InvestigativeMEDIA is republishing its 2012 series of stories on the original investors of the Rosemont Copper Mine and their role in a failed Sardinian gold mining project through a Vancouver, B.C. based mining company called Sargold Resource Corp.
One of the original Rosemont investors, Richard Warke, remains a key player in Arizona by seeking permits to develop a massive open-pit silver mine near Patagonia. Warke is now chairman of Arizona Mining Inc., which is seeking state and federal permits to develop the Patagonia mine.
Warke runs an array junior mining companies from Vancouver, B.C. and also serves as Executive Chair of NewCastle Gold Ltd., a company focused on exploring its multi-million ounce gold deposit in California.
These businesses are part of the Augusta Group of Companies, a conglomerate that Warke founded in 2006 comprised of Arizona Mining, NewCastle Gold Ltd. and Armor Minerals.
As detailed below, Warke’s management of Sargold Resources and its Sardinian gold mine raise serious questions. For additional information on Warke’s history of failing to disclose personal and corporate bankruptcies, cease trade orders and stock exchange delistings click here. A video timeline of Warke’s business history is here.
Warke is also featured in InvestigativeMEDIA’s 2012 award-winning documentary Cyanide Beach.
InvestigativeMEDIA’s series of stories on Warke and his business partners including the Sargold investment was later featured in Global Mining Observer.
Toronto-based Hudbay Minerals Inc. purchased Rosemont Copper when it acquired Augusta Resource Corp. in 2014 in a $550 million stock deal. Warke was Chairman of Augusta Resource at the time of the purchase. Augusta Resource, under Warke’s direction, purchased the Rosemont copper prospect for $20 million in 2006.
Hudbay is now seeking state and federal permits to develop the Rosemont mine. InvestigativeMEDIA released its documentary Flin Flon Flim Flam on Hudbay’s worldwide operations and plans to develop the Rosemont mine in October 2015.
InvestigativeMEDIA’s original 2012 story on Warke’s investment strategy in the Sardinian gold mine through the now defunct Sargold Resource Corp. follows below.
Augusta Resource Corporation is seeking government approvals to construct a massive open-pit copper mine and dump waste rock and mine tailings on more than 3,000 acres of the Coronado National Forest in the Santa Rita Mountains 35 miles south of Tucson.
The mine would be operated through Augusta’s wholly-owned subsidiary, Rosemont Copper Company.
Augusta, a Vancouver, British Columbia speculative mining company, has never operated a mine and has a very limited business history.
Five of the eight current members of Augusta’s board of directors, however, do a have mining history.
Between 2003 and 2007, these executives were on the board of directors of Sargold Resource Corporation. Sargold owned and operated an open-pit gold mine near the small farming village of Furtei in south-central Sardinia.
InvestigativeMEDIA reviewed Sargold’s publicly available business records and traveled to Sardinia and Vancouver to conduct interviews. The reporting lead to the video documentary “Cyanide Beach”.
InvestigativeMEDIA also prepared the following report on Sargold’s business history that includes a detailed analysis at the end of the historical narrative.
InvestigativeMEDIA offered to meet Augusta officials in Vancouver, but Augusta declined interview requests with the five current Augusta board members to discuss their actions as Sargold directors.
The history and analysis is annotated with links to Sargold’s press releases, regulatory disclosures, court records, Canadian mining claim reports, news articles and scientific studies on the unfolding environmental disaster left behind after the Sardinian gold mine was abandoned. [Read more…]