Minera Valle Central Produced 12.1 Million Pounds Of Copper

VANCOUVER, BC - Amerigo Resources Ltd. reported Q1-2020 production results from Minera Valle Central (MVC), the Company’s 100% owned operation located near Rancagua, Chile. MVC produced 12.1 million pounds of copper at a cash cost of US$1.87/lb per pound, and 0.2 million pounds of molybdenum. Copper production results are in line with the Company’s 2020 guidance (refer to our news release of February 19, 2020) where the Company announced a reduction in Cauquenes tonnage processing through H1-2020 in response to drought conditions in central Chile. Q1-2020 cash cost was US$0.07/lb higher than expected, mostly due to lower molybdenum by-product credits.

MVC had forecasted that in H1-2020, processing rates would be 125,000 tonnes per day (TPD) for fresh tailings and 40,000 TPD for Cauquenes. In Q1-2020 actual processing rates averaged 120,868 TPD for fresh tailings and 44,427 TPD for Cauquenes. MVC continues to expect that Cauquenes processing rates could increase to 50,000 TPD starting in June if rain levels normalize in April and May, and that annual production from fresh tailings and Cauquenes would be approximately 55 to 60 million pounds, excluding any effect from plant optimization initiatives.

Operating days in Q1-2020 were 77 for fresh tailings and 67 for Cauquenes due to the annual plant maintenance shutdown at MVC and El Teniente and unexpected plant stoppages due to downtime of one or more of MVC’s water thickeners in connection with work carried out to improve water recovery and to adjust the mechanisms to deal with higher density tailings. There have been no plant stoppages since March 3, 2020.

MVC has an operational continuity plan in place with specific actions to prevent contagion of COVID-19 among its workers and subcontractors: all non-critical site visits and employee and subcontractor meetings have been cancelled; plant shift work schedules have been modified to reduce transportation time; social distancing is in effect; remote work functionality has been implemented for most administrative personnel, employees over 60 and/or employees with higher risk health profiles; additional hygiene measures in lunch and change areas were introduced; and mandatory body temperature checks are in place for all personnel prior to boarding MVC’s transport buses to the plant or prior to entering the MVC facility if personnel traveled to the plant with their own vehicles.  MVC is keeping staff updated on new directives set by the Chilean health authorities.

At its head office in Vancouver, Amerigo is following the requirements and recommendations issued by the Government of Canada and the provincial and municipal health authorities to reduce the risk of COVID-19 exposure, including cancelling all corporate travel.