Amerigo Announces Record Q1-2012 Copper Production Results

Marketwired

VANCOUVER, BRITISH COLUMBIA--(Marketwire -04/18/12)- Amerigo Resources Ltd. (TSX: ARG.TO - News) "Amerigo" or the "Company") is pleased to announce production results for the first quarter of 2012 from Minera Valle Central ("MVC"), the Company's operations located near Rancagua, Chile. MVC produced 13.88 million pounds of copper and 216,292 pounds of molybdenum during the three months ended March 31, 2012.

Dr. Klaus Zeitler, Amerigo's President and CEO, stated, "We are pleased to report that MVC's Q1-2012 copper production was the highest in the Company's history, exceeding the previous first quarter copper production record of 11.15 million pounds set in Q1-2011 by close to 19% and higher than the Q3-2010 quarterly production record of 13.39 million pounds. Both fresh and old tailings processed during the quarter generally contained higher sulphide grades, and MVC resolved the issue involving the pilot oxide plant that had adversely affected production during Q4-2011. Molybdenum production of 216,292 pounds was on budget for the quarter. As a result, we continue to believe 2012 production will meet or exceed the Company's targets of 50 million pounds of copper and close to one million pounds of molybdenum."

Dr. Zeitler added, "Due to ongoing drought conditions in Chile power costs remain very high and continue to adversely affect our financial results. I am looking forward to January 2013 when our power contract changes from a variable to a fixed rate which will result in significantly lower power costs for the remaining five years of the contract."

Key operating and sales metrics are shown below.

 

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Production Metrics:              Q1-2012  Q4-2011  Q3-2011  Q2-2011  Q1-2011
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Copper Production (million lbs)    13.88    12.09    11.01     9.45    11.15
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Molybdenum Production (lbs)      216,292  195,729  186,297  190,917  212,125
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Ore milled (Tonnes 000's)         13,657   15,485   13,390   11,363   14,168
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Copper Grade (%)                   0.169    0.154    0.148    0.148    0.146
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Copper Recovery (%)                27.34    22.92    25.26    25.43    24.36
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Molybdenum Grade in copper
 concentrates (%)                   0.68     0.69     0.69     0.78     0.72
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Molybdenum Recovery (%)             68.8     68.4     71.2     76.0     77.5
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Sales Metrics:                   Q1-2012  Q4-2011  Q3-2011  Q2-2011  Q1-2011
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Copper sales(1) (Million lbs)      14.08    12.42    10.80     9.32    10.88
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Copper price at end of period
 ($US/lb)                           3.85     3.43     3.23     4.22     4.18
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Prior period copper sales
 subject to final pricing
 during period (Million lbs)        4.42     0.87     1.33     3.57     0.45
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Average final settlement price
 for prior period copper sales
 ($US/lb)                         3.6485   3.3328    4.362   4.2897   4.4759
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Company's Recorded Copper Price
 ($US/lb)(2)                        3.55     3.40     3.93     3.97     4.24
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Molybdenum sales (lbs)           303,547  164,059  148,940  195,006  185,404
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Molybdenum price at end of
 period ($US/lb)                  14.570   13.413   14.340   15.880   16.900
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Power Costs (per kwh)            $0.2151  $0.1813  $0.1790  $0.2067  $0.1982
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(1) Copper sales per the Company's records, which may differ from copper
    sales per the smelter. All differences between Company and smelter
    records for a quarter will be recorded as settlement adjustments in
    subsequent quarters until settled.
(2) Copper price recorded for the Company's financial statements for the
    quarter before smelter and refinery charges and settlement adjustments
    to prior periods' sales and after hedging. The Company calculates this
    number by dividing quarterly dollar sales as recorded in its financial
    statements (calculated based on copper deliveries per the smelter) over
    quarterly copper sales per the Company's own records.

The Company will also release Q1-2012 financial results at market open on Monday May 7, 2012 and will hold an investor conference call to discuss the results on Tuesday May 8, 2012 at 11:00 am Pacific Standard Time/2:00 pm Eastern Standard Time.

To participate in the call, please dial the following number:

1-800-355-4959 (Toll-Free North America)

Please let the operator know you wish to participate in the Amerigo Resources conference call.

Media are invited to attend on a listen-only basis.

Following management's discussion of the quarterly results, the analyst and investment community will be invited to ask questions.

Amerigo Resources Ltd. produces copper and molybdenum under a long term partnership with the world's largest copper producer, Codelco, by means of processing fresh and old tailings from the world's largest underground copper mine, El Teniente near Santiago, Chile.

Certain of the information and statements contained herein that are not historical facts, constitute "forward-looking information" within the meaning of the Securities Act (British Columbia), Securities Act (Ontario) and the Securities Act (Alberta) ("Forward-Looking Information"). Forward-Looking Information is often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend"; statements that an event or result is "due" on or "may", "will", "should", "could", or might" occur or be achieved; and, other similar expressions. More specifically, Forward-Looking Information contained herein includes, without limitation, information concerning future tailings production volumes and the Company's copper and molybdenum production, all of which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such Forward-Looking Information; including, without limitation, material factors and assumptions relating to, and risks and uncertainties associated with, the supply of tailings from El Teniente and extraction of tailings from the Colihues tailings impoundment, the achievement and maintenance of planned production rates, the evolving legal and political policies of Chile, the volatility in the Chilean economy, military unrest or terrorist actions, metal price fluctuations, favourable governmental relations, the availability of financing for activities when required and on acceptable terms, the estimation of mineral resources and reserves, current and future environmental and regulatory requirements, the availability and

timely receipt of permits, approvals and licenses, industrial or environmental accidents, equipment breakdowns, availability of and competition for future mineral acquisition opportunities, availability and cost of insurance, labour disputes, land claims, the inherent uncertainty of production and cost estimates, currency fluctuations, expectations and beliefs of management and other risks and uncertainties, including those described under Risk Factors in the Company's Annual Information Form dated March 31, 2008, and in each subsequent Management's Discussion and Analysis. Such Forward-Looking Information is based upon the Company's assumptions regarding global and Chilean economic, political and market conditions and the price of metals, including copper and molybdenum, and future tailings production volumes and the Company's copper and molybdenum production. Among the factors that have a direct bearing on the Company's future results of operations and financial conditions are changes in project parameters as plans continue to be refined, interruptions in the supply of fresh tailings from El Teniente, further delays in the extraction of tailings from the Colihues tailings impoundment, a change in government policies, competition, currency fluctuations and restrictions and technological changes, among other things. Should one or more of any of the aforementioned risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from any conclusions, forecasts or projections described in the Forward-Looking Information. Accordingly, readers are advised not to place undue reliance on Forward-Looking Information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise Forward-Looking Information, whether as a result of new information, future events or otherwise.

Contact:

Amerigo Resources Ltd.
Dr. Klaus Zeitler
President
(604) 218-7013
Amerigo Resources Ltd.
(604) 697-6201
(604) 682-2802 (FAX)
www.amerigoresources.com

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