HudBay Minerals Inc. (HBM-T12.760.211.67%) says additional gold and copper discoveries at the Lalor deposit near Snow Lake, Man., reinforce confidence in its flagship growth project, which will be moving into a new phase later this year.

The Toronto-based mining and processing company, which has identified Lalor as its major growth initiative, said drilling has found notable amounts of gold, silver, copper and zinc in areas beyond previously identified zones.

“The discovery of new copper-gold mineralization clearly shows the prospective nature of the deposit and the potential for expansion of the current resource estimates,” said Warren Holmes, HudBay's interim chief executive officer.

Results from the previously identified Gold and Base Metal zones, as well as new mineralization discovered at a distance from the Base Metal zone, suggest there may be several copper-gold zones at Lalor, the company said.

Mr. Holmes aid the drilling results “reinforce our confidence that the current mine development plan will generate attractive returns.”

He added that development at Lalor is continuing “on an expedited basis” and the next phase of project development is expected to begin later this year when the company begins to sink a shaft into the underground mine.