Rosemont Copper Cooperating Agencies - 2009

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This presentation was given at a meeting of the Cooperating Agencies for Rosemont Copper Project on April 1, 2009. The presentation by Rosemont was designed to give a project orientation and show the …

This presentation was given at a meeting of the Cooperating Agencies for Rosemont Copper Project on April 1, 2009. The presentation by Rosemont was designed to give a project orientation and show the project components as presented in the Mine Plan of Operations. This presentation was given after the public scoping was complete and also highlights some adjustments Rosemont was contemplating to address those concerns.

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  • 1. Cooperating Agencies Presentation April 1, 2009
  • 2. The Right People: Rosemont Management•  Gil Clausen, President & CEO -25 years executive and operating experience in the mining industry with several global and domestic mining companies (Stillwater, Washington Group, Placer Dome)•  Raghu Reddy, Senior Vice-President, more than 25 years of experience in the development and financing of mining, power generation and infrastructure projects both domestically and internationally (Washington Group, Peabody Mining, Morrison Knudsen)•  Jamie Sturgess, Vice-President, Sustainable Development– more than 25 years of industry experience in environmental management, regulatory compliance, pollution control and project management (Cyprus Climax Metals, EnviroNet, Stantec Consulting)•  Rod Pace, Vice-President, Operations- Bachelor of Science in Mining Engineering with more than 28 years experience in mine development and operations – led start up of six mining operations between 1999 and 2005 with Washington Group International.•  Lance Newman, Vice-President, Project Development– more than 20 years of concentrating, smelting & refining operations experience (Stillwater, Gold Fields SA)•  Mark Stevens, Vice-President, Exploration- Masters in Geology with more than 27 years of experience in resource industry (Geologist with Pincock, Allen & Hold between March 1988 and August 2006)•  Fermin Samorano, Mine Manager- Bachelor of Science in Mining Engineering with 15 years experience in mine development and operations – 1996-2001 ASARCO, 2001-2006 with Washington Group International, 2006-2008 Corriente Resources Inc.•  Kathy Arnold, Director of Environmental and Regulatory Affairs more than 20 years experience in environmental management at mining operations (Asarco, Vector Arizona, Tetra Tech)
  • 3. Who is Rosemont?"   Rosemont  Copper  Company    is  an  Arizona   Corpora1on,  that  is  wholly  owned  subsidiary  of   Augusta  Resource  Corpora1on  "   Offices  are  in  Tucson  and  Denver  "   Augusta  Resource  Corpora1on  traded  on  the   American  and  the  Toronto  Stock  Exchanges,  stock   symbol  AZC  "   Feasibility  study  completed  in  January  2009  showed   a  $1.2  billion  aNer-­‐tax  NPV  
  • 4. RosemontLand Ownership"   Mining  Property:   •  132  patented  claims,  covering   just  under  2,000  acres   •  905  unpatented  claims,   covering  more  than  12,000   acres   •  Other  ranchlands  covering   approximately  800  acres  "   Ranching  Property:   •  Private  ranchland  property   covering  approximately  800   acres  (unpatented  mining   claims  cover  some  of  the   ranchlands)   •  Grazing  leases  for  30,000  acres  
