Capital Costs
The total capital cost estimate
(includes direct and indirect costs) to design, construct and commission
the Rosemont facilities is estimated to be $782.4 million, excluding
$15.4 million for spare parts moved to working capital. The FS also
calculated total capital of new construction (includes direct and
indirect costs) for the sulfide only, which was estimated to be $725.6
million, excluding $14.8 million for spare parts moved to working
capital. All costs are estimated at an accuracy of ± 15%.
Operating Costs
The average life of mine operating
costs for the mining operation is $0.82 per ton mined. These costs
include drilling, blasting, loading, hauling, road and dump maintenance
and general mining. Mill process operating costs average $3.10/ton of
mill ore, which includes crushing and conveying, grinding and
classification, flotation and regrind, concentrate thickening,
filtration and dewatering, tailings disposal and mill ancillary
services. General and administrative costs are $0.24/ton of mill ore.
All costs are at an accuracy of ± 10%.
Next Steps
The FS marks the beginning of the
detailed development process for mining and production operations at
Rosemont. The Company is embarking on project financing discussions and
is currently funded for activities through the permitting phase. A NI
43-101 Technical Report on the FS results will be filed within the next
45 days under the Company’s profile on SEDAR at www.sedar.com, as well as at www.augustaresource.com.
Qualified Person
The FS and NI 43-101 Technical Report
were prepared by an integrated engineering team led by M3 Engineering
& Technology Corporation of Tucson, Arizona as the primary author of
the Technical Report. The Technical Report was conducted under the
overall review of Dr. Conrad Huss, P.E., of M3 Engineering &
Technology Corporation of Tucson, Arizona, an independent Qualified
Person under the standards set forth under NI 43-101.
Conference Call
Augusta will be hosting a conference call to discuss the results of the FS on Wednesday, August 29, 2007 at 11:00 a.m. EST (9:00 a.m. MT/8:00 a.m. PST). A listen-only webcast will be available on the Company’s website at www.augustaresource.com.
Conference Call Details
Toll Free Dial-in Number (within the US and Canada): 866-334-3876 International Dial-in Number: 416-849-4292
Webcast: http://eventcalls.com/console/console-login?active=yes Passcode: 0440286
Replay Dial-in: 866-245-6755 or 416-915-1035 Replay Passcode: 366113
ABOUT AUGUSTA RESOURCE CORPORATION -
Augusta is a mineral exploration and development company responsibly
advancing the Rosemont Copper project in Southern Arizona. The Company’s
Rosemont property is located in Pima County, approximately 50
kilometers southeast of Tucson, Arizona, and contains a potentially
world class open-pit copper/molybdenum/silver (“Cu/Mo/Ag”) deposit.
Augusta has a solid asset base, proven management team, and is committed
to becoming a mid-tier copper producer within five years. The company
is traded on the American Stock Exchange and the Toronto Stock Exchange
under the symbol AZC, and on the Frankfurt Stock Exchange under the
symbol A5R.
ABOUT M3 ENGINEERING AND TECHNOLOGY CORPORATION - M3
Engineering & Technology Corporation (M3) provides professional
EPCM services to the hard rock mining and cement industries. M3’s
largest project under current construction is the Goldcorp Minera
Penasquito poly-metallic mine in Zacatecas, Mexico with a capital cost
in excess of $1 billion. Successful past projects include Penoles
Madero, Newmont La Herradura, Frontera Copper Piedras Verdes, Pan
American Silver Alamo Dorado, Alamos Gold Mulatos, and Mitsubishi Cement
Long Beach Loadout. Historically M3 has provided design for some 7,500
projects and is now recognized as an industry leader in Feasibility
Studies and associated NI 43-101’s. For the Rosemont FS, Rex Henderson,
P.E., is serving as Project Manager, and Conrad Huss, P.E., Ph.D., is
serving as Principal Author. The latter is M3 Chairman of the Board.
Each man has some 40 years of experience in engineering, operations, and
construction.
For additional information please visit www.augustaresource.com or contact:
ON BEHALF OF THE BOARD OF DIRECTORS
“Gil Clausen”
______________________
Gil Clausen
President and CEO
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION
Certain of the statements made and
information contained herein and in the documents incorporated by
reference may contain forward-looking statements or information within
the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward looking statements or information within the meaning of the Securities Act (Ontario).
Forward- looking statements or information include statements regarding
the expectations and beliefs of management. Forward looking statements
or information include, but are not limited to, statements or
information with respect to known or unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements of the Company, or industry results, to be materially
different from any future results, performance or achievements expressed
or implied by such forward-looking statements or information.
Forward-looking statements or information are subject to a variety of
risks and uncertainties which could cause actual events or results to
differ from those reflected in the forward-looking statements or
information, including, without limitation, risks and uncertainties
relating to the Company’s plans at its Rosemont Property and other
mineral properties, the interpretation of drill results and the
estimation of mineral resources and reserves, the geology, grade and
continuity of mineral deposits, the possibility that future exploration,
development or mining results will not be consistent with the Company’s
expectations, metal recoveries, accidents, equipment breakdowns, title
matters, labor disputes or other unanticipated difficulties with or
interruptions in production and operations, the potential for delays in
exploration or development activities or the completion of feasibility
studies, the inherent uncertainty of production and cost estimates and
the potential for unexpected costs and expenses, commodity price
fluctuations, currency fluctuations, failure to obtain adequate
financing on a timely basis, the effect of hedging activities, including
margin limits and margin calls, regulatory restrictions, including
environmental regulatory restrictions and liability, the speculative
nature of mineral exploration, dilution, competition, loss of key
employees, and other risks and uncertainties, including those described
under “Risk Factors Relating to the Company’s Business” in the Company’s
Annual Information Form dated March 1, 2007. Should one or more of
these risks and uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from
those described in forward-looking statements. Accordingly, readers are
advised not to place undue reliance on forward-looking statements or
information. We do not expect to update forward-looking statements or
information continually as conditions change, and you are referred to
the full discussion of the Company’s business contained in the Company’s
reports filed with the securities regulatory authorities in Canada and
the United States.