Hudbay reports on a consolidated basis their copper production exceeded 2017 guidance and production of zinc and precious metals were within 2017 guidance ranges.
In Manitoba mine development at Lalor near Snow Lake is now adjacent to the gold zones and a recent batch sample of gold ore sent to the Flin Flon Concentrator realized favorable gold recoveries of more than 60 percent. Planned capital expenditures in Manitoba include continued drilling of the gold and copper gold zones at Lalor.
Combined unit costs for Manitoba are forecast to be higher than 2017 guidance due mainly to reduced ore production at Triple Seven in Flin Flon, the cessation of the capitalization of development costs at Reed near Flin Flon as it approaches the end of its mine life and costs for trucking ore from Lalor to the Flin Flon concentrator for processing in lieu of capital expenditures on expanding the Stall concentrator.
Their exploration budget is 50 million dollars focused on exploration near existing infrastructure in Manitoba and Peru as well as grassroots exploration properties in Chile and British Columbia.