VANCOUVER, British Columbia, Oct. 19, 2016 (GLOBE NEWSWIRE) -- Amerigo Resources Ltd. ("Amerigo" or the "Company") (TSX:ARG) announced today production results for the third quarter of 2016 from Minera Valle Central ("MVC"), the Company’s operation located near Rancagua, Chile.
Operational Highlights for Q3-2016:
In Q3-2016, MVC produced 16.0 million pounds of copper at a cash cost of $1.60 per pound, pursuant to a tolling agreement with Codelco’s Division El Teniente and a toll processing agreement with Minera Maricunga.
Quarterly copper production is at a record level and is 89% higher than Q3-2015, due to good performance from the historic Cauquenes deposit. MVC’s production estimate for the year 2016 remains within original guidance at 55 to 60 million pounds of copper at an annual cash cost of $1.65 to $1.85/lb.
Rob Henderson, Amerigo's President and CEO, stated “We are pleased to have established a satisfactory three year labour agreement at MVC and operational focus will be on safely sustaining the level of copper production and continuing to reduce costs.”
Summary of Production Results for the Most Recent Five Quarters:
Q3-2016 | Q2-2016 | Q1-2016 | Q4-2015 | Q3-2015 | |||||||||||
Fresh tailings | |||||||||||||||
Tonnes processed | 11,373,542 | 10,620,849 | 10,617,420 | 11,269,785 | 11,243,557 | ||||||||||
Copper grade | 0.113 | % | 0.117 | % | 0.117 | % | 0.111 | % | 0.117 | % | |||||
Copper recovery | 19.7 | % | 21.3 | % | 19.2 | % | 21.1 | % | 24.2 | % | |||||
Copper produced (millions of pounds) | 5.571 | 5.640 | 5.270 | 5.853 | 7.011 | ||||||||||
Historic tailings | |||||||||||||||
Tonnes processed | 5,435,474 | 5,149,732 | 5,087,765 | 4,319,838 | 821,301 | ||||||||||
Copper grade | 0.236 | % | 0.224 | % | 0.228 | % | 0.221 | % | 0.223 | % | |||||
Copper recovery | 34.4 | % | 32.2 | % | 26.4 | % | 19.4 | % | 17.1 | % | |||||
Copper produced (millions of pounds) | 9.756 | 8.191 | 6.734 | 4.097 | 0.689 | ||||||||||
Maricunga toll processing | |||||||||||||||
Copper produced (millions of pounds) | 0.700 | 0.524 | 0.851 | 0.909 | 0.794 | ||||||||||
Total copper produced (millions of pounds) | 16.028 | 14.355 | 12.855 | 10.860 | 8.494 | ||||||||||
Total copper delivered (millions of pounds) | 15.599 | 14.509 | 12.746 | 10.737 | 8.288 | ||||||||||
Cash cost ($/pound copper) | 1.60 | 1.65 | 1.82 | 2.16 | 2.07 |
Release of Financial Results for Q3-2016:
The Company will release Q3-2016 financial results at market open on Wednesday, November 9, 2016, followed by an investor conference call on Thursday, November 10, 2016 at 11:00 am Pacific Standard Time/2:00 pm Eastern Standard Time.
Conference Call Participation:
To participate in the call, please dial 1-866-223-7781 (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 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. Tel: (604) 681-2802; Fax: (604) 682-2802; Web: www.amerigoresources.com; Listing: ARG:TSX.
For further information, please contact:
Rob Henderson, President and CEO (604) 697-6203
Aurora Davidson, Executive Vice-President and CFO (604) 697-6207
Cautionary Note Regarding Forward-Looking Information:
This news release contains certain forward-looking information and statements as defined in applicable securities laws (collectively referred to as "forward-looking statements"). These statements relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "should", "believe" and similar expressions is intended to identify forward-looking statements. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company’s control, the Company cannot assure that it will achieve or accomplish the expectations, beliefs or projections described in the forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These statements speak only as of the date of this news release. These forward-looking statements include but are not limited to, statements concerning:
Inherent in forward-looking statements are risks and uncertainties beyond our ability to predict or control, including risks that may affect our operating or capital plans; risks generally encountered in the permitting and development of mineral projects such as unusual or unexpected geological formations, negotiations with government and other third parties, unanticipated metallurgical difficulties, delays associated with permits, approvals and permit appeals, ground control problems, adverse weather conditions, process upsets and equipment malfunctions; risks associated with labour disturbances and availability of skilled labour and management; fluctuations in the market prices of our principal commodities, which are cyclical and subject to substantial price fluctuations; risks associated with the availability and pricing of materials used in our operations; risks created through competition for mining projects and properties; risks associated with lack of access to markets; risks associated with availability of tailings and mine plan estimates; risks posed by fluctuations in exchange rates and interest rates, as well as general economic conditions; risks associated with environmental compliance and changes in environmental legislation and regulation; risks associated with our dependence on third parties for the provision of critical services; risks associated with non-performance by contractual counterparties; title risks; social and political risks associated with operations in foreign countries; risks of changes in laws affecting our operations or their interpretation, including foreign exchange controls; and risks associated with tax reassessments and legal proceedings. All of these risks and uncertainties apply not only the Group and its operations, but also to Codelco and its operations. Codelco’s ongoing mining operations provide a significant portion of the materials the Group processes and its resulting production and therefore these risks and uncertainties may also affect their operations and in turn have a material effect on the Group.
Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Such statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about:
Future production levels and cost estimates assume there are no adverse mining or other events which significantly affect budgeted production.
We caution you that the foregoing list of important factors and assumptions is not exhaustive. Other events or circumstances could cause our actual results to differ materially from those estimated or projected and expressed in, or implied by, our forward-looking statements. You should also carefully consider the matters discussed under "Risk Factors" in our Annual Information Form. Except as required by law, we undertake no obligation to update publicly or otherwise revise any forward-looking statements or the foregoing list of factors, whether as a result of new information or future events or otherwise.