Amerigo Provides Update on Heavy Rains in Chile

Rhea-AI Summary

Amerigo Resources provided an update on the effect of heavy rains at their Minera Valle Central (MVC) operation in Chile. Heavy rains on June 13-14, 2024, resulted in 116 mm of rainfall, causing water accumulation in the Cauquenes historic tailings deposit and halting its processing. MVC continues to process fresh tailings, and the power supply remains unaffected. The estimated production impact is 0.55 million pounds of copper, but this is not expected to change MVC's 2024 production guidance. Additional heavy rains are forecasted for the week of June 17, 2024.

Positive

• Fresh tailings processing at MVC continues unaffected.
• No reported injuries or accidents among MVC personnel.
• MVC's 2024 production guidance remains unchanged despite the rains.
• MVC successfully built a new water containment dam, aiding in water management.

Negative

• Heavy rains caused water accumulation, halting the processing of historic tailings.
• Estimated production impact of 0.55 million pounds of copper.
• Forecasted additional heavy rains create uncertainty for future operations.
• Ongoing work to remove accumulated water may face further delays.

Limited production impact reported to date

No injuries or accidents reported to MVC personnel

Additional heavy rains are expected during the week starting June 17, 2024

VANCOUVER, British Columbia, June 17, 2024 (GLOBE NEWSWIRE) -- Amerigo Resources Ltd. (TSX: ARG; OTCQX: ARREF) (“Amerigo” or the “Company”) is providing an operational update on Minera Valle Central (“MVC”), the Company’s 100% owned operation located near Rancagua, Chile.

Heavy rains occurred near MVC on Thursday, June 13, and Friday, June 14, 2024, with reported rainfall of 116 mm. The power supply to MVC was unaffected, and MVC is processing fresh tailings normally. The rains caused water accumulation in the Cauquenes historic tailings deposit, halting the processing of historic tailings. MVC estimates 408,000 cubic meters of accumulated rainwater have been extracted as of this news release. The impact on production from the June 13 and 14 rains is estimated at 0.55 million pounds of copper. It would not warrant changes to MVC’s 2024 production guidance of 62.4 million pounds of copper and 1.2 million pounds of molybdenum, as actual production outperformed guidance before these rains.

However, current weather forecasts indicate that heavy rains will return to the region during the week of June 17, 2024. We cannot anticipate how forecasted additional rain could impact MVC operations or the ongoing work to remove accumulated water from Cauquenes. Amerigo will update the market as needed.

“MVC completed building a new water containment dam in Cauquenes in time for the rain season this year, which provided a critical first line of defense limiting the amount of water accumulated in the deposit. Our team was also quick to deploy floating pumps to initiate water removal from Cauquenes as soon as safely possible,” said Aurora Davidson, Amerigo’s President and CEO. “Our preparedness to deal with heavy rain events is strong and will continue to mitigate potential future operational impacts,” she added.

About Amerigo and MVC

Amerigo Resources Ltd. is an innovative copper producer with a long-term relationship with Corporación Nacional del Cobre de Chile (“Codelco”), the world’s largest copper producer.

Amerigo produces copper concentrate and molybdenum concentrate as a by-product at the MVC operation in Chile by processing fresh and historic tailings from Codelco’s El Teniente mine, the world's largest underground copper mine. Tel: (604) 681-2802; Web: www.amerigoresources.com; Listing: ARG: TSX.

Contact Information

Aurora Davidson	Graham Farrell
President and CEO	Investor Relations
(604) 697-6207	(416) 842-9003
ad@amerigoresources.com	Graham.Farrell@Harbor-Access.com

FAQ

What is the impact of the heavy rains on Amerigo's MVC operations?

The heavy rains caused water accumulation, halting the processing of historic tailings at MVC, with an estimated production impact of 0.55 million pounds of copper.

Did the heavy rains affect Amerigo's power supply at MVC?

No, the power supply to MVC was unaffected by the heavy rains.

How much rain fell at MVC on June 13-14, 2024?

MVC experienced 116 mm of rainfall on June 13-14, 2024.

What is Amerigo's 2024 production guidance despite the heavy rains?

Amerigo's 2024 production guidance remains at 62.4 million pounds of copper and 1.2 million pounds of molybdenum.

What measures has MVC taken to manage the heavy rains?

MVC built a new water containment dam and deployed floating pumps to remove accumulated water.