Brixton Metals teams up with Eldorado on Atlin Goldfields project
Located 9 km east of the town of Atlin, British Columbia, the property comprises a 579-square-kilometre claim group.
Augusta Resource Corp. (TSE, NYSEMKT:AZC) screamed more than 80% higher on Thursday after announcing the US Forest Service has completed the final environmental impact statement for its massive Rosemont Copper project.
The Rosemont Copper project near Tucson, Arizona would be the third largest copper mine in the US and the impact statement follows an exhaustive six-year review process.
Augusta now expects a water use permit for which it has already secured the rights and the final so-called record of decision from environmental authorities in the US in the first quarter of next year, with construction starting in the second half of 2014.
Rosemount mine construction and commissioning is pegged at $1.23 billion of which more than $100 million has already been spent with planned production scheduled for 2015.
Augusta has inked a deal with streaming company Silver Wheaton which in exchange will inject $230 million in up-front cash payment for 100% of Rosemont’s life of mine gold and silver production. The Vancouver-based company also has a $106 million deal with Korean investors, leaving it to raise $890 million for capex.
At the close Augusta shares were trading up 63.7% at $1.68 on the NYSE MKT, with the counter adding another 12.5% in after hours trading to bring its gains on the day to 83.5%. More than 950,000 shares changed hands versus normal volumes for the stock of 330,000.
The $242 million company is still showing losses for 2013 – it is down 37% year to date.
At full tilt Rosemont could account for about 10% of annual US copper output, producing 243 million pounds of copper per year, 5.4 million pounds of molybdenum, 2.9 million ounces of silver and small quantities of gold as a by-product over a mine life of more than 22 years.
Augusta estimates production costs of just $0.87 a pound of copper compared to today’s price for the red metal of $3.20.
4 Comments
Mike Failla
About fricking time! Can we now get down to mining and prosperity instead of rancor and silliness? This has been a quality project from day one and we need to get on with it. We also have to keep in mind that it will be returned to its native state when done. People tend to lose sight of that!
frankinca
TGB should hire these guys for the Prosperity proposed mine. I think water rights are still a big issue as that area has little on surface and the underground stuff must have many claims and associated fears. Water is becoming a big issue in mining, like in Chile and many S. American countries that want mining without water pollution. A tough nut to crack, hey?
Mike Failla
Perhaps you are unaware of all the environmental studies as well as reclamation and water issues that have been addressed over and over again guest. Inform yourself and become enlightened. because if you cant grow it you must mine it. Really simple when you consider that you will never know a mine was there 50years from now after reclamation. Example: go look at black mesa mine, now that it has been reclaimed it is very productive and guess what? You are on the mine an would not recognize it as a former mine. Also guest you might consider that ming means prosperity for the surrounding areas. Tucson exists because of mining. Why do you suppose the U of A mining engineering is there as well as the university? Mining.
Old days are gone and we now do this way better than we did in the past. Is it perfect? No, it is a work in process and progress. Get the correct information and then you can also consider that the water issues have been dealt with. did you also know that 87% of water used on mine sites in Arizona is reused? Please become informed before you comment.
Mike Failla
Evaporation from the flotation process as well as water in the thickeners are exposed to heat and light so evaporation takes its toll. In addition in wet tailing there is a significant loss from evaporation on the tailing ponds and so we see a move to dry stack tailing which Rosemont will use which use and loses a lot less water so less make up water is needed. Hope that explains it.