Welcome!

News Feed Item

Amerigo Announces Q2-2014 Production Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/18/14 -- Amerigo Resources Ltd. (TSX:ARG) ("Amerigo" or the "Company") announced today production results for the second quarter of 2014 from Minera Valle Central ("MVC"), the Company's operations located near Rancagua, Chile. MVC produced 9.344 million pounds of copper, including copper produced pursuant to MVC's tolling contract with Minera Maricunga, and 0.152 million pounds of molybdenum during the three months ended June 30, 2014.

Rob Henderson, Amerigo's President and COO, stated, "Copper production in Q2 was below target due to low grades for both fresh and old tailings. Sulphide content in the fresh tailings was also low and negatively impacted recovery. Colihues tonnage was on target during the quarter, however low grades have persisted for longer than originally anticipated, as wet conditions in the Colihues extraction zone have limited access to better grades located in deeper zones. MVC continued to process lower grade old tailings from the upper portion of the zone deposited by El Teniente during 2006-2007 when repairs were being made to the tailings launder. We believe the grades of tailings processed will improve, but lower grades for Colihues are expected to persist to the end of the year. As a result, although we anticipate an improvement in production levels in H2-2014 guidance is being revised to 40 million pounds of copper and 500,000 pounds of molybdenum. MVC has provided termination notice to the Colihues mining subcontractor and started processing old tailings directly as of July 1. This and other cost reduction initiatives are expected to result in decreased costs in the second half of the year. We maintain our 2014 cash cost guidance of $2.15 to $2.25/lb Cu."

Dr. Klaus Zeitler, Amerigo's Chairman and CEO, added, "The Company continues to advance detailed engineering and has begun the major equipment procurement process for the Cauquenes expansion project. As previously announced MVC has received final environmental approval for the project and is in the process of obtaining construction and other required permits. Discussions for financing, concentrate sales, power supply and construction contracts for the expansion are ongoing and expected to be finalized in the near future."

Key operating and sales metrics are shown below.


----------------------------------------------------------------------------
Production Metrics:              Q2-2014  Q1-2014  Q4-2013  Q3-2013  Q2-2013
----------------------------------------------------------------------------
Copper Production(million lbs)     9.344   10.186   12.254   11.035    9.550
----------------------------------------------------------------------------
Molybdenum Production (million                                              
 lbs)                              0.152    0.125    0.181    0.193    0.176
----------------------------------------------------------------------------
Ore milled (Tonnes 000's)         14,091   12,497   14,164   14,604   13,464
----------------------------------------------------------------------------
Copper Grade (%)                   0.131    0.154    0.162    0.159    0.158
----------------------------------------------------------------------------
Copper Recovery (%)                 21.8     22.7     21.3     21.5     20.3
----------------------------------------------------------------------------
Power Costs (per kwh)             $0.090   $0.090   $0.112   $0.080   $0.086
----------------------------------------------------------------------------
Sales Metrics:                   Q2-2014  Q1-2014  Q4-2013  Q3-2013  Q2-2013
----------------------------------------------------------------------------
Copper Sales(1) (Million lbs)      9.322   10.177   12.595   10.856    9.437
----------------------------------------------------------------------------
Company's Recorded Copper Price                                             
 ($US/lb)(2)                        3.16     3.36     3.16     3.19     3.40
----------------------------------------------------------------------------
Molybdenum Sales (million lbs)     0.154    0.111    0.174    0.205    0.178
----------------------------------------------------------------------------
Company's Recorded Molybdenum                                               
 Price ($US/lb)                    13.33     9.93     9.67     9.41    11.00
----------------------------------------------------------------------------
( 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 quarters' sales. 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.                                                  

Engineering for the Cauquenes expansion is progressing on schedule and MVC is in the process of pre-qualifying EPC contractors to build the new facilities.

The Company will release Q2-2014 financial results at market open on Thursday August 7, 2014 and will hold an investor conference call to discuss the results on Friday August 8, 2014 at 11:00 am Pacific Standard Time/2:00 pm Eastern Standard Time.

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

1-866-226-1792 (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: 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 "expects", "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 the agreement for the purchase by MVC of the processing rights for the Cauquenes tailings deposit, extending the contract for the processing of Fresh Tailings to 2037 and consolidating all contracts between MVC and DET (the "Master Agreement"), completion of construction of the planned expansion of MVC's operations required for the processing of old tailings from the historic Cauquenes tailings deposit (the "Cauquenes Expansion"), 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 performance of the Master Agreement, the receipt of adequate debt financing required for the Cauquenes Expansion, the receipt of environmental approval to the Cauquenes expansion, the continued supply of tailings from El Teniente and successful extraction of tailings from the Cauquenes and Colihues tailings deposits, 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, 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 and in Management's Discussion and Analysis

in the Company's financial statements. 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 and Cauquenes tailings deposits, 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.

Contacts:
Amerigo Resources Ltd.
Dr. Klaus Zeitler
Chairman & CEO
(604) 218-7013

Amerigo Resources Ltd.
(604) 697-6201
(604) 682-2802 (FAX)
www.amerigoresources.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Redis is not only the fastest database, but it has become the most popular among the new wave of applications running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 18th Cloud Expo, Dave Nielsen, Developer Relations at Redis Labs, will shares the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, will show how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningfu...
Many private cloud projects were built to deliver self-service access to development and test resources. While those clouds delivered faster access to resources, they lacked visibility, control and security needed for production deployments. In their session at 18th Cloud Expo, Steve Anderson, Product Manager at BMC Software, and Rick Lefort, Principal Technical Marketing Consultant at BMC Software, will discuss how a cloud designed for production operations not only helps accelerate developer...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, will discuss how leveraging the Industrial Interne...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, will explain how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
Struggling to keep up with increasing application demand? Learn how Platform as a Service (PaaS) can streamline application development processes and make resource management easy.
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists will dis...
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...