2014 Annual and CSR Report Switch to Spanish Language
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Exploration

Hudbay’s expert knowledge of VMS and porphyry deposits and our ability to develop and apply innovative geophysical approaches led to the 2007 discovery of the Lalor deposit, believed to be the second largest mineral deposit ever found in the Flin Flon Greenstone Belt. Responsible and respectful performance is also a necessary competency in exploration, and our exploration teams work closely with our environment, community and health and safety experts to ensure our standards are maintained.

Exploration remains an essential and evolving part of Hudbay’s growth strategy. Beginning in mid-2013, our focus shifted from grassroots exploration – discovering new deposits in new geographies – to brownfield exploration, primarily in Manitoba, looking for opportunities near our mining camps. This proven approach is intended to leverage our existing infrastructure and extend the operating lives of our mines. With mine construction completed and cash flow from our new mines ramping up, we intend to return to allocating a portion of exploration funding to new greenfield opportunities.

2014 Performance

  • At Lalor, the first phase of the exploration drift development was completed to the 1,025-metre level as planned, and underground drilling in the copper-gold zone commenced.  The exploration program aims to test the down plunge extension of the copper-gold zone and upgrade inferred resources to a higher resource category.
  • At 777, Hudbay entered into an option agreement with Callinan Royalties Corporation that provides access, for further exploration, to the adjacent War Baby claim.
  • At Rosemont, we completed a 43-hole confirmatory drill program in December with approximately 30,000 metres drilled.

2015 Exploration Program

  • We have budgeted $55 million for exploration expenditure in 2015.
  • In Manitoba, our focus will be on brownfield exploration in and around Flin Flon and Snow Lake:
    • We plan to leverage our exploration and geophysics expertise in underground drilling of the War Baby claim, with the objective of extending the mine life of 777 beyond 2020.
    • Drilling at Lalor has three objectives: test the down plunge extension of the copper-gold zone; determine the optimal location to advance the exploration ramp; and upgrade the inferred resource to a higher resource category.
  • At Constancia, we will undertake mapping and geochemical sampling on recently staked claims near the existing mine, and conduct drilling on greenfield targets in Peru in the second half of 2015.
  • At Rosemont, we plan to conduct plant site geotechnical work along with additional drilling to further improve our understanding of the initial years of mining.
  • Approximately $20 million has been reserved for follow-up on potential exploration successes at our in-mine drilling programs and other strategic opportunities.