Business
Amerigo Resources Ltd. - Clarification Regarding Use of Production Estimates from Colihues
Amerigo Resources Ltd. - Clarification Regarding Use of Production Estimates from Colihues.
About this update from Amerigo Resources Ltd
[{"type":"text","content":"\n\n\n\n\nVANCOUVER, March 7 /CNW/ - Amerigo Resources Ltd. (TSX:ARG) (\"Amerigo\" or\nthe \"Company\") has been engaged in discussions with the British Columbia\nSecurities Commission in connection with Amerigo's short form prospectus\nfiling relating to an underwritten financing announced on February 21, 2006.\nThese discussions relate to Amerigo's prior disclosure of estimated copper\nproduction from the processing of tailings from the Colihues tailings\nimpoundment and the estimated cost of such production (the \"Colihues\nEstimates\"). Over the past two years, the Colihues tailings impoundment,\nlocated approximately one kilometre south of the Minera Valle Central (\"MVC\")\nplant, and having a surface area of approximately 368 hectares, has been the\nsource of less than 4,000 tonnes per day (tpd) of tailings, representing less\nthan 3% of the total tailings processed daily at MVC. Amerigo has the right to\nextract up to 45,000 tpd of feed material from the Colihues impoundment.\nThe tailings in the Colihues impoundment were produced from the El\nTeniente mine between 1977 and 1987, and the estimates of tonnage and grade in\nthe Colihues impoundment from which the Colihues Estimates were derived were\nprovided to MVC in January, 2001 by Corporacion Nacional del Cobre de Chile\n(\"Codelco\"), the operator of the El Teniente mine and one of the largest\ncopper producers in the world. Codelco's estimates of tonnage and grade in\nColihues are historical estimates and do not constitute a National Instrument\n43-101 compliant mineral resource calculated to CIM definition standards. The\ncopper grades obtained from the processing of the Colihues tailings over the\npast two years have been consistent with the estimates of grade supplied by\nCodelco, and therefore Amerigo considers the Codelco data to be relevant and\nreliable. However, a qualified person has not done sufficient work to classify\nthe historical estimates or the Colihues Estimates as current mineral\nresources or mineral reserves. Amerigo is not treating the historical\nestimates or the Colihues Estimates as current mineral resources or mineral\nreserves as defined in National Instrument 43-101 and therefore such\nhistorical estimates and Colihues Estimates should not be relied upon.\nAmerigo has retained Roger Moss, Ph.D, P.Geo, a \"qualified person\" under\nNationa...