Kathy Arnold Special To The Arizona Daily Star | Posted: Thursday, May 10, 2012 12:00 am

http://azstarnet.com/news/opinion/mailbag/rosemont-mine-will-protect-water-despite-opponents-scare-tactics/article_10431666-1f4e-527d-b657-d76233809816.html

Adequate and clean water are vital to life in Southern Arizona, as are a job and the ability to feed your family. I say this as a 24-year Southern Arizona resident, and as one who has the honor to work for one of the most responsible companies in the nation.

I'm referring to Rosemont Copper, headquartered right here in Tucson.

Rosemont Copper is setting new standards for environmental stewardship, community leadership and employment.

That's why it frustrates so many here to see those zealously focused on stopping Rosemont at all costs - those willing to kill the jobs that will help sustain our economy for more than a generation by resorting to fear mongering and innuendo based upon incomplete or incorrect information about Rosemont.

Recently a group consisting of the same few familiar Rosemont Copper opponents, and yet sporting a new name - the "Community Water Coalition" - is attempting to scare people with the same tired tactics.

It's important to revisit the facts.

Rosemont is setting new standards for water conservation and water planning. By using technological advances, Rosemont has developed a plan that uses half the water of conventional mining on a pound-per-pound basis.

Contrary to statements made by opponents, mines are subject to rules and regulations of the 1980 Groundwater Code.

As part of the code, each Active Management Area (AMA) has a five-member, governor-appointed Groundwater Users Advisory Council that provides recommendations on the ground-water management programs, plans and policies within the management area.

These management plans reflect the evolution of the Groundwater Code and contain rigorous management requirements for agricultural, municipal and industrial water users, including mines.

Rosemont exceeds all standards set out in the management plans in terms of water management and conservation.

Before we've taken any water, Rosemont has used existing groundwater programs to recharge 45,000 acre-feet of water into the Tucson AMA - enough for 105,000 homes for one year. This amount represents approximately eight years of Rosemont's permitted water use.

The largest amount of drawdown will be in the vicinity of Rosemont's open pit at the end of mining. As you move away from the pit, those changes in groundwater elevation are reduced to less than a foot, which is less than the natural groundwater fluctuation. Over time impacts do not increase but come into equilibrium.

We are dedicated to protecting well owners. Rosemont has offered an unprecedented well-protection plan - not a buyout - to local well owners along Highway 83, similar to a program initiated near Sahuarita.

Rosemont recently received an aquifer protection permit that assures water quality at wells along the boundary of the operations. This means there is no threat from pollutants in the Tucson aquifer.

Mines throughout the nation have become major tourist attractions. Already tourists and researchers are visiting Rosemont, and we have given more than 6,000 tours over the last five years. I would venture that every one of those people either bought something or ate something, income counted in our county's tourism figures.

Rosemont Copper has proposed an operation that is sustainable, protective of the environment and uses the best technology available to provide 2,100 people with ongoing employment, tax dollars to help support our infrastructure and schools, as well as innumerable additional opportunities to many others. I, and the thousands of employees, contractors, consultants and supporters have worked hard to make this project a model for the future.

Kathy Arnold is vice president of environmental and regulatory affairs for the Rosemont Copper Co.

By: Salma Tarikh  2012-04-23

http://www.northernminer.com/news/augusta-moves-rosemont-forward/1001086056/ 

Augusta Resource (AZC-T, AZC-X) is slowly but surely pushing its Rosemont project in Arizona towards production by securing the sixth major permit needed to start building the primarily copper project located in Pima County, 50 km southeast of Tucson.

The junior recently received an aquifer protection permit from the state’s department of environmental quality. This permit ensures the groundwater is protected by setting operating standards and controls.

Chief operating officer Rod Pace comments in a statement that the permit “clearly shows that our project stands up to thorough and intense scrutiny.” He adds that it puts the company “one major step closer to completing the permitting process and starting construction” at Rosemont, which is expected to create 2,900 jobs in Arizona and inject US$1 billion a year into the U.S. economy.

“Since 2008, the Rosemont project has been scrutinized by local, national and international interests including public, private, agency and tribal interests,” James Sturgess, Augusta’s senior vice-president of corporate development and government affairs, explains in an email.

“Throughout this process, the robust project economics, stable long-term copper production and selection of the most progressive of modern technology have withstood investigation,” he continues.

While analysts see the recent permit as an “incremental positive” to the project, they note the company has the section 404 Clean Water Act permit outstanding, which is issued by the U.S. Army Corps of Engineers (ACOE).

In January 2012, following the public comment period for the draft environmental impact statement (EIS) and the 404 permit, the U.S. Environmental Protection Agency’s (EPA) regional office in San Francisco advised ACOE that the Rosemont draft EIS should be further reviewed by both agencies’ headquarters. 

Some of the concerns EPA cited include the “hydrological impacts from the project and biological assessments to determine whether there is a risk to listed or endangered species,” writes BMO Capital Markets’ analyst John Hayes in a note to clients.

