Calculation of Inferred Mineral Resource for Colihues Tailings Dam
March 14, 2006
VANCOUVER, BRITISH COLUMBIA – March 14/CNW/Amerigo Resources Ltd. (TSX:ARG) ("Amerigo" or the "Company") has, further to its news release of March 7, 2006, received a technical report entitled "Technical Review of Operations at Minera Valle Central" dated March 11, 2006 (the "Technical Report") that was co-authored by Roger Moss, Ph.D., P.Geo., and Raul Poblete de la Cerda, the General Manager of Minera Valle Central ("MVC"). The Technical Report contains a summary of the technical and production aspects of the present operations at MVC as well as a calculation of the inferred mineral resource in the Colihues tailings dam. Amerigo has the right to extract up to 45,000 tpd of feed material from Colihues, which is located approximately one kilometre south of the MVC plant.
Dr. Moss, the qualified person under National Instrument 43-101 who is responsible for the Technical Report, has concluded that the Colihues tailings dam contained an inferred mineral resource, as of March 7, 2006, of 213,697,056 tonnes at a grade of 0.262% copper and 0.01% molybdenum, the volume and grades of which corroborate the Company's previous disclosure. Dr. Moss also concluded that the inferred mineral resource from the Colihues tailings dam is more than sufficient to support Amerigo's stated objective to extract 45,000 tonnes per day from Colihues for at least the next ten years. Over ten years, and based on 365 days per year operation, this rate of extraction would only require 164,250,000 tonnes in total from Colihues.
Details of the key assumptions, parameters and methods used to estimate the mineral resources in the Colihues tailings dam, a description of the data verification process, the results of investigations regarding Colihues, a summary of the interpretation of the exploration information regarding Colihues and a description of the quality assurance program and quality control measures applied during the execution of Dr. Moss' work, are all contained in the Technical Report, a copy of which has been filed on SEDAR.
Further to Amerigo's news release of February 21, 2006, Amerigo also announces that it has been issued a receipt from the British Columbia Securities Commission (on its own behalf and on behalf of the securities commissions in Alberta, Manitoba, Ontario and Québec) for its final short form prospectus, and that the financing is scheduled to close on Friday, March 17, 2006.
This news release has been reviewed by Roger Moss, Ph.D, P.Geo. Dr. Moss is a shareholder of Amerigo.
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.