Rod Pace/Rosemont Copper Power Point

Rosemont Copper
Update
APRIL, 2014
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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2
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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Rosemont Team with 570+ Year Cumulative
Experience in Mining
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Industry Technology Trends and Copper
Grade, Price and Production
GLOBAL REFINED COPPER MARKET BALANCE
Possible Projects
27,000
GLOBAL REFINED COPPER
CONSUMPTION
5.2% p.a.
(annual average 2010-2016)
Thousand Tonnes Copper
25,000
Probable Projects
Highly Probable
Projects
23,000
Projects under
Construction
GLOBAL COPPER CONSUMPTION
EXCLUDING CHINA
21,000
Restarts
Secondary
Refined Cu
(Scrap)
19,000
17,000
Secondary Cu
(Scrap)
Base Mine Supply
15,000
Base Mine
Total World Cu
Demand excluding
China
13,000
Total World Cu
Demand
TSX/NYSE MKT:AZC
2016
2015
Global Cu Production
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
11,000
5
Arizona Major Mines
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Copper Production Comparison
Copper Production - U.S. vs. Arizona
(1900-2012)
US Mine Production
Arizona Mine Production
2,200,000
2,000,000
Copper Production (Short Tons)
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
2011
2008
2005
2002
1999
1996
1993
1990
1987
1984
1981
1978
1975
1972
1969
1966
1963
1960
1957
1954
1951
1948
1945
1942
1939
1936
1933
1930
1927
1924
1921
1918
1915
1912
1909
1906
1903
1900
-
Year
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History and Ownership
Helvetia 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
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Old Rosemont, ca. 1900
Store and warehouse, center;
Rosemont Hotel, right.
8
Rosemont production
2013A U.S. Copper Production By Mine (Mlbs)
664
When in production, Rosemont will be
the third largest U.S. copper mine
235
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
216
171
146
134
108
Miami
Robinson
*Mission
Safford
Sierrita
Bagdad
*Ray
Complex
Rosemont
Bingham
Canyon
Morenci
61
46
38
Mineral Park
243
243M
*Silver Bell
256
LOM avg Cu production/yr (lbs)
* Mines owned by Asarco/Grupo Mexico based on 2012A production metrics as by mine statistics have not yet been published.
SOURCE: Public filings
NOTE: All metrics relating to Rosemont are presented on a 100% basis
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PERMITTING UPDATE
TSX/NYSE MKT:AZC
5/1/2014
1010
Permitting Timeline
File Plan of
Operations; first
step in NEPA
permitting process
(July 2007)
2007
Certificate of Environmental
Compatibility
(December 2011)
Reclamation Plan
Approval/Permit
(July 2009)
2008
2009
Groundwater
Withdrawal Permit
(January 2008)
Stormwater Permit
(April 2008)
Expect to receive Final
Record of Decision
(Q2 2014)
Aquifer Protection
Permit
(April 2012)
2010
2011
2012
Expect to receive Clean
Water Act 404 Permit
(Q2 2014)
2013
2014
Air Quality Permit;
(January 2013)
Final Environmental Impact
Statement
(November 2013)
Publication of Rosemont Draft Record
of Decision
(December 2013)
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Permitting Schedule
F
E
I
S
Nov/13
4
0
4
D
R
O
D
+
90-120 day comment and resolution period
45 day comment period
45 day resolution period
Dec/13
1x-30 day
extension
WE ARE HERE
F
R
O
D
Q2/14
Break
Ground
On Federal
Land
H2 - 2014
US Forest Service NEPA Process
Army Corps of Engineers Process
NOTE: DROD = Draft Record of Decision; FROD = Final Record of Decision; 404 = Clean Water Act 404 Permit
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Rosemont Project Timeline
CONSTRUCTION - IMMINENT
PERMITS: Q2 2014





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
TSX/NYSE MKT:AZC
 Preproduction, mining and construction 22
months
CONSTRUCTION
- IMMINENT
 Start construction by end of 2013
 Preproduction,environmental
mining and construction
22
 Engineering,
work,
months
CONSTRUCTION: H2-2014
preproduction, mining and
construction 32 months
PRODUCTION: Q1 2017
 21+ year mine life
based on proven &
probable reserves
13
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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COMMUNITY UPDATE
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5/1/2014
1616
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
Pima College