  • 5. Why Here? Schematic Sectional View Willow Ca n yon Fm. Rosemont Glance Cong. Deposit Rain Valle Concha L y Fm. s. Scherrer Fm. Epitaph L s. Colina Ls . Earp Fm. Laramide Horquilla Fm. QLP Intrusive Escabros M Abrigo artin a Ls. (Mineral Center) Bolsa QuFm. Fa . mrtzite PreCamb ria Granodio n rite
  • 6. History and Ownership Helvetia and Rosemont Mining District"   Congress  recognizes  Helve1a  and   Rosemont  Mining  Districts  -­‐  1880  "   Southern  Arizona  led  the  na1on’s   copper  produc1on    -­‐  1900  "   Rosemont  District  mined    -­‐  1870   through  1950  "   First  mining  claims:   •  Narraganse_,  1879   •  Eclipse,  1884   •  Backbone,  1885  "   Recent  History:   •  Banner  Mining  Company,  1961   Old  Rosemont,  ca.  1900   Store  and  warehouse,  center;   •  Anamax,  1973  -­‐  1986   Rosemont  Hotel,  right. •  Asarco,  1988  -­‐  2004   •  Rosemont  Copper,  2005  
  • 7. Rosemont Hotel, ca. 1906
  • 8. Mine Plan of Operations"   Rosemont  Copper  submi_ed  a  Mine  Plan  of   Opera1ons  to  the  US  Forest  Service  on  July  11,  2007.    "   The  MPO  includes  the  Rosemont  Copper  project   progressive  design,  conserva1on,  and  sustainability   ini1a1ves.    "   The  MPO  consists  of  several  documents:   •  The  Mine  Plan  of  Opera1ons   •  The  Infrastructure  Plan   •  The  Reclama1on  Plan   •  Addi1onal  Informa1on  requested  by  the  Forest  Service  "   Forest  Service  declares  complete  in  October  2007   and  determines  NEPA  requires  an  EIS    
  • 9. Other Permits"   Current  Opera1ons:   •  Forest  Service  –  Drilling  Plan  of  Opera1ons   •  State  of  Arizona,  ADWR  –  Well  Drilling  Permits   •  State  of  Arizona,  ADEQ  –  Construc1on  Stormwater  General  Permit   •  State  of  Arizona,  ADEQ  –  DeMinimis  Discharge  Permit  AZPDES  Program   •  State  of  Arizona  ,  ADWR  –  Groundwater  Withdrawal  Permit   •  State  of  Arizona,  Department  of  Agriculture  –  Land  Clearing  Permit/No1fica1on   •  Pima  County  –  Air  Ac1vity  Permit   •  Pima  County  –  Grading  Permit   •  Pima  County  –  Business  License/Occupancy  Permit  "   Permit  Applica1ons  submi_ed:   •  Arizona  State  Mine  Inspector’s  Office  –  Arizona  Mined  Land  Reclama1on  Plan   •  Forest  Service  –  Mine  Plan  of  Opera1ons  "   Permit  Applica1ons  in  process:   •  Army  Corps  of  Engineers  –  Preliminary  Jurisdic1onal  Delinea1on   •  State  of  Arizona,  ADEQ  –  Aquifer  Protec1on  Permit   •  Pima  County  –  Air  Quality  Permit  "   Addi1onal  approvals  needed  before  opera1ons  
  • 10. Rosemont Project Schedule 2005 2006 2007 2008 2009 2010 2015 2020 2030 2040ExplorationFeasibilityDesignPermitsOperationClosureMilestones:1.  Preliminary Assessment and Economic Evaluation Completed, June 20062.  Mine Plan of Operations submitted to U.S. Forest Service, July 20073.  EIS Process Starts, March 20084.  EPCM Design Awarded to M3, April 20085.  Feasibility Update, January 20096.  APP Application submitted to ADEQ, Feb 2009
  • 11. Mine Planning Update
  • 12. Drilling at Rosemont Drill  Holes   Company   Time  Period   Number   Feet  Banner   1950s-­‐1963          3          4,226  Anaconda   1963-­‐1973   113   136,728  Anamax   1973-­‐1988        52        54,350  ASARCO   1988-­‐1998        11      14,695  Augusta   2005-­‐2008      75   113,876   Total    254   323,875   During the 2007-2008 drilling program Augusta completed a 20-hole, 17,522 foot diamond drilling program, along with the sampling of 10 previously drilled geotechnical holes.
