Hudbay Minerals Inc. announced that it has completed a National Instrument 43-101 technical report in respect of its 75%-owned Copper Mountain mine in British Columbia, Canada. This is Hudbay?s first technical report for the Copper Mountain mine since acquiring Copper Mountain Mining Corporation (CMMC) in June 2023. Mine Plan Summary: The Copper Mountain mine is located 21 kilometres south of the town of Princeton and 304 kilometres east of Vancouver.

The operations include a series of open pits, an ore processing plant, a waste rock facility, a tailings management facility and other ancillary facilities that support the operations. All claims are controlled by Copper Mountain Mine (BC) Ltd., a joint venture held 75% by Hudbay and 25% by Mitsubishi Materials Corp. The mine plan contemplates average annual copper production of 46,500 tonnes in the first five years, 45,000 in the first ten years and 37,000 tonnes over the 21-year mine life.

Average cash costs and sustaining cash costs over the mine life are expected to be $1.84 and $2.53 per pound of copperi, respectively. The updated mine plan represents an approximate 90% increase in average annual copper production and a 50% decrease in cash costs over the first 10 years compared to 2022. Accelerated Stripping to Access Higher Grades: As reflected in the technical report, the company is planning a campaign of accelerated stripping over the next three years to enable access to higher grade ore and to mitigate the substantially reduced stripping undertaken by Copper Mountain over the four years prior to completion of the acquisition.

The accelerated stripping program is also expected to improve operating efficiencies and lower unit operating costs. A portion of the accelerated capitalized stripping costs is considered discretionary and could be reduced or deferred to a later date based on further geotechnical evaluation and other considerations. Improved Mill Throughput and Recoveries: Hudbay?s mine plan for Copper Mountain assumes a mill ramp up to its nominal capacity of 45,000 tonnes per day in 2025.

An expansion to the permitted capacity of 50,000 tonnes per day is planned in 2027. The mine plan assumes approximately $23 million in growth capital spending over 2025 and 2026 in connection with the mill expansion. The company also plans to improve mill recoveries with a more consistent ore feed grade, changes to the flotation reagents and replacement of key pumps.

Mineral Reserve and Resource Estimates: The mine plan is based on a revised resource model and was constructed using the same methods applied at the Constancia, Copper World and Mason deposits. The mineral reserve estimates total 367 million tonnes at a copper grade of 0.25% and a gold grade of 0.12 grams per tonne, supporting a 21-year mine life. An additional 140 million tonnes of measured and indicated resources at 0.21% copper and 0.10 grams per tonne gold and 370 million tonnes of inferred resources at 0.25% copper and 0.13 grams per tonne gold, exclusive of mineral reserves, provide significant upside potential for reserve conversion and extending mine life.

Infill drilling is planned for 2024 to target reserve conversion.