Hudbay Minerals increases Snow Lake gold output forecast by 60%

Hudbay Minerals has announced an updated mine plan for its Snow Lake operations in Manitoba, Canada, significantly increasing its gold production forecasts. The company has raised its life-of-mine gold output estimate by approximately 60%, moving from the 1.8 million ounces projected in a 2021 technical report to a new forecast of 2.8 million ounces.

The updated plan extends the operation’s proven and probable reserve life by two years, reaching into 2043. Hudbay expects to produce an average of 185,000 ounces of gold annually between 2026 and 2030. This production will be supported by high throughput at the New Britannia mill and improved recoveries at the Stall operation.

CEO Peter Kukielski noted that the transition of Snow Lake from a zinc-focused operation to a major gold source has been transformative for the company. The expansion follows the acquisition of the Talbot and Rail deposits through the 2023 purchase of Rockcliff Metals, which increased the Snow Lake land package by over 250 percent. Total mineral reserves at the site rose 38 percent to 27 million tons, containing 2.0 million ounces of gold.