VANCOUVER, BC, November 18, 2008 - Augusta Resource Corporation (TSX/AMEX: AZC) (“Augusta”
or the “Company”) has completed an update of proven and probable
reserves at its Rosemont Copper project near Tucson, Arizona, which now
total (including oxide and sulfide) 616.32 million tons of ore. This
represents an increase of 14% over the Bankable Feasibility Study
(“BFS”) released in August 2007. This announcement follows the latest
resource increase announced October 23, 2008, and is expected to result
in lower operating costs in the updated BFS being prepared for release
in January 2009.
2008 Rosemont Mineral Reserves (fully diluted)
| Classification |
|
|
Sulfides |
|
|
|
Oxides |
|
| Mtons |
NSR $/t |
Cu % |
Mo % |
Ag oz/t |
Mtons |
NSR $/t |
Cu % |
| Proven |
142.00 |
14.19 |
0.48 |
0.015 |
0.13 |
16.25 |
3.91 |
0.18 |
| Probable |
404.34 |
13.13 |
0.44 |
0.015 |
0.11 |
53.73 |
3.77 |
0.17 |
| Total |
546.34 |
13.41 |
0.45 |
0.015 |
0.12 |
69.98 |
3.80 |
0.17 |
Net Smelter Royalty (NSR) values are
based on metal prices of $1.75/lb Cu, $15.00/lb Mo, and $10/oz. Ag.
Mining reserves include 4% dilution.
The proven and probable sulfide mineral
reserves within the designed Rosemont ultimate pit total 546.34 million
tons grading 0.45% copper, 0.015% molybdenum and 0.12 ounces per ton
silver, a 53.61 million ton (11%) increase in sulfide ore reserves.
Included in the sulfide material is 13.25 million tons of mixed
transitional material containing sulfides and oxides, which will be
treated as sulfide and processed through the mill. Proven and probable
oxide reserves increased from 49.5 million tons grading 0.18% copper to
70.0 million tons grading 0.17% copper, an increase of 20.53 million
tons (42 %) in oxide ore reserves.
The ultimate pit contains 616.32 million
tons of mineral reserves and 1.23 billion tons of waste resulting in a
16% decrease in the strip ratio to 2:1 (tons waste per ton of ore) from
approximately 2.38:1 in the 2007 BSF. The mineral reserves were
calculated from an update of the block model from 20 new core holes and
the sampling of 10 previously un-sampled geotechnical holes. The new
reserve calculation does not affect the design plan or disturbance
footprint in the current mine plan of operations that is being reviewed
by the United States Forest Service (“USFS”) under the National
Environmental Policy Act (“NEPA”).
A National Instrument 43-101 Technical
Report on the updated mineral reserves 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
Augusta contracted Moose Mountain
Technical Services of British Columbia, Canada to estimate the open pit
reserves, a key component of a feasibility study update that is
currently in progress. The mineral reserve update was performed under
the direction of Mr. Robert Fong, P.Eng., of Moose Mountain Technical
Services. He is a registered professional engineer with the province of
Alberta and is an Independent Qualified Person under the standards set
forth by Canadian National Instrument 43-101.
ABOUT AUGUSTA RESOURCE CORPORATION -
Augusta is a base metals company focused on advancing the Rosemont
Copper deposit located near Tucson, Arizona. Rosemont currently hosts a
large copper/molybdenum reserve that may account for about 10% of US
copper output once in production in 2011 (refer to Augusta’s website for
further details). The exceptional experience and strength of Augusta’s
management team, combined with the developed infrastructure and robust
economics of the Rosemont project, will propel the Company to become a
solid mid-tier copper producer within three years. Augusta is traded on
the NYSE Alternext US (formerly 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 & 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 4, 2008. 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.