Amerigo Resources Ltd. – MVC Production
VANCOUVER, BRITISH COLUMBIA – April 20/CNW/Amerigo Resources Ltd. (TSX:ARG) (“Amerigo” or the “Company”) announced today that El Teniente has diverted the fresh tailings normally received by the Company’s plant due to environmental concerns in connection with a construction incident at El Teniente’s tailings operations. Although the Company has not yet received official confirmation from El Teniente, we understand that El Teniente expects the problem to be resolved in approximately 2 weeks.
As a consequence it has been necessary for the Company to shut down its plant until the tailings flow is restored. Management estimates that the Company will experience a production shortfall in April of approximately 700 tonnes of copper and 40,000 pounds of molybdenum as a result.
The Company is taking advantage of the situation by accelerating maintenance previously scheduled for later periods and redeploying labour accordingly. The Company is also investigating the possibility of compensation from its business interruption insurance.
In the 14 year operating history of the plant there has never been a tailings disruption of this nature, and El Teniente has not indicated that a recurrence is likely.
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’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.