Hudbay enters exploration agreement for satellite properties near Constancia mine in Peru

The Caballito property, located approximately 3 km northwest of Constancia, is a 120-hectare concession block and is the site of the former Katanga mine, which was in intermittent copper oxide production from the early 1900s all the way to the early 1990s.

“We are very pleased to have reached an exploration agreement with the Uchucarcco community on these highly prospective properties,” CEO Peter Kukielski said in a news release. “Historic drilling at Maria Reyna indicates attractive grades over wide intersections starting at surface, and the past-producing Caballito property has the potential to add higher-grade copper mineralization to our Constancia operations.”

Hudbay expects to commence early field exploration activities soon, and finalization of the Uchucarcco agreement is anticipated to increase community investment costs in the second half of 2022. The planned exploration programs at Maria Reyna and Caballito have been prepared using information from the company’s geophysics surveys in the region and the historical drill intersections.

The Maria Reyna and Caballito properties were acquired by Hudbay in 2018, along with the nearby Kusiorcco property. They are all situated within the regional mineralization trend of the Andahuaylas-Yauri belt and provide the company with a large block of mineral rights within trucking distance of the Constancia facilities.

The Constancia copper operation in Peru first went online in 2014, beginning with the Constancia open pit and then the nearby Pampacancha satellite pit seven years later. Last year, Constancia produced 77,813 tonnes of copper, 50,306 ounces of gold and 1.97 million ounces of silver.