TUCSON, AZ, December 5, 2007 -
Augusta Resource Corporation (TSX/AMEX: AZC) (“Augusta” or the
“Company”) is pleased to announce it has started drilling in the
Narrangansett Zone near its Rosemont copper- molybdenum-silver
(“Cu-Mo-Ag”) orebody near Tucson, Arizona. The 15,000 feet (4,570
meters) diamond drill program is part of an exploration program
announced in October 2007, which also includes airborne and ground-
based geophysical surveys.
Augusta’s recent geological mapping and
sampling taken around the Rosemont orebody show that faulting has
apparently displaced the yet-unexplored western extension of the
Rosemont Cu-Mo-Ag deposit approximately 4,500 feet (1,400 meters) to the
north. To date only one historical diamond drill hole (“DDH”) exists
within this part of the existing Rosemont open-pit, and that short hole
(170 feet, 51.8 meters total depth) averages 0.76% Cu over its final 86
feet (26.2 meters). North of this DDH, and very encouraging for the
discovery of additional high-grade mineralization, is the historical
Narrangansett mine that exploited high-grade oxide Cu deposits in a
series of open- pit workings. As outlined in a prior release in October,
Augusta’s initial results of continuous chip line sampling in these
historical workings averaged up to 1.3% Cu over 195 feet (59.4 meters)
true width - results indicative of attractive Cu grades in deeper
sulfide mineralization. The objectives of the planned program are to
identify deeper high-grade underground targets and to potentially
convert 50-100 million tons of waste to ore from the northern part of
the existing Rosemont open-pit minable reserve.
The ground-based geophysical surveys
will combine induced polarization (“IP”) and natural source
audio-frequency magnetotellurics (“NSAMT”) surveys to refine the new
drilling targets. The Company has now firmed up schedules relating to
the geophysical work and is expecting to get started in the next few
days. In addition, Augusta has received the go ahead from the US Forest
Service to commence a helicopter-supported aeromagnetic survey covering
approximately 21 square miles (53.7 square kilometers) in a search for
indications of buried mineralization. The Company has contracted
EDCON-PRJ of Colorado and is expecting to have the equipment in place to
carry out the survey in January.
Augusta is also pleased to announce the
results of an independent public opinion poll released earlier this
week, reporting a majority of Tucson-area residents would support a new
copper mine planned for the east side of the Santa Rita Mountains, as
long as they are assured the Company will build and operate it
consistent with the plan it has put forth.
“The Company has been working hard to
educate the community about our plan of operations, and based on
feedback we’ve learned that people seemed to become more supportive of
the project once they knew the details. We wanted to do some formal
research to measure the level of support based on understanding and
belief that the mine would be operated in accordance with the plan,”
said Jamie Sturgess, Vice-President, Projects and Environment for
Rosemont Copper Company. “We commissioned Marketing Intelligence of
Tucson to conduct this research independently.”
The telephone survey was statistically
representative of residents from the Greater Tucson area including those
communities surrounding the proposed mine, and had a sampling error of
plus or minus five percent. The results showed that if the concerns of
local residents are addressed as the Company has committed to do, a
total of 64.5 percent of respondents were either very favorable or
somewhat favorable of the Rosemont mine, with 10.8 percent saying they
were neutral, and 24.7 percent reporting they were either somewhat or
very unfavorable.
“We see the development of Rosemont as
an important opportunity to integrate modern progressive technologies
from the very beginning,” Sturgess said. “I’m very pleased that people
understand what we’re trying to do, and look forward to working with the
community during the public review process.”
Qualified Person
These above exploration results have
been prepared under the guidance and supervision of Mike Clarke, VP
Exploration for Augusta Resource. Dr. Clarke, who is the designated
Qualified Person, has a Ph.D. in Geology, over thirty years of
international industry experience and the ability and authority to
verify the data herein. The historical diamond drill hole quoted above
was completed in 1968 and was analyzed by Anaconda Mining’s internal
laboratory in Arizona.
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 Cu-Mo-Ag deposit. With a strong ownership profile
(Harbinger Capital 19.9%; Management 18%; Sumitomo Corporation 8.7%),
solid project economics (NPV 5% $1 billion unlevered/after tax), and
proven management team, Augusta is committed to becoming a mid-tier
copper producer within the next four 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:
For technical information about the Marketing Intelligence survey contact: Chris Baker, Senior Research Associate
Phone: 520-321-0110 or Fax: 520-321-1649 chris@mktg-intelligence.com
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.