  • 13. Rosemont Mineral Reserves Classification Sulfide Reserves Oxide Reserves Short Tons % Cu % Mo Ag oz/t Short Tons % Cu (thousands) (thousands) Proven   141,999   0.48   0.015   0.13   16,250   0.18   Probable   404,339   0.45   0.015   0.11   53,724   0.17   Total   546,338   0.45   0.015   0.012   69,974   0.17  Proven reserves: ore in place for which the tonnage, grade and shape have been computed from dimensions revealedin outcrops, trenches, underground workings or drill holes. The grade is then calculated from results of adequatesampling to a high degree of confidence.Probable reserves: ore in place for which tonnage and grade are calculated partly from specific measurements,samples or production data and partly from projection for a reasonable distance on geological evidence and for whichthe sites available for inspection, measurement and sampling are too widely or otherwise inappropriately spaced tooutline the orebody completely or establish its grade throughout.   Reserves  are  updated  from  the  Feasibility  Study  issued  January  2009  
  • 14. Yearly Production Yearly Average Metal Production Copper (Cu) Molybdenum (Mo) Silver (Ag) Gold (Au) Pounds Pounds Ounces Ounces (000) (000) (000) (000)Cu Concentrate 204,000 2,490 15Mo Concentrate 4,700Cu Cathode 20,000
  • 15. Reserve Comparison 2007 F.S. 2008 Mine Reserve Difference Diff. Ktons Ktons Ktons %Sulfide Ore 492,725 546,340 53,615 11%Oxide Ore 49,447 69,974 20,527 42%Waste 1,288,425 1,231,516 -56,909 -4%Total Material 1,830,597 1,847,830 17,233 1%
  • 16. Basic Mine Planning Philosophy Sustainability Initiative "    Sustainable  Water  Supply   "    Concurrent  Reclama1on   "    Scenic  Value  Recogni1on   "    Sonoran  Desert  Conserva1on  Plan  
  • 17. Year -1 Q1 Pre-Production
  • 18. Year 1 of Production
  • 19. Year 5 of Production
  • 20. Year 10 of Production
  • 21. Year 15 of Production
  • 22. End of Production
  • 23. Bucyrus 100 Ton Electric Shovel
  • 24. 250 – 360 Ton Haul Trucks•  Manufacturers ( with support in local area) –  Caterpillar –  Komatsu
  • 25. Sustainability Initiatives
  • 26. Operational Necessities Sustainability Initiative"    Sustainable  Water  Supply   Replace  what  we  take  and  protect  what  is  there  "    Concurrent  Reclama1on   Reclama1on  starts  the  first  year  of  opera1on  "    Scenic  Value  Recogni1on   Perimeter  bu_ress  and  reclama1on  shield  opera1ons  from  view  "    Sonoran  Desert  Protec1on  Plan   Facility  designs  and  placement  recognize  biological  core  "    Community  Endowment   $25  million  permanent  endowment  and  $500,000  annual  
  • 27. Water Supply Pipeline and Recharge"   Rosemont  will  pump  water   approximately  22  miles  to  the   opera1ons  site  "   Rosemont  has  permits  to   annually  withdraw  6,000  ac-­‐N   of  water  for  20  years  "   Rosemont  has  commi_ed  to   recharging  5%  more  CAP   water  than  is  used    "   Rosemont  has  recharged   30,000  ac-­‐N  of  water  already   with  commitments  in  place   Pipeline  OrientaKons for  15,000  more  during  2009  
  • 28. Water Comparison Chart Agriculture 32,258 FMI  -­‐  Sierrita   29,171 Municipal* 19,807 Asarco   7,237Rosemont  (permitted) 6,000 -­‐ 10,000 20,000 30,000 40,000Average annual pumping 2001-2006Municipal includes Twin Buttes. ac-­‐ft/yr
