Amerigo Resources Ltd.
TSX : ARG

Amerigo Resources Ltd.

July 21, 2011 09:00 ET

Amerigo Announces Q2 2011 Production Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 21, 2011) - Amerigo Resources Ltd. (TSX:ARG) "Amerigo" or the "Company") announced production results for the second quarter of 2011 from Minera Valle Central ("MVC"), the Company's operations located near Rancagua, Chile. MVC produced 9.45 million pounds of copper and 190,917 pounds of molybdenum during the three months ended June 30, 2011.

Amerigo's President and CEO, Dr. Klaus Zeitler, stated, "I am pleased to report that MVC's operations, which were affected by the extended strike action of workers for El Teniente's contractors, are back in full production and once again at budget levels. During June and the first half of July MVC could not process fresh tailings due to the unavailability of the downstream tailings launder from the MVC plant to the Caren tailings impoundment. During this period management made changes to the flow sheet which allowed MVC to continue to treat old tailings and which will have a beneficial effect on future production. In addition, I am also happy to report that the oxide pilot plant is now in operation and works to our full satisfaction."

Dr. Zeitler added, "Power costs remained at high levels during the quarter, but are now starting to come down due to the commencement of rains and snowfall."

Key operating and sales metrics are shown below.

Production Metrics: Q2-2010 Q3-2010 Q4-2010 Q1-2011 Q2-2011
Copper Production (million lbs) 11.51 13.39 13.11 11.15 9.45
Molybdenum Production (lbs) 155,755 233,266 244,912 212,125 190,917
Ore milled (Tonnes 000's) 12,942 14,016 14,045 14,168 11,363
Copper Grade (%) 0.148 0.155 0.150 0.146 0.148
Copper Recovery (%) 27.20 27.92 28.24 24.36 25.43
Molybdenum Grade in copper concentrates (%) 0.48 0.65 0.70 0.72 0.78
Molybdenum Recovery (%) 84.04 81.92 79.70 77.5 76.0
Sales Metrics: Q2-2010 Q3-2010 Q4-2010 Q1-2011 Q2-2011
Copper sales1 (Million lbs) 11.35 13.38 13.07 10.88 9.32
Copper price at end of period ($US/lb) 2.96 3.65 4.42 4.18 4.22
Prior period copper sales subject to final pricing during period (Million lbs) 3.66 5.49 _ 0.45 3.57
Average final settlement price for prior period copper sales ($US/lb) 3.0248 3.2853 _ 4.4759 4.2897
Company's Recorded Copper Price ($US/lb)2 3.09 2.92 3.75 4.24 3.97
Molybdenum sales (lbs) 156,514 231,837 222,533 185,404 195,006
Molybdenum price at end of period ($US/lb) 14.325 15.360 16.020 16.900 15.880
Power Costs (per kwh) $ 0.1533 $ 0.1590 $ 0.1729 $ 0.1982 $ 0.2067
1 Copper sales per the Company's records, which may differ from copper sales per the smelter. All differences between Company and smelter records for a quarter will be recorded as settlement adjustments in subsequent quarters until settled.
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. The Company calculates this number by dividing quarterly dollar sales as recorded in its financial statements (calculated based on copper deliveries per the smelter) over quarterly copper sales per the Company's own records.

The Company will also release Q2-2011 financial results at market open on Thursday August 11, 2011 and will hold an investor conference call to discuss the results on Friday August 12, 2011 at 11:00 am Pacific Daylight Time/2:00 pm 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: www.amerigoresources.com; Listing: (TSX:ARG).

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
    President & CEO
    (604) 218-7013

    Amerigo Resources Ltd.
    (604) 697-6201
    www.amerigoresources.com