- Processing of fresh tailings temporarily suspended
- Historic tailings continue to be processed
- Impact on annual production will depend on the timing of normalization of operations
VANCOUVER, British Columbia, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Amerigo Resources Ltd. (TSX: ARG; OTCQX: ARREF) ("Amerigo" or the "Company") provides an operational update on Minera Valle Central ("MVC"), the Company's 100% owned operation located near Rancagua, Chile.
During the evening of July 31, 2025, a seismic event triggered a rockfall in the Andesita sector of the El Teniente underground mine, which is owned by Corporación Nacional del Cobre de Chile ("Codelco") and provides fresh tailings to MVC. Several mine workers were trapped in the mine, and, per standard procedure, Codelco suspended operations at El Teniente and commenced search and rescue efforts immediately. Sadly, the collapse led to the death of six workers. After Codelco's search and rescue mission concluded on Sunday, August 3, Chile's President Gabriel Boric declared three days of national mourning.
Until El Teniente resumes operations, MVC will focus on processing historic tailings. The impact on the Company's annual production guidance cannot be quantified at this stage, but will depend on how long mining operations at El Teniente remain suspended. Currently, the daily loss of copper production at MVC is estimated at 100,000 pounds per day.
This tragic event deeply saddens everyone at Amerigo and MVC.
About Amerigo and Minera Valle Central
Amerigo Resources Ltd. is an innovative copper producer with a long-term relationship with Codelco, the world's largest copper producer.
Amerigo produces copper concentrate, and molybdenum concentrate as a by-product 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; Web: www.amerigoresources.com; ARG:TSX; OTCQX: ARREF.
| Contact Information | ||
| Aurora Davidson | Graham Farrell | |
| President and CEO | Investor Relations | |
| (604) 697-6207 | (416) 842-9003 | |
| ad@amerigoresources.com | graham@northstarir.ca | |
Cautionary Statement Regarding Forward-Looking Information
This news release contains certain "forward-looking information" as such term is defined under applicable securities laws (collectively called "forward-looking statements"). This information relates to future events or the Company's 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 are intended to identify forward-looking statements. These forward-looking statements include the statement concerning the anticipated impact of the interruption of fresh tailings from the El Teniente mine as a result of the rockfall and suspension of operations at El Teniente, and the estimated loss of daily copper production caused thereby.
These forward-looking 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 statements. 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 operation, 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 (including, but not limited, to heavy rains), process upsets and equipment malfunctions; risks associated with labour disturbances and availability of skilled labour and management; risks related to the potential impact of global or national health concerns; government or regulatory actions or inactions, including, but not limited to, the imposition of tariffs on the importation of copper; fluctuations in the market prices of our principal commodities, which are cyclical and subject to substantial price fluctuations; risks created through competition for mining projects and properties; risks associated with lack of access to markets; risks associated with availability of and our ability to obtain both tailings from Codelco's Division El Teniente ("DET") current production and historic tailings from tailings deposit; the availability of and ability of the Company to obtain adequate funding on reasonable terms for expansions and acquisitions; 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; risks associated with supply chain disruptions; 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. Many of these risks and uncertainties apply to the Company and its operations, as well as DET and its operations. DET's ongoing mining operations provide a significant portion of the materials the Company processes and its resulting metals production. Therefore, these risks and uncertainties may also affect the Company's operations and have a material effect.
Actual results and developments will likely differ materially from those expressed or implied by the forward-looking statements in this news release. Such statements are based on several assumptions which may prove to be incorrect, including, but not limited to, assumptions about the El Teniente mine resuming operations in the near future and the resumption without significant delay of ongoing supply of material for processing from DET's current mining operations.
Future production levels and cost estimates assume no additional adverse mining or other events significantly affecting budgeted production levels.
Climate change is a global issue that could pose significant challenges affecting the Company's future operations. This could include more frequent and intense droughts followed by intense rainfall. In the last several years, Central Chile has experienced both drought conditions and significant rain episodes. The Company's operations are sensitive to water availability and the reserves required to process projected historic tailings tonnage.
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.
The preceding list of important factors and assumptions is not exhaustive. Other events or circumstances could cause our results to differ materially from those estimated, projected, and expressed in or implied by our forward-looking statements. You should also consider the matters discussed under Risk Factors in the Company's Annual Information Form. The forward-looking statements contained herein speak only as of the date of this news release.
