The deposits are located in the Laramide belt, a major porphyry province that includes a number of other world class deposits. Mesozoic subduction and associated magmatism and tectonism in the southwestern United States and northern Mexico, generated extensive and relevant porphyry copper mineralization.

The Project deposits consists of copper-molybdenum-silver mineralization hosted quartz monzonite porphyries and in skarn that formed in the Paleozoic rocks as a result of the intrusion of quartz latite to quartz monzonite porphyry intrusions. Genetically, skarns form part of the suite of deposit styles associated with porphyry copper centers. The skarns were formed as the result of thermal and metasomatic alteration of Paleozoic carbonate and to a lesser extent of Mesozoic clastic rocks. Near surface weathering has resulted in the oxidation of the sulfides in the overlying Mesozoic units at the East deposit and in the near surface Paleozoic units at the Copper World deposits.

Mineralization occurs mostly in the form of primary (hypogene) copper, molybdenum and silver bearing sulfides, found in stockwork veinlets and disseminated in the altered host rock at depth. Near surface, along structural zones, and in quartzite units oxidized copper mineralization is present. The oxidized mineralization occurs as mixed copper oxide and copper carbonate minerals. Locally, enrichment of supergene chalcocite and associated secondary mineralization are found in and beneath the oxidized mineralization.

Mineralization occurs as both copper oxides and sulfides in skarns and porphyry intrusives. A 3D model of five mineralization domains was completed based on analytical data including the hole acid soluble data and Quemscan analysis collected by Hudbay including East, Bolsa, Broadtop Butte, West and Peach-Elgin.

EAST DEPOSIT
The East deposit is approximately 4,000 feet (1,200 meters) in diameter and extends to a depth of approximately 2,500 feet (750 meters) below the surface. The main fault systems partially delimit copper mineralization, dividing the deposit into major structural blocks with contrasting intensities and types of mineralization. The north-trending, steeply dipping Backbone Fault juxtaposes marginally mineralized Precambrian granodiorite and Lower Paleozoic quartzite and limestone to the west (Back Bone Footwall Block) against a block of younger, well-mineralized Paleozoic limestone units to the east (Lower Plate).

Oxidized copper mineralization is present in the upper portion of the deposit. The oxidized mineralization is primarily hosted in Mesozoic rocks but is also found in Paleozoic rocks on the west side of the deposit and deeper along some faults. The oxidized mineralization occurs as mixed copper oxide and copper carbonate minerals. Locally, enrichment of supergene chalcocite and associated secondary mineralization are found in and beneath the oxidized mineralization.

BOLSA
Drilling at Bolsa has defined a mineral resource of approximately 3,000’ along strike, generally 250 feet to 850 feet along width, over a depth of 450 feet to 850 feet. Mineralization is hosted almost exclusively in the lower Paleozoic Bolsa quartzite and Abrigo and Martin Limestone Formations within the Backbone Domain.

Mineralization is truncated to the west at the disconformity with generally unmineralized granitic rocks, although weaker secondary copper oxide mineralization does occasionally occur on fractures in the granitic rock The eastern boundary is less distinctly defined by structure or stratigraphy. Mineralization in the Bolsa Quartzite is nearly entirely of non-carbonate copper oxide while composed of a mix of copper oxides and sulfides in the altered skarn in the Abrigo and Martin Formations.

BROADTOP BUTTE
Drilling at Broadtop Butte has defined a mineral resource 2500 feet along the east-northeast direction by 1600 feet across strike and up to 700 feet thick. Mineralization is hosted predominantly by quartz-monzonite porphyry, including an east-northeast striking brecciated zone. Skarns hosted in the Arkose Group and Glance group to the south of the quartz monzonite, and in the Glance Group, Scherrer Formation and Epitaph Formation to the north, east and below the quartz monzonite also host mineralization. Mineralization appears to be truncated on the east by the Backbone Fault. The extent of mineralization in all other directions does not appear to have strict stratigraphic or structural boundaries but seems to be related to the distance from the quartz monzonite porphyry and its related skarn alteration halo. Mineralization in the un-brecciated quartz monzonite porphyry is dominated by sulfide mineralization; however, oxide copper mineralization is dominant in the breccia pipe portion of the deposit. Skarns at depth to the north and northeast of the quartz monzonite porphyry are relatively narrow, but with high-grade sulfide.

