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Reed Lake VMS/HudBay Joint Venture

Click here to view the 43-101 Technical Report on the Reed Deposit

VMS ANNOUNCES NI 43-101 MINERAL RESOURCE FOR THE REED LAKE DEPOSIT AT 2.55 MILLION TONNES @ 4.52% COPPER IN THE INDICATED CATEGORY/HUDBAY AND VMS DRILLING CONTINUES.

The NI 43-101 technical report is now filed on SEDAR, as of May 13, 2011. The report, titled “Technical Report, Reed Deposit, Central Manitoba, Canada” was prepared by Mr. Trevor Allen, P.Geo. and Robert Carter, P.Eng., Qualified Persons under NI 43-101, on behalf of HudBay Minerals Inc.

The new resource provides the basis to conduct a prefeasibility study. The project, in which HudBay has a 70% joint venture interest, represents a high grade near surface copper deposit that can be accessed via a ramp and ore can be trucked to the Flin Flon concentrator. Permitting and prefeasibility efforts will be conducted throughout 2011 with the expectation of a construction decision by year end.

Reed Copper Project (1-5)

Mineral Resource

Contained Metal

Category

Tonnes

Au (g/t)

Ag (g/t)

Cu (%)

Zn (%)

Au oz

Ag oz

Cu lbs

Zn lbs

Indicated

2,550,000

0.64

7.86

4.52

0.91

52469

644382

253572000

51051000

Inferred

170,000

0.38

4.55

4.26

0.52

2077

24868

25932400

1944800

Notes:

1)     CIM definitions were followed for the estimation of mineral resource. Drilling was included up to February 2011.

2)     Mineral resources are estimated at a CUEQ cut-off of 1.5% (CUEQ% equals Cu% + Zn% x 0.211 + Au g/t x 0.359 + Ag g/t x 0.006) and a minimum two metre core length.

3)     Long term $US metal prices of $900/oz gold, $15.00/oz silver, $2.50/lb copper and $1.00/lb zinc were used for the estimation of CUEQ. These prices may be conservative, considering the near-term commencement of operations.

4)     Metal recovery assumptions of 65% gold, 60% silver, 95% copper and 50% zinc were used for the estimation of CUEQ.

5)     Specific gravity measurements were taken on a portion of the samples, where actual measurements were not available either stoichiometric values were calculated or average SG values were used.

The figure below outlines the proposed drilling program for the Reed Lake JV and option properties for 2011:

The following figure indicates the mineralized zones projected to surface on total magnetic field for the Reed Lake project drilling: 

The following figure outlines the project locations in the Reed Lake area, including the Reed Lake Deposit, Super Zone Discovery and Cowan River Discovery. The figure indicates the mineral occurrences and VTEM EM anomalies on the total magnetic field image:

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