• Maracás construction remains on budget and on schedule
• Largo appoints Mr. Andrew Hancharyk to position of Chief Legal Officer
TORONTO, June 13, 2013 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") is pleased to provide an operational update on its Maracás Vanadium
Project in Bahia, Brazil.
Civil and electrical-mechanical construction at the Maracás Vanadium
Project is progressing well. At present, the project remains on
schedule and within budget for commissioning at the end of the Fourth
Quarter, 2013 (see pictures 1-5).
A full summary of recent developments is listed below:
Items Completed Since April 30, 2013:
Mechanical erection of the electrical switchyard and main substation is
complete and pre-commissioning has also been concluded. Final
commissioning of these areas will occur upon completion of the 86km
power line which is presently in progress.
Erection of the crushers and conveyors is complete. Pre-commissioning of
the crushing circuit will commence soon.
Construction of the cafeteria building and sewage treatment plant is
Construction of the medical center has been completed. The center can
now function on an operational basis.
The chloride tailings pond earthworks are complete with installation of
the liner to commence shortly.
Highlights of Ongoing Development:
The foundation for the ball mill has been completed and the bearings
which will support the mill are currently being installed.
Installation of the concrete bases for the magnetic separation unit is
complete. The steel structures for the magnetic separation unit,
concentrate filter and cyclones are in progress.
Tanks for the tailings thickener are nearing completion.
The heavy shells, light shells and live rings for the kiln and the
cooler have been shipped from China and are presently en route to the
port of Salvador, Brazil.
Six of the 10 rollers for the kiln and cooler have now been fabricated
and are scheduled for shipping by the end of June. The balance of 4
rollers, expected to be shipped in July, required additional work
before shipment, which is already in progress.
Equipment imported from South Africa, including the deammoniator and the
sodium sulphate crystallizer, has arrived in port in Brazil and will be
transported to the Maracás site after clearance with local authorities.
Construction of the water treatment plant is expected to be ready for
commissioning by early August.
At present, construction of the 86km power line is progressing with
approximately 50% left to be completed.
Overview of Site Development and Critical Path Items:
Significant progress has been made in all areas at the project site.
Several areas are now complete with specific locations and equipment
entering the pre-commissioning or commissioning stages according to
their intended schedules. Fabrication of the majority of international
equipment has concluded with shipments either anticipated in the
near-term or already underway.
Fabrication of the majority of the items associated with the 90 meter
kiln and 34 meter cooler is now complete, including all the heavy and
light shells and six of the ten rollers. Many of the completed items
are presently in transit to Brazil. Much of the remainder is expected
to be shipped in June according to schedule. Due to problems during the
fabrication process in China, four of the additional rollers required
recasting. As a result, they will be delivered later than the other
six. Although the kiln's erection schedule has now been revised as a
result, Largo continues to remain on track for commissioning of the
project by the end of Q4 2013, provided revised shipment dates are
adhered to. It is important to note that the costs associated with the
recasting have been assumed by the supplier.
The electrical power line is likewise proceeding with approximately
fifty-percent of the construction completed to date. Of the total of
eighty-six km of the power line, only fifteen percent (13 km) remains
subject to settlement with affected land owners. Management expects to
reach settlements by the end of June. In the event agreements cannot be
reached with these landowners, the state power agency and Largo have
been issued a "right-of-way" for access to the remaining land. A final
approval from the judge involved in the process is expected in the
near-term. Largo believes the resolution will be rendered within
sufficient time to complete the power line so that it can be
commissioned and used for the pre-commissioning of the plant.
The bulk of the equipment imported from the Republic of South Africa,
including the deamoniator and the sodium sulphate crystallizer, has
already arrived in Brazil and will shortly be transported, within
schedule, to the project site, with the civil work related to the
erection of that equipment already nearing completion.
Tim Mann, Chief Operating Officer of Largo, stated: "Our team has done
an exceptional job of monitoring our minute-to-minute progress and
responding to and managing potential issues in order to keep us in line
with our year-end target. I believe this is largely due to the fact
that we have an extremely experienced team of engineers on the ground
who have built and operated many projects over the years, who have
analyzed potential unforeseen events and who have built contingencies
into the construction timeframes." He continued, "I congratulate our
team for overcoming the inevitable and unpredictable hurdles associated
with these types of projects that we have encountered to date and for
working aggressively to sustain the rapid pace of forward development
which presently keeps us on track to commission in the Fourth Quarter
of this year."
Appointment of Mr. Andrew Hancharyk to position of Chief Legal Officer
for Largo Resources
Largo Resources is pleased to announce the appointment of Mr. Andrew
Hancharyk to the position of Chief Legal Officer to the Company. Mr.
