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Amerigo Announces Q1 2009 Production Results and Dates for Release of Q1 2009 Results and Investor Conference Call


April 30, 2009

VANCOUVER, BRITISH COLUMBIA " April 30/CNW/ - Amerigo Resources Ltd. (TSX:ARG, "Amerigo" or the "Company") is pleased to announce production results for the first quarter of 2009 from Minera Valle Central ("MVC"), the Company’s operations located in Rancagua, Chile. For the three months ended March 31, 2009 MVC produced 7.12 million pounds of copper and 97,184 pounds of molybdenum.

Traditionally first quarter production is low due to a lower number of production days as a result of annual plant maintenance shutdowns and lower recoverable metal content. In addition, molybdenum production was lower due to the lower grades in fresh tailings, as well as the absence of feed material from higher grade old tailings.

Dr. Klaus Zeitler, Amerigo's president, stated, "During the quarter we made the decision to change the extraction plan for the processing of old tailings in order to gain access to higher grade material. This new plan required the reorientation of the hydraulic extraction equipment and mining faces, and made it necessary to suspend mining of old tailings for much of the quarter. Although production was adversely affected in Q1-2009, these steps will result in improved grades and recoveries and will allow the Company to increase processing of old tailings. This in turn will increase short to medium term cash flow in these times of low copper prices and challenging and volatile market conditions."

Key operating and sales metrics are shown below.

Production Metrics:

Q1-2008

Q2-2008

Q3-2008

Q4-2008

Q1-2009

Copper Production
(million lbs)

7.80

7.08

10.22

9.53

7.12

Molybdenum Production (lbs)

148,670

147,508

261,234

211,729

97,184

Ore milled (Tonnes 000's)

11,372

9,135

12,882

13,299

10,859

Copper Grade (%)

0.133

0.135

0.134

0.134

0.12

Copper Recovery (%)

23.39

26.04

26.86

24.26

24.78

Molybdenum Grade in copper concentrates (%)

0.69

0.71

0.92

0.79

0.49

Molybdenum Recovery (%)

80.59

86.49

83.49

83.96

80.77

 

 

 

 

 

 

Sales Metrics:

Q1-2008

Q2-2008

Q3-2008

Q4-2008

Q1-2009

Copper sales
(Million lbs)

7.80

7.13

10.20

9.56

7.12

Copper price at end of
period ($US/lb)

3.84

3.80

2.81

1.31

1.83

Prior period copper sales subject to final pricing during period (Million lbs)

12.40

6.48

9.18

9.11

7.91

Average final settlement price
for prior period copper sales
($US/lb)

3.5325

3.5267

3.5267

1.8345

1.5032

Molybdenum sales (lbs)

157,739

143,048

258,499

219,215

101,661

Molybdenum price at end of
period ($US/lb)

33.150

33.200

32.688

9.250

8.325

 

 

 

 

 

 

Power Costs (per kwh)

$0.3268

$0.2462

$0.1703

$0.1261

$0.1468

Mr. Steven Dean, the Company's chairman, added, “Based on expert advice we have received in Chile, we expect electricity prices, the Company's most significant cost, to trend lower in Q2-2009 due to the high snow melt benefiting hydro generation, lower oil prices and additional supply from new in country generating facilities, including Amerigo's own generating facility.”

The Company will also release its first quarter 2009 financial results at market open on Wednesday, May 13, 2009 and will hold an investor conference call to discuss the company's Q1-2009 results on Thursday, May 14, 2009 at 11:00 am Pacific Daylight Time/2:00 pm Eastern Daylight Time.

To participate in the call, please dial the following number:

1-866-540-8136 (Toll-Free North America)

Please let the operator know you wish to participate in the Amerigo Resources conference call.

Media are invited to attend on a listen-only basis.

Following management's discussion of the quarterly results, the analyst and investment community will be invited to ask questions.

______

Amerigo Resources Ltd. produces copper and molybdenum under a long term partnership with the world’s largest copper producer, Codelco, by means of processing fresh and old tailings from the world's largest underground copper mine, El Teniente near Santiago, Chile. Tel: (604) 681-2802; Fax: (604) 682-2802; Web: www.amerigoresources.com; Listing: ARG:TSX

For further information, please contact:
Dr. Klaus Zeitler, President
(604) 681-2802, (604) 218-7013
Amerigo Resources Ltd.

Certain of the information and statements contained herein that are not historical facts, constitute “forward-looking information” within the meaning of the Securities Act (Ontario) and the Securities Act (Alberta) (“Forward-Looking Information”). Forward-Looking Information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect” and “intend”; statements that an event or result is “due” on or “may”, “will”, “should”, “could”, or might” occur or be achieved; and, other similar expressions. More specifically, Forward-Looking Information contained herein includes, without limitation, information concerning future tailings production volumes and the Company's copper and molybdenum production, all of which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such Forward-Looking Information; including, without limitation, material factors and assumptions relating to, and risks and uncertainties associated with, the supply of tailings from El Teniente and extraction of tailings from the Colihues tailings impoundment, the achievement and maintenance of planned production rates, the evolving legal and political policies of Chile, the volatility in the Chilean economy, military unrest or terrorist actions, metal price fluctuations, favourable governmental relations, the availability of financing for activities when required and on acceptable terms, the estimation of mineral resources and reserves, current and future environmental and regulatory requirements, the availability and timely receipt of permits, approvals and licenses, industrial or environmental accidents, equipment breakdowns, availability of and competition for future mineral acquisition opportunities, availability and cost of insurance, labour disputes, land claims, the inherent uncertainty of production and cost estimates, currency fluctuations, expectations and beliefs of management and other risks and uncertainties, including those described under Risk Factors in the Company’s Annual Information Form dated March 27, 2007, and in each subsequent Management’s Discussion and Analysis. Such Forward-Looking Information is based upon the Company’s assumptions regarding global and Chilean economic, political and market conditions and the price of metals, including copper and molybdenum, and future tailings production volumes and the Company's copper and molybdenum production.. Among the factors that have a direct bearing on the Company’s future results of operations and financial conditions are changes in project parameters as plans continue to be refined, interruptions in the supply of fresh tailings from El Teniente, further delays in the extraction of tailings from the Colihues tailings impoundment, a change in government policies, competition, currency fluctuations and restrictions and technological changes, among other things. Should one or more of any of the aforementioned risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from any conclusions, forecasts or projections described in the Forward-Looking Information. Accordingly, readers are advised not to place undue reliance on Forward-Looking Information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise Forward-Looking Information, whether as a result of new information, future events or otherwise.

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