HudBay discovers new copper-gold zone at Lalor

HudBay Minerals (HBM-T) has intersected 34.5 meters of 13.35 grams gold per tonne and 5.33% copper in what it believes to be a new zone of copper and gold mineralization at its Lalor deposit in the Chisel basin portion of the Flin Flon Greenstone Belt, about 15 km from its concentrator in Snow Lake, Manitoba.

Drill hole DUB263W02 intersected the new copper-gold zone, and assayed 13.35 grams gold per tonne, 27.98 grams silver per tonne, 5.33% copper and 0.35% zinc over 34.54 meters from 1253.08 to 1287.62 meters.

Other results included drill hole DUB252W01, which assayed 12.54 grams gold per tonne, 26.67 grams silver per tonne, 3.69% copper, and 0.18% zinc over 9.12 meters from 1140.00 to 1149.12 meters and 8.08 grams gold, 15.33 grams silver, 1.60% copper, and 0.12% zinc over 13.39 meters from 1176.00 to 1189.39 meters.

“The copper and gold intersection in Hole DUB263W02 is among the best I have seen in nearly 40 years in the mining business and the new copper-gold zone may be very significant,” Peter Jones, HudBay’s chief executive officer, said in a prepared statement.

The new copper-gold zone at Lalor, 3 km from HudBay’s Chisel North mine, is lower in the deposit’s stratigraphy than the previously announced zinc-rich base metal zone and the separate and contact gold zones, the company explains.

HudBay owns 100% of Lalor and expects by early October to release an updated National Instrument 43-101 compliant resource estimate for the zinc-rich base metal zone (for use in the feasibility study) and a NI 43-101 compliant conceptual estimate of potential tonnes and grade for the separate and contact gold zones of the deposit. The company also says it will release additional drill hole assays for the separate and contact gold zones.

HudBay, which announced the Lalor discovery in March 2007, has reported an indicated resource of 3.4 million tonnes grading 1.9 grams gold per tonne, 20.5 grams per tonne silver, 0.71% copper, 8.82% zinc, and an inferred resource of 13.2 million tonnes cutting 2.9 grams gold, 34.1 grams silver, 0.70% copper, 8.19% zinc.

Five drills are operating at Lalor. Two are exploring extensions to the separate and contact gold zones and the newly discovered copper-gold zone. Two others are focused on close-spaced drilling within the separate and contact gold zones to further confirm gold mineralization continuity and one drill is collecting metallurgical samples.