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HudBay Earns 51% Joint Venture Interest in Aquila Resources' Back Forty Project
TORONTO, ONTARIO, Sep 10, 2010 (Marketwire via COMTEX News Network) -- HudBay Minerals Inc. ("HudBay") (TSX:HBM) announced today that, pursuant to the terms of a Subscription, Option and Joint Venture Agreement with Aquila Resources Inc. ("Aquila") (TSX:AQA)(FRANKFURT:JM4A), it has exercised its option to earn a 51% joint venture interest in Aquila's Back Forty Project in Michigan's Upper Peninsula. Pursuant to the agreement, HudBay was obligated to expend US$10 million on the project in order to earn its 51% interest. HudBay will act as operator of the Back Forty joint venture and can increase its ownership interest in the project to 65% by completing a feasibility study and submitting a mine permit application to the State of Michigan.

Following recent encouraging drill results at the Back Forty Project (see Aquila's June 15, 2010, April 2, 2010 and December 9, 2009 press releases), exploration at the property is ongoing and an updated National Instrument 43-101 ("NI 43-101") mineral resource estimate is underway with targeted completion by the end of 2010. The updated resource estimate will support the preparation of a feasibility study and an associated mine permit application, which is now anticipated to be submitted in the fourth quarter of 2011.

"We are encouraged by ongoing progress at the Back Forty Project and are pleased to have reached this milestone in our relationship with Aquila Resources," said David Garofalo, HudBay's president and chief executive officer. "The Back Forty Project is an excellent fit with our strategy of acquiring and developing VMS and porphyry deposits with strong exploration potential in mining friendly jurisdictions."

The Back Forty Project contains an advanced exploration-stage volcanogenic massive sulfide ("VMS") deposit containing gold, zinc, copper and silver. A NI 43-101 compliant resource estimate announced on January 15, 2009 by Aquila includes 8.5 million tonnes in the measured and indicated category and an additional 1.2 million tonnes in the inferred category. The project also includes a significant exploration land package of approximately 9,600 acres, which will allow HudBay to use its award-winning exploration techniques for VMS deposits.


SOURCE: HudBay Minerals Inc.


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