Augusta Obtains a Sustainable Water Supply Source for Rosemont
Monday June 26, 1:01 pm ET
ca.us.biz.yahoo.com
DENVER, COLORADO--(MARKET WIRE)--Jun 26, 2006 -- Augusta Resource Corporation ("Augusta") (TSX VENTURE:ARS.V - News) announced today that it has signed two contracts (the "Contracts") with the Central Arizona Water Conservation District ("CAWCD"). One Contract allows Augusta to become a water user in the CAWCD system; Augusta can request up to 10,000 acre-feet of water per year for the five-year term of the Contract. The other Contract allows Augusta to store the water in the Pima Mine Storage and Retrieval Facility in Pima County, Arizona. The pre-stored water will accumulate in a water-bank account to offset groundwater removed from the aquifer once mine operations begin on the Rosemont property. The planned mine operations at Rosemont will incorporate water-miser design principles and are expected to use 5,000 acre-feet per year or less.
"These contracts are significant for three reasons," says Augusta Vice President for Projects and Environment, Jamie Sturgess. "Augusta's water supply plan is sustainable within the Tucson aquifer, provides minimal impact environmentally and fits with our design principles for the project." Mr. Sturgess adds: "We are also happy to have addressed the water supply question ahead of the Environmental Impact Statement Review process, which removes a significant amount of uncertainty regarding project impacts to the region. Augusta will continue to avoid, minimize, or mitigate anticipated project impacts wherever possible so that Rosemont will be a model for responsible copper mine development."
The initial 5-year contract term (the standard CAWCD contract term) may be renewed in the future, and Augusta can also seek additional water amounts to be pre-stored into the aquifer at other storage and retrieval facilities within the basin.
Augusta also announces that it has solicited proposals for completion of the detailed Feasibility Study for the Rosemont Project. Augusta anticipates announcing the winning bidder for the Feasibility study during July. The Feasibility Study is scheduled for completion early in 2007.
ABOUT AUGUSTA RESOURCE CORPORATION - Augusta Resource Corp. is a mineral exploration and development company responsibly advancing copper and other base metal assets in the U.S. southwest. The Company's Rosemont Property is located in Pima County, approximately 50 km southeast of Tucson, Arizona, and contains four known potentially open-pit copper/molybdenum ("Cu/Mo") deposits. The Rosemont deposit contains 6.4 billion lbs of Cu equivalent (442,000,000 tons at 0.73% Cu equivalent) in measured and indicated resources and 1.9 billion lbs of Cu equivalent (145,000,000 tons at 0.67% Cu equivalent) in inferred resources. Please refer to the Company's news release dated January 24, 2006 for further details. Augusta has additional exploration properties in Nevada. The Company is traded on the Canadian TSX Venture Exchange under the symbol ARS.
ON BEHALF OF THE BOARD OF DIRECTORS
Gil Clausen, President and CEO
SPECIAL NOTICE REGARDING FORWARD-LOOKING STATEMENTS
Certain of the statements made and information contained herein and in the documents incorporated by reference may contain "forward-looking statements" including statements concerning the Company's plans at its Rosemont Property, and other mineral properties, which involve known and 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. Forward-looking statements 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, including, without limitation, risks and uncertainties relating to 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, 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 and other risks and uncertainties, including those described under Risk Factors relating to the Company's business in the Annual Information Form and the management's discussion and analysis. 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. Forward- looking statements include statements regarding the expectations and beliefs of management, the assumed long-term price of copper and exchange rates, the estimation of mineral reserves and resources, the realization of mineral reserve estimates in future expected production, anticipated future capital and operating costs, and the potential of the Company's properties and expectations of growth. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contact:
Contacts:
Augusta Resource Corporation
Gil Clausen
President and CEO
(303) 300-0134
(303) 300-0135 (FAX)
gclausen@augustaresource.com
Augusta Resource Corporation
Purni Parikh
Corporate Secretary
(604) 687-1717
(604) 687-1715 (FAX)
purni@augustaresource.com
augustaresource.com
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Source: Augusta Resource Corporation |
