Amerigo Q2 2010 Copper Production Up 34%
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/19/10 -- Amerigo Resources Ltd. (TSX: ARG) ('Amerigo' or the 'Company') is pleased to announce production results for the second quarter of 2010 from Minera Valle Central ('MVC'), the Company's operations located near Rancagua, Chile. For the three months ended June 30, 2010 MVC produced 11.51 million pounds of copper and 155,755 pounds of molybdenum.
Key operating and sales metrics are shown below.
----------------------------------------------------------------------------
Production Metrics: Q2-2009 Q3-2009 Q4-2009 Q1-2010 Q2-2010
----------------------------------------------------------------------------
Copper Production
(million lbs) 9.61 10.12 12.12 8.59 11.51
----------------------------------------------------------------------------
Molybdenum Production
(lbs) 99,683 151,310 246,636 143,371 155,755
----------------------------------------------------------------------------
Ore milled (Tonnes
000's) 12,292 12,889 13,576 11,582 12,942
----------------------------------------------------------------------------
Copper Grade (%) 0.14 0.14 0.15 0.144 0.148
----------------------------------------------------------------------------
Copper Recovery (%) 24.51 26.03 27.00 23.4 27.2
----------------------------------------------------------------------------
Molybdenum Grade in
copper concentrates
(%) 0.44 0.59 0.73 0.56 0.48
----------------------------------------------------------------------------
Molybdenum Recovery
(%) 69.53 74.13 82.59 85.70 84.04
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Sales Metrics: Q2-2009 Q3-2009 Q4-2009 Q1-2010 Q2-2010
----------------------------------------------------------------------------
Copper sales (Million
lbs) 9.49 10.19 12.59 8.50 11.35
----------------------------------------------------------------------------
Copper price at end
of period ($US/lb) 2.27 2.79 3.33 3.56 2.96
----------------------------------------------------------------------------
Prior period copper
sales subject to
final pricing during
period (Million lbs) 10.10 N/A(1) 1.41 2.15 3.66
----------------------------------------------------------------------------
Average final
settlement price for
prior period copper
sales ($US/lb) 2.1153 N/A(1) 2.8522 3.2872 3.0248
----------------------------------------------------------------------------
Company's Recorded
Copper Price(2) 2.06 2.43 2.79 3.20 3.09
----------------------------------------------------------------------------
Molybdenum sales
(lbs) 92,065 147,894 252,761 137,094 156,514
----------------------------------------------------------------------------
Molybdenum price at
end of period
($US/lb) 10.125 14.125 11.230 17.18 14.325
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Power Costs (per kwh) $0.1247 $0.0989 $0.0963 $0.1479 $0.1533
----------------------------------------------------------------------------
(1) Although the Company's Q3-2009 copper production was being priced on the
basis of M+1, production was behind delivery quotas therefore all copper
production in Q3-2009 was finally priced.
(2) Copper price recorded for the Company's financial statements for the
quarter before smelter and refinery charges and settlement adjustments to
prior periods' sales and after hedging.
Amerigo's president, Dr. Klaus Zeitler, stated 'We are very pleased to report that copper production of 11.51 million pounds in Q2-2010 was up 34% from Q1-2010, and almost 20% higher than the 9.61 million pounds produced in Q2-2009. MVC continues to make significant progress in the processing of old tailings, which now represents approximately 50% of total copper production, and remains on target to reach the maximum contractual rate by the end of this year. In addition, the Company's generators are now connected to the central grid, which will help to contain power costs in future '.
The Company will also release Q2-2010 financial results at market open on Thursday August 12, 2010 and will hold an investor conference call to discuss the results on Friday August 13, 2010 at 11:00 am Pacific Daylight Time/2:00 pm Eastern Daylight Time.
To participate in the call, please dial the following number:
1-800-769-8320 (Toll-Free North America)
Please 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.
Amerigo Resources Ltd. produces copper and molybdenum under a long term partnership with the world's largest copper producer, Codelco, by means of processing fresh and old tailings from the world's largest underground copper mine, El Teniente near Santiago, Chile. Tel: (604) 681-2802; Fax: (604) 682- 2802; Web: www.amerigoresources.com; Listing: ARG:TSX
Certain of the information and statements contained herein that are not historical facts, constitute 'forward-looking information' within the meaning of the Securities Act (British Columbia), Securities Act (Ontario) and the Securities Act (Alberta) ('Forward-Looking Information'). Forward-Looking Information is often, but not always, identified by the use of words such as 'seek', 'anticipate', 'believe', 'plan', 'estimate', 'expect' and 'intend'; statements that an event or result is 'due' on or 'may', 'will', 'should', 'could', or might' occur or be achieved; and, other similar expressions. More specifically, Forward-Looking Information contained herein includes, without limitation, information concerning future tailings production volumes and the Company's copper and molybdenum production, all of which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such Forward-Looking Information;
including, without limitation, material factors and assumptions relating to, and risks and uncertainties associated with, the supply of tailings from El Teniente and extraction of tailings from the Colihues tailings impoundment, the achievement and maintenance of planned production rates, the evolving legal and political policies of Chile, the volatility in the Chilean economy, military unrest or terrorist actions, metal price fluctuations, favourable governmental relations, the availability of financing for activities when required and on acceptable terms, the estimation of mineral resources and reserves, current and future environmental and regulatory requirements, the availability and timely receipt of permits, approvals and licenses, industrial or environmental accidents, equipment breakdowns, availability of and competition for future mineral acquisition opportunities, availability and cost of insurance, labour disputes, land claims, the inherent uncertainty of production and cost estimates, currency fluctuations, expectations and beliefs of management and other risks and uncertainties, including those described under Risk Factors in the Company's Annual Information Form dated March 31, 2008, and in each subsequent Management's Discussion and Analysis. Such Forward-Looking Information is based upon the Company's assumptions regarding global and Chilean economic, political and market conditions and the price of metals, including copper and molybdenum, and future tailings production volumes and the Company's copper and molybdenum production. Among the factors that have a direct bearing on the Company's future results of operations and financial conditions are changes in project parameters as plans continue to be refined, interruptions in the supply of fresh tailings from El Teniente, further delays in the extraction of tailings from the Colihues tailings impoundment, a change in government policies, competition, currency fluctuations and restrictions and technological changes, among other things. Should one or more of any of the aforementioned risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from any conclusions, forecasts or projections described in the Forward-Looking Information. Accordingly, readers are advised not to place undue reliance on Forward-Looking Information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise Forward-Looking Information, whether as a result of new information, future events or otherwise.
Contacts:
Amerigo Resources Ltd.
Dr. Klaus Zeitler
President
(604) 218-7013, (604) 697-6201
www.amerigoresources.com