Rosemont - Arizona
| Royalty: | 1.5% NSR |
|---|---|
| 2009 Revenue: | Project at permitting stage |
| Operator: | Augusta Resource Corporation |
Franco-Nevada has 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 mineable copper/molybenum/silver 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”).
As of January 15, 2009, Augusta reported that Measured and Indicated resources at Rosemont, assuming a 0.15% copper cut-off and $1.85/lb copper price, included 105.1 million tonnes of oxide and mixed ore, and 596.8 million tonnes of sulfide mineralization containing 6.17 billion pounds of copper, 176 million pounds of molybdenum and 72 million ounces of silver. Proven and Probable reserves, which are included in the above resources, were 70.0 million tonnes of oxide ore and 546.3 million tonnes of sulfide ore containing 5.15 billion pounds of copper, 164 million pounds of molybdenum and 66 million ounces of silver.
Augusta released an updated feasibility study in January 2009 re-affirming 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 21 years, and average annual production of 221 million pounds of copper, 4.7 million pounds of molybdenum, and 2.4 million ounces of silver over the expected mine life.
Augusta is currently moving through the U.S. Environmental Policy Act permitting process, after the United States Forest Service and Bureau of Land Management made determinations of completeness regarding Rosemont’s Mine Plan of Operations in the first quarter of 2008. The Draft Environmental Impact Statement is expected to be released to the public early in the second quarter of 2010. The Record of Decision is expected in the fourth quarter of 2010. Subsequently, Augusta will file a final Plan of Operations and it is expected that permits would then be issued allowing construction to commence in 2011.