Amerigo Reports Q2-2020 Production Results and Provides Operational Update
VANCOUVER, British Columbia, July 23, 2020 (GLOBE NEWSWIRE) — Amerigo Resources Ltd. (“Amerigo” or the “Company”) (TSX: ARG) announced today Q2-2020 production results from Minera Valle Central (“MVC”), the Company’s 100% owned operation located near Rancagua, Chile.
MVC produced 12.97 million pounds (“M lbs”) of copper at a cash cost of US$1.72/lb per pound, and 0.35 M lbs of molybdenum. In Q2-2020, MVC’s copper production from fresh and Cauquenes tailings increased 20% compared to Q1-2020.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 to approximately 40,000 tonnes per day (“TPD”) through H1-2020 in response to drought conditions then present in central Chile.
In Q2-2020, processing rates averaged 119,435 TPD for fresh tailings and 35,875 TPD for Cauquenes. Copper grade in fresh tailings was slightly higher than expected and recoveries from fresh and Cauquenes tailings also exceeded initial expectations in response to MVC’s initial plant debottlenecking initiatives. Operating days in Q2-2020 were 91/91 for fresh tailings and 89/91 for Cauquenes. Two days of operation were lost in Cauquenes in late June due to strong rainfall.Q2-2020 cash cost was US$1.72 per pound (“/lb”), US$0.13/lb lower than the Company’s latest cash cost guidance for the second quarter and US$0.22/lb lower than cash cost in Q1-2020.MVC’s operations continued through Q2-2020 without any significant disruptions due to Covid-19 and MVC’s response to Covid-19 was praised by Chile’s Mining Ministry.Production results for the most recent five quarters are summarized below:As previously disclosed by the Company, the central region of Chile where MVC is located experienced lower than normal rain in 2018 (total annual rainfall of 291 mm1) and a severe drought in 2019 (total annual rainfall of 124 mm) compared to normal annual rainfall of approximately 410 mm. In 2020, the rain season started in the second half of June, with very heavy rainfall. Rain has continued into July and is expected to continue at least until the end of this month.
The following table was updated to July 15, 2020 and shows cumulative rainfall of 309 mm as of that date, essentially 75% of normal annual rainfall in the region.1 Each millimeter (“mm”) of measured precipitation is the equivalent of one liter of rainfall per square meter.
