Amerigo Comments On El Teniente Production
AMERIGO RESOURCES LTD. (Vancouver, British Columbia) commented today on the recent articles detailing the expansion plans of Chilean state copper company Codelco’s El Teniente mine, which appeared on the Dow Jones Newswires and in Business News America.
The Dow Jones Newswires article quotes Teniente spokesman Simon Perretta as stating that the mine will experience a drop in output this year from the 437,000 metric tons of copper produced in 2004 because of production interruptions caused during the finalization of the mine’s expansion. In the Business News America article, Armando Olavarría, El Teniente’s deputy director, is quoted as stating that Teniente is due to produce 424,000 tons of copper this year, which is approximately 20,000 metric tons less than forecast. The lower output of the mine has adversely affected Amerigo’s operations in 2005, and has been a major reason why Amerigo’s copper production continues to be lower than forecast. Molybdenum production, however, is above forecast due to better than anticipated recoveries in the MVC plant.
Mr. Olavarría goes on to explain that this planned reduction in output for 2005 is in accordance with Codelco’s 2005 business plan. Teniente is still in the “consolidation” phase of its three-step strategic plan, which will run until 2006. The “optimization” (2006-2010) and “growth” (2010 to 2020) phases are forecast to result in increased output in the future, with production expected to rise to 449,000 tons in 2008, 474,000 tons in 2012, and building to 563,000 tons in 2020.
Mr. Steven Dean, Amerigo’s Chairman, stated “Amerigo is excited by this confirmation of Teniente’s expansion plans and the positive implications it has for Amerigo’s business plan going forward. We look forward to continuing our longterm, mutually profitable relationship with the largest underground copper mine in the world”.
Amerigo Resources Ltd. is a Canadian copper and molybdenum producing company forecasting 15,000 tonnes of copper production and 600,000 pounds of molybdenum in 2005 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.
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