rosemont copper update - boma greater...
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TSX/NYSE MKT:AZC
About Rosemont
Rosemont Copper Company (Rosemont) is an Arizona Corporation.
Rosemont is a subsidiary of Augusta Resource Corporation.
Augusta is a publicly traded company on the New York and Toronto
stock exchanges under the symbol AZC.
Rosemont is led by a management team with over 570+ years of
collective mining experience throughout the world.
The Rosemont office and team is located in Tucson, Arizona.
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TSX/NYSE MKT:AZC
Project Philosophy
Designs were based on “best available” technology
Greatly reducing water usage and land requirements by using Filtered Tailings Technology
Reducing air emissions by using Tier II and Tier IV mining equipment with the highest emission standards.
Controlling dust emissions with high efficiency dust collectors.
Reducing visual impacts through concurrent reclamation and re-vegetation practices on all exterior slopes of the landform.
Utilizing cattle during reclamation to aid the land rehabilitation.
LED outdoor lighting reducing light pollution and sky glow.
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Global Cu Production
Industry Technology Trends and Copper Grade, Price and Production
11,000
13,000
15,000
17,000
19,000
21,000
23,000
25,000
27,000
200
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Th
ou
sa
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To
nn
es
Co
pp
er
GLOBAL REFINED COPPER MARKET BALANCE
Possible Projects
Probable Projects
Highly ProbableProjects
Projects underConstruction
Restarts
Secondary Cu(Scrap)
Base Mine Supply
Total World CuDemand excludingChina
Total World CuDemand
GLOBAL COPPER CONSUMPTION
EXCLUDING CHINA
GLOBAL REFINED COPPER
CONSUMPTION
5.2% p.a.
(annual average 2010-2016)
Secondary
Refined Cu
(Scrap)
Base Mine
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Copper Production Comparison
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200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
2,200,000
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Co
pp
er
Pro
du
ctio
n (
Sho
rt T
on
s)
Year
Copper Production - U.S. vs. Arizona(1900-2012)
US Mine Production Arizona Mine Production
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History and OwnershipHelvetia and Rosemont Mining District
Congress recognizes Helvetia and Rosemont Mining Districts - 1880
Southern Arizona led the nation’s copper production - 1900
Rosemont District mined - 1870 through 1950
First mining claims:• Narragansett, 1879• Eclipse, 1884• Backbone, 1885
Recent History:• Banner Mining Company, 1961• Anamax, 1973 - 1986• Asarco, 1988 - 2004• Rosemont Copper, 2005
Old Rosemont, ca. 1900Store and warehouse, center;
Rosemont Hotel, right.
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Rosemont production
664
256 243235 216
171146 134
108
61 46 38
Mo
ren
ci
Bin
gham
Can
yon
Ro
sem
on
t
*R
ayC
om
ple
x
Bag
dad
Sie
rrit
a
Saff
ord
*M
issi
on
Ro
bin
son
Mia
mi
*Si
lver
Be
ll
Min
era
l Par
k
2013A U.S. Copper Production By Mine (Mlbs)
* Mines owned by Asarco/Grupo Mexico based on 2012A production metrics as by mine statistics have not yet been published.
