Britannia – Copper Flotation Circuit
NEW BRITANNIA – COPPER FLOTATION CIRCUIT FULLY COMMISSIONED IN OCTOBER 2021 First-of-its-kind circuit based on entirely on modern pneumatic flotation technology Compact, low-cost layout Three counter-current roughing stages with one cleaning stage No regrinding Primary grind is sufficiently fine for
Slide 50: Stall Mill – Recovery Improvement Program
STALL MILL – RECOVERY IMPROVEMENT PROGRAM SEVERAL AREAS TARGETED FOR IMPROVEMENT & IMPLEMENTATION BEFORE 2023 Cu flotation capacity – install additional modern flotation capacity in the rougher and cleaner duties, increase circuit capacity to recovery fine particles Zn flotation capacity – install a
Slide 51: Stall Mill – Recovery Improvement Program
STALL MILL – RECOVERY IMPROVEMENT PROGRAM PROJECT SCOPE LALOR MINE PROCESSING EXPLORATION TAILINGS 51
Slide 52: Stall Mill – Upgraded Flow Sheet
STALL MILL – UPGRADED FLOW SHEET RECOVERY IMPROVEMENT PROGRAM Significantly higher Cu, Au & Ag recoveries starting in 2023; capital of +50% IRR ~US$25M in 2022 Cu Au Ag Zn % 100 95 93 93 90 89 91 90 90 80 84 74 70 70 64 60 64 59 65 50 55 51 40 Current Upgraded Current Upgraded Current Upgraded Curre
Slide 53: Stall Mill – Recovery Improvement Program
STALL MILL – RECOVERY IMPROVEMENT PROGRAM ON TRACK TO BE IMPLEMENTED IN 2022 ~$4M of spending expected in 2021 To procure long lead-time items, progress engineering, 10% vendor drawings and demolition/site preparation Expected timeline Purchase long lead items Q4 2021 Sep/Oct: Equipment orders for J
Slide 54: Future Snow Lake Upside Opportunities
FUTURE SNOW LAKE UPSIDE OPPORTUNITIES FUTURE MILL PROCESSING PROJECTS As the Lalor mine matures and additional satellites ore sources are identified to supplement feed to Stall and New Britannia, metallurgical projects are advancing to match the configuration of the mills to the ore requirement Adva
Slide 55: H' DBAY
H' DBAY
Slide 56: Manitoba Regional Mines and Discoveries
MANITOBA REGIONAL MINES AND DISCOVERIES RESERVES IN THE FLIN FLON AND SNOW LAKE CAMP (MILLION TONNES) Flin Flon Lalor Chisel U/G 777 Trout Lake Chisel Initial Reserves WIM Callinan Added Reserves Reed 1901 Centennial Chisel Pit Anderson Additional Deposits (not yet in reserves): Stall Lake 3 Zone Pe
Slide 57: Significantly Adding Value Through Exploration
SIGNIFICANTLY ADDING VALUE THROUGH EXPLORATION Snow Lake total reserves have increased by more than 300% since our initial mineral reserve estimate for Lalor SNOW LAKE GOLD PRODUCTION PROFILE1 Contained Gold (koz) Production - 2012 Technical Report Production - Actuals and 2021 Snow Lake Mine Plan 2
Slide 58: Snow Lake Reserve Growth Over Time
SNOW LAKE RESERVE GROWTH OVER TIME OVER 2.9 MM OUNCES OF GOLD HAS BEEN IDENTIFIED AS RESERVES / PRODUCED TO DATE +300% INCREASE IN IDENTIFIED RESERVES / PRODUCED GOLD FROM INITIAL RESERVE ESTIMATE Cumulative Production 9% increase from Reserves 32% increase from resource conversion Inferred inclusio
Slide 59: Lalor Existing Reserves and Resources
