Amerigo Resources Ltd. – MVC Production
August 30, 2006
VANCOUVER, BRITISH COLUMBIA – August 30/CNW/Amerigo Resources Ltd. (TSX:ARG) (“Amerigo” or the “Company”) announced today that, further to the Company's May 26, 2006 press release, El Teniente has advised the Company that it will be necessary to restrict the tailings flow between the Company's operations and El Teniente's Caren tailings impoundment for a period of approximately four months. El Teniente has requested this volume reduction because of environmental concerns, both with respect to the volume of water in the tailings being sent to Caren and the structural condition of the bridge that forms part of the tailings launder downstream from the Company's plant.
In the course of reviewing the condition of the tailings launder last week, El Teniente diverted the fresh tailings flow away from the Company's plant for a period of seven days.
This volume reduction will have a negative effect on the Company's 2006 copper and molybdenum production. The Company estimates that third quarter production will be approximately 20% less than last quarter. The Company is studying alternatives to minimize production shortfalls and maximize financial results.
Amerigo will hold an investor conference call to discuss these latest developments on Thursday, August 31, 2006 at 10:00 am Pacific Daylight Time/1:00 pm Eastern Daylight Time.
To participate in the call, please dial the following numbers:
1-866-696-5895 (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 presentation, the analyst and investment community will be invited to ask questions.
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.
For further information, please contact:
Michael J. Kuta, General Counsel & Secretary
Amerigo Resources Ltd.
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.