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- El Teniente restarts operations and is sending fresh tailings to MVC
- Historic tailings processing remains ongoing
- Timing of normalized operations at El Teniente to determine impact on MVC guidance
Amerigo Resources Ltd. (TSX: ARG,OTC:ARREF; OTCQX: ARREF) ("Amerigo" or the "Company") provides an operational update on Minera Valle Central ("MVC"), its 100% owned operation located near Rancagua, Chile.
On Saturday, August 9, 2025, the El Teniente underground copper mine received approval from Chile's National Geology and Mining Service and the Labour Directorate to restart operations in eight of the twelve underground sectors. Four sectors remain temporarily shut down. Operations at El Teniente have resumed in accordance with a safety restart plan. Following the restart of operations at El Teniente, MVC started receiving fresh tailings during the night of Sunday, August 10, 2025.
As reported in the Company's news release of August 6, 2025, operations at the El Teniente underground copper mine, owned by Corporación Nacional del Cobre de Chile ("Codelco"), were suspended on the evening of July 31, 2025. This followed a seismic event that, unfortunately, resulted in the death of six workers. While operations at the mine and the supply of fresh tailings to MVC were suspended, Amerigo continued to process historic tailings.
MVC is now processing fresh tailings from El Teniente and also handling historic tailings. Until operations at El Teniente are normalized, Amerigo expects daily throughput from the fresh tailings to be lower than initially forecast in MVC's 2025 production schedule.
"To the extent possible, MVC will mitigate any production impacts by increasing the processing of historic tailings," said Aurora Davidson, Amerigo's President and CEO. "Once we have data on El Teniente's throughput over the next few days, we will provide a production update," she added.
About Amerigo and Minera Valle Central
Amerigo Resources Ltd. is an innovative copper producer with a long-term relationship with 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 ; ARG:TSX; OTCQX: ARREF.
| Contact Information | |
| Aurora Davidson President and CEO (604) 697-6207 ad@amerigoresources.com | Graham Farrell Investor Relations (416) 842-9003 graham@northstarir.ca |
Cautionary Statement Regarding Forward-Looking Information
This news release contains certain "forward-looking information" as such term is defined under applicable securities laws (collectively called "forward-looking statements"). This information relates to future events or the Company's future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "should", "believe" and similar expressions are intended to identify forward-looking statements. These forward-looking statements include the statement concerning the Company's planned mitigation of production impacts at El Teniente by increasing the processing of historic tailings.
These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such statements. Inherent in forward-looking statements are risks and uncertainties beyond our ability to predict or control, including risks that may affect our operating or capital plans; risks generally encountered in the operation, permitting and development of mineral projects such as unusual or unexpected geological formations, negotiations with government and other third parties, unanticipated metallurgical difficulties, delays associated with permits, approvals and permit appeals, ground control problems, adverse weather conditions (including, but not limited, to heavy rains), process upsets and equipment malfunctions; risks associated with labour disturbances and availability of skilled labour and management; risks related to the potential impact of global or national health concerns; government or regulatory actions or inactions, including, but not limited to, the imposition of tariffs on the importation of copper; fluctuations in the market prices of our principal commodities, which are cyclical and subject to substantial price fluctuations; risks created through competition for mining projects and properties; risks associated with lack of access to markets; risks associated with availability of and our ability to obtain both tailings from Codelco's Division El Teniente ("DET") current production and historic tailings from tailings deposit; the availability of and ability of the Company to obtain adequate funding on reasonable terms for expansions and acquisitions; mine plan estimates; risks posed by fluctuations in exchange rates and interest rates, as well as general economic conditions; risks associated with environmental compliance and changes in environmental legislation and regulation; risks associated with our dependence on third parties for the provision of critical services; risks associated with non-performance by contractual counterparties; risks associated with supply chain disruptions; title risks; social and political risks associated with operations in foreign countries; risks of changes in laws affecting our operations or their interpretation, including foreign exchange controls; and risks associated with tax reassessments and legal proceedings. Many of these risks and uncertainties apply to the Company and its operations, as well as DET and its operations. DET's ongoing mining operations provide a significant portion of the materials the Company processes and its resulting metals production. Therefore, these risks and uncertainties may also affect the Company's operations and have a material effect.
Actual results and developments will likely differ materially from those expressed or implied by the forward-looking statements in this news release. Such statements are based on several assumptions which may prove to be incorrect, including, but not limited to, assumptions about the El Teniente mine resuming operations in the near future and the resumption without significant delay of ongoing supply of material for processing from DET's current mining operations.
Future production levels and cost estimates assume no additional adverse mining or other events significantly affecting budgeted production levels.
Climate change is a global issue that could pose significant challenges affecting the Company's future operations. This could include more frequent and intense droughts followed by intense rainfall. In the last several years, Central Chile has experienced both drought conditions and significant rain episodes. The Company's operations are sensitive to water availability and the reserves required to process projected historic tailings tonnage.
Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company's control, the Company cannot assure that it will achieve or accomplish the expectations, beliefs or projections described in the forward-looking statements.
The preceding list of important factors and assumptions is not exhaustive. Other events or circumstances could cause our results to differ materially from those estimated, projected, and expressed in or implied by our forward-looking statements. You should also consider the matters discussed under Risk Factors in the Company's Annual Information Form. The forward-looking statements contained herein speak only as of the date of this news release.
