VANCOUVER, April 7 /CNW/ - 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: www.amerigoresources.com; listing: ARG:TSX.
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.
