Amerigo Announces 2016 First Quarter Production Results

VANCOUVER, British Columbia, April 14, 2016 (GLOBE NEWSWIRE) -- Amerigo Resources Ltd. ("Amerigo" or the "Company") (TSX:ARG) announced today production results for the first quarter of 2016 from Minera Valle Central ("MVC"), the Company's operation located near Rancagua, Chile.

Operational Highlights for Q1-2016:

In Q1-2016, MVC produced 12.9 million pounds of copper at a cash cost of $1.82 per pound, pursuant to a tolling agreement with Codelco's Division El Teniente and a toll processing agreement with Minera Maricunga.

The ramp up in the historic Cauquenes deposit has progressed in line with expectations, with tonnage at design rates of 60,000 tpd and plant recovery improving to 33% at the end of March.  MVC is now extracting more copper from historic tailings than fresh tailings. In Q2, the ramp up in production should continue to improve and unit costs should continue to decrease as Cauquenes material is extracted from deeper zones.  Rob Henderson, Amerigo's President and CEO, stated "I am pleased with MVC's progress to date and I look forward to record results in the second half of the year."

Amerigo's production guidance for 2016 is maintained at 55.0 to 60.0 million pounds of copper at an annual cash cost of $1.65 to $1.85 per pound.

Summary of Production Results for the Most Recent Five Quarters:
  Q1-2016 Q4-2015 Q3-2015 Q2-2015 Q1-2015
Fresh tailings          
  Tonnes processed    10,617,420     11,269,785     11,243,557     12,120,700     9,838,464  
  Copper grade   0.117 %   0.111 %   0.117 %   0.115 %   0.121 %
  Copper recovery   19.2 %   21.1 %   24.2 %   20.4 %   17.8 %
  Copper produced (millions of pounds)   5.270     5.853     7.011     6.248     4.669  
Historic tailings          
  Tonnes processed     5,087,765      4,319,838       812,934     3,073,039       3,423,868  
  Copper grade   0.228 %   0.221 %   0.223 %   0.222 %   0.228 %
  Copper recovery   26.4 %   19.4 %   17.1 %   17.2 %   19.8 %
  Copper produced (millions of pounds)   6.734     4.097     0.684     2.593     3.406  
Maricunga toll processing          
  Copper produced (millions of pounds)   0.851     0.909     0.794     0.276     0.791  
Total copper produced (millions of pounds)   12.855     10.860     8.494     9.117     8.866  
Total copper delivered (millions of pounds)   12.746     10.737     8.288     9.395     8.829  
Cash cost ($/pound copper)   1.82     2.16     2.07     2.15     2.33  

Release of Financial Results for Q1-2016:

The Company will release Q1-2016 financial results at market open on Wednesday May 4, 2016, followed by an investor conference call on Thursday May 5, 2016 at 11:00 am Pacific Standard Time/2:00 pm Eastern Standard Time. 

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