Canadian Mining Journal

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GOLD-ZINC DEVELOPMENT: Go-ahead confirmed for Lalor mine, 777 expansion

MANITOBA - The directors of Toronto-based HudBay Minerals have given the official go-ahead for full constructi...



MANITOBA – The directors of Toronto-based HudBay Minerals have given the official go-ahead for full construction of the new $560-million Lalor gold-zinc mine near Snow Lake. First production via an access ramp is expected by Q2 2012. A 985-metre shaft is to be completed in 2014 to bring the extraction rate up to 3,500 t/d.

The Lalor project will include extension of power and water facilities to the site, a 300-person camp, an access ramp, both production and ventilation shafts, and upgrades to the existing tailings management facility.

The Snow Lake concentrator is also to be upgraded. This includes replacing the copper and zinc flotation cells and dewatering equipment plus construction of a new gold leach plant.

Meanwhile, HudBay released the latest resource numbers for Lalor. The base metal zone contains 13.3 million tonnes of indicated material grading 1.6 g/t Au, 24.9 g/t Ag, 0.55% Cu and 8.87% Zn plus 4.8 million tonnes of inferred material grading 1.3 g/t Au, 26.2 g/t Ag, 0.58% Cu and 9.25% Zn. That is a 8.1% increase from numbers made public in October 2009. The gold zone has an inferred resource of 5.4 million tonnes grading 4.7 g/t Au, 30.6 g/t Ag, 0.47% Cu and 0.46% Zn.

DavyMarkham of Sheffield, UK, has been awarded a contract worth C$12.24 million to supply three hoists for the Lalor mine. The 4.3-metre-diameter service hoist and the 2.4-metre auxiliary hoist are to be delivered by the end of this year. The largest, the 4.9-metre-diameter production hoist, is to be delivered early in 2011.

The company has also announced plans for the expansion of its 777 base metal mine. The $20-million expansion involves driving a ramp from surface to the 440 level to access additional ore. The work will provide another exit from the mine as well as additional feed to the Flin Flon mill.

Further details are available at www.HudBayMinerals.com.