Amerigo Resources Reports Q1, 2022 Production Results, with 0.2 M lbs of Mo Production

Amerigo Resources Ltd. announced production results from Minera Valle Central (MVC) for the quarter ended March 31, 2022 (Q1 2022), with 0.2M pounds of Mo production from the company's 100% owned project located near Rancagua, Chile.

"Copper production for the first quarter of 2022 was 16.5 million pounds at a cash cost of $1.90 per pound. With a quarterly copper price of $4.64 per pound, $0.32 higher than the previous quarter's price, the first quarter of 2022 is off to a strong start for Amerigo. We look forward to releasing our financial results on May 4, 2022," said Aurora Davidson, Amerigo's President, and CEO.

During the first quarter of 2022, MVC produced 16.5 million pounds of copper at a cash cost1 of $1.90 per pound. Copper production for the quarter reflects Amerigo's focus on maximizing new tailings production, which accounted for 58% of quarterly copper production.

In 2018, MVC produced 65 million pounds of copper at a cash cost of $1.56 per pound. MVC has been producing copper concentrates since 1992 and has contracts with El Teniente that extend to at least 2037. MVC's royalty to El Teniente is based on a factor applied to the LME copper price, above $1.95/lb.

Mo production for the quarter was 0.2 million pounds, trending slightly below expectations, primarily due to lower molybdenum content in the tailings.

During the first quarter of 2022, Amerigo returned $7.5 million to shareholders: $4.1 million was paid on March 21, 2022, through Amerigo's increased quarterly dividend of C$0.03 per share, and $3.4 million was returned through Amerigo's ongoing Normal Course Issuer Bid (NCIB) to purchase 2.4 million common shares for cancellation. An additional 6.9 million shares are available for repurchase and cancellation under the NCIB.

Amerigo Resources Ltd. is an innovative copper producer with a long-standing relationship with Corporación Nacional del Cobre de Chile, the world's largest copper producer.

Amerigo produces copper concentrate and molybdenum concentrate as a by-product of its MVC operations in Chile by processing new and historical tailings from Codelco's El Teniente mine, the world's largest underground copper mine.

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