Amerigo’s moly yield up, copper down

Vancouver — Equipment problems are expected to cause a shortfall in copper production at Amerigo Resources‘ (ARG-T) Minera Valle Central operation in central Chile.

At the company’s annual meeting, in Vancouver, President Klaus Zeitler said “underperformance of extraction equipment” at the Colihues tailings dam would likely cause copper output in 2005 to fall 15-20% short of the projected 18,000 tonnes.

The Colihues dam contains more than 200 million tonnes of tailings with an average grade of 0.27% copper. Extraction has relied on system of pumps onboard dredging barges plus excavator-cutting assemblies to aid in the break-up of the tailings. However, the unsatisfactory results achieved by this method have induced Amerigo to switch to a new method involving hydraulic monitors. The monitors will be ready in early 2006.

On a happier note, recoveries from the molybdenum flotation circuit at Minera Valle Central have exceeded expectations. Production of moly this year should surpass the projected 500,000 lbs. by 20%.

Amerigo recently entered into a tolling arrangement with Codelco’s Chuquicamata division whereby Minera Valle Central will process 4,000 tonnes of moly-copper bulk concentrate.

Amerigo produces copper and molybdenum by reprocessing current and past tailings from Codelco’s El Teniente mine. Production for 2005 is forecast at 15,000 tonnes copper and 600,000 lbs. moly.