Copper production is increasing, and unit costs are dropping in accordance with the company’s guidance.

Amerigo Resources (TSX:ARG) has reported that commissioning of the new rougher flotation circuit has commenced on the phase two expansion project at Minera Valle Central, the company’s operation located near Rancagua, Chile.

According to the release, copper concentrates from the new flotation circuit are being processed in the existing cleaner flotation circuit. Construction of the new cleaner flotation circuit is expected to be complete this month. Construction of MVC’s new molybdenum circuit is expected to be complete in October. Copper production is increasing, and unit costs are dropping in accordance with the company’s guidance.

As quoted in the press release:

In 2018, Amerigo expects to produce 65 to 70 million pounds of copper at a cash cost of $1.45 to $1.60 per pound. MVC’s phase two expansion will increase MVC’s copper production to 85 to 90 million pounds per year and lower cash cost to $1.45/lb.

Click here to read the full Amerigo Resources (TSX:ARG) press release.