Hudbay Minerals Extends Snow Lake Mine Life, Raises Gold Targets

Dow Jones
Sep 28
 
 

Hudbay Minerals extended the mine life of its Snow Lake operations by two years and raised its life-of-mine gold production target by more than half.

The miner on Monday said the updated plan projects average gold output at 185,000 ounces at an all-in-sustaining cost of $1,379 an ounce through 2030 for the Manitoba project. For Snow Lake, the company now has a gold reserve of 2 million ounces, a 38% increase in tonnage from previous estimates.

The updated technical plan adds 250,000 ounces of gold to its five-year production profile at its Snow Lake complex.

Total life-of-mine gold production is now expected to reach 2.8 million ounces, representing a 60% increase over the 1.8 million ounces outlined in the project's 2021 technical report. The updated schedule extends Snow Lake's reserved-back operations through 2043, adding a total of six years to its mine life following a four-year extension announced earlier in the year.

"The strong margins and steady gold production will ensure Snow Lake continues to be a meaningful free cash flow contributor and provide complementary gold exposure for Hudbay," said Chief Executive Peter Kukielski.

 
 

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