  • 29. Well Protection Program"   Rosemont  has  commi_ed  to  work  with  the  Sahuarita   Well  Owners  Group  to  provide  protec1on  for  their   private  wells  near  the  produc1on  well  loca1ons  "   The  draN  agreement  provides  for  the  following:   •  “No-­‐fault”  insurance  policy  to  replace  pumps  or  repair   wells   •  Monitoring  of  the  aquifer  in  the  area  prior  to  and  through   the  term  of  the  Rosemont  opera1ons   •  Deepening  or  redrilling  of  wells  to  mi1gate  any  affects  of   pumping  opera1ons  "   Approximately  50  wells  are  covered  by  this  program  
  • 30. Tailings Management"   Tailings  filtered  to  reduce   moisture  to  about  16%  "   Filtered  tailings  placed  using   conveyors  in  a  “dry  stack”   facility  "   Perimeter  bu_ress  provides   structural  control  and  allows   concurrent  reclama1on  "   Stormwater  diverted  around   the  facility   Dry  stacking  of  tailings  from  a  conveyor   at  La  Coipa,  Chile    "   Reclama1on  starts  in  the  first   (Courtesy  Anglo  American/Debswana   year  of  opera1on   from  the  Tailings.info  website)
  • 31. Reclamation Plan"   Rosemont  Reclama1on  philosophy  –     “Start  with  the  end  in  mind”  "   Material  will  be  placed  at  3:1  slopes  "   Ridge  and  valley  method  that  approximates  natural   terrain  will  be  used  to  minimize  erosion  "   Reclama1on  starts  in  the  first  year  of  opera1on  "   University  of  Arizona  Tes1ng:   •  Na1ve  plants  were  tested  at  the  University  of  Arizona  greenhouses  –  results  –   i.e.  seed  mixes  and  applica1ons  –  tested  in  the  field  in  larger  test  plots.       •  200  agaves  from  Rosemont  are  being  studied  at  the  greenhouses  and  will   provide  nursery  stock  for  replan1ng  during  opera1ons  (Important  for  Lesser   Long-­‐nosed  Bat)  
  • 32. Greenhouse Testing Arkose Glance3  soil  types  X  3  rainfall  scenarios  X  3  amendments  X  4  seed  mixes  =  108  treatment  combina1ons     Gila108  X  4  replica1ons  =  432  pots  
  • 33. Greenhouse Results"   There  are  species  sufficient  to  establish  a  rich  produc1ve  na1ve   plant  community  on  these  materials.      "   Some  establishment  occurs  even  in  low  rainfall.  "   Soils  vary  in  produc1vity,  Arkose  supports  limited  richness  and   produc1vity.  "   Straw  aided  community  produc1vity.  
  • 34. Viewshed Protection"   Year  10  view  from  Hwy  83  pullout  near  Milepost  44  "   Screening  berm  and  reclama1on  started  in  year  1  "   Ridgeline  leN  untouched  "   U1lizing  the  smallest  footprint  available    
  • 35. RosemontFootprint"   Facility  outline,   approximately   4,400  acres   •  3,300  acres   Federal   •  900  acres   Private   •  200  acres  State  "   Less  than  other   opera1ons    
  • 36. Operational Footprints
  • 37. Sonoran Desert Conservation Plan"  Biological  core  areas  avoided  "  Facili1es  placed  in  one  compact  area  to   minimize  impacts  to  surrounding  area  " Viewshed  protec1on  by  perimeter  berm  "  Water  diversions  so  downstream  water  flows   are  maintained  to  the  extent  prac1cable  which   will  maintain  riparian  areas    
  • 38. Rosemont Production Annual Metal Product Production Copper Concentrate 220,000,000 pounds Copper Cathode 14,000,000 pounds Molybdenum Concentrate 5,000,000 pounds Silver 3,500,000 ounces Gold 15,000 ounces Rosemont  provides  5%  of  the  copper   used  in  the  United  States    "   Less  than  half  the  land  when  compared  to  other  opera1ons   with  similar  produc1on  rates  "   Uses  25%  of  the  water  of  similarly  sized  opera1ons  
