Hudbay expects to produce 180,000 oz. of gold annually in each of the next six years. The all-in sustaining cost, net of by-product credits, will be $788 per oz. gold.
Plans call for ramping up the Lalor mining rate to 5,800 tonnes/day up from the current 4,800 t/d rate. The mine has total proven and probable gold reserves of 17.2 million tonnes with an average grade of 3.8 g/t gold, 3.68% zinc, 0.66% copper, and 29 g/t silver. About 8 million tonnes of base metal reserves have also been outlined at the mine.
The New Britannia refurbishment carried a capex of $95 million, which Hudbay paid for by raising $115 million through a forward gold sale and prepay arrangement.
The company is also completing a new copper flotation circuit at New Britannia, and that should ramp up in the fourth quarter 2021.
(This article first appeared in the Canadian Mining Journal)
