Amerigo Resources’ Chilean subsidiary Minera Valle Central (MVC) has started processing tailings from the Cauquenes tailings deposit, located near the company’s plant.
Amerigo Resources president and COO Rob Henderson said: "Phase 1 of the Cauquenes expansion is nearing completion and MVC has started the processing of Cauquenes tailings at a rate of approximately 30,000t per day.
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"We continue to expect production to ramp-up to 60,000tpd during Q4-2015, and all phase 1 work to be completed on schedule and on budget."
Once the first phase is complete, Amerigo expects MVC’s annual production to increase to 70 million pounds of copper.
Amerigo Resources chairman and CEO Dr Klaus Zeitler said: "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."
In March, Amerigo obtained approval from a bank syndicate comprising Mandated Lead Arrangers Banco Bilbao Vizcaya Argentaria and Export Development Canada for a loan facility to MVC.
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By GlobalDataMVC used the loan for the first phase of the expansion of its operations for the processing of tailings from the Cauquenes deposit.
In April 2014, MVC signed an agreement with Corporacion Nacional del Cobre de Chile granting right to the company to process the historic tailings in Cauquenes.
At the Cauquenes tailings deposit, Amerigo aims to increase annual production to 90 million pounds of copper and 2.5 million pounds of molybdenum.
Image: Amerigo expects MVC’s annual production to increase to 70 million pounds of copper. Photo: courtesy of Suat Eman/FreeDigitalPhotos.net.
