The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
Jonathon Naylor Editor HudBay Minerals will build a new concentrator in Snow Lake to process an ever-growing supply of ore from the Lalor mine now under development. After months of hinting at the project, the HBMS parent confirmed Tuesday it will spend $144 million on a new concentrator rather than upgrade its existing facility in the northern town. "Because of the high quality of the Lalor deposit, we pursued a fast-track commitment to Lalor in August 2010, which was based on the robust economics that were achievable from refurbishing our existing concentrator," HudBay President and CEO David Garofalo said in a news release. "However, Lalor is a large enough deposit to support a new, dedicated concentrator, and we are pleased to commit to a further investment in the future of our Manitoba operations." Garofalo said the new concentrator, which promises higher production rates and related efficiencies, together with a new paste backfill plant should extend the life of the mine and bolster its profitability. HudBay said it is optimistic that future drilling will upgrade unclassified minerals from Lalor's gold and copper-gold zones to confirmed resources. The company expects these added minerals will stretch the mine life beyond the presently anticipated end date of 2030. Construction Construction of the new concentrator, to be built adjacent to the Lalor production shaft, is expected to begin in early 2013. It is scheduled for completion in late 2014 to coincide with the completion of the production shaft. John Vincic, vice-president of investor relations and corporate communications, said the new concentrator will create about 50 extra jobs in Snow Lake. That is in addition to the roughly 300 jobs that were already anticipated once Lalor becomes fully operational in 2014. See 'Move...' on pg. 19 Continued from pg. 1 At the same time, the move is expected to decrease operating costs at Lalor by 35 per cent, down to $52 per tonne, due to economies of scale and other efficiencies. The new concentrator will have a capacity of 4,500 tonnes per day, up nearly 30 per cent from the present Snow Lake concentrator. HudBay plans to continue to use Anderson Lake as a tailings facility, with an expansion in the cards. Construction of a separate gold plant, which could significantly enhance precious metal recoveries, is still under consideration. A decision is expected well in advance of the mining of higher-grade gold. Tuesday's announcement follows the completion of HudBay studies that back the case for a new concentrator and paste backfill plant. Paste backfill is a process for using filters to dewater mill tailings. The material then returns underground, where it is mixed with cement to backfill areas that have been mined. "This plant will have the same capacity as the one in the Flin Flon concentrator that is used to produce paste backfill for the 777 mine," said Vincic. $704 million With the new plant and concentrator, the total estimated project cost for Lalor rises to $704 million, of which approximately $120 million has been spent to date. The rest of the capital spending is expected to occur between 2011 and 2014 with $140 million this year, $190 million in 2012, $185 million in 2013 and $130 million in 2014. The mine's production schedule remains the same, with full production to be reached in late 2014. In the meantime, the plan foresees an initial phase of production commencing in the second quarter of 2012 from the base metal zones, following completion of a ramp from the fast-depleting Chisel North mine. Up to 1,200 tonnes per day of ore are expected to be extracted via Lalor's ventilation shaft. This initial production will replace production from Chisel North, which is expected to run out of viable ore in 2012. HudBay originally planned to refurbish the existing Snow Lake concentrator, located 18 km outside Lalor. Then, last year, the company revealed it was studying the feasibility of a new mill at the mine site that would save on hauling costs. HudBay said Lalor's development and site construction are proceeding on schedule. The company said it continues to make significant progress on the planned access ramp at Lalor, having advanced approximately 2,300 metres from Chisel North to date. The ramp is planned to intersect the base of the ventilation shaft that is currently under construction by the first quarter of 2012. Once completed, the ramp will enable HudBay to establish an underground drill platform to better define the gold and copper-gold zones.8/7/11
