Quarterly Copper Production Of 16 Million Pounds, Nine Per Cent Over Q3 Guidance
Amerigo Resources Ltd. (TSX: ARG; OTC:ARREF) has unveiled strong production results for the quarter ended September 30, 2021 from Minera Valle Central (MVC), the company’s 100% owned operation located near Rancagua, Chile.
In Q3-2021, MVC produced 16 million pounds (M lbs) of copper at a cash cost of US$1.62 per pound (“lb) and 0.3 M lbs of molybdenum.
Q3-2021 copper production was at 109% of guidance(YTD-2021: 101% of guidance), due to higher fresh tailings tonnage and grade. During the quarter, MVC also successfully completed a series of planned plant modifications which now allow it to process a higher throughput of fresh tailings without sacrificing recovery. Production from fresh tailings in Q3-2021 accounted for 54% of quarterly production.
Molybdenum production in Q3-2021 was at 100% of guidance (YTD-2021: 95% of guidance), marginally affected as more copper production comes from fresh tailings than from Cauquenes, as fresh tailings have lower molybdenum content.
President and CEO, Aurora Davidson, said Amerigo completed Q3-2021 with very strong production results.
“The annual plant maintenance shutdown was completed successfully and on schedule, and full production operations resumed on October 2, 2021.
“A total of 1,390 maintenance tasks and projects were completed safely and on time by our team in Chile to ensure MVC’s plant continues to operate as expected,” Mr Davidson said.
Q3-2020 cash cost of US$1.62/lb was eight per cent lower than the company’s Q3 cash cost guidance of US$1.76/lb due to higher than projected production and lower than anticipated power, steel and lime costs.
MVC’s average copper price in Q3-2021 was US$4.23/lb, compared to US$4.44/lb in Q2-2021.
On September 30, 2021, the company’s cash and restricted cash balance was US$71 million (an increase of US$18 million from June 30, 2021) and outstanding bank debt was US$35 million (unchanged from June 30, 2021).
For further information please visit: http://www.amerigoresources.com/