Hancharyk is a lawyer with over 18 years of experience in business law
across various industries, including resource companies. Mr. Hancharyk
is a member of the Law Society of Upper Canada and has been an
executive with, or counsel to, several large public and private
companies, including First Quantum and Sherritt International. Mr.
Hancharyk is also a former Policy Manager with the TSX Venture
Exchange. Mr. Hancharyk holds an undergraduate degree in business and
a Juris Doctorate, both from the University of Ottawa, as well as a
Master's in Law from Osgoode Hall at York University. He is a member
of the board of directors of Discovery Harbour Resources, a publicly
company listed on the TSX Venture Exchange.
Largo is a Canadian-based mineral resource exploration and development
company focused on creating a world leading strategic metals company.
Largo currently holds a 100% interest in the Maracás Vanadium Project,
a 100% interest in the Currais Novos Tungsten Tailings Project, a 100%
interest in the Campo Alegre de Lourdes Iron-Vanadium Project, all in
Brazil, and a 100% interest in the Northern Dancer Tungsten-Molybdenum
property located in the Yukon Territory, Canada. The immediate goal of
the Company is to develop the Maracás Vanadium Project by Q4 2013 and
to produce WO3 concentrate from the reprocessing of tungsten tailings from Currais
Novos. Largo's skilled management team both in Canada and Brazil, are
confident in their ability to advance these projects.
Largo is listed on the TSX Venture Exchange under the symbol "LGO".
For more information please refer to Largo's website: www.largoresources.com
This press release contains forward-looking information under Canadian
securities legislation. forward-looking information includes, but is
not limited to, statements with respect to completion of the private
placement, Largo's development potential and timetable of the Maracas
and Northern Dancer projects; Largo's ability to raise additional funds
necessary; the future price of tungsten and molybdenum; the estimation
of mineral reserves and mineral resources; conclusions of economic
evaluation; the realization of mineral reserve estimates; the timing
and amount of estimated future production, development and exploration;
costs of future activities; capital and operating expenditures; success
of exploration activities; mining or processing issues; currency
exchange rates; government regulation of mining operations; and
environmental risks. Generally, forward-looking statements can be
identified by the use of forward-looking terminology such as "plans",
"expects" or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases or
statements that certain actions, events or results "may", "could",
"would", "might" or "will be taken", "occur" or "be achieved".
Forward-looking statements are based on the opinions and estimates of
management as of the date such statements are made. Forward-looking
statements are subject to known and unknown risks, uncertainties and
other factors that may cause the actual results, level of activity,
performance or achievements of the Largo to be materially different
from those expressed or implied by such forward-looking statements,
including but not limited to those risks described in the annual
information form of Largo and in its public documents filed on SEDAR
from time to time. Although management of Largo has attempted to
identify important factors that could cause actual results to differ
materially from those contained in forward-looking statements, there
may be other factors that cause results not to be as anticipated,
estimated or intended. There can be no assurance that such statements
will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements. Largo does not undertake to update any forward-looking
statements, except in accordance with applicable securities laws.
Readers should also review the risks and uncertainties section of
Largo's annual and interim MD&As.
NEITHER THE TSX VENTURE EXCHANGE (NOR ITS REGULATORY SERVICE PROVIDER)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
Image with caption: "View from Primary Crusher (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20130613_C7871_PHOTO_EN_27990.jpg
Image with caption: "Foundation for Primary Ball Mill with Baseplates Being Installed and Steel Supports for Magnetic Separation in the Background (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20130613_C7871_PHOTO_EN_27991.jpg
Image with caption: "Pedestal for Kiln with Scaffolding Being Removed (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20130613_C7871_PHOTO_EN_27993.jpg
Image with caption: "View of Completed Switchyward (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20130613_C7871_PHOTO_EN_27992.jpg
Image with caption: "Kiln Shells at Port in China and Being Loaded on Ship for Transport (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20130613_C7871_PHOTO_EN_27985.jpg
Image with caption: "Kiln Shells at Port in China and Being Loaded on Ship for Transport (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20130613_C7871_PHOTO_EN_27986.jpg
Image with caption: "Kiln Shells at Port in China and Being Loaded on Ship for Transport (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20130613_C7871_PHOTO_EN_27994.jpg
Image with caption: "Kiln Shells at Port in China and Being Loaded on Ship for Transport (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20130613_C7871_PHOTO_EN_27988.jpg
SOURCE: Largo Resources Ltd.
For further information:
Manager Business Development
President & CEO
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