LALOR EXISTING RESERVES AND RESOURCES SIGNIFICANT IN-MINE EXTENSION POTENTIAL Lalor resources estimated using stringent methodology constraining the resource within a stope optimization envelope, which is expected to lead to higher resource to reserve conversion LALOR MINE LIFE EXTENSION 0m 100m 250
Slide 60: 1901 Deposit Known Resources
1901 DEPOSIT KNOWN RESOURCES GOLD RESOURCE UPSIDE POTENTIAL Adjacent to the Lalor mine and 1km from existing underground ramp Reserve completed on zinc-rich zones; production expected to commence in 2026 at a rate of ~1,000 tpd Gold-rich zones in inferred category and inferred resources estimated us
Slide 61: WIM: Copper-Gold Deposit
WIM: COPPER-GOLD DEPOSIT MINERALIZATION STARTS FROM SURFACE To be developed via an underground ramp WIM Mineral Reserve Estimates Expected to start producing once Lalor and 1901 Tonnes Cu (%) Zn (%) Au (g/t) Ag (g/t) are near end of their mine life. In the current Snow Lake mine plan, WIM is expecte
Slide 62: 3 Zone: Ramp-Access Gold Deposit
3 ZONE: RAMP-ACCESS GOLD DEPOSIT SATELLITE ZONE OF THE FORMER NEW BRITANNIA MINE Upper part of 3 Zone was mined for a short period during the New Britannia mill start-up in 1995 prior to the New 3 Zone Mineral Reserve Estimates Britannia mine being commissioned Tonnes Au (g/t) In the current Snow La
Slide 63: Snow Lake Regional Exploration Potential
SNOW LAKE REGIONAL EXPLORATION POTENTIAL LARGE PROSPECTIVE LAND PACKAGE IN THE SNOW LAKE BELT WITH SIGNIFICANT UPSIDE POTENTIAL MINE MILL Asset Metal Type Reserves & Resources1 TOWN WIM Cu-Au Probable – 2,448kt @ 1.63% Cu; 1.6g/t Au 40kt Cu; 126koz Au WIM PROJECT RAILROAD Indicated – 469kt @ 8.89% Z
Slide 64: Lalor Exploration
LALOR EXPLORATION Recent drilling continue to support resource to reserve conversion and to test the extension of known lenses as new underground drilling platforms become accessible 2021 infill drilling has defined extensions South and Copper-Gold rich lenses 17 and 27 are still open down plunge No
Slide 65: 1901 Deposit Exploration – Base Metal
1901 DEPOSIT EXPLORATION – BASE METAL 2021 DRILLING CONFIRMED AND EXPANDED BASE METAL LENSES (LENS 1 EXPANDED TO THE EAST) 1901 Deposit Lens 1 (2021) Lens 3 essentially confirmed as per 2021 Lens 1 New Extension (2022) model Base Metal Lenses Lens 3 (2022) (view from Top) Lens 1 expanded to the east
Slide 66: 1901 Deposit Exploration – Gold
1901 DEPOSIT EXPLORATION – GOLD 2021 DRILLING EXPANDED CU-AU LENSES TO THE EAST AND THE NORTHEAST & REMAIN OPEN 1901 Deposit Lens 2 & 4 (2021) Cu-Au Lenses Lens 2 New Extension (2022) Significant Cu-Au intersections to the (view from Top) Lens 4 New Extension (2022) Northeast of Lens 2 in the same o
Slide 67: Lalor North Geophysical Target
LALOR NORTH GEOPHYSICAL TARGET TESTING THE POTENTIAL FOR FAULTED REPEAT OF LALOR LENSES CH2102 probing revealed hole may have stopped short of potential mineralized horizon Tried to deepen CH2102 and redrilled from surface (CH2107) without success: rods lost due to faults Alternative to drill from r
Slide 68: Flin Flon and Snow Lake VMS Endowment
