VANCOUVER, April 7 /PRNewswire-FirstCall/ -- Amerigo Resources Ltd. (TSX:ARG) ("Amerigo" or the "Company") announced today that during Q1 2006 the Company produced a total of 6.75 million pounds of copper and 176,957 pounds of molybdenum, which is below budget year-to-date. A number of factors contributed to the lower production, including:
- Longer than scheduled annual maintenance shutdown by El Teniente for a
total of 12 days in January and March, due to repairs on El Teniente's
tailings channel
- A minor fire at the Company's plant, resulting in a two day shutdown
in March
- A number of partial and complete shutdowns of the Company's plant in
the quarter, due to the integration of the plant expansion
- As expected, lower recoveries on oxidized near surface dry material
from Colihues, extracted using the newly commissioned monitoring
system
- First hydraulic monitor was only fully functional toward the end of Q1
and plant expansion and integration was virtually complete by early
April
As a result, the Company's operations in Q1 operated at close to 20% reduced capacity. Despite these short-term operational challenges and the plant shutdowns in March (which are not expected to recur), the production trend was upward through the latter part of the quarter. Management expects this trend to continue in Q2, and therefore does not believe at this time that production results for the full 2006 year will be materially different from expectations.
Amerigo is a Canadian copper and molybdenum producing company with operations near Santiago, Chile. Tel.: (604) 681-2802; Fax: (604) 682-2802; Web: http://www.amerigoresources.com/; listing: ARG:TSX.
For further information, please contact:
Michael J. Kuta, General Counsel & Secretary
Amerigo Resources Ltd. (604) 697-6201
The Toronto Stock Exchange has not reviewed nor accepted responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management. Statements contained in this news release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the Company's filings with the TSX and on SEDAR. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change.
