HudBay Minerals has intersected a zone of high-grade mineralization in the Pampacancha zone 2.5 km south of the planned open pit at its Constancia project in Peru’s southern highlands. A single drill hole in the Pampacancha zone intersected two main intervals of skarn mineralization, including 121.45 m of 1.62% copper, 13.62 g/mt silver, and 1.02 g/mt gold (2.4% copper equivalent) and 87.50 m of 0.46% copper, 2.30 g/mt silver and 0.22 g/mt gold (0.65% copper equivalent). The mineralization is open to the west for up to 350 m and to the south for up to 500 m. HudBay had three drill rigs active at the site as the end of June 2011.
A geophysical crew was testing resistivity and chargeability anomalies at the nearby Chilloroya South prospect, 3 km from the proposed Constancia open-pit. A total of 19 km of line geophysics is planned for completion in 2011, with the aim of generating exploration targets for the 2012 exploration program. HudBay has budgeted $9 million for exploration at Constancia during 2011.