Augusta Resource Corp. (AZC) Makes Key Appointments Ahead of Rosemont Copper Mine Construction, Robert Pirooz Joins Board
Augusta Resource has put together a sizeable reserve position down near Tucson at their 20.1k-acre Rosemont Copper project, with some 5.9B proven and probable lbs of copper (Cu) and 194M lbs of molybdenum (Mo) underfoot. The Rosemont project has the potential to supply 10% of U.S. copper output once in full production (slated to commence in 2015) and AZC is doubling down on these exceptional metrics with further meaningful additions to an already robust management lineup of industry veterans, reporting today that Robert P. Pirooz, who has over two decades in the trenches doing strategic transaction-focused legal work for the mining sector, has joined the AZC Board of Directors as an Executive Chairman (effective Nov 9).
Augusta isn’t taking any chances when they are sitting on such propitious digs. The vast experiential knowledge of the assembled management team constitutes a resource as abundant as the Rosemont, which is destined to become Arizona’s (accounts for 65% of U.S. supply) next major copper mine, sporting a projected mine lifespan of some 21+ years at around 243M lbs of Cu, 5.4M lbs of Mo, and 2.9M lbs of silver per year (2012 Feasibility Study). These output figures would make the Rosemont the fourth largest copper mine here in the U.S. (inferred sulfide mineral resource of 1.1B lbs Cu and 35M lbs Mo; 7.5B lbs Cu and 5.4M lbs Mo measured and indicated).
This is a huge, low-risk, low CAPEX-intensity mine with some great recovery vectors like a net cash cost of $1.02/lb of Cu over the life of the mine and an after-tax NPV (8%) of $2.5B at $3.50/lb Cu. With a solid analytical model of the resources and the proven technical capabilities needed to execute, it is no wonder that AZC is moving to round up talented people like Mr. Pirooz.
Pirooz is currently serving as General Counsel over at Vancouver-based, Pan American Silver Corp. (which has extensive operations throughout the western hemisphere) and comes to AZC with an extensive legal track record that includes being former Group VP and General Counsel for the prestigious BCR Group of Companies, as well as being both Corporate and Commercial Solicitor for several distinguished legal firms. A Chairman at Lumina Copper Corp., as well as Director and Secretary at Anfield Nickel Corp., Mr. Pirooz possesses all the proper qualities needed to serve Augusta with distinction. A former student at Dalhousie University, Mr. Pirooz took the B.C. Bar in 1990 shortly after his Juris Doctor from the University of British Columbia.
Executive Chairman at AZC, Richard Warke, emphasized the considerable depth of knowledge in mining and strategic transactions Pirooz brings to the team, assuring shareholders that his expertise would be clutch as the Rosemont Copper project steamrollers into construction early next year. Warke welcomed Pirooz on behalf of the Board and expressed his confidence that with such people at the helm, it would be smooth sailing as AZC moves ever closer to becoming a “solid mid-tier copper producer.”
It was also noted that Donald B. Clark would be stepping down from the company’s Board to serve in an advisory/consulting capacity after a long run with Augusta that stretches all the way back to the company’s inception.