Vancouver, British Columbia--(Newsfile Corp. - April 20, 2017) - Amerigo Resources Ltd. (TSX: ARG) ("Amerigo" or the "Company") announced today production results for the first quarter of 2017 from Minera Valle Central ("MVC"), the Company's operation located near Rancagua, Chile.
Operational Highlights for Q1-2017:
In Q1-2017, MVC produced 15.1 million pounds of copper at a cash cost of $1.71 per pound, pursuant to a tolling agreement with Codelco's Division El Teniente and a toll processing agreement with Minera Maricunga.
Plant recoveries returned to normal following completion of repairs to the concentrate regrind mill in February 2017. Copper production from the historic Cauquenes deposit has increased steadily since the Phase One Expansion project was completed in 2015. The Phase Two Expansion project is planned to improve flotation recovery efficiency and expand the existing facilities to an output of 85 to 90 million pounds of copper per year. Detailed engineering work is proceeding at MVC and Amerigo is finalizing plans for debt financing in order to complete the construction of the $30 million project in the second half of 2018.
Amerigo's production guidance for 2017 is maintained at 60 to 65 million pounds of copper at an annual cash cost of $1.60 to $1.75 per pound. MVC also expects to produce 1.5 million pounds of molybdenum.
Summary of Production Results for the Most Recent Five Quarters:
|
Q1-2017 |
Q4-2016 |
Q3-2016 |
Q2-2016 |
Q1-2016 |
|
|
Fresh tailings |
|||||
|
Tonnes processed |
10,566,171 |
9,782,870 |
11,373,542 |
10,620,849 |
10,617,420 |
|
Copper grade |
0.120% |
0.116% |
0.113% |
0.117% |
0.117% |
|
Copper recovery |
16.6% |
18.4% |
19.7% |
21.3% |
19.2% |
|
Copper produced (millions of pounds) |
4.651 |
4.608 |
5.571 |
5.640 |
5.270 |
|
Historic tailings |
|||||
|
Tonnes processed |
5,813,239 |
4,935,260 |
5,435,474 |
5,149,732 |
5,087,765 |
|
Copper grade |
0.254% |
0.239% |
0.236% |
0.224% |
0.228% |
|
Copper recovery |
29.4% |
31.1% |
34.4% |
32.2% |
26.4% |
|
Copper produced (millions of pounds) |
9.594 |
8.065 |
9.756 |
8.191 |
6.734 |
|
Maricunga toll processing |
|||||
|
Copper produced (millions of pounds) |
0.896 |
0.918 |
0.700 |
0.524 |
0.851 |
|
Total copper produced (millions of pounds) |
15.141 |
13.591 |
16.027 |
14.355 |
12.855 |
|
Total copper delivered (millions of pounds) |
15.175 |
13.417 |
15.599 |
14.509 |
12.746 |
|
Cash cost ($/pound copper) |
1.71 |
1.87 |
1.60 |
1.65 |
1.81 |
Release of Financial Results for Q1-2017:
The Company will release Q1-2017 financial results at market open on Wednesday May 3, 2017, followed by an investor conference call on Thursday May 4, 2017 at 11:00 am Pacific Daylight Time/2:00 pm Eastern Daylight Time.
Conference Call Participation:
To participate in the call, please dial 1-866-225-0198 (Toll-Free North America) and let the operator know you wish to participate in the Amerigo Resources conference call. Media are invited to attend on a listen-only basis. Following management's discussion of the quarterly results, the analyst and investment community will be invited to ask questions.
About the Company:
Amerigo Resources Ltd. is an innovative copper producer with a long-term relationship with Codelco, the world's largest copper producer. Amerigo produces copper concentrate at the MVC operation in Chile by processing fresh and historic tailings from Codelco's El Teniente mine, the world's largest underground copper mine. Tel: (604) 681-2802; Fax: (604) 682-2802; Web: www.amerigoresources.com; Listing: TSX: ARG.