When in production, Rosemont will be the third largest U.S. copper mine
SOURCE: Public filingsNOTE: All metrics relating to Rosemont are presented on a 100% basis
LOM avg Cu production/yr (lbs) 243M
LOM avg Mo production/yr (lbs) 5.4M
LOM avg Cu recovery 87%
LOM avg Mo recovery 58%
Waste to ore ratio 1.9:1
Mine life 21+ years
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Groundwater Withdrawal Permit
(January 2008)
Publication of Rosemont Draft Record of Decision
(December 2013)
Final Environmental Impact Statement
(November 2013)
Reclamation Plan Approval/Permit
(July 2009)
Air Quality Permit; (January 2013)
File Plan of Operations; first
step in NEPA permitting process
(July 2007)
Expect to receive Final Record of Decision
(Q2 2014)
Expect to receive Clean Water Act 404 Permit
(Q2 2014)
2007 2008 2009 2010 2011 2012 2013 2014
Aquifer Protection Permit
(April 2012)
Certificate of Environmental Compatibility
(December 2011)
Stormwater Permit(April 2008)
Permitting Timeline
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Permitting Schedule
F
E
I
S
D
R
O
D
+ 90-120 day comment and resolution period
45 day comment period 45 day resolution period
NOTE: DROD = Draft Record of Decision; FROD = Final Record of Decision; 404 = Clean Water Act 404 Permit
F
R
O
D
Break Ground
On Federal Land
Dec/13 H2 - 2014Nov/13 Q2/14WE ARE HERE
1x-30 day extension
4
0
4
US Forest Service NEPA Process
Army Corps of Engineers Process
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Rosemont Project Timeline
7 of 8 major permits received FEIS published Nov 2013 Draft ROD issued Dec 2013 CWA 404 Permit expected Q2/14 Final ROD expected Q2/14
CONSTRUCTION - IMMINENT Start construction by end of 2013 Preproduction, mining and construction 22
months
CONSTRUCTION - IMMINENT Preproduction, mining and construction 22
months PERMITS: Q2 2014 CONSTRUCTION: H2-2014
Engineering, environmental work, preproduction, mining and construction 32 months
21+ year mine life based on proven & probable reserves
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PRODUCTION: Q1 2017
TSX/NYSE MKT:AZC
Project Opposition Issues
Water
Where will the water come from and how much
Will the mine pollute the drinking water
Dust from the project
Truck traffic on the road
Use of federal land to place material from the mine
Project will hurt tourism
Effects to wildlife
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Mitigation Program
Recharge of CAP water to replace water used – have banked 45,000 acre feet to date.
Agree to build a $20 million pipeline for CWC to bring CAP water near Green Valley
Using filtered tailings to reduce water usage
Recycling process water
Use of new lighting LED
Extensive monitoring and reporting program
Replacement of roads and recreational trail facilities
Establishment of features to support endangered and other species
4,500 acres of private property and 1,700 ac-ft of water right in conservation packages.
Long term endowment of $25 million
Annual community support of $500K once production begins
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Rosemont Community Philosophy
Community
Initiate community relations efforts early
Provide community support
Two-way communication with the community
Establish local, county and business support
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Working Toward Higher Education
University of Arizona
Total commitment of $1.4 million through from 2008-2014
UA programs included are:
Dept. of Natural Resources UA School of Mining & Engineering UA Women in Science &
Engineering University Foundation Social & Behavioral Sciences
College Arizona Assurance Program UA Medical Foundation UA Athletics
Pima College
Launched programs focused on science and engineering with an emphasis on mining
18 scholarships totaling $32,000
Local students who will be first in family to attend college
Pima College to administer scholarship program
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Broad Public Interest
ACT - Alliance of Construction Trades
ABA - Arizona Builders‘ Alliance
ACA - Arizona Contractors Association
AMIGOS - Arizona Mining Industry Gets Our Support
SACA - Southern Arizona Contractors Association
SAHBA - Southern Arizona Home Builders Association
SAEDG - Southern Arizona Economic Development Group
SEAGO - South Eastern Arizona Governments Organization