“Consequently, the 404 permit is in the midst of a conflict resolution process between ACOE and the EPA,” he observes. “It is unclear how long this process will take to resolve.”

Sturgess says in response to EPA’s comments the company is preparing an update of the Rosemont regional water studies with an integrated analysis for the two agencies and the U.S. Forest Service (UFS). It also intends to include this update in its final EIS. 

Augusta expects the 404 permit and an air quality permit by the third quarter of this year. Around this time, it also anticipates getting the UFS’ record of decision for Rosemont.

Construction at the project is planned by year-end, with production set for 2014.

The company planned getting the project up and running by 2013, but project delays pushed the timeline back.

As a result, Laurentian Bank analyst Christopher Chang revised his timeline for the permits and development in January 2012. He forecasts that Rosemont will complete the permitting process by mid-2013 and start production in mid-2015, noting that this would be a one-year delay from the company’s official timeline.

Once all the permits are in hand, which Chang says is the biggest overhang for the company’s share price, he believes Rosemont could garner some takeover attention.

“Augusta represents a very attractive acquisition target due to its relatively large resource size, low political risk jurisdiction, excellent local infrastructure and low capital intensity,” he says.

According to an updated 2009 feasibility study, the project is envisioned as an open-pit mine producing 220 million lbs. copper, 4.7 million lbs. molybdenum and 2.4 million oz. silver a year over a more than 21-year mine life. 

Applying an 8% discount rate, it is projected to have a US$3.3-billion after-tax net present value at a copper price of US$4 per lb.

The company says the deposit is on track to become the fourth-largest U.S. copper producer, accounting for 10% of domestic output.

The cost to build the project is estimated at US$900 million.

Given the recent capital cost inflation in the industry, Chang predicts the project’s capex to be slightly higher at around US$1.1 billion. 

The company, which plans to update the capex numbers and resource estimate by mid-year, says it doesn’t anticipate a huge increase in costs.

To help fund the project the company has a joint-venture agreement with Korea Resources and LG International, and an offtake agreement with Silver Wheaton (SLW-T, SLW-N).

The Korean consortium has agreed to acquire 20% of Rosemont by infusing US$176 million into the company’s coffers, with US$70 million earmarked for development pre-construction, and US$106 million for construction. It would receive 30% of Rosemont’s copper concentrate and 20% of its copper cathode and molybdenum concentrates produced annually at market terms.

The streaming company would acquire 100% of Rosemont’s life-of-mine gold and silver output by paying US$230 million upfront in cash, and then US$3.90 per oz. silver and US$450 per oz. gold delivered over the mine life, or the prevailing market prices if lower. The project is estimated to churn out an average of 2.4 million oz. silver and up to 15,000 oz. gold per year.

More recently, Augusta has lengthened its US$43-million Red Kite loan facility by about a year to April 14, 2013, or until the closing of a senior debt project financing, Chang says.

The loan has the same Libor interest rate, plus 4.5%. However, as part of the extension, Augusta has agreed to sell 80% of Rosemont’s copper cathode production to Red Kite Mine Finance Trust for the first six to eight years at Comex market pricing. Copper cathode production is estimated at 20 million lbs. a year.

The company has also extended the expiry of 1.8 million warrants with a $3.90 strike price held by Red Kite to April 23, 2014.

So, regardless of possible capex hikes, the company looks to be in good shape in respect to funding. 

News of the recent permit boosted the company’s share price 10% to close April 10 at $2.54.

Chang has a “speculative buy” on the stock and a $5 target price.

Some of Augusta’s top shareholders include its management and the board, which own 15%, followed by Hudbay Minerals (HBM-T) at 14%, Goldman Sachs at 9.28%, mining magnate Ross Beaty at 9.25% and JP Morgan at 6.48%.

DENVER, CO, April 20, 2012 /CNW/ - Augusta Resource Corporation (TSX/NYSE Amex: AZC) ("Augusta" or "the Company") is pleased to announce the closing of the one year extension on the US$43 million senior secured loan ("Loan") with RK Mine Finance Fund I ("Red Kite").

As announced on February 27, 2012, the terms of the extension of the Loan include interest payable at LIBOR plus 4.50%, maturing on the earlier of (i) April 21, 2013, or (ii) the date of closing of the senior debt project financing for the Rosemont Copper project and extension of the expiry date of the existing 1,791,700 warrants, held by RK Mine Finance Trust I with an exercise price of C$3.90, by one year to April 22, 2014.

About Augusta
Augusta is a base metals company focused on advancing the Rosemont Copper deposit near Tucson, Arizona. Rosemont hosts a large copper/molybdenum reserve that would account for about 10% of US copper output once in production in 2014 (for details refer to www.augustaresource.com). The exceptional experience and strength of Augusta's management team, combined with the developed infrastructure and robust economics of the Rosemont project, propels Augusta to becoming a solid mid-tier copper producer. The Company trades on the Toronto Stock Exchange and the NYSE Amex under the symbol AZC.

