MANITOBA – With the receipt of the environmental licence, Hudbay Minerals (70%) of Toronto has begun initial concentrate production from the Reed copper 1,300- t/d underground mine near Snow Lake. VMS Ventures of Vancouver holds 30% of the joint venture.
About 7,000 tonnes of ore was mined and a batch test of 4,500 tonnes was milled at Hudbay’s Flin Flon concentrator in September. The ore came from the upper zone 30, primarily from the 65 level with 300 or 400 tonnes from the 45 level.
The Reed mine had a relatively low pre-production capex at $71.9 million, and that will be followed by an estimated $52.4 million in sustaining capital. Copper production will supply nearly 95% of revenue, gold 4.6% and silver 0.6% over a short, five-year mine life. The project has an annual output of 17,000 tonnes Cu in concentrate.
Visit the VMS website at VMSventures.com/investors/photo-gallery to view a slide show of progress on the Reed copper project.