VANCOUVER, BRITISH COLUMBIA–(Marketwired – Jul 17, 2015) – Amerigo Resources Ltd. (ARG.TO) (“Amerigo” or the “Company”) announced today production results for the second quarter of 2015 from Minera Valle Central (“MVC”), the Company’s operations located near Rancagua, Chile. MVC produced 9.118 million pounds of copper, including copper produced pursuant to MVC’s tolling contract with Minera Maricunga. MVC did not produce molybdenum during the quarter due to the continuing low molybdenum market price. All dollar amounts referred to in this release are in US dollars.
Rob Henderson, Amerigo’s President and COO, stated, “Although MVC’s Q2 copper production was higher than that of Q1, fresh tailings tonnage remained low and poor quality material from the Colihues tailings deposit continued to adversely affect economic performance. The decision has been made to suspend production from Colihues effective July 20, 2015 due to ongoing low copper prices. Operational efforts will be focussed on the development of the Cauquenes tailings deposit, which is on budget and on target to commence production in Q4 of this year. Contribution from Minera Maricunga was down for the quarter following damage caused by flooding in Chile’s northern Atacama region. Operation of MVC’s molybdenum plant remains suspended. MVC’s 2015 copper production guidance is being revised to 43 to 48 million pounds at an annual cash cost of $1.95 to $2.15/lb Cu.”
Dr. Klaus Zeitler, Amerigo’s Chairman and CEO, added, “We are concentrating our efforts to bring the better quality Cauquenes tailings into production as soon as possible, and even with the present low copper prices we should see significantly better production and economic results starting in Q4 this year.”
Key operating and sales metrics are set out below.
|Copper Production(million lbs)||9.118||8.865||11.352||10.156||9.344|
|Molybdenum Production (million lbs)||–||0.098||0.160||0.143||0.152|
|Ore milled (Tonnes 000’s)||15,194||13,312||15,995||15,372||14,091|
|Copper Grade (%)||0.136||0.149||0.140||0.134||0.131|
|Copper Recovery (%)||19.4||18.5||21.6||21.4||21.8|
|Power Costs (per kwh)||$0.091||$0.086||$0.098||$0.089||$0.090|
|Copper Sales1 (Million lbs)||9.395||8.829||11.216||10.321||9.322|
|Company’s Recorded Copper Price ($US/lb)2||2.65||2.68||3.01||3.06||3.16|
|Molybdenum Sales (million lbs)||–||0.109||0.159||0.148||0.154|
|Company’s Recorded Molybdenum Price ($US/lb)||–||8.41||9.21||12.63||13.33|
|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|