Amerigo Resources Ltd.

Amerigo Resources Ltd.

April 22, 2010 09:01 ET

Amerigo Announces Q1 2010 Production Results and Dates for Release of Q1 2010 Results and Investor Conference Call

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 22, 2010) - Amerigo Resources Ltd. (TSX:ARG) ("Amerigo" or the "Company") is pleased to announce production results for the first quarter of 2010 from Minera Valle Central ("MVC"), the Company's operations located near Rancagua, Chile. For the three months ended March 31, 2010 MVC produced 8.59 million pounds of copper and 143,371 pounds of molybdenum.

Key operating and sales metrics are shown below.

Production Metrics: Q1-2009 Q2-2009 Q3-2009 Q4-2009 Q1-2010
Copper Production (million lbs) 7.12 9.61 10.12 12.12 8.59
Molybdenum Production (lbs) 97,184 99,683 151,310 246,636 143,371
Ore milled (Tonnes 000's) 10,859 12,292 12,889 13,576 11,582
Copper Grade (%) 0.12 0.14 0.14 0.15 0.144
Copper Recovery (%) 24.78 24.51 26.03 27.00 23.4
Molybdenum Grade in copper concentrates (%) 0.49 0.44 0.59 0.73 0.56
Molybdenum Recovery (%) 80.77 69.53 74.13 82.59 85.70
Sales Metrics: Q1-2009 Q2-2009 Q3-2009 Q4-2009 Q1-2010
Copper sales (Million lbs) 7.12 9.49 10.19 12.59 8.50
Copper price at end of period ($US/lb) 1.83 2.27 2.79 3.33 3.56
Prior period copper sales subject to final pricing during period (Million lbs) 7.91 10.10 N/A1 1.41 2.15
Average final settlement price for prior period copper sales ($US/lb) 1.5032 2.1153 N/A1 2.8522 3.2872
Company's Recorded Copper Price2 1.82 2.06 2.43 2.79 3.20
Molybdenum sales (lbs) 101,661 92,065 147,894 252,761 137,094
Molybdenum price at end of period ($US/lb) 8.325 10.125 14.125 11.230 17.18
Power Costs (per kwh) $0.1468 $0.1247 $0.0989 $0.0963 $0.1579
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, "Despite the production interruption resulting from the massive 8.8 magnitude earthquake that struck Chile in late February, copper production for Q1-2010 set a new record for first quarter production. MVC produced 8.59 million pounds of copper in Q1-2010 compared to 7.12 million pounds in Q1-2009. Molybdenum production was 143,371 pounds, substantially higher than the 97,184 pounds produced in Q1-2009, but was also adversely affected by the earthquake.

Processing of old tailings has been restored to pre-earthquake levels, and will increase as MVC continues to move to its goal of 45,000 tonnes per day, the maximum contractual rate."

The Company will also release Q1-2010 financial results at market open on Wednesday, May 12, 2010 and will hold an investor conference call to discuss the results on Thursday, May 13, 2010 at 8:30 am Pacific Daylight Time/11:30 am Eastern Daylight Time.

To participate in the call, please dial the following number:

1-877-240-9772 (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:; 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.

Contact Information

  • Amerigo Resources Ltd.
    Dr. Klaus Zeitler
    (604) 681-2802, (604) 218-7013
    (604) 682-2802 (FAX)