Hudbay Minerals Inc. (TSX:HBM) (NYSE: HBM) announced that mining activities at the company’s 777 mine in Flin Flon, Manitoba, have concluded after the reserves were depleted following 18 years of steady production. Closure activities at the 777 mine have commenced and employees and equipment are transitioning to the company’s operations in Snow Lake, Manitoba.
“777 was a state-of-the-art mine that represented the pinnacle of a century of shared success for Hudbay and Flin Flon,” said Peter Kukielski, Hudbay’s President and Chief Executive Officer. “Though the closure of 777 marks the end of a mining era in Flin Flon, we will continue with exploration activities in the region. We care deeply about the community and creating a bright future for mining in northern Manitoba. Hudbay’s transition to Snow Lake will help deliver that future and demonstrate our commitment to being a valued member of our communities.”
The 777 deposit was a large and rich orebody and for many years was the flagship mine of Hudbay’s Manitoba operations. The mine commenced production in 2004 with an initial ten-year mine life, operated steadily and successfully expanded reserves by an additional eight years. After extensive drilling in and around the mine in recent years, no new deposits were identified and the 777 mine hoisted its last skip of ore late last week. The company’s hydrometallurgical zinc facility in Flin Flon will also be closed after more than 25 years of successful operations. The 777 mine and the zinc plant are scheduled to be safely decommissioned by September 2022. The Flin Flon concentrator and tailings impoundment area will be shifted to care and maintenance, which could provide optionality should another mineral discovery occur in the Flin Flon area. Hudbay strives to achieve the highest closure practices and has considered stringent and detailed environmental plans to manage water and the remaining infrastructure and processing plants in Flin Flon.
Personnel and equipment are being deployed from 777 to Hudbay’s Lalor mine in Snow Lake as part of the Lalor ramp-up strategy. The Lalor mine is a meaningful low-cost gold producer that substantially benefited from the refurbishment of the New Britannia mill in 2021. Hudbay’s Snow Lake operations have a 17-year mine life and are expected to produce over 180,000 ounces of gold annually at average cash costs, net of by-product credits, of $412 per ouncei over the next six years.
Hudbay would like to thank the many Flin Flon employees that made 777 a modern, safe and successful mine. A tribute video can be viewed here.
Hudbay is a diversified mining company primarily producing copper concentrate (containing copper, gold and silver), zinc metal and silver/gold doré. Directly and through its subsidiaries, Hudbay owns three polymetallic mines, four ore concentrators and a zinc production facility in northern Manitoba and Saskatchewan (Canada) and Cusco (Peru), and copper projects in Arizona and Nevada (United States). The company’s growth strategy is focused on the exploration, development, operation and optimization of properties it already controls, as well as other mineral assets it may acquire that fit its strategic criteria. Hudbay’s mission is to create sustainable value through the acquisition, development and operation of high-quality, long-life deposits with exploration potential in jurisdictions that support responsible mining, and to see the regions and communities in which the company operates benefit from its presence.
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