Amerigo Resources Ltd.

Amerigo Resources Ltd.

July 22, 2009 09:00 ET

Amerigo Announces Q2 2009 Production Results and Dates for Release of Q2 2009 Results and Investor Conference Call

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 22, 2009) - Amerigo Resources Ltd. (TSX:ARG) ("Amerigo" or the "Company") is pleased to announce production results for the second quarter of 2009 from Minera Valle Central ("MVC"), the Company's operations located in Rancagua, Chile. For the three months ended June 30, 2009 MVC produced 9.61 million pounds of copper and 99,683 pounds of molybdenum.

Key operating and sales metrics are shown below.

Production Metrics: Q2-2008 Q3-2008 Q4-2008 Q1-2009 Q2-2009
Copper Production
(million lbs) 7.08 10.22 9.53 7.12 9.61
Production (lbs) 147,508 261,234 211,729 97,184 99,683
Ore milled
(Tonnes 000's) 9,135 12,882 13,299 10,859 12,292
Copper Grade(%) 0.135 0.134 0.134 0.12 0.14
Copper Recovery(%) 26.04 26.86 24.26 24.78 24.51
Molybdenum Grade
in copper
concentrates(%) 0.71 0.92 0.79 0.49 0.44
Molybdenum Recovery(%) 86.49 83.49 83.96 80.77 69.53

Sales Metrics: Q2-2008 Q3-2008 Q4-2008 Q1-2009 Q2-2009
Copper sales
(Million lbs) 7.13 10.20 9.56 7.12 9.49
Copper price at end
of period ($US/lb) 3.80 2.81 1.31 1.83 2.27
Prior period copper
sales subject to
final pricing during
period (Million lbs) 6.48 9.18 9.11 7.91 10.10
Average final settlement
price for prior period
copper sales ($US/lb) 3.5267 3.5267 1.8345 1.5032 2.1153
Molybdenum sales (lbs) 143,048 258,499 219,215 101,661 92,065
Molybdenum price at end
of period ($US/lb) 33.200 32.688 9.250 8.325 10.125

Power Costs (per kwh) $0.2462 $0.1703 $0.1261 $0.1468 $0.1247

Amerigo's president, Dr. Klaus Zeitler, stated, "Copper production at 9.61 million pounds was substantially higher than the 7.12 million pounds produced in Q1-2009, due to increased processing of old tailings and improved overall copper grades. We expect this trend to continue as the Company increases processing levels of old tailings. Molybdenum production remained low as a result of continuing low molybdenum grades in fresh tailings, a phenomenon which appears to be common in the industry as other copper-molybdenum operators reduce molybdenum production in response to the low molybdenum price. The molybdenum price has been rising over the past several weeks, however, and we believe this restriction of production will contribute to the continuing recovery of the molybdenum price."

Power costs were lower in the quarter, and the Company expects the price of energy to remain relatively stable during the third quarter.

The Company will also release its second quarter 2009 financial results at market open on Thursday, August 6, 2009 and will hold an investor conference call to discuss the company's Q2-2009 results on Friday, August 7, 2009 at 11:00 am Pacific Daylight Time/2:00 pm Eastern Daylight Time.

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

1-866-540-8136 (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 or (604) 218-7013
    (604) 682-2802 (FAX)