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
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


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
18
Broad Public Interest
Associations, Businesses, Cities, Chambers and Individuals have
registered their support of the Rosemont Project:

ACT
- Alliance of Construction Trades

Benson City Council

ABA
- Arizona Builders‘ Alliance

Benson/San Pedro Chamber of Commerce

ACA
- Arizona Contractors Association

City of Marana

AMIGOS - Arizona Mining Industry Gets Our Support

Greater Vail Area Chamber of Commerce

SACA

Marana Chamber of Commerce

SAHBA - Southern Arizona Home Builders Association

Metropolitan Pima Alliance

SAEDG - Southern Arizona Economic Development Group

Nogales Santa Cruz County Chamber of Commerce

SEAGO - South Eastern Arizona Governments Organization

Northern Pima County Chamber of Commerce

SVEDF
- Sierra Vista Economic Development Foundation

Sierra Vista Area Chamber of Commerce

TUCA
- Tucson Utility Contractors Association

Thatcher City Council

PALF
- Pima Area Labor Federation

Tucson Hispanic Chamber of Commerce

USW
- United Steelworkers of America

Tucson Metropolitan Chamber of Commerce

12,000 Families signed to support

Willcox Chamber of Commerce & Agriculture

120 Southern Arizona business leaders
- Southern Arizona Contractors Association
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PROJECT ECONIMICS
TSX/NYSE MKT:AZC
5/1/2014
2020
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 $30 billion to the USA over the life of
mine
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Rosemont CAPEX
CAPEX Breakdown ($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)
Contingency
General Site/
Ancillary Facilities
Owner’s Costs
EPCM/
Commissioning/
Spare Parts
Mine
Power/Water
Supply
($113)
Concentrator & Tailings
Total Construction & Commissioning
Mine Pre-development CAPEX
Total CAPEX
TSX/NYSE MKT:AZC
$1,110
$116
$1,226
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ROSEMONT FINANCING PLAN
Going forward CAPEX of $1.226 billion(1)
Source of funds
Project Financing
LGI/
KORES
($106M)
Silver
Wheaton
($230M)
Project Financing
($890M)(2)
Expected to be Completed in
Second Half-2014
Mandate Letter Signed
Syndicate of 12 banks
(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.
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PROJECT DESIGN
TSX/NYSE MKT:AZC
5/1/2014
2424
Drilling Summary – Rosemont Deposit
Company
Time Period
Drill 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
266
342,708
Total
All holes drilled at the Rosemont Property have been conducted along lines that are approximately 200 feet
apart. Currently the average spacing for holes along these lines is 250 feet.
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Cross Section with Phases
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Barrel Only Final
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Rosemont is Construction Ready
$90M already spent on equipment
Most major equipment procured – fixed
price contracts set in 2008/2009
Grinding mills and drives paid for and delivered
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TSX/NYSE MKT:AZC
REGRIND MILL
COLUMN CELLS
CLEANERS-SCAVENGERS
COPPER MOLYBDENUM
ROUGHER BANKS 1 & 2
PRIMARY
CRUSHER
COSP
Cu/Mo
THICKENER
TAILINGS THICKENERS
BALL MILLS
1&2
MOLYBDENUM FLOTATION
SAG MILL
COPPER CONCENTRATE
THICKENER
COLUMN CELLS
TAILINGS FILTERS
ROSEMONT COPPER - 75,000 STPD FLOWSHEET
MOLYBDENUM
PACKAGING
COPPER
CONCENTRATE
TAILINGS STORAGE
FACILITY
PEBBLE
CRUSHER
Sulfide Flow Sheet
29
Primary Crusher
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Grinding Building
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Flotation Building
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Tailings Filter Building
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Shiftable Conveyor with Spreader
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PROJECT MANAGEMENT
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5/1/2014
3535
Project Management Structure
“Owner Controlled
EPCM”
ROSEMONT PROJECT TEAM
Mine Fleet Procurement
Pre-stripping
Engineering
Procurement
Construction Mgmt.
Commissioning Start-up
Cost/Schedule
Project Control
M3 ENGINEERING
Field Engineering
RFI’s
CDM SMITH

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.
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Bid Evaluation
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
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Questions?
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