Amerigo Resources Ltd. reported today that its Chilean subsidiary, Minera Valle Central S.A., has commenced processing historic tailings from the Cauquenes tailings deposit located near MVC's plant after a construction period of only 5 1/2 months.
Rob Henderson, Amerigo's President and COO, stated "Phase 1 of the Cauquenes expansion is nearing completion and MVC has started the processing of Cauquenes tailings at a rate of approx. 30,000 tonnes per day. We continue to expect production to ramp up to 60,000 tpd during Q4-2015, and all phase 1 work to be completed on schedule and on budget."
Amerigo's Chairman and CEO, Dr. Klaus Zeitler, added "We are pleased to announce the achievement of this significant milestone for the Company. Once this phase of the expansion is complete, we expect MVC's annual production to increase to 70 million pounds of copper, and cash cost to decrease from over $2.00/lb Cu to significantly less than $2.00. It is anticipated that incorporating the processing of Cauquenes tailings into MVC's operations will have a positive effect on Amerigo's operating results, which is critical during these times of low copper prices. Over the next 15-20 years Cauquenes is expected to add significant value to the Company."
Source: http://www.amerigoresources.com/