Augusta Announces 14% Increase in
Rosemont Reserves;
16% Reduction in Strip Ratio
VANCOUVER, BC, November 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:
Gil Clausen, President & CEO���������������������� ��� ����� Marlo Hamer-Jackson, Investor
Relations Manager�����
Phone: 303-300-0134��� �� ������������������������������������� Phone:� 604-687-1717�����
Fax: 303-300-0135���� ������������������������������������������ Fax:� 604-687-1715��������
gclausen@augustaresource.com� ����������������������������������� mhamer-jackson@augustaresource.com
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.