Amerigo Resources Ltd. ‚Äď MVC Colihues Extraction
May 26, 2006
VANCOUVER, BRITISH COLUMBIA ‚Ä" May 26/CNW/Amerigo Resources Ltd. (TSX:ARG) (‚ÄúAmerigo‚ÄĚ or the ‚ÄúCompany‚ÄĚ) 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.
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 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‚Äôs filings with the TSX and on SEDAR. Forward-looking statements are based on the beliefs, estimates and opinions of the Company‚Äôs management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements if management‚Äôs beliefs, estimates or opinions, or other factors, should change.