 | | | Published : September 10th, 2010 | Earns 51% Joint Venture Interest in Aquila Resources' Back Forty Project |
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| September 10, 2010 |
| HudBay Earns 51% Joint Venture Interest in Aquila Resources' Back Forty Project |
TORONTO, ONTARIO--(Marketwire - Sept. 10, 2010) - HudBay Minerals Inc. ("HudBay") (TSX:HBM) announced today that, pursuant to the terms of a Subscription, Option and Joint Venture Agreement with Aquila Resources Inc. ("Aquila") (TSX:AQA)(FRANKFURT:JM4A), it has exercised its option to earn a 51% joint venture interest in Aquila's Back Forty Project in Michigan's Upper Peninsula. Pursuant to the agreement, HudBay was obligated to expend US$10 million on the project in order to earn its 51% interest. HudBay will act as operator of the Back Forty joint venture and can increase its ownership interest in the project to 65% by completing a feasibility study and submitting a mine permit application to the State of Michigan.
Following recent encouraging drill results at the Back Forty Project (see Aquila's June 15, 2010, April 2, 2010 and December 9, 2009 press releases), exploration at the property is ongoing and an updated National Instrument 43-101 ("NI 43-101") mineral resource estimate is underway with targeted completion by the end of 2010. The updated resource estimate will support the preparation of a feasibility study and an associated mine permit application, which is now anticipated to be submitted in the fourth quarter of 2011.
"We are encouraged by ongoing progress at the Back Forty Project and are pleased to have reached this milestone in our relationship with Aquila Resources," said David Garofalo, HudBay's president and chief executive officer. "The Back Forty Project is an excellent fit with our strategy of acquiring and developing VMS and porphyry deposits with strong exploration potential in mining friendly jurisdictions."
The Back Forty Project contains an advanced exploration-stage volcanogenic massive sulfide ("VMS") deposit containing gold, zinc, copper and silver. A NI 43-101 compliant resource estimate announced on January 15, 2009 by Aquila includes 8.5 million tonnes in the measured and indicated category and an additional 1.2 million tonnes in the inferred category. The project also includes a significant exploration land package of approximately 9,600 acres, which will allow HudBay to use its award-winning exploration techniques for VMS deposits.
HudBay Minerals Inc.: Strength to Build the Future
HudBay Minerals Inc. (TSX:HBM) is a Canadian integrated mining company with assets in North and Central America principally focused on the discovery, production and marketing of metals. The company's objective is to maximize shareholder value through efficient operations, organic growth and accretive acquisitions, while maintaining its financial strength. A member of the S&P/TSX Composite Index and the S&P/TSX Global Mining Index, HudBay is committed to high standards of corporate governance and sustainability.
Qualified Person
The contents of this news release have been reviewed and approved by Cashel Meagher, P.Geo., HudBay's Vice President, Exploration. Mr. Meagher is a Qualified Person within the meaning of NI 43-101, with the ability and authority to verify the authenticity and validity of the data.
Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information includes but is not limited to information concerning the company's ability to develop its Lalor project and 777 North expansion, the ability to maintain a regular dividend on its common shares and the ability to obtain a listing on the New York Stock Exchange, the ability of management to execute on key strategic and operational objectives, the ability to meet production forecasts, the potential impact of changing economic conditions on HudBay's financial results and the company's strategies and future prospects. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "understands" or "does not anticipate", or "believes" or variations of such words and phrases or statements that certain actions, events or results "will", "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the views, opinions, intentions and estimates of management at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated or projected in the forward-looking information (including the actions of other parties who have agreed to do certain things and the approval of certain regulatory bodies).
Many of these assumptions are based on factors and events that are not within the control of HudBay and there is no assurance they will prove to be correct. Factors that could cause actual results or events to vary materially from results or events anticipated by such forward-looking information include the ability to develop and operate the Lalor project on an economic basis, the ability to meet required solvency tests to support a dividend payment, and in accordance with anticipated timelines, risks associated with the mining industry such as economic factors (including costs of construction materials, future commodity prices, currency fluctuations and energy prices), failure of plant, equipment, processes and transportation services to operate as anticipated, including new and upgraded facilities at Lalor, dependence on key personnel, employee relations and availability of equipment and skilled personnel, environmental risks, government regulation, actual results of current exploration activities, possible variations in ore grade or recovery rates, permitting timelines, capital expenditures, reclamation activities, land titles, and social and political developments and other risks of the mining industry, as well as those risk factors discussed in the company's Annual Information Form dated March 30, 2010, which risks may cause actual results to differ materially from any forward-looking statement.
Although HudBay has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. HudBay undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by applicable securities laws, or to comment on analyses, expectations or statements made by third parties in respect of HudBay, its financial or operating results or its securities. The reader is cautioned not to place undue reliance on forward-looking information.
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