Q&A on Rosemont Mine

Rod Pace, president and CEO of Rosemont Copper, address issues surrounding the proposed $900 million mine in the Santa Rita Mountains.

QUESTION: NEPA requires that a proposed mine prove that it will not violate environmental laws. How can Rosemont guarantee it will not negatively impact local wells in Sahuarita, Vail or near the mine site, and will avoid surface and groundwater pollution.

ANSWER: NEPA is not the only program related to protection of water supply from impacts of a proposal such as Rosemont Copper Project. Rosemont has voluntarily entered into site specific programs with water company providers and representatives of a residential well owners group in the Sahuarita area and the Green Valley area.

These agreements acknowledge Rosemont responsibility to avoid, minimize or mitigate impacts to resources, communities and individuals. In regards to the local Sahuarita area, the United Sahuarita Well Owners group and Rosemont have been working for a year on a program that protects the individual well owner from potential project impacts.

In regards to the mine site area: the regional ground water system near the mine site, and protection of same, is the subject of considerable study. Rosemont has spent over $4 million in a regional hydrology study which drilled 30 wells, conducted pumping tests, and considerable water quality analysis. The best technology available, and the best information that can be developed, has gone into the planning and design of Rosemont facilities.

It will be the NEPA-required Environmental Impact Statement that objectively determines the impacts from the facilities Rosemont is proposing.

QUESTION: How can Rosemont guarantee no degradation to the segments of Davidson Canyon and Cienega Creek that are protected by the Arizona “Outstanding Water” restrictive water quality designation?

ANSWER: State and National rules require that there be no degradation of Outstanding Arizona Waters. Rosemont is required to follow these rules. Project plans for zero discharge of process water, use of tailing dewatering for dry stack tailing management, and the engineered design of water management facilities to maximize recycling to meet requirements.

QUESTION: The Region 3 hydrologist has stated it will take “up to several years” to collect enough data to characterize the basins around the mine. Does August feel comfortable with the Coronado National Forest releasing a draft Environmental Impact Statement on Rosemont without this data?

ANSWER: The Coronado National Forest will not have to release a DEIS without adequate hydrology data, there has been three years of data collection and characterization effort. Hydrologists, geologists, watershed modelers and facility planners have been at the project since late 2005 to develop the local and regional data, to build predictive models, and to calibrate these models. The effort is entering the fifth year.

QUESTION: Can the Department of Agriculture override a decision by the U.S. Forest Service to approve the mine?

ANSWER: This seems to be a question best left to constitutional lawyers. Rosemont believes that a decision to approve the mine, with appropriate conditions, protections to the environment and mitigation for unavoidable impacts will follow national minerals policy, and will be in the national interest.

QUESTION: How can Augusta Resource Corp. guarantee it will not permanently alter flows into the Santa Cruz River, or in any of the springs, seeps or creeks in the Cienega Watershed?

ANSWER: Rosemont would defer to the Environmental Impact Statement, and the technical studies conducted for that report, for predictions on hydrology impacts. We will point out that Cienega Creek is miles away from the proposed project site.

QUESTION: How will Rosemont protect downstream resources? Would you develop a plan that addresses 500-year floods like the one in the Santa Ritas in 2006?

ANSWER: Rosemont design criteria for storm water flows, flood events and including extreme flood events are carefully developed, and reviewed by each agency involved in water management and resource protection during the NEPA/EIS process. Dependent upon location within the facility and use planned, temporary structures typically use the 100 year flood as the design storm criteria, in many cases the 1,000-year storm is appropriate, and in some areas, such as long term stability of critical structures, the much higher flood events such as PMF (probable maximum flood) are used. For low risk, low hazard areas such as road-culverts, the criteria used are the same as those used by county and state transportation agencies.

QUESTION: What alterations will be made to Highway 83 to support additional use by the mine? How can Augusta reduce the risks of running heavy truck traffic on the road? Will the mine contribute to future repairs/rebuilding beyond what it needs at the outset?

ANSWER: Rosemont has submitted a Transportation Study to the Coronado Forest that analyzes Highway 83 traffic safety concerns, suggested safety upgrades, and related options for consideration. The design of an appropriate intersection is the most important first step, and a range of options for this have been evaluated. Heavy truck traffic and shift changes will be scheduled to avoid school bus and peak user times. Careful attention to legal weight limits for mine-related traffic, as well as all traffic on the Arizona roadways, is the key to maintaining highway condition. Construction of the safety upgrades, and maintenance throughout the project life, will be a key priority of Rosemont.

QUESTION: Has Augusta Resource ruled out selling its rights to mine the land?

ANSWER: Augusta is a public company, subject to disclosure rules and regulations, and has fiduciary duties to its shareholders and investors. Augusta believes that these duties are best met through the lawful development of the Rosemont copper project, in compliance with local state and national rules, including the National Mineral Policy that encourages the exploration, development, and production of minerals on those public lands open to mineral entry. The EIS is a binding document that will determine how the project will be developed.

For more information on Rosemont Copper, including reports and applications, go to www.rosemontcopper.com