TUCSON, AZ, October 23, 2007 -
Augusta Resource Corporation (TSX/AMEX: AZC) (“Augusta” or the
“Company”) is pleased to announce it will embark on an exploration
program in the Narrangansett Zone near its Rosemont
copper-molybdenum-silver (“Cu-Mo-Ag”) orebody near Tucson, Arizona. The
program will combine airborne and ground-based geophysical surveys with a
minimum of 15,000 feet (4,570 meters) of diamond drilling that will:
target a potential 50-100 million ton
conversion of waste to ore from the northern part of the existing
Rosemont open-pit minable reserve;
search for a potential 10 million tons
of deeper high-grade material minable by underground methods; and
identify any additional, buried higher grade targets that may exist on
the larger Rosemont property.
Augusta’s recent geological mapping and
sampling taken around the Rosemont orebody has identified several very
promising new exploration targets. The surface work, integrated with
drill results from both historical drilling and Augusta’s recent
drilling, has significantly advanced the understanding of fault
displacements on rock units, rock alteration and mineralization. These
advances 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.
Presently at Rosemont, there exists only
a single historical diamond drill hole (“DDH”) that explored these rock
formations within the interpreted western faulted extension, 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 located within the Abrigo and
Martin Formations. Augusta’s initial results of continuous chip line
sampling of the oxidized material in these historical open-pit workings
averages up to 1.3% Cu over 195 feet (59.4 meters) true width - results
indicative of attractive Cu grades in deeper sulfide mineralization.
Augusta’s Vice-President of Exploration,
Mike Clarke, is pleased with the recent exploration results from the
Narrangansett Zone near Rosemont. He says, “Lithological and historical
considerations indicate very promising exploration potential for
Rosemont’s apparent western faulted extension. The extension encompasses
the highly prospective Abrigo and Martin Formations that were exploited
historically in underground mines elsewhere in the state of Arizona.”
He added, “These carbonate rocks were the favored hosts of high-grade
mineralization yielding upwards of five percent copper at such mines as
Superior and Bisbee.”
Augusta plans to carry out a
ground-based geophysical survey combining induced polarization (“IP”)
and natural source audio-frequency magnetotellurics (“NSAMT”) surveys to
refine the new drilling targets. A subsequent minimum of 15,000 feet
(4,579 meters) of diamond drilling will focus on the discovery of
high-grade underground resources in this exciting new zone.
Much of Augusta’s claim block is covered
with Mesozoic sedimentary rocks that, because of their relatively poor
susceptibility to mineralization, could mask deeper mineralization.
Augusta has contracted EDCON-PRJ of Colorado to carry out a
helicopter-supported aeromagnetic survey covering approximately 21
square miles (53.7 square kilometers) in a search for indications of
buried mineralization. Follow-up ground work will be carried out on any
anomalies discovered by this survey.
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. 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:
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.