Emphasis was placed on a number of benchmarks including an operating cash flow before changes in non-cash working capital that grew to $58.3 million in the third quarter of 2011 from $25.6 million in the same period last year. Development at their Lalor property is well underway, with the ventilation shaft now sunk to the 190 metre level and the planned 3,200 metre access ramp currently advanced to 2,900 metres. Applications are in place for key development permits on their Joint Venture (with VMS Ventures) Reed copper deposit. As well as the disclosure that exploration drilling at their Peruvian Constancia Project's high-grade Pampacancha deposit continues to demonstrate the continuity of the deposit. A resource estimate on the deposit is expected by Q1 2012.

Into more detail, the release noted that the company reported a net loss of $41.1 million, or $0.23 per share, in the third quarter of 2011, compared to a loss of $0.01 per share in the third quarter of 2010. HudBay's operating cash flow, before changes in non-cash working capital, more than doubled to $58.3 million, or $0.34 per share, in the third quarter of 2011 from $25.6 million, or $0.17 per share, in 2010 mainly as a result of higher sales volumes and higher prices received for copper and gold.

"Our operating mines delivered very strong performance during the third quarter of 2011. With the transportation bottleneck in Manitoba resolved, our sales volumes have increased significantly, resulting in strong cash flows," said David Garofalo, HudBay's president and chief executive officer. "We also continue to execute well on our production growth objectives as Lalor advances to first production by the middle of 2012 and Constancia project engineering, optimization and exploration are expected to lead to a formal project decision by the first quarter of 2012. In addition, the submission of permit applications for the Reed copper deposit and continued pre-feasibility work on Back Forty give HudBay incremental growth opportunities."

In respect to the development at the Snow Lake Lalor Project, the company reports that site construction is proceeding well; with the ramp from Chisel North over to Lalor nearing completion and they expect their first underground drilling to take place in Q1 2012.

The release explained that the Lalor project has now gone over 693 days without a lost time accident. The company continues to make significant progress on the planned 3,200 metre access ramp at the site, having advanced close to 2,900 metres since the start of the project in December 2009. By the fourth quarter of 2011, the ramp is intended to extend to the 810 metre base of the ventilation shaft, which is now approximately 23% complete. By early 2012, diamond drilling from underground will commence for the first time at Lalor. Initial drilling will focus on delineating the first ore production and finalizing infrastructure development. Initial ore production up the ventilation shaft is expected by the middle of 2012.

As well, construction is progressing well on the main site, with the water treatment plant building completed and electrical and mechanical installation ongoing. The main shaft collar presink has been completed and the sinking galloway for the main shaft sinking was put in place mid-October. The bin house steel, waste bunker, and the hoist house are well advanced. Work over the next few months will be focused on the headframe steel erection and cladding. Detailed engineering around the design of the new concentrator is underway, with procurement expected to commence early in 2012.

Two drills continued to operate near the Lalor project, testing geophysical targets. HudBay says that these drills will continue to operate for the remainder of the year. The targets being tested are peripheral to the Lalor deposit and are part of a program exploring for new zones of mineralization.

With the exploration drilling that continues at the Peruvian Constancia Project; the company recently intercepted 49 metres with 1.83% copper and 0.95 g/t gold in a hole at Pampacancha. Two exploration drills continued at Pampacancha, south of a previously reported hole, which intersected two main intervals of mineralization, including 121.45 metres of 1.62% copper, 13.62 g/t silver and 1.02 g/t gold and 87.50 metres of 0.46% copper, 2.30 g/t silver and 0.22 g/t gold. Assays from Hole PO-11-086 intercepted 49 metres with 1.83% copper and 0.95 g/t gold, which demonstrates the continuity of high grade copper and gold mineralization in the Pampacancha deposit. HudBay expects to announce a NI 43-101 mineral resource estimate at Pampacancha in early 2012.

The company advises that their previously announced $116 million pre-construction program for Constancia is progressing well. The program contemplates early equipment procurement for long lead items, a resource model update, metallurgical review, pit optimization study, geotechnical and condemnation drilling, " the release read. "Front End Engineering and Design are well advanced and orders for the grinding mills and other long-lead time items are expected to be completed during the fourth quarter. The new resource model on the main pit is also being incorporated into the new project economic model, which will form the basis of the formal project commitment recommendation to our Board of Directors, expected in the first quarter of 2012."

In respect to the Reed Copper Deposit; applications for key development permits for the deposit were submitted to the Manitoba government in the third quarter. Approval of these permits could allow for early site development. A preliminary economic assessment study is expected to be completed in the fourth quarter.

Two exploration drills have been operating within three kilometres of the Reed deposit, targeting regional geophysical anomalies. The drills also followed up on the intersection in Hole RLE006, which intersected 7.18 metres of 7.44% copper. These results included 3.95 metres of 9.31% copper, 1.87% zinc, 3.59 g/t gold and 35.53 g/t silver from Hole RLE021 and 4.15 metres of 2.16% copper, 0.18% zinc, 0.71 g/t gold and 8.01 g/t silver from Hole RLE022. Drilling will be shut down during October but will resume drilling once winter conditions allow access to the area.

Also affecting the company's bottom line, HudBay completed the sale of 100% of the company's interest in the Fenix ferro-nickel project in Guatemala on September 9, 2011. It has been presented as a discontinued operation. Upon completion of the sale, HudBay recognized a loss on disposal of $22.5 million, including accumulated foreign exchange losses transferred from the foreign currency translation reserve within equity to the income statement. HudBay has also disposed of its Zochem Inc. subsidiary for cash proceeds of approximately US$15 million and recognized an impairment loss of $5.9 million ($5.0 million after-tax) as a result.