Name: Constancia mine.

Location: The Constancia mine is located about 600 km south-east of Lima, in the south-eastern Andes of Peru.

Controlling Company: Hudbay Minerals, through its wholly owned subsidiary Hudbay Peru.

Brief History: Hudbay acquired the Constancia mine in March 2011 through its acquisition of all the outstanding shares of Norsemont Mining. Hudbay owns a 100% interest in the 36 mining concessions that comprise the mine, all of which are registered in the name of Hudbay Peru.

The Constancia mine started production of copper concentrate in December 2014 and achieved commercial production on April 30, 2015, with ocean shipments beginning in the same month.

Brief Description: Constancia is a copper porphyry mine, situated on 22 516 ha in 36 mineral concessions, which includes the Pampacancha deposit. Pampacancha is located 5 km from the Constancia openpit.

Products: Copper, with molybdenum and silver as secondary metals.

Geology/Mineralisation: The Constancia deposit is a porphyry copper/molybdenum system that includes copper-bearing skarn mineralisation. Multiple phases of monzonite and monzonite porphyry have intruded a sequence of sandstones, mudstones and micritic limestone of Cretaceous age.

The Pampacancha deposit is a porphyry-related skarn system. Oligocene unmineralised basement diorite is intruded by the diorite porphyry, cited as the source for skarn mineralisation, which, in turn, is cut by intramineral monzonite intrusions. These provide minor local increases in copper/gold mineralisation and also locally stope out skarn copper/gold mineralisation that is best developed at the upper and lower margins of the limestone body.

Prograde magnetite/chalcopyrite/pyrite skarn grades to marginal less well mineralised garnet and pyroxene skarn, which are locally overprinted by epidote-bearing retrograde skarn. Epithermal mineralisation of the low sulphidation quartz/sulphide copper and gold style accounts for common supergene enriched gold anomalies, along with other features, such as hydrothermal alteration and veins typical of near porphyry settings.

Reserves: Total proven and probable reserves for the Constancia and Pampacancha as at January 1, 2014, were estimated at 620- million tonnes grading 0.32% of copper, 92 g/t of molybdenum, 0.056 g/t of gold and 3.07 g/t of silver.

Resources: Total measured and indicated resources for the Constancia and Pampacancha deposits as at September 30, 2013, were 372-million tonnes grading 0.20% of copper, 59 g/t of molybdenum, 0.039 g/t of gold and 2.09 g/t of silver. Indicated resources were estimated at 200-million tonnes grading 0.19% of copper, 51 g/t of molybdenum, 0.031 g/t of gold and 1.86 g/t of silver.

Mining Method: Constancia is a traditional openpit truck-and-shovel operation.

Major Infrastructure and Equipment: The primary crusher, belt conveyors, thickeners, tanks, pebble crushers, flotation cells, ball mills and various other types of equipment are located outdoors, without buildings or enclosures.
Prospects: Hudbay has received approval for a second modification to the environmental- and social-impact assessment (ESIA) for Constancia. The ESIA modification recognises the current infrastructure and incorporates the mining of the Pampacancha deposit. Hudbay expects to begin negotiations to buy surface rights to the Pampacancha deposit later this year.

Contact Person: Director, corporate communications Scott Brubacher.

Contact Details:
Hudbay Minerals,
tel +1 416 362 8181,
fax +1 416 362 7844,
email info@hudbayminerals.com, and
website http://www.hudbayminerals.com.