VANCOUVER, March 7 /CNW/ - Amerigo Resources Ltd. (TSX:ARG) ("Amerigo" or
the "Company") has been engaged in discussions with the British Columbia
Securities Commission in connection with Amerigo's short form prospectus
filing relating to an underwritten financing announced on February 21, 2006.
These discussions relate to Amerigo's prior disclosure of estimated copper
production from the processing of tailings from the Colihues tailings
impoundment and the estimated cost of such production (the "Colihues
Estimates"). Over the past two years, the Colihues tailings impoundment,
located approximately one kilometre south of the Minera Valle Central ("MVC")
plant, and having a surface area of approximately 368 hectares, has been the
source of less than 4,000 tonnes per day (tpd) of tailings, representing less
than 3% of the total tailings processed daily at MVC. Amerigo has the right to
extract up to 45,000 tpd of feed material from the Colihues impoundment.
The tailings in the Colihues impoundment were produced from the El
Teniente mine between 1977 and 1987, and the estimates of tonnage and grade in
the Colihues impoundment from which the Colihues Estimates were derived were
provided to MVC in January, 2001 by Corporacion Nacional del Cobre de Chile
("Codelco"), the operator of the El Teniente mine and one of the largest
copper producers in the world. Codelco's estimates of tonnage and grade in
Colihues are historical estimates and do not constitute a National Instrument
43-101 compliant mineral resource calculated to CIM definition standards. The
copper grades obtained from the processing of the Colihues tailings over the
past two years have been consistent with the estimates of grade supplied by
Codelco, and therefore Amerigo considers the Codelco data to be relevant and
reliable. However, a qualified person has not done sufficient work to classify
the historical estimates or the Colihues Estimates as current mineral
resources or mineral reserves. Amerigo is not treating the historical
estimates or the Colihues Estimates as current mineral resources or mineral
reserves as defined in National Instrument 43-101 and therefore such
historical estimates and Colihues Estimates should not be relied upon.
Amerigo has retained Roger Moss, Ph.D, P.Geo, a "qualified person" under
National Instrument 43-101, to review the historical estimates regarding
Colihues and to determine if such estimates can be classified as current
mineral resources under National Instrument 43-101. The results of Dr. Moss'
work, as well as a description of the current production facilities at MVC,
will be contained in a technical report to be prepared jointly by Dr. Moss and
Anthony R. Maycock, P.Eng., the latter of Amec International (Chile) S.A. and
the author of the technical report dated May, 2003 and entitled "Technical
Review of Operations of Mineral Valle Central".
This news release has been reviewed by Roger Moss, Ph.D, P.Geo. 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 forwarding-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.
