Normal operations have resumed; MVC is processing fresh and historical tailings
Q4-2023 revised production guidance remains unchanged
Amerigo’s Capital Return Strategy remains in place
VANCOUVER, BRITISH COLUMBIA – September 21, 2023/Amerigo Resources Ltd. (TSX: ARG; OTCQX: ARREF) (“Amerigo” or the “Company”) announced today that Minera Valle Central (“MVC”), the Company’s 100% owned operation located near Rancagua, Chile, has resumed normal production after completing the removal of more than 2.2 million cubic meters of water from the Cauquenes historical tailings
deposit.
The excess water at Cauquenes accumulated following heavy and sustained rainfall in the region from August 19 to September 10. To expedite the resumption of normal operations at Cauquenes, pumping equipment was diverted to remove water from Cauquenes rather than provide historic tailings to the
concentrator. However, during this time, MVC continued to process fresh tailings from El Teniente.
The annual rainfall in 2023 at MVC is estimated to be more than 695 mm. This figure is approximately 160% more than the yearly precipitation totals of 287 mm in 2022 and 247 mm in 2021. The last day of heavy rain
was September 10, 2023; as of the date of this news release, there is no heavy rainfall in the forecast. The rain season at MVC is typically over by this time of the year.
As previously stated in its news release of September 11, 2023, Amerigo now estimates that MVC’s copper production for the quarter to end September 30, 2023 (“Q3-2023”) will be approximately 11.1 million pounds
(“M lbs”). This is 2.7 million pounds lower than the Company’s revised copper production guidance of 13.8
M lbs issued after MVC was impacted by flooding in the region in June 2023.
“After more than three years of exceeding production guidance, this is unquestionably an anomalous production period for Amerigo,” said Aurora Davidson, Amerigo’s President and CEO. She added,
“However, operations are now back to normal, and all members of the Amerigo and MVC teams are working at full capacity to exceed our Q4-2023 copper production guidance of 16.6 M lbs. The Company's financial
strength has absorbed the production shortfalls in the second and third quarters, and the fundamentals of Amerigo’s multi-year capital allocation strategy remain in place”.
About Amerigo and Minera Valle Central (“MVC”)
Amerigo Resources Ltd. is an innovative copper producer with a long-term relationship with Corporación Nacional del Cobre de Chile (“Codelco”), the world’s largest copper producer.
Amerigo produces copper concentrate, and molybdenum concentrate as a by-product at the MVC operation in Chile by processing fresh and historic tailings from Codelco’s El Teniente mine, the world's largest
underground copper mine. Tel: (604) 681-2802; Web: www.amerigoresources.com; ARG:TSX; OTCQX: ARREF