SVEDF - Sierra Vista Economic Development Foundation
TUCA - Tucson Utility Contractors Association
PALF - Pima Area Labor Federation
USW - United Steelworkers of America
12,000 Families signed to support
120 Southern Arizona business leaders
Associations, Businesses, Cities, Chambers and Individuals have registered their support of the Rosemont Project:
Benson City Council
Benson/San Pedro Chamber of Commerce
City of Marana
Greater Vail Area Chamber of Commerce
Marana Chamber of Commerce
Metropolitan Pima Alliance
Nogales Santa Cruz County Chamber of Commerce
Northern Pima County Chamber of Commerce
Sierra Vista Area Chamber of Commerce
Thatcher City Council
Tucson Hispanic Chamber of Commerce
Tucson Metropolitan Chamber of Commerce
Willcox Chamber of Commerce & Agriculture
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Rosemont Production Economics
Major Economic Engine
• Creates almost 4,200 jobs annually in the USA
• 2,100 Southern Arizona
• 800 additional in the State
• 1,300 addition in the Nation
• Provides $1.2+ billion in new investment
• Contributes $3 billion of Federal income tax
• Total Economic Impact of nearly $30 billion to the USA over the life of mine
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Rosemont CAPEX
EPCM/Commissioning/
Spare Parts
CAPEX Breakdown ($M)
General Site / Ancillary Facilities $60
Mine $252
Concentrator & Tailings $471
Power / Water Supply $122
EPCM/Commissioning/ Spare Parts $104
Owner’s Costs $163
Contingency $51
Sunk Costs (Equipment & EPCM) ($113)
Total Construction & Commissioning $1,110
Mine Pre-development CAPEX $116
Total CAPEX $1,226
Owner’s Costs
ContingencyGeneral Site/
Ancillary Facilities
Mine
Concentrator & Tailings
Power/Water Supply
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ROSEMONT FINANCING PLAN
Going forward CAPEX of $1.226 billion(1)
Source of funds
Project Financing($890M)(2)
SilverWheaton($230M)
LGI/KORES
($106M)
(1) From Rosemont 2012 Feasibility Study. Update including mine pre-development costs of $116M less equity already invested of $113M
(2) Excluding additional financing costs such as interest during construction, upfront fees, cost overrun facility, etc.
Project Financing
Expected to be Completed in
Second Half-2014
Mandate Letter Signed
Syndicate of 12 banks
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Drilling Summary – Rosemont Deposit
Company Time PeriodDrill Holes
Number Feet
Banner 1950s-1963 3 4,300
Anaconda 1963-1973 113 136,838
Anamax 1973-1986 52 54,350
ASARCO 1988-2004 11 14,695
Augusta 2005-2012 87 132,525
Total 266 342,708
All holes drilled at the Rosemont Property have been conducted along lines that are approximately 200 feetapart. Currently the average spacing for holes along these lines is 250 feet.
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TSX/NYSE MKT:AZC
Rosemont is Construction Ready
Grinding mills and drives paid for and delivered
$90M already spent on equipment Most major equipment procured – fixed price contracts set in 2008/2009
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Sulfide Flow Sheet
COSP
BALL
MILL
S
1 & 2
PRIMA
RY
CRUS
HER COPP
ER MO
LYBD
ENUM
ROUG
HER B
ANKS
1 & 2
CLEA
NERS
-SCAV
ENGE
RS
SAG M
ILL
PEBB
LE
CRUS
HER
COLU
MN CE
LLS
TAILIN
GS TH
ICKEN
ERS
MOLY
BDEN
UM FL
OTAT
ION
TAILIN
GS ST
ORAG
E
FACIL
ITY
COPP
ER
CONC
ENTR
ATE
MOLY
BDEN
UM
PACK
AGING
TAILIN
GS FIL
TERS
ROSE
MONT
COPP
ER - 7
5,000
STPD
FLOW
SHEE
T
REGR
IND MI
LL
Cu/Mo
THICK
ENER
COLU
MN CE
LLS
COPP
ER CO
NCEN
TRAT
E
THICK
ENER
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TSX/NYSE MKT:AZC
Project Management Structure
Integrated Project Delivery in which Rosemont maintains control of cost and schedule.
EP and CM contractors act as agents for Rosemont.
Leverages skill sets to maximize project performance and accountability.
“Owner Controlled EPCM”
Mine Fleet Procurement Pre-stripping
Engineering Procurement
Construction Mgmt. Commissioning Start-up
Cost/Schedule Project Control
Field EngineeringRFI’s
ROSEMONT PROJECT TEAM
M3 ENGINEERING CDM SMITH
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TSX/NYSE MKT:AZC
Key Evaluation
• Bid must conform to bid package structure as requested in the RFQ
• Safety Record
• Proposed Team
• Content of the work plan
• Current Work Load
• Prior experience in the work requested
• Price
• Local presence
Bid Evaluation
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