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New Gold Zone at Lalor

posted on Jan 09, 2009 04:26AM

January 9, 2009

HudBay Discovers New Gold Zone at Lalor

TORONTO, ONTARIO--(Marketwire - Jan. 9, 2009) - HudBay Minerals Inc. (TSX:HBM) has discovered a new gold zone and significantly advanced its exploration program at its 100% owned Lalor volcanic massive sulphide (VMS) deposit in the Flin Flon Greenstone Belt.

Geological modelling and interpretation is underway to understand the benefit, distribution, and exploration potential of additional gold mineralization, which occurs in an adjacent and separate zone that could offer Lalor a distinct mining horizon with principal credits derived from gold mining. The following zones of mineralisation are in addition to the resource outlined in the NI 43-101 technical report on Lalor dated September 19, 2008:

- Hanging wall gold zone: low sulphide precious metal intersections associated with galena occur in the hanging wall of the near solid sulphide mineralization. These intersections are generally high in gold and silver and can be located in the immediate hanging wall or displaced several metres away from the near solid sulphide zinc rich mineralization.

- Foot wall gold zone: Low sulphide precious metal intersections associated with chalcopyrite and minor galena occur in the immediate foot wall of the near solid sulphide mineralisation.

- Separate gold zone: Low sulphide precious metal intersections associated with minor chalcopyrite and minor galena. These intersections are generally significantly removed from the near solid sulphide lenses and do not appear to have any association with them; however they often merge and overlap with them on the footwall side, particularly with Zone 20.

The hanging and foot wall gold zones should offer a considerable gold resource to the Lalor deposit, considerably enhancing the value of the property. Significant effort will be placed on further exploration and evaluation of these zones in 2009.

"These drill results are tremendously exciting for the company," said Allen J. Palmiere, HudBay's chief executive officer. "The gold zone significantly enhances the economics in today's environment and increases the probability that Lalor will be HudBay's next mine in the Flin Flon Greenstone Belt."

PRECIOUS METAL INTERSECTIONS

--------------------------------------------------------------------------
                             From      To  Length    Au     Ag   Cu    Zn
Drill Hole           Zone      (m)     (m)     (m) (g/t)  (g/t)  (%)   (%)
--------------------------------------------------------------------------
DUB 174W01   Hanging wall  726.34  733.55    7.21  7.14 221.62 0.24  0.04
--------------------------------------------------------------------------
DUB 174W01   Hanging wall  900.75   903.3    2.55 32.89 104.04 0.56  4.38
--------------------------------------------------------------------------
DUB195W01(1) Hanging wall  809.50  814.50    5.00 13.23  26.88 0.58  0.33
--------------------------------------------------------------------------
DUB195W02(1) Hanging wall  834.00  840.74    6.74 12.68  13.39 0.25  0.46
--------------------------------------------------------------------------
DUB195W04    Hanging wall  820.95  824.30    3.35  6.98  10.50 0.42  0.15
--------------------------------------------------------------------------
DUB197           Separate  989.20 1004.50   15.30  8.26  25.98 0.36  0.27
--------------------------------------------------------------------------
DUB204W01(1) Hanging wall  839.05  845.00    5.95  6.68  66.69 0.24  1.08
--------------------------------------------------------------------------
DUB204W01(1)     Separate  870.00   875.0    5.00 12.14  80.43 0.19  0.62
--------------------------------------------------------------------------
DUB205          Foot wall  803.90  815.55   11.65  7.00  31.16 1.41  0.15
--------------------------------------------------------------------------
DUB206W03        Separate  953.64  970.17   16.53  8.39  28.85 0.29  1.83
--------------------------------------------------------------------------
DUB 207      Hanging wall  844.59  860.43   15.84 10.93  46.86 0.64  2.07
--------------------------------------------------------------------------
DUB 208          Footwall  848.83  860.20   11.37  5.97  16.85 0.89  0.09
--------------------------------------------------------------------------
DUB208W01        Footwall  845.41  856.69   11.28 14.22  38.09 1.61  0.38
--------------------------------------------------------------------------
DUB 210          Separate 1023.56 1060.41   36.85 13.83 134.90 0.30  0.14
--------------------------------------------------------------------------
DUB 213          Footwall  939.15  947.15    8.00  5.57  73.54 0.14  0.03
--------------------------------------------------------------------------
DUB 215          Separate  937.91  948.15   10.24 28.53  75.14 0.66  0.23
--------------------------------------------------------------------------

In addition, HudBay's exploration program has progressed as follows since the company's August 26, 2008 press release:

- Road construction has improved access to drill sites and reduced the cost per metre.