WEST DEPOSIT
The West deposit mineralization strikes at approximately 160°, parallel to the Backbone Fault for 3200 feet, ranging 400 feet to 1100 feet wide, and 300 feet to 700 feet deep. Mineralization is hosted by Paleozoic quartzites, and skarn altered carbonate units on both the footwall and hanging wall of the Backbone Fault domain. The strongest mineralization is within the Backbone Fault structural zone and is dominated by sulfide mineralization, The Hanging Wall of the main Backbone structure has lower grades and is oxide dominated. The major host stratigraphies at the West deposit are the early Paleozoic Bolsa and Abrigo Formations (Backbone Domain), and the Devonian Martin and Pennsylvanian Horquilla Formations (Hanging Wall). Mineralization nearly reaches the surface on the west slope of the low mountain that hosts the majority of the West deposit. Eastward no distinct structural or stratigraphic limit mineralization.

PEACH-ELGIN
The Peach Elgin mineralization sits in the Hanging wall of the low-angle Helvetia Thrust Fault which hosts several historically mined deposits including the Peach, Elgin, Mohawk, Old dick, and Heavy Weight mines. Drilling both historic and recent have connected much of the Helvetia Thrust hanging wall mineralization.

Peach is entirely in variably skarn altered sedimentary hosts and is cut by moderately shallow east dipping faults producing gaps in the stratigraphic sequence. Host stratigraphies include Bolsa, Abrigo, Martin, Escabrosa, Horquilla, and Epitaph. The Peach mineralization hosts an irregular intertwined mix of copper oxides and copper sulfide dominated units.

The Copper World deposits consist of seven deposits, including Bolsa, Broad Top Butte, West (formerly referred to as Copper World), Peach, Elgin, South Limb and North Limb. The Rosemont deposit has been renamed the “East” deposit.

The mine will be a traditional open pit shovel and truck operation with bench heights of 50 and 100 foot, and 255- ton capacity haul trucks for material and waste movement.

Mining operations will use large-scale mine equipment including: 10-5/8-in. diameter rotary blast hole drills, 44 yd3 class hydraulic shovel, 36 yd3 front-end loader, and 255-ton capacity off-highway haul trucks.

The Peach-Elgin, Broadtop Butte and West pits will measure 5,600 ft on average in diameters with an average depth of 520ft while the East final pit size will measure approximately 8,200 ft in diameter and have a depth of approximately 2,250 ft. Other facilities that support the project are the Process Plants, Leach Pad, Waste Rock Facility (WRF) and Tailings Storage Facility (TSF).

The mining sequence follows a two-phase approach, where the first phase considers the exploitation of the pits within requiring only state and local permits of operation for 16 years (plus one year of pre-stripping). During this period, all waste, tailings and leach pads are disposed within the limits of Hudbay’s private land properties. After this first phase, it is assumed that all necessary permits have been obtained in order to mine and deposit tailings and waste on Federal lands.

The mine production plan contains 1,486 million tons of mill and ROM leach feed and approximately 2,437 million tons of waste, yielding a life of mine stripping ratio of 1.64 (including pre-stripping material). The mine has a 45- year life (including one-year of pre-stripping), with economic material to be delivered to both, a processing flotation plant, and a leach pad facility, based on the highest net value of the two potential processing routes. Mine operations are scheduled for 24 hours per day, 365 days per year.

Pit design parameters
East Pit
Bench height - 50 -100ft;
Bench face angle - 55 -70° ;
Cat bench interval - 25 – 50ft;
Road width (including ditch & safety berm)- 110ft;
Nominal road gradient - 10%;
Minimum pushback width - 250ft.

Copper World Pits
Bench height - 50ft;
Bench face angle - 65°;
Cat bench interval - 28.5ft;
Road width (including ditch & safety berm)- 110ft;
Nominal road gradient - 10%;
Minimum pushback width - 250ft.
;
Bench face angle - 55 -70° ;
Cat bench interval - 25 – 50ft;
Road width (including ditch & safety berm)- 110ft;
Nominal road gradient - 10%;
Minimum pushback width - 250ft.

- subscription is required.

The processing plant consists of an oxide leach and solvent extraction and electro-winning (SX/EW) facility, a sulfide concentrator, a concentrate leach facility, and an acid plant. The capacity of the sulfide concentrator during Phase I is 60,000 tons per day of sulfide feed while the tonnage of Run of Mine (ROM) leach feed is 20,000 tons per day. In year 17, the concentrator throughput will increase to 90,000 tons per day. An expansion is planned to allow for the increase tonnage during Phase II.

FLOTATION
Screened cyclone overflow serves as feed to the bulk flotation section. During Phase I, the bulk flotation circuit consists of two flotation lines each with three B8500/12 Jameson Cells.
For Phase II, the flotation plant is expanded to include a third line of B8500/12 Jameson Cells to handle the additional 30,000 tons per day of mill feed. An additional regrind mill is not required as the M10000 IsaMill™ is sufficiently size for the Phase II throughput.
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