CAUTIONARY STATEMENTS REGARDING FORWARD LOOKING INFORMATION

Certain of the statements made and information contained herein may contain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws. Such forward-looking statements and forward-looking information include, but are not limited to statements concerning: the Company's plans at the Rosemont Project; estimated production; and capital and operating and cash flow estimates. Forward-looking statements or information include statements regarding the expectations and beliefs of management. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. 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: history of losses; requirements for additional capital; dilution; loss of its material properties; interest rates increase; global economy; no history of production; speculative nature of exploration activities; periodic interruptions to exploration, development and mining activities; environmental hazards and liability; industrial accidents; failure of processing and mining equipment; labour disputes; supply problems; commodity price fluctuations; uncertainty of production and cost estimates; the interpretation of drill results and the estimation of mineral resources and reserves; legal and regulatory proceedings and community actions; title matters; regulatory restrictions; permitting and licensing; volatility of the market price of Common Shares; insurance; competition; hedging activities; currency fluctuations; loss of key employees; as well as those factors discussed in the section entitled "Risk Factors" in the Company's Annual Information Form dated March 19, 2012. 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 or information. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. The Company disclaims any intent or obligation to update forward-looking statements or information except as required by law, 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.

DENVER, April 10, 2012 /CNW/ - Augusta Resource Corporation (TSX: AZC) (NYSE Amex: AZC) ("Augusta" or "the Company") is pleased to announce that the Arizona Department of Environmental Quality ("ADEQ") has issued the Aquifer Protection Permit ("APP") for its Rosemont Copper project ("Rosemont").  The APP establishes the operating standards and controls to ensure the protection of ground water and is effective for the life of the mine.

Rosemont has now received six major permits required to commence construction.  Other major permits include the Air Quality Permit and the Clean Water Act Section 404 Permit, which the Company expects to receive later in the second quarter or in the third quarter of 2012 as well as the Record of Decision ("ROD") on the Plan of Operations from the U.S. Forest Service ("USFS").

Rod Pace, Augusta's Chief Operating Officer, commented, "Obtaining the Aquifer Protection Permit for Rosemont is a major permitting milestone that clearly shows that our project stands up to thorough and intense scrutiny. This achievement puts us one major step closer to completing the permitting process and starting construction on this 21st Century mining project that will create 2,900 new jobs in Arizona and have annual economic impact of over $1 billion to the U.S. economy."

The USFS also provided a Rosemont Copper Project update stating that over 25,000 comments were submitted on the draft Environmental Impact Statement ("EIS") and all substantive comments have been identified, coded and organized.  The USFS is now drafting a document responding to the comments.  The responses will also be reflected in the final EIS and appended to the document. Final impact mitigations are currently being determined according to Federal and State guidelines and will be included in the EIS. The Company has no change to its previous guidance with respect to the issuance of the final EIS and ROD from the USFS.

Rod Pace Special To The Arizona Daily Star | Posted: Monday, April 2, 2012 12:00 am

The authors of a guest opinion column in the Arizona Daily Star ("Arizona hayseeds won't sell water rights to Rosemont for any price," March 2) have done a huge disservice to themselves, their neighbors and the public, with their inaccurate statements about Rosemont Copper's Well Owners Protection Plan proposed for residential property owners who have wells near the site of the proposed mine, including Rosemont Ranch staff and their families.

This plan would never and does not ask for area well owners to give up their water rights.

A well-owners agreement for property owners near the proposed mine site protects the property owners' well-pumping equipment and access to water on their property.

After completing three years of hydrologic study in the area, Rosemont's staff believes that the lowering of the water table in wells near the mine site will not be substantial, even over the course of many decades.

Just the same, Rosemont's staff understands any perception of disruption causes considerable concern to property owners.

In 2010, Rosemont Copper entered into a similar well protection agreement with the United Sahuarita Well Owners for 110 property owners near two Rosemont Copper wells. The company is now working to establish a well-protection program for property owners surrounding the Rosemont Copper site.

The late Hugh Holub, who was a well-known water-rights attorney, represented pro-bono the Sahuarita well owners and was reported in the Green Valley News as saying, "for Rosemont to enter into this well protection program agreement goes way beyond anything state law requires for a mining company to do."

Residential property owners in the area around the Rosemont Copper project received a letter inviting them to learn more about the Well Protection Program, offering a pump warranty program and a well-deepening component.

In addition, well owners also were offered to participate in a program for long-term monitoring of water level and quality. The well-protection warranty is managed by an independent third party at no charge to the property owners.

A presentation and discussion session for the residential property owners was held Feb. 22 with a commitment for more meetings to mutually work through any issues and the language of the agreement.

In addition, Rosemont Copper has committed to presentations by the hydrologists and geologists who have conducted the studies to meet and discuss their findings with the local residents.

It's important that property owners in the area get the facts and don't listen to the fear and speculation of people who don't know the facts. 

Rod Pace is president and CEO of the Rosemont Copper Co. Email him at talk@rosemontcopper.com

http://azstarnet.com/news/opinion/well-owners-agreement-would-protect-water-rights-near-rosemont-site/article_0f762e20-cc50-569a-a76f-28fd14958f26.html