In their second quarter financial report Hudbay reports ore produced in the Manitoba mines during the quarter were fairly consistent with the first quarter. Copper grades were higher at Reed as a result of the stopes mined while they expect zinc grades at both Triple Seven and Lalor to increase throughout the balance of the year. President Alan Hair says at Lalor they completed the 11 thousand meter drill program at the end of June which will form the basis for an updated plan for mining and processing in the Snow Lake area. He says they are continuing to work on completing an updated technical report incorporating a new mine land with the integration of the New Britannia gold mill which they expect to finalize by late 2016 or early 2017. He says they believe New Britannia will substantially increased the gold recoveries which together with the results from the gold zone drill program will provide an opportunity to realize value through a potential precious metal streaming transaction if copper prices don’t improve in the near future.
Hair adds their priority for the remainder of the year is to optimize the business and generate cash flow from their operations in this current metal prices environment.