VANCOUVER, May 26 /CNW/ - Amerigo Resources Ltd. (TSX:ARG) ("Amerigo" or
the "Company") announced today that it was informed by El Teniente that the
structural condition of a portion of its tailings launder from the Company's
plant to El Teniente's Caren tailings impoundment requires it to limit the
quantity of tailings flow, and has asked the Company to temporarily stop
processing tailings from Colihues. Processing of fresh tailings is not
affected and continues at regular rates.
The Company is in the process of building a separate pipeline system that
will allow tailings from Colihues to be processed at the Company's plant and
then recycled back into Colihues. This system is projected to be in operation
on or before the end of June of this year, and will initially allow the
Company to process Colihues tailings at a rate of 10,000 tpd. The Company is
simultaneously investigating the possibility of expanding the capacity of the
new system to accommodate the planned increase in extraction capability to the
Company's hydraulic monitoring and underwater submersible systems, scheduled
to take place during the remainder of the year.
Management does not anticipate that this situation will have a material
effect on the Company's operations and continues to believe that production in
2006 will surpass prior years' production levels. The Company remains
committed to attain its goals of annualized rates of copper production of
60 million pounds and molybdenum production of 1 million pounds by the end of
2007.
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.
