Why mine here?
Given that two-thirds of copper produced in the U.S. is from Arizona, within about a dozen mines, an undeveloped, commercially viable mineral deposit is a very rare occurrence. On the Rosemont Property, we believe, is an even more uncommon combination of the strategic minerals of copper, molybdenum, and silver. The 2007 Rosemont Deposit Mineral Resource Estimate indicates deposits of 8.4 billion pounds of copper equivalent in measured and indicated resources; 1.9 billion pounds of copper in inferred resources, 157 million pounds of molybdenum, and 66.5 million ounces of silver in measured and indicated resources. And 9.3 million ounces of silver in inferred resources. We hope it will allow production of all three materials, which are used in metal-intensive products such as electronics, hybrid cars, and construction. The U.S. currently gets 40% of its copper supply from outside the country, so developing local copper resources has national importance.

What is included in the purchase of Rosemont Ranch?
Augusta Resource Corp. purchased fee land, patented mining claims and unpatented mining claims* totaling nearly 15,000 acres in or adjacent to the Coronado National Forest in Pima County, about 30 miles southeast of Tucson. Included are fee land parcels referred to as the Rosemont Ranch as well as a 2,760-acre parcel of patented (surface and subsurface) mining claims. Also included are unpatented mining claims (subsurface mineral rights) on about 12,240 acres of public land, administered by the U.S. Forest Service. Leases and water rights for the commercial livestock operation were included. (*Fee land is land not held in trust by the Federal Government for Native-American tribes or tribal members and is generally owned by non-tribal members. Patented mining claims are those that the Federal Government has passed ownership of the land and its minerals to a claimant, making it privately owned land. Unpatented mining claims are those that the Federal Government has passed mineral rights only to a claimant, not the land; the land still belongs to the Federal Government.) Top

How can public land be used for mining?
Some public lands are closed to mineral entry, in other words closed to mining (such as national parks, national monuments and wilderness areas). Others, such as the multiple-use lands administered by the U.S. Forest Service and Bureau of Land Management, are open to mineral entry under the 1872 Mining Law, subject to federal, state, and local requirements. (This federal policy was affirmed in the Mining and Minerals Policy Act of 1970 and the National Materials and Minerals Policy, Research and Development Act of 1980.) Augusta is currently gathering data to determine what resources are available and will develop a feasibility study for a potential open-pit mining operation. The company, working with the U.S. Forest Service, will then conduct a number of technical and analytical environmental studies and reviews, including an Environmental Impact Statement (EIS). The review will include community involvement and public meetings. Top

What will Augusta do to protect water resources?
The process of mining does require water, but conservation is a key consideration in planning. We will do everything possible to conserve water. In fact, we plan to make a significant investment to utilize dry-tailings processing, which is used by other mines in desert areas around the world, but none in Arizona. This process requires more capital investment in equipment, but will recapture water sooner for reuse, and will allow Rosemont Copper to conserve water by eliminating evaporation from large tailing ponds. Augusta will use recycled water from a closed-loop mine water system to be developed and maintained on the site; however, there will still be consumption and evaporative loss from this water system that will need to be replaced. Augusta has contracts with the Central Arizona Project to purchase 10,000 acre-feet of water per year for five years beginning in 2007. As of July 2007, Augusta has already stored two years' worth of water needed to operate the mine. In addition, Augusta has committed to offset their use of water by 105% through the recharge of available CAP water into the Santa Cruz basin, thus returning more water than was used. And, by utilizing state-of-the-art water conservation techniques never before implemented by an Arizona copper mining facility, Rosemont Copper will use 50% to 60% less water than traditional mining operations. Augusta has no legal obligation to replace the water it uses at the mine, but the company is firmly committed to sustainable development. Augusta can also seek additional water to be pre-stored into the aquifer at other storage and retrieval facilities within the basin. Top

How is Augusta addressing environmental concerns?
First, Rosemont Copper will have to operate under several federal environmental laws and regulations. A partial list includes the National Environmental Policy Act; the Clean Air Act; the Federal Water Pollution Control Act (Clean Water Act); the Safe Drinking Water Act; the Solid Waste Disposal Act; the Comprehensive Environmental Response, Compensation and Liability Act; the Toxic Substance Control Act; and the Endangered Species Act. In addition, the project will have to conform to all state and local environmental regulations. Second, our own environmental policy incorporates pollution prevention goals through application of such concepts as "avoid, confine, and contain" all potential pollution sources at all stages of the mine development using best-available technology. While it is true that mining in the past has left its mark on the landscape, today there is a different public expectation - and a higher level of technology available to avoid and mitigate environmental impact. We are committed to using sophisticated technology in the smallest footprint practicable. We know we will need to demonstrate these commitments to environmental protection at every step in the process, as a way to earn and retain the public credibility and trust required to operate a modern mine in Arizona. Top

What will Augusta do to protect the air quality?
State and federal rules for protection of air quality require Augusta to use the best-available control technologies for prevention of air pollution. These requirements apply to each point of operations where rock is mined, loaded, hauled, crushed, conveyed, stored, ground, and disposed. In addition, the rules for internal combustion engines and vehicle emissions now assure that air quality is protected. Top

