Hudbay Minerals signs exploration deal with Manitoba Cree Nation
Hudbay Minerals Inc. [HBM-TSX, NYSE] has signed an exploration agreement with the Mosakahiken Cree Nation that covers its Talbot deposit in Manitoba.
The company said the signing of the agreement represents a compelling opportunity for Hudbay to enhance future production and extend life at its Snow Lake operations through additional exploration activities in the region.
It said the agreement with the Mosakahiken Cree Nation {MCN) ensures transparency, guidance and support between Hudbay and MCN throughout the exploration phase and a joint intent to negotiate a further agreement if a project proceeds to development.
The acquisition of Rockcliff Metals Corp. in 2023 resulted in a significant increase in Hudbay’s Snow Lake landholdings, including the consolidation of a 100% interest in the copper-zinc-gold-rich Talbot deposit. The current mineral resource estimate at Talbot includes indicated resources of 2.2 million tonnes of 2.3% copper, 1.8% zinc, and 2.1 g/t gold, as well as 2.5 million tonnes of inferred resources grading 1.1% copper, 1.7% zinc, and 1.9 g/t gold. Given Talbot’s proximity to existing processing infrastructure in Snow Lake, Hudbay said successful drilling campaigns could expand the resource base and upgrade the mineral resources to reserves, providing viable feed for the Stall and New Britannia facilities and extending the overall mine life of the Snow Lake operations.
Hudbay’s Manitoba business is the historical cornerstone of the company’s operational strength, underpinned by the long-life Snow Lake operations that currently have a mine life until 2027. Since 2021, the Snow Lake operations have transformed to be a primary gold producer, and the operations are expected to deliver 200,000 ounces at a cash cost of US$750 an ounce in 2025. Gold production is expected to remain strong and average 193,000 ounces annually for the next three years.
With approximately 1.7 million ounces of gold contained in current mineral reserve estimates and another 1.3 million ounces in inferred mineral resources, Hudbay expects to continue to unlock significant value in Snow Lake and looks forward to further expanding the resource base through regional exploration as the company continues to execute one of the largest exploration projects in its history at Snow Lake.
On Tuesday, the shares edged up 0.68% or $0.07 to $10.36. HudBay shares are trading in a 52-week range of $14.33 and $8.49.
Hudbay’s operating portfolio includes the Constancia mine in Cusco (Peru), the Snow Lake operations in Manitoba and the Copper Mountain mine in B.C. Copper is the primary metal produced by the company, which is complemented by meaningful amounts of gold. The company’s growth pipeline includes the Copper World project in Arizona, the Mason project in Nevada, and the Llaguen project in La Libertad, Peru.