Amerigo Announces Restoration of Full Tailings Flow at MVC
January 9, 2007
VANCOUVER, BRITISH COLUMBIA -- Jan. 9, 2007 /CNW/ - Amerigo Resources Ltd. ("Amerigo", TSX:ARG) announced today that El Teniente has restored the full flow of fresh tailings to the Company's MVC operations south of Santiago, Chile, and that Codelco is no longer diverting any of the fresh tailings into the Colihues tailings impoundment. Colihues is the impoundment that contains in excess of 200 million tonnes of tailings extracted before MVC was built and to which MVC has the extraction rights.
Codelco has completed initial repairs to the bridge spanning the Cachapoal River downstream from the MVC plant that forms part of its tailings launder to the Caren tailings impoundment. Additional reinforcement work on the bridge will be completed on an ongoing basis. It is anticipated that MVC's operations will be shut down for several days in the second quarter of 2007 for scheduled maintenance and for Codelco to add additional flow capacity to the bridge, which will be required for future production from Colihues.
In its August 30, 2006 press release Amerigo announced that El Teniente had advised that some of the fresh tailings flow would have to be restricted for a period of approximately 4 months. As a result, Q3 copper production was reduced to 4.72 million pounds, compared to 6.57 million pounds in Q2 2006. In Q4 2006, however, due to more production days, higher tonnage of fine copper in plant feed, and higher plant throughput, copper production increased to 6.63 million pounds. Yearly production in 2006 was 24.67 million pounds of copper and 674,549 pounds of molybdenum, compared to the 29.88 million pounds of copper and 631,843 pounds of molybdenum produced in 2005. Fresh tailings flow averaged 132,203 tonnes per day in Q1 2006, 131,169 tonnes per day in Q2 2006, 98,261 tonnes per day in Q3 2006 and 106,994 tonnes per day in Q4 2006. It is anticipated that average daily fresh tailings flow for 2007 will be back to the 130,000 tonnes per day level.
Amerigo also announced that the two thickeners that were constructed to meet the requirements of Chile's new environmental regulations have been completed and are now operational.
Amerigo Resources Ltd. is a Canadian junior company producing copper and molybdenum from its MVC operations near Santiago, Chile. Tel: (604) 681-2802; Fax: (604) 682-2802; Web: www.amerigoresources.com; Listing: ARG:TSX
For further information, please contact:
Michael J. Kuta, General Counsel & Secretary
Amerigo Resources Ltd. (604) 697-6201
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.