  • 39. Economic Stimulus"   Rosemont  Employment  (500  direct  and  up  to  1,500  indirect)  "   $256  million  to  Pima  County  annually  from  direct  and  indirect   impacts  from  taxes,  personal  income,  and  business  sales  "   $488  million  to  Arizona’s  economy  annually,  equivalent  to:   •  1  Super  Bowl     •  3  Gem  and  Mineral  Shows   •  10  Baseball  Spring  Training  Seasons  "   $164  million  to  the  Federal  Government  annually    "   Original  investment  approximately  $1  billion  dollars,   es1mated  annual  business  sales  total  $1.5  billion,  and   personal  income  grows  $520  million  annually  
  • 40. Current Economic Impact Local Firms"   Rosemont  currently  is  using  a  number  of  local  firms  for  engineering   and  other  por1ons  of  the  project  "   These  firms  employ  hundreds  of  people.  "   Some  of  those  firms  include:   •  M3  Engineering   •  DM  Engineering   •  Securitas   •  Mountain  States  R&D   •  SkylineLabs   •  Verizon   Interna1onal   •  Securitas   •  Tetra  Tech   •  Western  Refining   •  AMEC   •  Stantec   •  Fedex-­‐Kinkos   •  WestLand  Resources   •  Cooper  Aerial   •  Alphagraphics   •  Applied  Environmental   •  Verdad  Group,  L.L.C.   •  Southwest  Explora1on   Consul1ng   •  Applied  Environmental   Services   •  E.L.  Montgomery  and   Consul1ng   •  Turner  Laboratories   Associates   •  Mountain  View  Tours   •  Reprographics   •  Strongpoint  Public  Rela1ons   •  Old  El  Paso  Barbecue   •  Physical  Resource   •  Fennemore  Craig,  PC   •  Bonesteel  Consultants   Laboratories   •  Sonoran  Pump  Supply   •  Navigant   •  Metcon     •  Darling  Environmental/Survey   •  University  of  Arizona   •  Boart  Longyear   •  Call  and  Nicholas   •  Geomechanics  Southwest   •  Lang  Drilling   •  Layne  Drilling   •  Zonge  Geosciences,  Inc.   •  DM  Engineering  
  • 41. Community Involvement Activities"   Ac1ve  community  involvement  program  for  local  chari1es  and  ac1vi1es.  "   Corporate  contribu1ons  support  educa1on,  extrac1ve  industries,  community   service,  or  involve  areas  around  our  site  of  opera1on    "   During  opera1ons,  $25  million  endowment  plus  annual  dona1on  of  $500,000    "   Examples  include:   •  The  Arizona  Trail   •  El  Tour  de  Tucson   •  University  of  Arizona  Athle1cs   •  Arizona  Ca_le  Growers   •  The  University  of  Arizona   •  Tucson  Hispanic  Chamber   College  of  Engineering   •  Tucson  Metro  Chamber     •  Arizona  Geological  Society   •  Rocky  Mountain  Elk  Founda1on   •  Green  Valley/Sahuarita   •  Arizona  Hydrogeological  Society   •  Tucson  SME  Chapter   Chamber  of  Commerce   •  So.  Arizona  Environmental   •  Chicanos  Por  La  Causa   •  Arizona  Mining  Associa1on   Managers  Society  (SAEMS)   •  Arizona  Opera   •  Greater  Green  Valley   •  Greater  Tucson  Leadership     •  Tucson  Rough  Riders   Community  Founda1on   Council  (GTL)   •  SME  Diggers  &  Duffers  Golf   •  Tucson  Regional  Economic   •  Casa  de  Los  Ninos   Tournament   Opportuni1es   •  Arizona  Opera   •  Tucson  Gem  &  Mineral  Show   •  Green  Valley  Rotary   •  Arizona  Theater  Company   •  Community  Water  Company   •  Volunteer  Center  of  So.  Arizona   •  Tucson  Rodeo   •  Sahuarita  Rage  ASA  Fastpitch   •  Arizona-­‐Mexico  Commission   •  Key  to  Employment  21st  Century   •  Teachers  Wish  List   •  AMIGOS   •   Boys  and  Girls  Club   •  Community  Food  Bank   •  Metropolitan  Pima  Alliance   •  Pima  Community  College   •  Tucson  Alliance  for  Au1sm   •  Steele  Children’s  Research   •  Foster  Care  Review  Board  
  • 42. Questions?WWW.ROSEMONTCOPPER.COM