Amerigo and Codelco/El Teniente Sign Agreement Extending Tailings Processing to 2037

Amerigo Resources Ltd. (TSX:ARG) ("Amerigo" or the "Company") announced today
that its Chilean subsidiary Minera Valle Central ("MVC"), has entered into a
definitive agreement (the "Master Agreement") with the El Teniente division
("DET") of Corporacion Nacional del Cobre de Chile ("Codelco") for the purchase
of the processing rights to the Cauquenes tailings deposit and extending MVC's
rights to process DET fresh tailings to 2037. 


Codelco's El Teniente is the world's largest underground mine. It has been in
operation for over a century, and DET is currently undertaking expansion
projects to extend El Teniente's mine life by at least 50 years.


During the 23 year term of the Master Agreement it is expected that MVC will
produce approximately 1.7 billion pounds of copper and 43 million pounds of
molybdenum and the expansion project will have positive employment and
environmental effects in the region. Major terms of the Master Agreement include
the following:




--  Extension of the existing fresh tailings and Colihues contracts from
    2021 to 2037 
--  Sliding scale royalty to DET for Cauquenes tailings 
--  Change to a sliding scale for the fresh tailings royalty, with an
    increase in the minimum copper price at which this royalty is payable
    and the elimination of exchange rate provisions that increased royalty
    costs 
--  At a copper price of approximately $3.10 per pound the new and amended
    royalty formulas are estimated to result in the same royalties as the
    existing formulas, but with improved downside protection 
--  Three early exit options for DET that are only exercisable in the event
    of changes that were unforeseen as of the date of the Master Agreement



Dr. Klaus Zeitler, Amerigo's Chairman and CEO, stated "We are extremely pleased
to announce this major milestone in the history of the Company. The processing
of tailings from the Cauquenes deposit will require a major expansion of the
Company's operations in Chile and result in a number of new direct and indirect
jobs over the life of the project. We estimate that, upon reaching full
production levels from Cauquenes, the Company's annual copper production will
increase to approximately 90 million pounds, or double current levels, and
production cash costs will decrease by close to 20%, both of which are expected
to have a significantly positive effect on Amerigo's financial results for years
to come".


Rob Henderson, Amerigo's President and Chief Operating Officer, added "Bank due
diligence in respect of the Cauquenes expansion project is at an advanced stage
and we anticipate receiving the remainder of required environmental approvals in
the near future. Engineering is well underway so that construction can begin
after receipt of environmental approvals and proceeds from financing are
available."


Additional details can be found in the Master Agreement and an English
translation of the Master Agreement which are being filed under the Company's
profile on SEDAR. The Company also plans to file a National Instrument 43-101
compliant report on the Company's mineral resources on SEDAR in the near future.


Amerigo Resources Ltd. produces copper and molybdenum under a long term
partnership with the world's largest copper producer, Codelco, by means of
processing fresh and old tailings from the world's largest underground copper
mine, El Teniente near Santiago, Chile. Tel: (604) 681-2802; Fax: (604)
682-2802; Web: www.amerigoresources.com; Listing: ARG:TSX


Certain of the information and statements contained herein that are not
historical facts, constitute "forward-looking information" within the meaning of
the Securities Act (British Columbia), Securities Act (Ontario) and the
Securities Act (Alberta)applicable Canadian securities legislation
("Forward-Looking Information"). Forward-Looking Information is often, but not
always, identified by the use of words such as "expects", "seek", "anticipate",
"believe", "plan", "estimate", "expect" and "intend"; statements that an event
or result is "due" on or "may", "will", "should", "could", or might" occur or be
achieved; and, other similar expressions. More specifically, Forward-Looking
Information contained herein includes, without limitation, information
concerning the agreement for the purchase by MVC of the processing rights for
the Cauquenes tailings deposit, extending the contract for the processing of
Fresh Tailings to 2037 and consolidating all contracts between MVC and DET (the
"Master Agreement"), completion of construction of the planned expansion of
MVC's operations required for the processing of old tailings from the historic
Cauquenes tailings deposit (the "Cauquenes Expansion"), future tailings
production volumes and the Company's copper and molybdenum production, all of
which involve known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the Company, or
industry results, to be materially different from any future results,
performance or achievements expressed or implied by such Forward-Looking
Information including, without limitation, material factors and assumptions
relating to, and risks and uncertainties associated with, the performance of the
Master Agreement, the receipt of adequate debt financing required for the
Cauquenes Expansion, the receipt of environmental approval to the Cauquenes
expansion, the continued supply of tailings from El Teniente and successful
extraction of tailings from the Cauquenes and Colihues tailings deposits, the
achievement and 

maintenance of planned production rates, the evolving legal and political
policies of Chile, the volatility in the Chilean economy, military unrest or
terrorist actions, metal price fluctuations, governmental relations, the
availability of financing for activities when required and on acceptable terms,
the estimation of mineral resources and reserves, current and future
environmental and regulatory requirements, the availability and timely receipt
of permits, approvals and licenses, industrial or environmental accidents,
equipment breakdowns, availability of and competition for future mineral
acquisition opportunities, availability and cost of insurance, labour disputes,
land claims, the inherent uncertainty of production and cost estimates, currency
fluctuations, expectations and beliefs of management and other risks and
uncertainties, including those described under Risk Factors in the Company's
Annual Information Form and in Management's Discussion and Analysis in the
Company's financial statements. Such Forward-Looking Information is based upon
the Company's assumptions regarding global and Chilean economic, political and
market conditions and the price of metals, including copper and molybdenum, and
future tailings production volumes and the Company's copper and molybdenum
production. Among the factors that have a direct bearing on the Company's future
results of operations and financial conditions are changes in project parameters
as plans continue to be refined, interruptions in the supply of fresh tailings
from El Teniente, further delays in the extraction of tailings from the Colihues
and Cauquenes tailings deposits, a change in government policies, competition,
currency fluctuations and restrictions and technological changes, among other
things. Should one or more of any of the aforementioned risks and uncertainties
materialize, or should underlying assumptions prove incorrect, actual results
may vary materially from any conclusions, forecasts or projections described in
the Forward-Looking Information. Accordingly, readers are advised not to place
undue reliance on Forward-Looking Information. Except as required under
applicable securities legislation, the Company undertakes no obligation to
publicly update or revise Forward-Looking Information, whether as a result of
new information, future events or otherwise.




FOR FURTHER INFORMATION PLEASE CONTACT: 
Amerigo Resources Ltd.
Rob Henderson
President & COO
(604) 418-7788


Amerigo Resources Ltd.
(604) 697-6201
www.amerigoresources.com
Amerigo Resources (TSX:ARG)
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