FLIN FLON AND SNOW LAKE VMS ENDOWMENT MODERATE DRILLING MATURITY VERSUS OTHER VMS CAMPS, E.G. NORANDA Drilling density in Noranda at 4,000 m/km2 is twice higher than in Flin Flon and Snow Lake → Still a lot of potential for a new discovery LALOR MINE PROCESSING EXPLORATION TAILINGS 68
Slide 69: Regional Exploration Targets
REGIONAL EXPLORATION TARGETS SHADOW OF HEADFRAMES AND EXPLORATION NEAR KNOWN DEPOSITS Exploration targeting Snow Lake past producers and Flin Flon known deposits / zones Northstar Chisel Basin of VMS mineralization Centennial – Cuprus – White Lake Westarm Harmin - Fenton LALOR MINE PROCESSING EXPLOR
Slide 70: Chisel Basin Exploration
CHISEL BASIN EXPLORATION GEOPHYSICAL TARGET FROM CH2101 Surface Grid CHISEL014-21_Lp1 was completed over Lalor Mine CH2101 The blue plate was modelled from the BHEM survey of CH2101 CH2101 intersected 2m or 4% Zn and 1g/t Au Potential along plunge line and towards the south Not so different from 190
Slide 71: Shadow of Headframes
SHADOW OF HEADFRAMES COMPILATION OF PROJECTS GENERATED FURTHER FOLLOW-UP WORK – GEOLOGICAL MAPPING, GEOPHYSICS AND DRILLING Three follow-up areas associated with past producing mines Nothstar Targets around White Lake, Cuprus – White Lake Centennial and Westarm Centennial Westarm LALOR MINE PROCESSI
Slide 72: Northstar Targets
NORTHSTAR TARGETS TESTING TARGETS ASSOCIATED IN FAVOURABLE STRATIGRAPHY Targets generated from multi- disciplinary approach (Induced Polarization, DPEM, Magnetics, Geological Mapping / Prospecting) NorthStar Mine Don Jon Mine LALOR MINE PROCESSING EXPLORATION TAILINGS 72
Slide 73: Harmin – Fenton – Watts Area
HARMIN – FENTON – WATTS AREA DIAMOND DRILLING 131.7km surveyed out of 170.5km 3 loops were not completed due to deteriorating weather conditions in 2020 Harmin South Harmin Cross Harmin North 16 prospective plates were modelled 8/16 plates remain untested by DDH’s Unconstrained and constrained Magne
Slide 74: Snow Lake - Gold Potential
SNOW LAKE - GOLD POTENTIAL HUDBAY CONTROLS THE BULK OF THE KNOWN AU ENDOWMENT LALOR MINE PROCESSING EXPLORATION TAILINGS 74
Slide 75: Snow Lake Gold – Squall Lake Area
SNOW LAKE GOLD – SQUALL LAKE AREA EXPLORATION PROGRAM Squall lake claims are located within trucking distance of the New Britannia mill Known gold occurrences Tenements were part of the New and deposits in the Snow Britannia mine acquisition in 2015 Lake area Gold mineralization at shallow depth ide
Slide 76: Appendix
a H' DBAY
Slide 77: Updated Flin Flon Closure Cost Plan
UPDATED FLIN FLON CLOSURE COST PLAN 75% OF CLOSURE AND RECLAMATION COSTS ARE TO BE INCURRED AFTER 2037 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2122 $23M in tailings stability $13M in demolition costs between the close of Flin Flon
Slide 78: Tailings Improvement Program Underway
TAILINGS IMPROVEMENT PROGRAM UNDERWAY FLIN FLON TAILINGS IMPOUNDMENT SYSTEM BERM CONSTRUCTION LALOR MINE PROCESSING EXPLORATION TAILINGS 78
Slide 79: Flin Flon Tailings Reprocessing
FLIN FLON TAILINGS REPROCESSING OPPORTUNITY TO REPROCESS TAILINGS IN FLIN FLON Identified new opportunity to reprocess tailings at the Flin Flon Tailings Impoundment System Over 90 years of tailings deposition through several commodity cycles Could create operating and economic benefits for Flin Flo
