TUCSON, AZ, July 12, 2007 – Augusta
Resource Corporation (TSX/AMEX: AZC) (“Augusta” or the “Company”) is
pleased to announce it has formally filed the comprehensive Plan of
Operations (the “plan”) for the proposed Rosemont Copper project with
the United States Forest Service. This detailed plan for Augusta’s
Rosemont Copper project includes progressive design, conservation and
sustainability initiatives.
“We have consistently promised a mine
development that combines innovation, conservation and economic
opportunity – and we are delivering on that promise,” said Gil Clausen,
President and CEO of Augusta. “In addition to adding water to Southern
Arizona, our Plan of Operations commits us to water recycling,
reclamation starting in the first year of production, and a
multi-million dollar endowment to support community projects within the
region.”
Rosemont Copper’s detailed submittal
outlines the plan to construct, operate and reclaim the Rosemont Copper
mine. Once approved, the final Rosemont Plan of Operations becomes a
binding document that assures the plan’s commitments, including
reclamation and closure funding guarantees. Highlights of the plan
include:
•Significant Economic Benefits – The Rosemont Copper project will produce more than 230 million pounds of copper per year. Rosemont Copper alone will produce 10 percent of the entire U.S. copper production for 20 years.
About 500 high-paying direct jobs, as well as at least 1,000 indirect
jobs will be created, adding over $500 million in local payroll over the
mine life and $1.4 billion in goods and services, in addition to local,
state, and federal tax revenue.
•Water Conservation –
The Rosemont design avoids impacts to the Davidson Canyon and Cienega
Creek watershed. Central Arizona Project water is already being
purchased and stored in advance. Rosemont will add to the local aquifer
more water than it will use, leaving a five-percent net water gain in
the community. By the end of this year, a supply of water will have
been stored sufficient to sustain the operation for three years. In
addition, new water conservation and recycling techniques at Rosemont
will save 50 to 60 percent of the total water used in traditional
mining.
•Concurrent Reclamation – Reclamation will begin within the first year of mine operation and
will feature state-of-the-art practices. They include greenhouse
studies for optimum revegetation, cattle use to prepare the seedbed for
replanting, and construction of perimeter buttresses to stabilize soil
and shield visual impact from state highway SH 83. Only a small portion
of the final pit configuration will be visible from the highway.
•Community Conservation – At the end of the estimated 20 years of production, Rosemont Copper will leave open space and conservation easements to the community in perpetuity. In addition, the project will endow funds to support local projects for generations to come.
Arizona, the Copper State, produces 65
percent of the United States' supply of copper on only a quarter of one
percent of the state’s land. Copper is increasingly important,
particularly with growth in sales of energy-efficient products, hybrid
cars and solar energy systems. Rosemont Copper will produce copper,
molybdenum and silver for 20 years in a remote area of Pima County west
of Highway 83. The Rosemont property has had a long history of ranching
and mining activity dating back to the 1800s.
Now that Rosemont’s Plan of Operations
has been submitted to the U.S. Forest Service, the Company will move to
the next step for environmental permitting in Arizona. Based on their
review of the plan, the U.S. Forest Service is expected to initiate the
Environmental Impact Statement, a process that takes 12 to 18 months to
complete.
The comprehensive Plan of Operations will be available on the Augusta website at www.augustaresource.com within 10 days. To obtain an immediate copy please contact Marlo Hamer-Jackson at the below contact details.
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.
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.