MANITOBA — HudBay Minerals of Toronto has announced the suspension of operations at its Chisel North zinc mine and Snow Lake concentrator in the northern part of the province due to the depressed prices of base metals.
The company has promised to work closely with its employees and the unions as well as the province to assist in mitigating the impact the move will have on the approximately 100 workers at the mine and concentrator. The company expects the mine to suspend operations in late February, with closure of the concentrator to occur by the end of May. A small group of employees will be retained to keep the facilities on care and maintenance.
"We regret the impact this will have on the community and our employees," said Allen J. Palmiere, CEO of HudBay. "The discovery of the Lalor deposit illustrates the excellent exploration opportunities available in the area, and I believe the Chisel North mine and the Snow Lake concentrator remain important assets in the ongoing feasibility and future productivity of the Lalor deposit."
HudBay announced the same day as the suspensions that it has discovered a new gold zone at the Lalor property in addition to the base metal resources previously outlined. In Sept. 2008, the company announced a 43-101-compliant indicated resource for Lalor that included 3.4 million tonnes grading 8.82% Zn, 0.71% Cu and 1.9 g/t Au plus 13.2 million tonnes in the inferred category that grade 8.19% Zn, 0.70% Cu and 2.9 g/t Au. The gold zone in the hanging wall assayed as high as 32.9 g/t Au over 2.55 metres, and the highest assay in the footwall was 28.53 g/t Au over 10.24 metres.
The HudBay website can be visited at www.HudBayMinerals.com.
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