- Sample collection for metallurgical testing is complete and has been submitted for metallurgical and mineralogical analysis.

- Total drilling to date is approximately 90,000 metres including 68 drill holes and 32 wedge holes. Total drilling since the technical report dated September 19 2008 is approximately 38,000 metres including 28 drill holes and 27 wedge holes.

- Drilling is concentrated in zones 10 and 20 (as outlined in the NI 43-101 technical report on Lalor dated September 19, 2008) and aimed at upgrading the Inferred Resource to an Indicated Resource.

- Results to date are consistent and as expected with the exception of drill hole DUB 213 in Zone 20 that at 42.87metres of 15.68% zinc is considerably thicker and higher grade than expected.

NOTABLE COPPER /ZINC NEAR SOLID SULPHIDE ZONE INTERSECTIONS

--------------------------------------------------------------------------
                             From      To  Length    Au     Ag   Cu    Zn
Drill Hole           Zone      (m)     (m)     (m) (g/t)  (g/t)  (%)   (%)
--------------------------------------------------------------------------
DUB174W03              10  735.15  764.84   29.69  0.23  17.50 0.33 10.58
--------------------------------------------------------------------------
DUB179W01              10  963.10  973.54   10.44  9.29  34.43 0.78  7.24
--------------------------------------------------------------------------
DUB195W01(1)           20   814.5  825.68   11.18 11.08  76.67 2.49 19.90
--------------------------------------------------------------------------
DUB195W04              20  824.30  830.04    5.74  3.48  43.98 1.15 11.40
--------------------------------------------------------------------------
DUB199W01(1)           10  853.05  864.82   11.77  0.83  11.88 0.54 12.48
--------------------------------------------------------------------------
DUB 200W01(1)          20  844.25  852.00    7.75 11.00  80.03 2.63  5.33
--------------------------------------------------------------------------
DUB 200W02(1)          20  849.00  856.26    7.26 12.23  63.69 2.25  3.89
--------------------------------------------------------------------------
DUB205                 10  786.45  803.90   17.45  0.76  14.02 0.36 13.20
--------------------------------------------------------------------------
DUB206W03              20  833.63  853.95   20.32  6.95  54.50 2.66  3.11
--------------------------------------------------------------------------
DUB208                 10  834.24  848.83   14.59  0.74   9.03 0.28 14.20
--------------------------------------------------------------------------
DUB208W01(1)           10  830.95  845.41   14.46  0.55   8.18  0.2 11.58
--------------------------------------------------------------------------
DUB 213                20  896.28  939.15   42.87  1.01  10.22 0.53 15.68
--------------------------------------------------------------------------
DUB214                 20  781.04  793.87   12.83  3.02  32.81 1.13 16.54
--------------------------------------------------------------------------
(1) Denotes holes drilled for metallurgical samples

The zone coding in the above table corresponds to the name of zones in the NI 43-101 report. Collar coordinates and additional assay information can be retrieved at the company's website: www.hudbayminerals.com.

ABOUT LALOR

The Lalor deposit is located in the Chisel basin portion of the Flin Flon Greenstone Belt and is believed to be the largest VMS deposit found in this region to date. Lalor has an Indicated Resource of 3.4 MT 1.9g/t Au, 20.5 g/t Ag, 0.71%Cu, 8.82% Zn, and an Inferred Resource of 13.2MT 2.9g/t Au, 34.1g/t Ag, 0.70%cu, 8.19% Zn (for further details please see HudBay's NI 43-101 technical report dated September 19, 2008). Six drills are currently turning at Lalor with the intent to drill 18,000 metres between January and May 2009 to explore the gold mineralization further, and upgrade the VMS resource.

Lalor is approximately 15 km from HudBay's concentrator in Snow Lake, Manitoba, an area that is a significant past producer of gold. Garson Gold's New Britannia mine and mill, currently on care and maintenance, historically produced 1.43 million ounces of gold. The ongoing evaluation and exploration of the Lalor deposit is a primary focus for the company, as the Lalor deposit could be of significant financial benefit to HudBay and support substantial long term activity in the Snow Lake area.

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