Slide 80: Flin Flon Tailings Reprocessing
FLIN FLON TAILINGS REPROCESSING METALLURGICAL TESTING & RECOVERY PRECIOUS METALS DEPORTMENT 2010-2011 AMTEL study on live Cu scavenger tails samples 25% is free gold 65% is “refractory” but not in true solid solution Of this refractory gold, most is > 10 um grain size Corroborates the 71.5% Au leach
Slide 81: Flin Flon Tailings Reprocessing
FLIN FLON TAILINGS REPROCESSING Historic Tails CONCEPTUAL FLOWSHEET METALLURGICAL PROCESSING Mining Remove the acid-generating pyrite and other sulfides Grinding Regrind the pyrite concentrate to liberate base metal sulfides NAG Tails Sulfide Flotation Produce saleable base metal concentrates Regrin
Slide 82: Flin Flon Tailings Reprocessing
FLIN FLON TAILINGS REPROCESSING WORK IN PROGRESS Class 5 Exploration Drilling - Hudbay Class 5 Mining & Excavation, Water Management – BGC Class 5 Tailings Redeposition siting - BGC Class 5 Metallurgical Test Program – BCR LIDAR point cloud scan – Allnorth Class 5 Engineering, capital and operating
Slide 83: Tailings Improvement Program Underway
TAILINGS IMPROVEMENT PROGRAM UNDERWAY ANDERSON TIA – BEDROCK PREPARATION FOR DAM RAISE LALOR MINE PROCESSING EXPLORATION TAILINGS 83
Slide 84: Appendix
Slide 85: Snow Lake 2021 Mine Plan
SNOW LAKE 2021 MINE PLAN 17-YEAR MINE PLAN BASED ON PROVEN AND PROBABLE RESERVES ONLY Mine plan enhancements optimize processing capacity of the Snow Lake operations to maximize the NPV of the operations. As a result, the production of gold, copper and silver are expected to increase by 18%, 35% and
Slide 86: Snow Lake Reserves & Resources
SNOW LAKE RESERVES & RESOURCES (AS AT JANUARY 1, 2021) PROPERTY CATEGORY TONNES Cu (%) Zn (%) Au (g/t) Ag (g/t) Proven Lalor 6,860,000 0.50 5.79 2.6 29 Base Metal Zone 1901 890,000 0.40 6.61 2.0 28 Probable Lalor 1,190,000 0.64 4.32 3.2 32 1901 690,000 0.25 9.49 1.4 30 Gold Zone Proven Lalor 3,950,0
Slide 87: Snow Lake Reserves & Resources Cont.
SNOW LAKE RESERVES & RESOURCES CONT. (AS AT JANUARY 1, 2021) PROPERTY CATEGORY TONNES Cu (%) Zn (%) Au (g/t) Ag (g/t) PEN II Indicated 470,000 0.49 8.89 0.3 7 Talbot1 Indicated 2,190,000 2.33 1.79 2.1 36 TOTAL INDICATED (BASE METALS) 2,660,000 2.01 3.04 1.8 31 Watts River Inferred 3,150,000 2.34 2.5
Slide 88: Flin Flon Reserves & Resources
FLIN FLON RESERVES & RESOURCES (AS AT JANUARY 1, 2021) PROPERTY CATEGORY TONNES Cu (%) Zn (%) Au (g/t) Ag (g/t) Proven 1,125,000 1.59 5.09 2.23 31 777 Reserves Probable 399,000 1.11 4.46 1.86 30 TOTAL 777 PROVEN AND PROBABLE 1,524,000 1.46 4.93 2.13 31 Measured 120,000 1.21 7.12 2.31 39 777 Resource
Slide 89: Additional Reserves & Resources Information
ADDITIONAL RESERVES & RESOURCES INFORMATION The reserve and resource estimates included in this presentation were prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum Standar
Slide 90: For more information contact
For more information contact: Candace Brûlé Director, Investor Relations 416.814.4387 | candace.brule@hudbay.com
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