Will the west side of the property be developed?
The current preliminary plans indicate that the economic potential is restricted to the Rosemont deposit, located entirely on the eastern side of the property. This isolated water shed is the Barrel Basin, located between State Highway 83 and the base of the Santa Rita Mountains ridge. Top

Has Augusta operated a mine before?
Augusta has been involved extensively in mine exploration and evaluation and has recently expanded to add mine development to its activities, and has attracted and assembled the "A" team from the ranks of senior professionals in the world-including the president, senior vice president and chief financial officer, vice president of projects and environment, vice president of exploration and regional exploration manager- each of whom has exceptional experience operating mines worldwide and directly in Arizona. Top

Copper prices are high now, but what would the impact be if prices decline?
With a building boom in many parts of the world (Asia and the Middle East in particular), it seems unlikely that the price of copper will fall dramatically in years to come. Aside from that, copper is a necessity regardless of economic conditions-it is essential for vehicles, appliances, electronic products, plumbing, electrical generating engines, etc. But copper, like any commodity, is still dependent on the market forces of supply and demand. If demand drops off, copper prices may fall. In any economic downturn, businesses must adjust accordingly, implementing unpleasant but necessary measures. The 2007 feasibility study includes price variations as a part of it's economic analysis. Top

Will local residents lose recreational opportunities?
Some of the recreation going on at Rosemont Ranch is on private land that has had minimal restrictions on public access. We recognize this is an important place for recreation and are committed to working with local resources to provide continued access for recreational activities. We are looking at a number of options in our project planning and analysis. These include isolating mining operations from high-use areas wherever possible, maintaining or improving access to public trails, and setting aside designated land to preserve other activities. Top

Does Augusta have a plan for reclamation after the mine is closed?
Regulations for modern mining procedures have changed dramatically, and mining operations are not permitted until companies have posted bonds, deposited funds, obtained insurance, or dedicated financial resources in place to guarantee restoration of the site to a pre-approved reclamation and closure plan. Augusta Resource has elevated the standard for accountability in environmental stewardship. The Rosemont Project is designed to employ reclamation practices from the start of mining activitiy, including state-of-the-art greenhouse studies to determine optimum plant species for re-vegetation and utilization of cattle in seedbed preparation. In addition to concurrent reclamation, significant planning has gone into the facility design to minimize the footprint of the mine. Rosemont Copper has mitigation and closure plans in place describing how the land is to be reclaimed and meet any financial assurance requirements. These financial assurance funds will be held by third parties to guarantee performance. Top

What permits are required and how long will the review process take?
In total, several dozen permits and approvals will be required before mine construction could begin. The permitting process is expected to be completed over a period of two years. Permit areas include specific limits and conditions to protect the qualities of air, water, cultural resources, important species of plants and animals, scenic vistas, night sky darkness, socioeconomics, noise levels, dust, as well as recreation activities. The review process includes several rounds of public involvement and public comment over a period of several years. Top

Can the public comment before decisions are made?
Absolutely. The detailed Mine Plan of Operations has been submitted to the U.S. Forest Service, which will begin a process anticipated to take up to two years of extensive public review and comment. Our goal is to get local input, communicate often about what we intend to do and honor our community commitments. In addition to holding public meetings we will provide written materials and maintain an updated website to provide opportunity for information dissemination and community interaction. Top

What is the timeline moving forward?
The Plan of Operations was submitted to the U.S. Forest Service in July 2007. Next, Rosemont Copper will begin environmental permitting in Arizona. Based on their review of the plan, the Forest Service is expected to initiate the Environmental Impact Statement, which normally takes 12 to 18 months to complete. Top

Since there will be more truck traffic on the roads, is there a plan for traffic safety?
We understand that the current access route for wide or tall loads is rerouted from I-10 through Benson and Sonoita, including a stretch along highway 83. Augusta recognizes that this is an important local issue, and will evaluate the best and safest routing for deliveries and shipments from mine operations as an integral part of the Environmental Impact Statement. In the EIS process Augusta will also evaluate shipping schedules, production technologies and other alternatives to reduce the number and size of loads required during construction and operations. Top

How many jobs will this mine create?
Rosemont Copper will directly employ 500 people comprising a wide range of technical, professional, trades, and labor. Historically, mining jobs are among the highest-paying positions in Arizona. In addition, approximately 1000 indirect jobs will be created during construction and in support roles while the mine is in operation - employment for about 1500 Arizona families for a full generation. Typically, experienced workers in the copper industry in the southwest can earn $59,000 or more per year in wages and overtime pay. Top

Will Rosemont be a union mine?
The question of whether the labor force at a mine or any other commercial activity in the U.S. is unionized or not is decided by the employees. Augusta recognizes and supports the right of the workforce to determine whether they wish to be represented by a union or not. Top

How many pits will be opened at Rosemont?
There will be only one pit. The pit area would be approximately 900 acres, with an additional 3,200 acres used for ore stockpiles, access/haul roads, the crusher and conveyors, power lines, maintenance buildings, etc. Top

Will light from the mine interfere with local astronomy work?
Despite the fact that mines are exempt from complying with local regulations regarding visibility in the night skies, Rosemont Copper has employed a local firm to ensure that the design for all outdoor and mobile source lighting voluntarily meets the maximum compliance parameters of Pima County. Top