Rosemont (United States)

Operator: Hudbay
Location: USA
Term of Stream: Life of Mine
Stream Parameters: 100% of silver production and 100% of gold production
Upfront Consideration: US$230M
Primary Metal: Copper

Project Overview

The Rosemont Copper Project is a copper-molybdenum-silver porphyry deposit located in Pima County, Arizona. Hudbay acquired the project in July 2014 through the acquisition of Augusta Resources Corporation.

The Rosemont Deposit consists of skarn-hosted copper-molybdenum-silver mineralization related to quartz-monzonite porphyry intrusions. Genetically, it is a style of porphyry copper deposit, although intrusive rocks are volumetrically minor within the resource area. Mineralization is mostly in the form of primary (hypogene) copper-molybdenum-silver sulfides, found in stockwork veinlets and disseminated in the altered host rock. Some oxidized copper mineralization is also present in the upper portion of the deposit.

In 2015, Hudbay completed a two-year confirmatory drill program consisting of 89 holes and advanced the engineering in a number of areas, including through a metallurgical test program. Furthermore, Hudbay is in the process of completing a definitive feasibility study for the Rosemont project, including a current estimate of the mineral reserves and resources. Permitting efforts remain ongoing. On February 3, 2015, the Arizona Department of Environmental Quality issued the Clean Water Act Section 401 Water Quality Certification. The remaining required key permits are the final Record of Decision from the U.S. Forest Service and the Clean Water Act Section 404 Permit from the U.S. Army Corps of Engineers.

Precious Metal Purchase Agreement

On February 10, 2010, Silver Wheaton agreed to pay upfront cash payments totaling US$230 million to acquire an amount equal to 100% of the life of mine payable silver and gold production from Rosemont, for the lesser of US$3.90 per ounce of silver and US$450 per ounce of gold (both subject to an inflationary adjustment) or the prevailing market price per ounce of silver and gold delivered. The upfront payments will be made on an installment basis to partially fund construction of the mine and will commence once certain milestones are achieved, including the receipt of key operating permits.

More Information

For more information about Rosemont, please visit Hudbay’s website at www.hudbay.com.

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