Canadian gold miner Hudbay enhances Snow Lake mine plan with 60% production increase
TSX- and NYSE-listed Hudbay Minerals has published an enhanced mine plan for the Snow Lake project, in Manitoba, unlocking about 60% more gold production to 2.8-million ounces over the life-of-mine. This compares to 1.8-million ounces of total production expected in the prior 2021 technical report.
In fact, more proven and probable reserves since for former mine plan now extend the operation's mine life potential by two years to 2043.
Hudbay now expects Snow Lake to be able to produce 185 000 oz/y of gold over five years between 2026 and 2030 owing to strong mill throughput rates at New Britannia and higher gold recoveries at the Stall operation.
The updated mine plan represents a 37% increase in total production from an additional 250 000 oz produced over the same five-year period in the 2021 technical report.
Moreover, the updated 2026 to 2030 five-year states average gold cash costs to be $821/oz, and the five-year average sustaining cash costs to be $1 379/oz, which maintains industry-leading operating margins.
Hudbay CEO Peter Kukielski says the enhanced Snow Lake mine plan demonstrates the incredible value that the company has created through successful exploration and continuous improvement.
"Transitioning this operation from a zinc-rich operation to a leading Canadian gold operation over the last five years has been transformative for Hudbay and we look forward to sustainable production in the decades ahead.
"The strong margins and steady gold production will ensure Snow Lake continues to be a meaningful free cashflow contributor and provide complementary gold exposure for Hudbay. This gold diversification becomes even more valuable as we continue to advance our attractive copper growth pipeline to deliver significant long-term value for our stakeholders," he adds.
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