Rosemont - Arizona
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1.5% NSR Sulfides: 492,727 Ktons @ 0.47%; Oxides: 49,445 Ktons @ 0.18% (Cu) 492,727 Ktons @ 0.015% (Mo) 492,727 Ktons @ 0.12 oz/ton (Ag) Sulfides: 5,421 Mlbs / 1,386 Mlbs; Oxides: 297 Mlbs / 121 Mlbs M&I (Cu @ 0.20% c/o sulfides and 0.10% c/o oxides) 156.9 Mlbs M&I / 22.8 Mlbs Inf. (Mo) 66,500,000 oz M&I / 9,300,000 oz Inf. (Ag) Augusta Resource Corporation |
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Franco-Nevada holds a 1.5% NSR royalty on all minerals extracted from the Rosemont (Helvetia) project, located in Pima County, approximately 30 miles southeast of Tucson, Arizona, which is currently in the permitting process. The property contains three known potentially open-pit minable Cu/Mo/Ag skarn deposits (Rosemont, Peach Elgin and Broadtop Butte, respectively) and is situated near a number of large porphyry type producing copper mines operated by Freeport-McMoRan Copper & Gold Inc. (formerly Phelps Dodge Corporation) and Asarco LLC. The project is owned by Augusta Resource Corporation (“Augusta”), with a recent significant investment in Augusta by Sumitomo Corporation.
Augusta has publicly reported that measured and indicated resources at Rosemont include 74.5 million tonnes of oxide ore, and 543.1 tonnes of sulfide mineralization containing copper, silver and molybdenum. Metal content within this resource is estimated at 4.65 billion pounds of copper, 146 million pounds of molybdenum and 61 million ounces of silver.
On August 28, 2007, Augusta released a bankable feasibility study, indicating that the Rosemont (Helvetia) project is technically and economically feasible and that the project will be a conventional modern hard rock open pit operation, with a mine life of 18.2 years, and annual production of (i) 234 million pounds of copper (84% recovery); (ii) 4.5 million pounds of molybdenum (56% recovery); and (iii) 2.65 million ounces of silver (78% recovery) expected for the first eight years of production. Augusta has publicly reported that permitting and engineering initiatives are currently underway, with preproduction mining projected by Augusta to begin in 2010.
In April, Augusta announced that is has elected to sell 45% of the silver to be produced at Rosemont to raise US$165 milion after signing binding letter agreement and term sheet with Silver Wheaton Corp and in June 2008, Augusta entered into a loan agreement with Sumitomo Corporation for US$40 million.
On October 31, 2008 Augusta announced that the financing arrangements with Silver Wheaton are to be restructured once the updated bankable feasability study is completed. It is expected in mid-Jaunary 2009.
On November 3, 2008 Augusta announced it has hired TD Securities to help evaluate a series of possible strategic alternatives.