Agoracom: Small Cap Investment - Amerigo Resources - Announces Q1 2009 Production Results and Investor Conference Call

world's largest underground copper mine,

Chile's El Teniente mine - a Long Term Low Cost Copper & Molybdenum Producer

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Announces Q1 2009 Production Results and Investor Conference Call

posted on Apr 30, 2009 05:44AM

April 30, 2009

Amerigo Announces Q1 2009 Production Results and Dates for Release of Q1 2009 Results and Investor Conference Call

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 30, 2009) - Amerigo Resources Ltd. (TSX:ARG) ("Amerigo" or the "Company") is pleased to announce production results for the first quarter of 2009 from Minera Valle Central ("MVC"), the Company's operations located in Rancagua, Chile. For the three months ended March 31, 2009 MVC produced 7.12 million pounds of copper and 97,184 pounds of molybdenum.

Traditionally first quarter production is low due to a lower number of production days as a result of annual plant maintenance shutdowns and lower recoverable metal content. In addition, molybdenum production was lower due to the lower grades in fresh tailings, as well as the absence of feed material from higher grade old tailings.

Dr. Klaus Zeitler, Amerigo's president, stated, "During the quarter we made the decision to change the extraction plan for the processing of old tailings in order to gain access to higher grade material. This new plan required the reorientation of the hydraulic extraction equipment and mining faces, and made it necessary to suspend mining of old tailings for much of the quarter. Although production was adversely affected in Q1-2009, these steps will result in improved grades and recoveries and will allow the Company to increase processing of old tailings. This in turn will increase short to medium term cash flow in these times of low copper prices and challenging and volatile market conditions."

Key operating and sales metrics are shown below.

----------------------------------------------------------------------------
Production Metrics:              Q1-2008  Q2-2008  Q3-2008  Q4-2008  Q1-2009
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Copper Production (million lbs)     7.80     7.08    10.22     9.53     7.12
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Molybdenum Production (lbs)      148,670  147,508  261,234  211,729   97,184
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Ore milled (Tonnes 000's)         11,372    9,135   12,882   13,299   10,859
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Copper Grade (%)                   0.133    0.135    0.134    0.134     0.12
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Copper Recovery (%)                23.39    26.04    26.86    24.26    24.78
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Molybdenum Grade in copper
 concentrates (%)                   0.69     0.71     0.92     0.79     0.49
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Molybdenum Recovery (%)            80.59    86.49    83.49    83.96    80.77
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Sales Metrics:                   Q1-2008  Q2-2008  Q3-2008  Q4-2008  Q1-2009
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Copper sales (Million lbs)          7.80     7.13    10.20     9.56     7.12
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Copper price at end of period
 ($US/lb)                           3.84     3.80     2.81     1.31     1.83
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Prior period copper sales
 subject to final pricing
 during period (Million lbs)       12.40     6.48     9.18     9.11     7.91
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Average final settlement price
 for prior period copper sales
 ($US/lb)                         3.5325   3.5267   3.5267   1.8345   1.5032
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Molybdenum sales (lbs)           157,739  143,048  258,499  219,215  101,661
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Molybdenum price at end of
 period ($US/lb)                  33.150   33.200   32.688    9.250    8.325
----------------------------------------------------------------------------

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Power Costs (per kwh)            $0.3268  $0.2462  $0.1703  $0.1261  $0.1468
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Mr. Steven Dean, the Company's chairman, added, "Based on expert advice we have received in Chile, we expect electricity prices, the Company's most significant cost, to trend lower in Q2-2009 due to the high snow melt benefiting hydro generation, lower oil prices and additional supply from new in country generating facilities, including Amerigo's own generating facility."

The Company will also release its first quarter 2009 financial results at market open on Wednesday, May 13, 2009 and will hold an investor conference call to discuss the company's Q1-2009 results on Thursday, May 14, 2009 at 11:00 am Pacific Daylight Time/2:00 pm Eastern Daylight Time.

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

1-866-540-8136 (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.

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