HudBay stock soars on copper, gold find

New discovery at Lalor site

Last Updated: Tuesday, September 22, 2009 | 12:17 PM ET CBC

HudBay Minerals Inc. has found evidence of a major new copper and gold deposit at its Lalor site in Manitoba, the mining firm said Tuesday.

Three-month stock chart for HudBay Minerals Inc. (CBC)

Beneath a previously announced zinc find near HudBay's Snow Lake concentrator in the Flin Flon Greenstone belt, initial tests found 13.35 grams per tonne of gold and 5.3 per cent copper.

"The copper and gold intersection ... is among the best I have seen in nearly 40 years in the mining business," HudBay president Peter R. Jones said in a statement.

Investors reacted with glee to the news, as HudBay shares were up more than 16 per cent to nearly $11 at midday on Tuesday.

Lalor is the focus of the company's stated aim of reaching three million contained ounces of gold.

The company also plans to release an update on zinc reserves at the Lalor site by October, it said Tuesday.