MANITOBA — HudBay Minerals of Toronto has promised $85 million to fund the production ramp for the Lalor zinc-gold project near Snow Lake. Work is underway on driving the ramp from the Chisel North mine to the Lalor deposit. It is expected to provide early production from the zinc-rich ore and access to the gold zones for additional underground exploration.
The ramp will take about 30 months to complete. Then the zinc-rich, base metal zone No.10 can be mined at 1,2000 t/d. The company is also considering a restart for the Chisel North mine. Ore from both mines will be treated in the Snow Lake concentrator.
Plans for the next phases of the Lalor development include site preparation, sinking a production shaft, refurbishing the 3,500-t/d Snow Lake mill and construction of a new 1,200-t/d gold circuit. Including the $85 million already mentioned, the capital cost of the Lalor project will total $450 million.
HudBay is working on a pre-feasibility study due by the end of this year, and a feasibility study is expected in 2010.
HudBay held a webcast to discuss the Lalor project on Oct. 8, 2009. Interested readers can listen to it at www.HudBayMinerals.com until Oct 22.