Rosemont Copper Project Moves Ahead

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Rosemont Copper Company, a subsidiary of Canadian-based Augusta Resource Corporation (TSX/NYSE:AZC), acquired 7.8 acres for $600,000 at 18500-18590 Old Nogales Hwy in Tucson from John J Thomas and Sutah J Harris, for utilitarian use. Located between a gravel pit and the Green Valley water recharge station, the property included four older buildings (built 1957-1972) totaling 5,065 sq. ft., but was purchased for its land value and for use to support access to power switching and water pipeline stations to the copper mine, about 30 miles south of Tucson in the Santa Rita Mountains, partly on US Forest Service land and therein lies the delays.

Over seven years have passed since Rosemont started the approval process for the project, and it has now received seven of the eight major permits needed, all but one to begin construction. Earning a license to mine in Arizona is a complex process, with years of study, analysis, paperwork and permitting before proceeding to construction. Get the federal government involved and the process becomes even more complex and even longer. Rosemont’s commitment and perseverance has paid off however, and the Company is optimistic this last major permit, the Clean Water Act Section 404 Permit from the US Army Corp of Engineers, will be received by the Fall if not by midsummer.

Although Rosemont Copper promises new environmental standards that employ water conservation and recycling techniques that are the first-of-their-kind in Arizona for mining, permits have come slowly. The Company has tried to meet the public challenges head-on by open disclosure and transparency in its dealings with the public. Rosemont continues to grow supporters from former opponents, for its much needed job creation that would jump-start the economy in the region. It continues to offer tours of the site twice a week and host numerous public information meetings.

During the mines’ first 20 years, 450 annual direct and an estimated 1,700 indirect jobs would be created locally, 2,900 created at the state level and 4,200 national jobs. It is predicted that the mine will have an annual economic impact of $701-million to Pima, Cochise and Santa Cruz counties, a $900-million impact to Arizona and $1.3-billion impact to the United States.

When finally in production, the mine will account for about 10% of the US copper production. With proven and probable reserves of 2.67 Mt (5.9 billion pounds), the mine is expected to produce 110 kt/a (243 million lbs/year) of copper, 2.4 kt/a (5.4 million lbs/year) of molybdenum and 90.2 t/a (2.9 million oz per year) of silver.

Construction will take about 22 months from final approval, with production expected in 2015, without further unforeseen delays.

Bill McReynolds of Genesis Real Estate & Management in Tucson handled the transaction for seller and buyer.

McReynolds can be reached at (520) 247-8077. Rosemont is at (520) 495-3500.

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