HBM needs to lock up more reserves to remain viable.

http://www.canada.com/business/fp/st...

excerpt

HudBay was an oft-rumoured takeover target during Mr. Jones’ last stint as CEO, which ended abruptly when he was forced out in January of last year. The biggest deterrent to a takeover at the time was HudBay’s short reserve life in Manitoba, which means that there is little upside growth for a buyer.

That remains one of the company’s biggest problems, as its production is declining this year and it has little growth potential outside of the Lalor Lake discovery in Manitoba.

If Reed Lake has the juice, this is good for us.

gd