VANCOUVER, Jan. 16, 2018 /CNW/ - Amerigo Resources Ltd. ("Amerigo" or the "Company") (TSX: ARG) announced today production results for the year 2017 and Q4-2017 from Minera Valle Central ("MVC"), the Company's 100% owned operation located near Rancagua, Chile.
Operational Highlights:
In 2017, MVC produced record quantities of copper and molybdenum. MVC produced 62.5 million pounds of copper at a cash cost of $1.64 per pound, pursuant to a tolling agreement with Codelco's Division El Teniente. Annual molybdenum production was 1.6 million pounds.
The Company's robust performance met its 2017 guidance of production of 60 to 65 million pounds of copper at a cash cost of $1.60 to $1.75 per pound, and exceeded guidance of production of 1.5 million pounds of molybdenum.
In Q4-2017, MVC produced 15.6 million pounds of copper at a cash cost of $1.66 per pound, and 0.4 million pounds of molybdenum.
Construction of MVC's Cauquenes Phase Two expansion is on track for completion in Q3-2018, with full production expected in Q4-2018. The project will increase MVC's production to 85 to 90 million pounds per year, at an estimated cash cost of $1.45 to $1.60 per pound.
In 2018, Amerigo expects to produce 65 to 70 million pounds of copper and 1.8 million pounds of molybdenum, at a cash cost of $1.45 to $1.60 per pound.
Rob Henderson, Amerigo's President and CEO, stated "MVC performed strongly again in 2017. The completion of the Cauquenes expansion in the second half of the year will increase production and lower unit costs, enabling Amerigo to further benefit from improved copper prices expected in 2018."
Summary of 2017 Production Results:
|
2017 |
Q4-2017 |
Q3-2017 |
Q2-2017 |
Q1-2017 |
|
|
Fresh tailings |
|||||
|
Tonnes processed |
43,718,332 |
11,290,794 |
11,152,930 |
10,708,437 |
10,566,171 |
|
Copper grade |
0.118% |
0.123% |
0.117% |
0.110% |
0.120% |
|
Copper recovery |
19.2% |
19.7% |
19.8% |
20.8% |
16.7% |
|
Copper produced (millions of pounds) |
21.784 |
6.030 |
5.700 |
5.404 |
4.651 |
|
Historic tailings |
|||||
|
Tonnes processed |
22,658,605 |
5,650,522 |
5,716,546 |
5,522,301 |
5,769,236 |
|
Copper grade |
0.249% |
0.247% |
0.240% |
0.253% |
0.255% |
|
Copper recovery |
31.6% |
31.2% |
32.4% |
33.4% |
29.6% |
|
Copper produced (millions of pounds) |
39.265 |
9.596 |
9.786 |
10.290 |
9.594 |
|
Maricunga toll processing |
|||||
|
Copper produced (millions of pounds) |
1.466 |
- |
- |
0.570 |
0.896 |
|
Total copper produced (millions of pounds) |
62.515 |
15.625 |
15.487 |
16.262 |
15.141 |
|
Total copper delivered (millions of pounds) |
62.593 |
15.970 |
15.251 |
16.197 |
15.175 |
|
Cash cost ($/pound copper) |
1.64 |
1.66 |
1.69 |
1.53 |
1.71 |
Release of 2017 Annual Financial Results:
The Company will release 2017 annual financial results at market open on Wednesday February 21, 2018, followed by an investor conference call on Thursday February 22, 2018 at 11:00 am Pacific Standard Time/2:00 pm Eastern Standard Time.
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 partnership with Corporación Nacional del Cobre de Chile ("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.
