Vancouver, British Columbia--(Newsfile Corp. - July 13, 2017) - Amerigo Resources Ltd. (TSX: ARG) ("Amerigo" or the "Company") announced today production results for the second quarter of 2017 from Minera Valle Central ("MVC"), the Company's operation located near Rancagua, Chile.
Operational Highlights for Q2-2017:
In Q2-2017, MVC produced 16.3 million pounds of copper at a cash cost of $1.53 per pound, pursuant to a tolling agreement with Codelco's Division El Teniente and a toll processing agreement with Minera Maricunga.
Copper production is at record levels and cash cost is trending downwards due to good performance from the team at MVC. Engineering work for the Phase Two expansion project is 44% complete and orders have been placed for long delivery equipment. Amerigo is finalizing debt financing for the project, which when completed will increase MVC's production to 85 to 90 million pounds of copper per year.
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 $1.75 per pound. MVC also expects to produce 1.5 million pounds of molybdenum.
Summary of Production Results for the Most Recent Five Quarters:
| Q2-2017 | Q1-2017 | Q4-2016 | Q3-2016 | Q2-2016 | |
| Fresh tailings | |||||
| Tonnes processed | 10,708,437 | 10,566,171 | 9,782,870 | 11,373,542 | 10,620,849 |
| Copper grade | 0.110% | 0.120% | 0.116% | 0.113% | 0.117% |
| Copper recovery | 20.8% | 16.6% | 18.4% | 19.7% | 21.3% |
| Copper produced (millions of pounds) | 5.403 | 4.651 | 4.608 | 5.571 | 5.640 |
| Historic tailings | |||||
| Tonnes processed | 5,503,942 | 5,813,239 | 4,935,260 | 5,435,474 | 5,149,732 |
| Copper grade | 0.253% | 0.254% | 0.239% | 0.236% | 0.224% |
| Copper recovery | 33.5% | 29.4% | 31.1% | 34.4% | 32.2% |
| Copper produced (millions of pounds) | 10.289 | 9.594 | 8.065 | 9.756 | 8.191 |
| Maricunga toll processing | |||||
| Copper produced (millions of pounds) | 0.570 | 0.896 | 0.918 | 0.700 | 0.524 |
| Total copper produced (millions of pounds) | 16,262 | 15.141 | 13.591 | 16.027 | 14.355 |
| Total copper delivered (millions of pounds) | 16,197 | 15.175 | 13.417 | 15.599 | 14.509 |
| Cash cost ($/pound copper) | 1.53 | 1.71 | 1.87 | 1.60 | 1.65 |
Release of Financial Results for Q2-2017:
The Company will release Q2-2017 financial results at market open on Thursday August 10, 2017, followed by an investor conference call on Friday August 11, 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)
